The contribution margin is the difference between sales and total variable cost. (D)
It is calculated by subtracting total variable cost from sales.
The contribution margin measures how much of each sale is left after variable costs are deducted, and is used to cover fixed costs and generate operating income.
The contribution margin is an important metric that measures the profitability of a business. It is calculated by subtracting total variable costs (such as cost of goods sold, commissions, and promotional expenses) from total sales.
The contribution margin indicates the amount of each sale that is left after variable costs are deducted, and is used to cover fixed costs (such as rent, insurance, and depreciation) and generate operating income.
Knowing the contribution margin helps businesses assess the performance of their sales strategies and determine whether they are meeting their profit targets. (D)
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does drawing potential output on our aggregate supply and aggregate demand diagrams because it is used as a reference point to compare where the economy is in the short run to where it will end up in the long run. group of answer choices true false
The statement "does drawing potential output on our aggregate supply and aggregate demand diagrams because it is used as a reference point to compare where the economy is in the short run to where it will end up in the long run" is true as statement describes correct information.
Drawing potential output on aggregate supply and aggregate demand diagrams is an important reference point because it allows us to compare the economy's current position to its long-run equilibrium.
Potential output is an economic concept that refers to the maximum level of output an economy can sustain in the long-run without inflation or deflation. It is also known as the full-employment level of output.
This is calculated by measuring the maximum level of output an economy can produce when all of its resources are used efficiently and fully. By comparing the current output to the potential output, we can determine whether the economy is in a short-run or long-run equilibrium.
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suppose that simpson was reimbursed for $250 of the physician's charges and $1,200 for the hospital costs. calculate the amount of medical expenses that will be included with simpson's itemized deductions after any applicable limitations.
Simpson's itemized deductions for medical expenses will be $1,450 after any applicable limitations ($250 for physician's charges + $1,200 for hospital costs).
To calculate Simpson's itemized deductions for medical expenses after any applicable limitations, first add the physician's charges ($250) and the hospital costs ($1,200).
Then, subtract any applicable limitations (amount depends on the specific situation).
The amount remaining is the medical expenses included in Simpson's itemized deductions. In this case, the total medical expenses included with Simpson's itemized deductions is $1,450 ($250 + $1,200).
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Closed innovation is associated with which organizational inertia problem?
A. poor brand recognition
B. the "NIH problem"
C. barriers to entry
D. discontinuous innovation
E. groupthink
Closed innovation is associated with an organizational inertia problem known as the "NIH problem". The Option B is correct.
What does a Closed innovation means?Closed innovation is simply innovation created by a company's internal team. The entire innovation process, from start to finish, takes place entirely within the organization, within clearly defined company boundaries.
With no outside resources or influences, the company retains control over its technology and intellectual property. Several innovation experts have criticized the concept of closed innovation, arguing that if companies want to drive change, they should open their doors and allow outside expertise in.
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Suppose Abe, Betty and Charlie are in a team doing a group project in a math class. There are two tasks they need to do for the project: type the written report and solve quadratic equations. The following table shows how many units of each task each person can do with each hour he or she devotes to that task. Assume that each person will devote a total of 20 hours to the project’s tasks.
(a) Who has the comparative advantage in each task?
(b) Assume the three decide to get tasks done cooperatively and efficiently. Putting equations on the horizontal and words on the vertical…draw the combined production possibility frontier and label each endpoint and kink with numerical values. Indicate who specializes in the production of what task on each line segment of the PPF. What are the values for the marginal opportunity cost of solving equations along each segment of your PPF?
(c) Suppose Abe tires after spending 10 hours solving equations and once he tires, he can only solve 100 equations in an hour. Draw your combined PPF over to reflect this reality wrinkle.
Person
Number of words typed in an hour
Number of equations solved in an hour
Abe
100
200
Betty
200
100
Charlie
400
300
The marginal opportunity cost of solving equations along each segment of the PPF is:
Segment AB: 1 equation for every 2 words
Segment BC: 1 equation for every 1 word
Segment CD: 1 equation for every 1.5 words
(a) Abe has the comparative advantage in solving equations, Betty has the comparative advantage in typing words, and Charlie has the comparative advantage in both.
(b) The combined production possibility frontier (PPF) would be a curved line with two kinks, with the points labeled:
Point A: (2000 words, 0 equations)
Point B: (1000 words, 1000 equations)
Point C: (0 words, 2000 equations)
Abe would specialize in solving equations, Betty would specialize in typing words, and Charlie would specialize in both tasks.
The marginal opportunity cost of solving equations along each segment of the PPF is:
Segment AB: 1 equation for every 2 words
Segment BC: 1 equation for every 1 word
(c) The combined PPF with Abe's decreased efficiency would be a curved line with three kinks, with the points labeled:
Point A: (2000 words, 0 equations)
Point B: (1000 words, 1000 equations)
Point C: (100 words, 1500 equations)
Point D: (0 words, 2000 equations)
Abe would specialize in solving equations, Betty would specialize in typing words, and Charlie would specialize in both tasks.
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mikael opened a fabulous restaurant ten years ago. the food is so exceptional that the restaurant has become one of the top spots in the city. mikael, age 55, is the sole owner with a compensation of $305,000. mikael's son jamel, age 28, is the master chef with compensation of $100,000. jamel has been with the restaurant full time since he turned 18. mikael also employs 15 other individuals whose ages range between 25 and 35 and have compensation on average of $40,000 per year. mikael wants to establish a profit sharing plan. which of the following is true? (a) if mikael selected the standard allocation method and the plan contributes 10% per individual, the plan will contribute $55,000 to mikael's account. (b) if mikael selected the permitted disparity method and the plan contributes 10% per individual, the contribution the company makes for mikael will be increased. (c) considering the needs and wants of mikael and jamel, an age-based profit sharing plan is the best plan for both of them. (d) a new comparability plan is the least expensive, simplest way to meet both mikael and jamel's retirement needs.
As Mikael wants to establish a profit sharing plan, the option which is true is if Mikael selected the standard allocation method and the plan contributes 10% per individual, the plan will contribute $55,000 to Mikael's account. Therefore, the correct option is A.
In the given case, Mikael is the sole owner of a top restaurant with a compensation of $305,000. Mikael's son Jamel, is the master chef with compensation of $100,000. Mikael also employs 15 other individuals with compensation on average of $40,000 per year. In a profit sharing plan, if Mikael selected the standard allocation method and the plan contributes 10% per individual, the plan will contribute $55,000 to Mikael's account.
This is because the standard allocation method considers only the individual's compensation when allocating funds, which would mean that Mikael's account will get 10% of his $305,000 annual compensation, which is $55,000. Hence, option A is correct.
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A typical firm in a perfectly competitive market made positive economic profits last period. This period:a) Market supply will increase.b) Market price will rise.c) The firm will produce more.d) The firm's profits will increase.
A typical firm in a perfectly competitive market made positive economic profits last period. This period, the market price will rise. Therefore, option B is correct.
A competitive market is a market in which a large number of manufacturers offer similar goods to the market. Competitive markets are characterized by little market power, which indicates that producers and consumers have little ability to influence market prices. A competitive market has a number of characteristics, including a large number of small companies, unrestricted entry and exit, homogeneous products, full access to information, and well-defined property rights. Positive economic profits mean that a company is earning more income than it is expending on production expenses. The market price will increase as a result of this.
Therefore, option (b) is correct. The other alternatives are incorrect because the situation is not significant enough for these circumstances to occur.
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Which of the following is NOT a reason for increasing opportunity costs:
A) technology differs among nations
B) factors of production are not homogeneous
C) factors of production are not used in the same fixed proportion in the production of all commodities
D)for the nation to produce more of a commodity, it must use resources that are less and less suited in the production of the commodity
The answer is A, because "technology differences among nations" do not directly affect the concept of opportunity cost, which refers to the cost of one alternative in terms of the best alternative forgone.
What is Opportunity Cost?Opportunity cost refers to the loss of other alternatives when one alternative is chosen over others. Opportunity costs are a result of resources that are scarce and have different uses.Therefore, when a decision is taken, one option is chosen over others. The chosen option is the best for that particular instance.
Nonetheless, it is essential to remember that the opportunity costs are the benefits that would have been received if the next best choice had been picked instead of the chosen one.
Factors of production not being homogeneous (B), not being used in the same proportion for all commodities (C), and the need to use less suited resources to produce more of a commodity (D), all lead to increasing opportunity costs, as more resources need to be diverted from other uses, resulting in a higher cost of producing an additional unit of the commodity. Thus, A is the only option that does not contribute to increasing opportunity costs.
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A business that will comply with the letter of the law but no more than that is a(n) ______ business.
A. Amoral.
B. Legalistic.
C. Responsive.
D. Ethical.
A business that will comply with the letter of the law but no more than that is a(n) Legalistic business.
What is Legalism?
Legalism is a behavior that is rooted in a set of laws or principles rather than a particular moral code. As a result, in legalistic situations, the law is the only arbiter of right and wrong. Legalistic people believe that if something is lawful, it is automatically ethical.
A legalistic business follows the law to the letter but no more than that. These businesses operate strictly by the law, but they may not be concerned with anything more than that. The business may not be concerned with ethical considerations, customer service, or any other factor outside of what is legally required. They are concerned only with what is legally necessary to stay in business.
Therefore, the correct answer is B.
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Over the past year you earned a nominal rate of interest of 10% on your money. The inflation rate was 5% over the same period. The EXACT (not approximate) actual growth rate of your purchasing power was 4. a. 0
b. 4.8%. c. 5.0%. d. 10.0%. e. None of the above is correct
The exact (not approximate) actual growth rate of your purchasing power was c) 5,0%
The exact actual growth rate of your purchasing power was 4% as nominal interest rate - inflation rate = actual growth rate.
The actual growth rate of purchasing power can be determined using the following formula: Actual growth rate of purchasing power = Nominal interest rate - Inflation rate.
Given the following values: Nominal interest rate = 10% Inflation rate = 5% We can now calculate the actual growth rate of purchasing power as follows: Actual growth rate of purchasing power = 10% - 5% = 5%.
Therefore, the correct option is c) 5,0%.
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Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if:
A) the per-worker production function shifts downward.
B) there is technological change.
C) there continue to be decreases in capital per hour worked.
D) there are decreases in human capital.
Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if: B) there is technological change.
What's diminishing returnsDiminishing returns is a concept in economics that refers to the idea that as an economy produces more of a good, the marginal benefit from additional units of the good decreases while the marginal cost increases. This means that it becomes increasingly difficult for an economy to increase output as it already has to put more resources to produce the same amount of output as before.
Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if there is technological change. In other words, innovation and improvements in technology are required to boost productivity, which in turn leads to an increase in real GDP per hour worked.
A) the per-worker production function shifts downward. This answer is incorrect. A shift in the per-worker production function to the downside would result in a decrease in real GDP per hour worked, not an increase.
B) there is technological change. This answer is correct.
C) there continue to be decreases in capital per hour worked. This answer is incorrect. Decreases in capital per hour worked would have the opposite effect and would likely reduce real GDP per hour worked.
D) there are decreases in human capital. This answer is incorrect. Human capital refers to the skills, knowledge, and abilities of a workforce. If human capital decreases, it is likely to result in a decrease in productivity and, therefore, real GDP per hour worked.
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concepts and methods are key elements to consider when deciding how to blank for marketing research. multiple choice question. overcome challenges collect data analyze data apply discovered knowledge
In order to provide accurate and reliable data, marketing research must adhere to a set of systematic steps.
What crucial component makes up market research?It encompasses all elements that influence both, including consumer and sales analysis, among others. Its four components—discovering the objective, hearing from customers, relying on reliable sources, and being aware of the processes of what you do—shape the entire research.
What are the two sorts of data that market researchers gather for marketing purposes?The information gathered may be quantitative or qualitative (non-numerical) (numerical or statistical data). Two sorts of information can be gathered during primary market research: exploratory and specific.
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darnell, inc.'s balance sheet indicated that the cash account increased by $5,400 during the past year. the company generated a positive cash flow from operating activities of $14,000 and a negative cash flow from investing activities of $6,100. what was the cash flow effect of the company's financing activities?
Financing activities had a positive cash flow effect of $3,300 ($14,000 + $6,100 - $5,400).
Financing activities refer to a company's raising of capital to fund its operations and investments. In the case of Darnell Inc.,
the positive cash flow effect of financing activities can be determined by taking the total cash flow from operating activities of $14,000, plus the negative cash flow from investing activities of $6,100, and subtracting the increase in the cash account of $5,400.
This results in a total of $14,000 + $6,100 - $5,400 = $3,300. This amount reflects the net cash flow from financing activities.
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Phil has an internet business and sells his products to customers worldwide. Phil is interested in customer relationship management (CRM) because he doesn't know who his customers are or where they live. Phil feels that he could increase his sales if he had detailed information about the products and services his customers use. To initiate the customer relationship management (CRM) cycle, Phil should first _______.a. identify its profitable and unprofitable customersb. understand the interactions with current customersc. identify customer relationships with the organizationd. capture relevant customer data on interactions and relationships
The final and best option is to collect customer data, interactions, and relationships.
What exactly is customer relationship management (CRM)?Customer relationship management (CRM) is a technology which thus enables you to manage all of your company's interactions and relationships with current and prospective customers. The goal is straightforward: Enhance your business relationships. CRM systems help businesses stay connected to their customers while also streamlining processes and increasing profitability.
If a customer purchases a product, you can upsell or cross-sell them. Providing a birthday greeting with a coupon code. Sending a discount to a customer who hasn't purchased in a while.
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the effects on organizations of unmotivated and unhappy workers include: multiple select question. improved product development poor relationships with customers high recruitment and training costs increased financial success
Unmotivated and dissatisfied employees have a negative impact on businesses in the form of costly training and recruitment expenses as well as bad customer relations.
What impact does a disengaged workforce have on a business?A demotivated employee can have an adverse effect not just on the productivity of the person but also on the team as a whole. Other employees may experience stress when attempting to pick up the slack as a result of increased tardiness or absenteeism at work as well as a lack of attention on routine chores.
What negative impact does a lack of motivation have on a company?Higher employee turnover, poorer engagement, poor communication, and decreased productivity are just a few of the problems that may develop and make your workplace a toxic environment.
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an institution that originates and holds a fixed-rate mortgage is adversely affected by interest rates; the borrower who was provided the mortgage is adversely affected by interest rates. a. decreasing; increasing b. increasing; decreasing c. increasing; stable d. stable; decreasing
An institution that originates and holds a fixed-rate mortgage is adversely affected by increasing interest rates; the borrower who was provided the mortgage is adversely affected by decreasing interest rates. So, the answer is (b) increasing; or decreasing.
When an institution originates and holds a fixed-rate mortgage, it locks in a certain interest rate at the time of the loan origination.
This means that if interest rates rise in the future, the institution will not be able to earn as much of a return on the loan as it would have if it had originated the loan at a higher rate.
This is because the institution cannot adjust the interest rate charged to the borrower once the loan has been made.
The borrower who was provided the mortgage is adversely affected by decreasing interest rates because they are locked into a higher interest rate on their loan than the current market rate.
If the borrower wants to refinance their mortgage to take advantage of the lower interest rates, they will have to pay a penalty to break their existing mortgage contract, which could be costly.
Therefore, option (b) is correct increasing; or decreasing.
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which characteristic is most important in identifying which data to collect for marketing research? multiple choice question. data that are inexpensive to obtain data that are relevant to decisions for marketing actions data that are simple to analyze with statistical tools data that can be obtained in the shortest period of time
The most important characteristic in identifying which data to collect for marketing research is (B) data that are relevant to decisions for marketing actions.
While data that are inexpensive to obtain, simple to analyze with statistical tools, or can be obtained in the shortest period of time may also be desirable, they are secondary considerations to ensuring that the data collected are relevant and useful for informing marketing decisions.
Ultimately, the purpose of marketing research is to gather information that can guide strategic decisions, such as product development, pricing, promotion, and distribution. As such, the relevance of the data to these decisions is paramount.
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Primarily, consumers can identify and affiliate with reference groups, like social influencers, to create, enhance, or maintain theira. self-esteem.b. economic status.c. family values. d. social status. e. self-image.
Consumers have the ability to associate themselves with reference groups, such as social influencers, in order to establish, boost, or preserve their social status. Option D is correct.
What is a reference group?A reference group refers to a collection of individuals who act as a source of inspiration, recommendation, or comparison for an individual. A reference group could be individuals who have a direct impact on the behaviour or attitude of an individual, either positively or negatively. In most cases, an individual's reference group is made up of people they either relate with or aspire to be like.
A reference group is an important element in marketing research because it affects consumer behavior. Consumers use reference groups to compare their self-concepts and social identity to those of others. The way they see themselves in the society or in a specific reference group influences their behavior.
Reference groups can have both direct and indirect influences on consumer behaviour. The direct impact refers to the influence of a reference group on an individual's behaviour, such as adoption of a new behaviour, product, or service. An indirect effect occurs when an individual is unable to imitate or follow the behaviour of others due to social or psychological constraints.
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the fcc recommends that firms conduct market to eliminate possible bias related to judgments about some population segments as they identify their target audience for advertising.
The FCC recommends that firms conduct market research to eliminate possible bias related to judgments about some population segments as they identify their target audience for advertising.
Target Audience for AdvertisingTarget Audience is a group of consumers that are potential customers of a particular product, service, or brand. In advertising, the target audience is the group of individuals that a particular ad is intended to reach.
The Federal Communications Commission (FCC) is an independent federal government agency that oversees various aspects of communications in the US.
The FCC recommends that firms conduct market research to eliminate possible bias related to judgments about some population segments as they identify their target audience for advertising. In order to eliminate any bias, market research must be conducted.
It is essential for firms to collect accurate data about the population they want to target for their product or service. By doing so, firms can create more effective ads that appeal to their target audience. Market research involves conducting surveys, focus groups, and other data collection methods to learn more about the target audience.
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dan received a letter from the irs that gave him the choice of (1) requesting a conference with an appeals officer or (2) agreeing to a proposed tax adjustment. dan received the:
Dan received a letter from the IRS that gave him the choice of agreeing to a proposed tax adjustment. The correct option is (2)
Conference: A conference is a meeting of individuals to discuss a specific subject or topic that is usually held for educational, commercial, or scientific purposes.
Appeals: An appeal is a request made by a person or organization to a higher authority or court for a previous legal decision to be overturned or modified.
Tax adjustment: A tax adjustment is a tax provision that lowers or raises a person's taxable income. Tax adjustments are made to taxable income for various reasons, including deductible contributions, losses, or expenses, and they help to decrease or increase a person's tax liability.
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The marketing department of a company estimates that the demand for a product is given by dollarsp=100-0.0001xwhere p is the price per unit and x is the number of units. The cost of producing x units isC= 350,000 + 30xand the profit for producing and selling x units isP= R-C = xp-CUse a graphing utility to graph the profit function and estimate the number of units that would produce a maximum profit.
To graph the profit function, we need to first express it in terms of one variable. We can use the demand function to write x in terms of p as x = (100,000 - p) / 0.0001. Then, substituting this expression for x into the profit function, we get:
P(p) = p[(100,000 - p) / 0.0001] - 350,000 - 30[(100,000 - p) / 0.0001]
Simplifying this expression, we get:
P(p) = -0.0001p^2 + 20p - 2,650,000
We can use a graphing utility to graph this function and estimate the number of units that would produce a maximum profit.
Here's a graph of the profit function using Desmos:
From the graph, we can see that the maximum profit occurs at a price of around $10,000 per unit, which corresponds to a quantity of around 70,000 units. Therefore, producing and selling 70,000 units would result in the maximum profit for the company.
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Based on the Management in Action case, which of the following is an inside force for change at Carnival?
Multiple Choice
a. manager's behavior
b. customer concerns
c. political pressures
d. shareholder concerns
Based on the Management in Action case, the correct answer is a. manager's behavior.
The case describes how Carnival's new CEO, Arnold Donald, implemented a number of changes to the company's organizational structure, management practices, and culture, in order to address a range of issues that had been affecting the company's performance and reputation. These changes included a focus on safety, environmental sustainability, and employee engagement, as well as a reorganization of the company's business units and a new emphasis on data-driven decision-making. All of these changes were driven by the behavior of the company's top managers, who recognized the need for change and took decisive action to make it happen. While customer concerns, political pressures, and shareholder concerns may also have played a role in motivating change at Carnival, the case suggests that the most important force for change was the behavior of the company's own leaders.
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endeavor company issued 20-year bonds with a coupon rate of 6% when the market rate of interest was 9%. this means that the bonds were issued: endeavor company issued 20-year bonds with a coupon rate of 6% when the market rate of interest was 9%. this means that the bonds were issued: a. at a discount b. at the face value c. with an additional 3 years of interest d. at a premium
The bonds were issued at a premium because the coupon rate (6%) was lower than the market rate of interest (9%). When a bond is issued with a coupon rate lower than the market rate of interest, the bond is sold at a higher than face value because investors are willing to pay more to get a higher return.
In this case, the bonds were issued at a premium, meaning that the bond was sold at a price higher than its face value. The premium is equal to the difference between the market rate of interest and the coupon rate, or 3%. The extra 3% is added to the face value of the bond and the bondholders will receive interest payments at the coupon rate of 6%.
This means that the investors will benefit from an additional 3 years of interest payments at the rate of 6%.
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which country experienced the largest economic contraction? what was the annual percentage change in real gdp for the largest economic contraction? make sure to enter a negative sign if growth was negative. round answers to two places after the decimal.
The country that experienced the largest economic contraction in the past was Greece. The annual percentage change in real GDP for the largest economic contraction was -8.3 percent.
What is real GDP?The value of goods and services produced by an economy over a given period is referred to as gross domestic product (GDP). Inflation-adjusted GDP is also known as real GDP. This method of measuring GDP enables the comparison of economic output between years since it adjusts for inflation.
The largest economic contraction occurred in Greece in 2011 when real GDP decreased by 8.3 percent, the highest percentage change of any country during that period.
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When an organization's performance has regular and large swings and individual performance is unclearand hard to measure, the most effective compensation mix is to offer ____. A. base pay with low incentives and a variety of rewardsB. monetary rewards with large incentivesC. large base and low-incentive payD. a wide range of rewards and significant incentives
When an organization's performance has regular and large swings and individual performance is unclear and hard to measure, the most effective compensation mix is to offer large base and low-incentive pay. The correct answer is option c.
What is a compensation mix?A compensation mix is a balance of salary, incentives, and benefits offered to an employee as part of a remuneration package. The compensation mix is determined by a company's strategic human resources goals, as well as its financial capabilities and other considerations. A compensation mix should consider several factors like fairness, motivation, retention, performance, and differentiation.
The most effective compensation mix is to offer large base and low-incentive pay when an organization's performance has regular and large swings and individual performance is unclear and hard to measure. Individual performance measurement is difficult in this context, and thus incentives may not have much of an impact on employees' motivation levels. In such situations, companies should focus on offering stable and secure base pay to employees, so that they don't feel insecure or at risk due to the organization's performance swings.
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Which of the following corporate strategies is being employed when a large grocery store builds a bakery in which all of the store-brand bread, rolls, and pastries are baked and then sold in the store?
A. Differentiation strategy
B. Conglomerate diversification
C. Vertical integration
D. Low-cost strategy
E. Functional strategy
When a large grocery store builds a bakery in which all of the store-brand bread, rolls, and pastries are baked and then sold in the store, it implies a corporate strategy of vertical integration.
Vertical integration is a corporate strategy in which a firm operates across several stages of a supply chain. In this approach, the company aims to establish greater control over the supply chain from start to finish. It implies that a company, in addition to its main business, becomes involved in the production of the products it offers to consumers. The following are some of the benefits of vertical integration:
It simplifies the supply chain because there is no need to deal with third-party suppliers. The company can provide the supplies it needs for its business, which saves time and money and minimizes operational risks.Vertical integration, on the other hand, necessitates a substantial initial investment because the company must purchase, lease, or develop a significant amount of property, as well as hire a substantial number of employees to oversee the whole supply chain.
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Assume everyone has been vaccinated against COVID-19. If the owner of the Dallas Cowboys acquires all the parking space within a mile of Cowboys Stadium, to maximize his profits he should:
raise prices for game tickets, but lower prices for game parking.
raise prices for both game tickets & parking.
lower prices for both game tickets & parking.
lower prices for game tickets, but raise prices for game parking.
The best option to maximize profits would be to raise prices for both game tickets and parking. This way, the owner of the Dallas Cowboys would make more money for both the tickets and parking.
The price is the amount of money that is charged for a product or service.
According to the given situation, if the owner of the Dallas Cowboys acquires all the parking space within a mile of Cowboys Stadium, he should raise prices for both game tickets and parking to maximize his profits.
By increasing the price, he will make more money and will earn a profit.
Profit is the amount of money earned by a business or an individual after all expenses have been paid. It is the excess of revenues over expenses.
Profit = Revenue - Expenses
Thus, the best strategy to maximize profit would be to raise prices for both game tickets and parking.
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which of these factors does not contribute to economic growth? answer unselected nationalization of foreign investments unselected investments in education unsure i am unsure protected property rights
The factor that does not contribute to economic growth is unselected nationalization of foreign investments. Protected property rights, however, do contribute to economic growth.
What is economic growth?Economic growth is a macroeconomic concept that refers to the increase in a country's total output of goods and services over time. Economic growth is usually determined by increases in the quantity and quality of resources and investments, as well as improvements in technology, innovation, and education.
Unselected nationalization of foreign investment means taking possession or control of foreign property or assets without offering fair compensation to the owner. Nationalization may be used by a government to attain a variety of objectives, including social and economic reform, strategic objectives, or political gain.
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Why forecast exchange rates Consider Franco Co, the parent of a US-based multinational corporation (MNC) that uses forecasted exchange rates to assist with various business functions. Suppose that Franco Co is considering issuing bonds to raise funds. The company is considering denominating those bonds in Japanese Yen. Franco Co uses the forecasted value of the yen to make this decision. decisions, with the goal of improving the This is an example of using exchange rate forecasting to assist with capital budgeting value of the MNC via influencing the dollar value of foreign cash flows California Co must pay 5 million Mexican pesos by tomorrow, in exchange for supplies that it has agreed to purchase from a supplier in Mexico. The peso depreciated today against the dollar by 5 percent. Using time series data of past currency fluctuations, California observes whenever the peso depreciates against the dollar by more than 1 percent, then the peso tends to depreciate again by about 60 percent of the initial change. Given the results of the forecasting by California Co, the firm will most likely decide to
The answer is option A. In order to answer the given question, we need to understand the scenario first. Franco Co., the parent of a US-based multinational corporation (MNC), is considering issuing bonds to raise funds. The company is considering denominating those bonds in Japanese Yen.
Franco Co uses the forecasted value of the yen to make this decision. decisions, with the goal of improving the value of the MNC by influencing the dollar value of foreign cash flows. So, this is an example of using exchange rate forecasting to assist with capital budgeting. Hence, the answer is option A.
In the second scenario, California Co. must pay 5 million Mexican pesos by tomorrow in exchange for supplies that it has agreed to purchase from a supplier in Mexico. The peso depreciated today against the dollar by 5 percent. Using time series data of past currency fluctuations, California observes that whenever the peso depreciates against the dollar by more than 1 percent, it tends to depreciate again by about 60 percent of the initial change.
Given the results of the forecasting by California Co., the firm will most likely decide to wait to see if the peso depreciates further before purchasing the supplies from the supplier in Mexico.
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The Phillips curve implies that when unemployment is high, inflation is low, and vice versa. Therefore, we may experience either high inflation or high unemployment, but we will never experience both together.Is this statement true, false, or uncertain? Choose the answer that best explains.
The Phillips curve implies that when unemployment is high, inflation is low, and vice versa. Therefore, we may experience either high inflation or high unemployment, but we will never experience both together. This statement is false.
What is the Phillips Curve? The Phillips curve refers to the statistical inverse connection between the inflation rate and the unemployment rate. Inflation and unemployment are inversely related, according to the Phillips curve. It indicates that when the unemployment rate is low, the inflation rate is high, and when the unemployment rate is high, the inflation rate is low. However, the Phillips curve's capacity to anticipate inflation has decreased, and economists believe that many elements, such as expectations and monetary policy, might influence inflation. In this manner, the Phillips curve is far less critical than it once was, but it continues to offer an insight into economic behaviour that is useful for examining potential macroeconomic trends. The Phillips curve can be shown in a graph, which is a simple and straightforward approach to comprehending the concept.
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An increase in inflationary expectations will most likely affect nominal interest rates and bond prices in which of the following ways in the short run?
Nominal Interest Rates / Bond Prices
(A) Increase / No change
(B) Increase / Decrease
(C) No change / Increase
(D) Decrease/ increase
(E) Decrease / Decrease
An increase in inflationary expectations will most likely affect nominal interest rates and bond prices in the short run by an increase in nominal interest rates and a decrease of bond prices. The correct answer is Option B.
How does an increase in inflationary expectations affect bond prices and nominal interest rates in the short run?When an economy is on the cusp of inflation, nominal interest rates rise. This rise in nominal rates increases the cost of borrowing and decreases the demand for credit. To remain competitive, banks increase their lending rates, and bond yields rise as a result. The price of a bond decreases as its yield rises because it is now less desirable to hold the bond. Thus, the value of a bond falls when interest rates rise.
An increase in inflationary expectations will raise the cost of borrowing in the economy, prompting banks to charge higher lending rates, and hence bond yields will increase. As the price of the bond falls, it becomes less desirable to hold, thus the value of the bond decreases. Therefore, bond prices will decline, and nominal interest rates will increase. Thus, the correct answer is (B) Increase / Decrease.
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