a brazilian company exports 5 million reais (brazilian currency) worth of granite to the arizona tile company in the united states. the brazilian company is paid in u.s. dollars, with which brazil purchases u.s. treasury bonds. as a result:

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Answer 1

When the Brazilian company exports granite to the Arizona Tile Company in the United States, it is paid in U.S. dollars. This has several implications for the Brazilian economy.

First, the inflow of U.S. dollars into the Brazilian economy can lead to an increase in the demand for U.S. dollars and a corresponding increase in the value of the U.S. dollar relative to the Brazilian real. This can make Brazilian exports more expensive in foreign markets, potentially reducing the competitiveness of Brazilian firms and making it more difficult for them to sell their products abroad. Second, the Brazilian company may choose to use the U.S. dollars it receives from the export to purchase U.S. Treasury bonds. This can be seen as a way for the company to invest its funds in a stable and secure asset, as U.S. Treasury bonds are considered to be among the safest investments in the world. By investing in U.S. Treasury bonds, the Brazilian company is essentially lending money to the U.S. government, which can use the funds to finance various government programs and initiatives. The purchase of U.S. Treasury bonds by the Brazilian company can also have broader implications for the Brazilian economy. For example, it can lead to a reduction in the supply of U.S. dollars in the Brazilian economy, which can make U.S. dollars more expensive and reduce the demand for U.S. dollars. This can make it more expensive for Brazilian firms to purchase imports, and can make it more difficult for Brazilian citizens to travel or study abroad.

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a company plans to implement dynamics 365 marketing is the following statement true or false? - 'you can use quick campaigns in both marketing lists and marketing segments'

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The given statement "You can use quick campaigns in both marketing lists and marketing segments" is True because it allow you to quickly create and execute marketing campaigns.

Dynamics 365 Marketing is a marketing automation solution that helps organizations to streamline and automate their marketing processes. Within Dynamics 365 Marketing, quick campaigns allow users to quickly create and launch targeted marketing activities, such as email or direct mail campaigns, to specific groups of customers or prospects.

Marketing lists and marketing segments are two ways to define the target audience for a quick campaign. A marketing list is a static list of records, such as contacts or accounts, that you create and maintain in Dynamics 365 Marketing.

A marketing segment, on the other hand, is a dynamic group of records that are defined by a set of criteria, such as demographics, behaviors, or interactions with your marketing content.

Both marketing lists and marketing segments can be used as the target audience for a quick campaign. When you create a quick campaign, you can either select an existing marketing list or marketing segment to use as the target audience, or you can create a new marketing list or marketing segment specifically for your quick campaign.

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if you make a $1,000 investment today and sell that investment for $2,400 in 5 years, the irr of that investment is:

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The IRR for the investment is approximately 10.59%

The internal rate of return (IRR) of an investment is the rate at which the present value of future cash flows from the investment equals the initial investment amount. In other words, it's a metric that measures the profitability of an investment over a given period of time.To calculate the IRR for an investment, you would need to know the amount and timing of all cash flows (inflows and outflows) associated with the investment. With this information, you can use financial calculations to determine the IRR.In your example, you have made a $1,000 investment and sold that investment for $2,400 in 5 years, so the IRR can be calculated as follows:

[tex]IRR = (FV / PV)^{(1/n) - 1}[/tex]

Where:

FV = $2,400 (the future value of the investment)

PV = $1,000 (the present value of the investment)n = 5 (the number of years the investment is held)

So, substituting the values into the formula:

[tex]IRR = (2400 / 1000)^{(1/5) - 1}[/tex]

[tex]IRR = (2.4)^{(1/5) - 1}[/tex]

[tex]IRR = 1.1059063 - 1[/tex]

[tex]IRR = 0.1059063[/tex]

So, the IRR for the investment is approximately 10.59%. This means that the investment is generating a return of approximately 10.59% annually over the 5-year period.

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What are the 4 types productive resources of the business explain each?

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Land: Land is a productive resource that refers to any physical area that is owned or leased by a business. It may include buildings, parks, and other physical structures that are used for business operations.

Labor: Labor is a productive resource that refers to the human effort used to create goods and services. This includes both paid and unpaid labor, such as employees and volunteers .Capital: Capital refers to the financial resources of a business. It includes both the money and assets used to finance operations and the investments in equipment, technology, and other resources. Entrepreneurship: Entrepreneurship is the process of creating and managing a business. It involves taking risks and making decisions to identify and exploit market opportunities. It requires creativity and innovation, as well as the ability to identify and capitalize on opportunities.

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michaela is a systems analyst who is determining business requirements. what would most likely be the systems development life cycle (sdlc) phase for her?

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The systems development life cycle SDLC step for Michaela would most likely be analysis.

What are SDLC and the many types?

A well-structured phase-by-phase process offered by the SDLC enables a company to quickly create high-quality software that has undergone thorough testing and is prepared for usage in production. As mentioned in the introduction, the SDLC consists of six phases. The waterfall, spiral, and Agile SDLC models are all well-liked.

What is the most crucial stage of the SDLC?

One of the most significant stages of the SDLC is testing. Delivering high-quality software requires testing, which is not possible.

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hi, i know this is last minute, but an interviewer just canceled on a candidate interview for your team. this candidate is already on-site and cannot be rescheduled. would you be able to interview the candidate today? it would take about 2 hours.

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Yes, I would be happy to interview the candidate today. I understand that this is last minute and that the candidate is already on-site, so I will make the time to accommodate the interview.

The interview schedule can be accommodated by setting up an online system similar platform. This will enable the interviewers to select suitable times and dates for their interviews and will enable the interviewees to easily select a time that is convenient for them.

This online system also allows both parties to view the schedule and make any necessary changes. Additionally, if necessary, the interviewers can contact the interviewees directly to discuss details such as the location of the interview.

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a deposit of $1000 is made into a fund with an annual interest rate of 10 percent. find the time (in years) necessary for the investment to double if the interest is compounded continouusly.

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The time (in years) required for an investment to double if interest is compounded continuously 6.931 years.

It is calculated using the formula t = ln(2)/ln(1+r).

In this case, the annual interest rate (r) is 10% and the initial investment (P) is $1000.

Therefore,

t = ln(2)/ln(1+0.10)

t = 6.931 years

It takes approximately 6,931 years for an investment to double if interest is compounded continuously. This is because the interest is compounded continuously, which means that the interest earned on the initial amount is continuously added to the principal amount. This allows the investment to grow faster than if the interest were compounded annually.

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why might a toy store have total liabilities that far exceed their assets as of december 15th versus a month later on january 15th

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A toy store may have total liabilities that far exceed their assets as of December 15th due to the costs associated with holiday shopping.

During the holiday season, toy stores typically have to purchase more inventory to meet the higher demand, which can lead to an increase in debt. Additionally, the store may be offering discounts and other promotions to boost sales, which may require them to borrow money to cover the costs. On January 15th, the store may have sold off much of their inventory, paid off some of the debt, and may have received payments from customers, which would reduce the amount of liabilities and help the store's balance sheet improve.

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chrysler group, operated by fiat, repaid $551 million in one quarter to the u.s. government for a loan provided during bankruptcy reorganization. fiat's ceo was a(n) group of answer choices entrepreneur. liaison. resource allocator. disturbance handler.

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The correct answer is For top managers, conceptual abilities are essential. For mid-level managers, they are less important, and for first-level managers, they are not necessary.

Managers engage in decision-making when they choose a plan of action from a list of viable options. Planning, organising, leading, and controlling must all be completed before you can be considered an excellent manager. Flat companies frequently generate more generalists than experts. Employees' exact work duties might not be obvious.Top managers need conceptual abilities since they routinely make crucial judgements that affect the company. They must be able to think strategically and comprehend how the firm can carry out its obligations. Top managers provide fresh ideas and uncover novel approaches to implementing improvements across the whole firm.

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ideas based on selling existing products or services in a new context are called: a. new technology ideas. b. new market ideas. c. new benefit ideas. d. startup ideas.

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Ideas based on selling existing products or services in a new context are called new market ideas.

Option b is correct .

The most important trends are economic trends, social trends, technological developments, and political activism and regulatory changes. Changes in these areas often give impetus to new business ideas. The sources of creation of ideas are the people and places from which ideas are obtained. Multiple internal and external sources help  generate ideas .

Research shows that most new businesses fail in the first few years. Luck also plays a role in the success of some businesses. Insufficient capital can cause a new business to fail. Some entrepreneurs are too optimistic about how quickly they will make a profit.

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a company has net working capital of $1,753. if all its current assets were liquidated, the company would receive $5,689. what are the company's current liabilities?

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The company's current liabilities are 5,689-1,753 = 3,936. Working capital (also called net working capital) represents the difference between a company's current assets and current liabilities.

Working capital, also known as net working capital (NWC), is the ratio of a company's current assets (such as cash, accounts receivable/unpaid customer invoices, inventory of raw materials and finished goods) and current liabilities such as accounts payable. It's the difference. and debt. It is a commonly used measurement to measure the short-term health of an organization.

If the ratio of current assets to liabilities is less than 1 (or current liabilities are greater than current assets), the company's operating expenses are negative.

This may indicate that the company has excess inventory, is not investing excess cash, or is not taking advantage of low-cost debt financing opportunities

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jorge realized his core target audience was characterized by common leisure activities (museum visits, polo matches), shopping patterns (preference for boutiques, designer labels), and media habits (readrobb report, wall street journal, financial times). his target audience may be most appropriately characterized by

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Its target audience is best characterized by social class. Social class is the grouping of people into a set of hierarchical social categories, the most common being the upper, middle and lower classes.

Social class affiliation can depend, for example, on education, wealth, occupation, income, and affiliation with a particular subculture or social network.

"Class" is the object of analysis for sociologists, political scientists, anthropologists, and social historians. The term has sometimes conflicting meanings, and there is no broad consensus on the definition of "class". Some argue that there are no class lines because of social mobility. In common usage, the term "social class" is usually synonymous with "socioeconomic class" and is defined as "people of the same social, economic, cultural, political, or educational status".

"Working Class"; "Emerging Professional Class". However, scholars distinguish social class from socioeconomic status, with the former referring to a person's relatively stable sociocultural background and the latter to his or her current social and economic situation, resulting in becomes more unstable over time. 

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marketers were expected to spend approximately blank on social media ad spending in 2020. multiple choice question. $13 billion $33 billion $43 billion $53 billion

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The correct answer is $43 billion. Marketers were anticipated to spend about $33 billion on social media advertising in 2020, according to eMarketer.

This statistic shows a huge increase over prior years, as more businesses recognize the value of social media in reaching and engaging customers.

Social media all provide sophisticated capabilities for targeting certain demographics, locations, and interests, making it easier for marketers to reach their intended audience. Furthermore, social media platforms have offered new advertising formats, such as sponsored posts, video commercials, and influencer marketing, which allow advertisers to reach their target audience in innovative and creative ways.

Despite the obstacles provided by the COVID-19 pandemic in 2020, social media ad spending grew as many firms switched their advertising budgets to digital channels to respond to shifts in consumer behavior. This trend is projected to continue in the coming years as more businesses attempt to connect clients via social media and benefit from the abundance of data and insights provided by these platforms.

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which of the following data types are included in big data? (check all that apply.) multiple select question. goods services characteristics structured data unstructured data

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Big data refers to extremely large and complex data sets that are difficult to process and manage using traditional data processing methods

There are several types of data that are included in big data, including:Unstructured data: This type of data is not organized in a predefined manner and includes text, audio, video, images, and other forms of multimedia. This type of data is often difficult to process and analyze using traditional methods.Structured data: This type of data is organized in a defined manner, such as in a table or spreadsheet, and includes information that can be easily searched and analyzed. This type of data is typically stored in databases and can be easily accessed and analyzed.Semi-structured data: This type of data has some structure, but not as much as structured data, and includes information such as emails, documents, and social media posts. This type of data is often difficult to process and analyze because it does not fit neatly into traditional data structures

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to the best of your knowledge and belief, are you aware of any contract or agreement with your current employer (or other company), such as a non-solicitation agreement, that might impact or interfere with your ability to communicate with former colleagues about working at the company?*

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There is a non-solicitation agreement imposed by banks to their employees intended to protect the knowledge, skills, and contacts of the employees and clients, as well as the interests of the banks.

a non-solicitation agreement is a contract that prohibits employees or former employees from working for competitors, revealing confidential information, or even from encouraging other employees to leave the company.

This type of agreement can limit an employee's ability to communicate with former colleagues about working at the company, as it would be considered a violation of the agreement if the employee was found to be encouraging or recruiting their former colleagues to join the company.

It is common for banks to impose non-solicitation agreements on their employees. These agreements typically forbid the employee from working for other banks or from encouraging other employees to leave the company.

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what do suppliers offer that is critical to a firm's long-term success? question 5 options: the promise of customer loyalty material resources and/or intangible knowledge infrastructure revenue leadership skills

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Option B. Suppliers can offer material resources, such as raw materials, components, and equipment, as well as intangible knowledge, such as specialized expertise and technical know-how, that are critical to a firm's long-term success.

These resources and knowledge enable the firm to produce its products or services efficiently and effectively, thereby enhancing its competitiveness and sustainability in the market.

Material resources refer to physical goods that a firm requires to produce its products or services, such as raw materials, components, and equipment. Intangible knowledge refers to specialized expertise and technical know-how that a firm needs to effectively produce its products or services. Both material resources and intangible knowledge are critical to a firm's long-term success because they enable the firm to produce its products or services efficiently and effectively, thereby enhancing its competitiveness and sustainability in the market. For example, a firm that produces automobiles may require specialized steel, machinery, and engineering knowledge from its suppliers to manufacture high-quality vehicles.

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what do suppliers offer that is critical to a firm's long-term success? question options:

A. The promise of customer loyalty

B. Material resources and/or intangible knowledge

C. Infrastructure revenue

D. Leadership skills

where the pavilion at queens for rehabilitation & nursing ?

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The pavilion at queens for rehabilitation & nursing is at 36-17 Parsons Blvd, Queens, NY 11354."They have courteous employees and provide excellent health care service."

The Pavilion at Queens Rehabilitation and Nursing's monthly average cost of care is around $14,821. This is more expensive than the $12,775 Flushing average price. The State of New York's anticipated monthly cost is nearly $10,200, compared to the estimated $6,360 cost across the nation. According to the most recent Medicare survey, The Pavilion at Queens Rehabilitation and Nursing have an overall rating of 3.8/5 stars. Data show that Medicaid is accepted at The Pavilion at Queens Rehabilitation and Nursing.

Health care services that assist you in retaining, regaining, or enhancing abilities and functioning for daily living that has been lost or hampered as a result of illness, injury, or disability.

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suppose that the equilibrium price of a 20-foot palm tree is $150. if the price ceiling on this product is changed from $120 to $130, what will happen in this market?

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When a price ceiling is set below the equilibrium price of product then demand exceed than supply, and this will result in shortage in market and finally the shortage will become smaller in market.

A product in marketing is an object, system, or service that you make available to consumers based on consumer demand. It is what we can offer to the market to meet the wants and needs of our customers. Products are sometimes referred to as commodities in sales, but products are purchased as raw materials and sold as finished products in manufacturing.

In project management, a product is the formal specification of a project's deliverables that include or contribute to the achievement of the project's goals. Byproducts are similar ideas that are secondary but useful byproducts of the manufacturing process.

Hence the correct option is A

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The above question is incomplete, the complete question is-

Suppose that the equilibrium price of a 20-foot palm tree is $150. If the price ceiling on this product is changed from $120 to $130, what will happen in this market?

A. The shortage will become smaller

B. The shortage will become larger

C. The surplus will become smaller

D. The surplus will become larger

which five companies are headquartered in arizona?

Answers

Freeport-McMoRan, PetSmart, Avnet, First Solar and Insight Enterprises companies are headquartered in arizona.

A company is a type of business organization that provides goods or services to customers in exchange for money. It is typically owned by shareholders and managed by a board of directors. Companies can take various forms, including corporations, limited liability companies, partnerships, and sole proprietorships. They may be for-profit or non-profit, and can vary in size from small, locally-owned businesses to large multinational corporations. Companies are established to pursue a specific purpose, such as generating profits for shareholders or providing goods or services to the public. They play a significant role in the economy by creating jobs, generating revenue, and contributing to economic growth.

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if the marginal propensity to consume is equal to 0.70 and income rises by $20 billion in an economy, then consumption spending will increase by:

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The investment spending will rise by $20 billion. The amount of an overall wage increase that a consumer spends on purchasing goods and services as opposed to saving is known as the marginal propensity to consume (MPC) in economics.

Calculating the marginal propensity to spend money is the first step.

= 1/0.1

= 10

= 1 billion times ten

1 trillion

ten billion plus ten billion

Twenty billion

This will result in an increase of $20 billion in investment spending.

The percentage of each additional dollar in household income that is saved is known as the marginal propensity to save (MPS). MPC is the percentage of a household's additional income that is consumed or spent. The extent to which consumers choose to save or spend money affects the economy as a whole.

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Palmona Company establishes a $310 petty cash fund on January 1. On January 8, the fund shows $205 in cash along with receipts for
the following expenditures: postage, $43; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $32. Palmona
uses the perpetual system in accounting for merchandise inventory.
1. Prepare the entry to establish the fund on January 1.
2. Prepare the entry to reimburse the fund on January 8 under two separate situations:
a. To reimburse the fund.
b. To reimburse the fund and increase it to $360. Hint. Make two entries.

Answers

The entry to establish the fund on January 1 is: Debit Petty Cash Fund 310, Credit Cash 310

How to prepare journal entry?

1. Entry to establish the fund on January 1:

Debit Petty Cash Fund 310

Credit Cash 310

2a. Entry to reimburse the fund on January 8:

Debit Postage Expense 43

Debit Transportation-In Expense 14

Debit Delivery Expense 16

Debit Miscellaneous Expense 32

Credit Cash 105

2b.8-Jan

Debit Petty Cash $255

($360 - $105)  

Credit Cash  $255

(Being increment of petty cash recorded)  

Therefore the entry is Debit Petty Cash Fund 310, Credit Cash 310.

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the two common methods for determining unit product costs are ______ costing.

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The two common methods for determining unit product costs are Absorption Costing and Variable Costing.

Absorption Costing is a method of accounting that includes all manufacturing costs, both fixed and variable, in the cost of goods sold (COGS) for each product. This method is also known as full costing or traditional costing.

Variable Costing is a method of accounting that only includes variable costs, such as direct materials, direct labor, and variable overhead, in the COGS for each product. Fixed costs, such as factory rent, insurance, and property taxes, are treated as period costs and are expensed in the period incurred.

Both methods have their own advantages and disadvantages, and the choice of method depends on the specific needs and circumstances of the company. For example, Absorption Costing is useful for calculating the profitability of individual products and for external financial reporting, while Variable Costing is useful for internal decision-making and for analyzing the effects of changes in production volume on profit margins.

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during march, zea incorporated transferred $59,000 from work in process to finished goods and recorded a cost of goods sold of $65,000. the journal entries to record these transactions would include a

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During March, Zea Incorporated transferred $59,000 worth of inventory from work in process to finished goods and recorded a cost of goods sold of $65,000. To record these transactions, the company would make the following journal entries:

Debit work in process for $59,000 and credit finished goods for $59,000: This entry records the transfer of the inventory from work in process to finished goods.Debit cost of goods sold for $65,000 and credit finished goods for $65,000: This entry records the cost of goods sold for the period.

These entries are important for accurately tracking the movement of inventory and the associated costs. By recording these transactions, the company is able to determine the cost of goods sold, which is a key component in determining the company's gross profit. These journal entries ensure that the company's financial statements accurately reflect the company's operations and financial position.

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the difference in value between a country's imports and exports is called its balance of trade. true false

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The answer is True; a country's trade balance is the difference between its imports and exports in terms of value is true.

The Function of Imports

Imports are goods or services that were produced abroad but bought domestically. Imports and exports are the two bases of global commerce. A country has a negative trade balance, also known as a trade deficit, if the value of its imports exceeds the value of its exports.

What makes this example important?

Any product made elsewhere and then imported into another country is referred to as an import. If a Belgian company created chocolate and sold it in the United States, for example, an American would view that as an import.

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You have a choice between two summer jobs. Job #1 offers experience in your major but pays a lower wage. Job #2 pays more money but is not directly related to your field of study. What should be the first step to take as you make this decision?


a. Continue applying for other jobs so​ you'll have more options to choose from before you have to decide

b. Calculate the cost of any luxury purchases you plan to make over the summer to determine if you can afford to take job​ #1

c. Consider how much money you need to earn during the summer and the value job​ #1 would have in helping you make a career choice

d. Discuss with a friend in your major the pros and cons of taking one job versus the other

Answers

The correct option is C. Considering how much money you need to earn during the summer, look at what both jobs pay you and try to come up with other options for earning.

A salary is a payment made by an employer to a worker for work completed in a specific period of time. a few examples of wage bills include compensatory payments such as minimum wage, triumphing salary, and yearly bonuses, and remunerative payments such as prizes and tip payouts. Wages are part of the charges which might be concerned with going for walks in an enterprise. it is the responsibility of the worker irrespective of the profitability of the company.

Charge through wage contrasts with salaried work, in which the employer will pay an arranged quantity at constant periods (which includes per week or month) irrespective of hours labored, with the commission which conditions pay on man or woman performance, and with reimbursement primarily based at the overall performance of the corporation as an entire.

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a participant who has 40 service credits and is eligible today to receive a normal retirement benefit would receive ? per month.

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40 service credits and is currently eligible for a normal retirement benefit would receive 1289$ per month.

The number of credits you have has no bearing on the amount of benefits you receive.

When you die, the number of credits you've earned is used to determine your eligibility for retirement or disability benefits, Medicare, and your family's eligibility for survivors benefits.

Credits are calculated based on your total wages and self-employment income for the calendar year. You could work all year to earn four credits, or you could earn enough in much less time.

The number of credits required for family members to be eligible for survivors benefits is determined by your age at the time of death. The fewer credits required, the younger you are. Nobody requires more than 40 points.

40 (service credits) × $ 32 = $1280 per month

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lapdog is a new pet grooming service trying to create sustained competitive advantage. lapdog's services should be...

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Lapdog's services should be unique, high-quality, and provide a superior customer experience in order to create a sustained competitive advantage for Lapdog pet grooming service.

Here are some specific strategies Lapdog can consider to achieve this:

Offer customized grooming packages: Lapdog can offer personalized grooming packages based on the individual needs and preferences of each pet. This will set them apart from competitors who offer generic grooming services.

Use eco-friendly products: Lapdog can differentiate themselves by using environmentally-friendly grooming products. This will appeal to pet owners who are environmentally conscious and looking for sustainable services.

Provide excellent customer service: Lapdog can train their staff to provide exceptional customer service and create a welcoming atmosphere. They can also offer additional services such as dog walking, pet sitting, and pet transportation to create a one-stop shop for pet owners.

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you are considering purchasing an existing single family house for $200,000 with a 20 percent down payment and a thirty-year fixed-rate mortgage at 5.5 percent. - what would be your monthly mortgage payment?

Answers

When purchasing an existing single family house for $200,000 with a 20 percent down payment, then the monthly mortgage payment is 908.46 (option A) is correct.

Down payment:

20%*200,000 = 40,000

Loan:

200,000-40,000 = 160,000 = PV

Tenure:

nper = 30yrs = 30*12 = 360 months

Rate:

5.5% pa = 5.5%/12 pm

Monthly Payment:

PMT(Rate,nper, PV,FV)

= PMT(5.5%/12, 360,160000,0) = 908.46

Monthly payment is 908.46

If Rate is 5%, then monthly payment = PMT(5%/12, 360,160000,0) = 858.91

Principal and interest payments try to compensate for your monthly mortgage payments. You should indeed purchase private mortgage insurance if your down payment is less than 20%, which enhances your monthly payment.

Real estate or property taxes are additionally included in some payments.

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A business that buys goods from producers and sells them to retailers is callled:_________

Answers

A wholesaler I think

voluntary turnover occurs when: group of answer choices managers choose to leave job vacancies unfilled. a facility is closed and all of its workers are put out of work. employees choose to leave the organization for a variety of reasons. an underperforming employee is laid off.

Answers

The correct answer is option a. Employees choose to leave the organization for a variety of reasons.

Voluntary turnover occurs when employees choose to leave the organization of their own volition, often due to dissatisfaction with the organization or a lack of job satisfaction.

This could be due to the organization's poor working conditions, low wages, limited career opportunities, or lack of recognition. Employees may also leave if they feel their skills or interests are better suited to another job or organization, or if they wish to pursue a different career path.

Voluntary turnover has the potential to erode an organization's morale and productivity and can also lead to costly recruitment and training costs.

Employers should focus on creating a positive and engaging work environment, offering competitive compensation and benefits, and providing clear career paths and opportunities for advancement to reduce the likelihood of voluntary turnover.

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interest rate risk is the risk that results from the changes in interest rates that impact bond prices. true false

Answers

The given statement "interest rate risk is the risk that results from the changes in interest rates that impact bond prices." is true.

What is interest rate ?

The amount that the lender charges the borrower over and beyond the principal amount is referred to as the interest rate. A person who deposits money in a bank or other financial institution also earns additional income in terms of the recipient, known as interest, taking into account the time value of money.

Higher interest rates make borrowing money more expensive and encourage people to save money. That often means that consumers will spend less money. Prices of products and services rise more slowly when overall consumer spending is lower. A lower inflation rate results from slower price increases.

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