While profiling your audience, you should ask the following appropriate questions: Why am I sending you this message?
Do I worry about how my audience reacts?What distinguishes my secondary audience from my core audience?What is my connection to the audience?Will my communication be seen by anybody other than my intended audience?How do I interact with the audience?As part of your audience profiling, you are examining the nature of your relationship with your audience. This includes things like the level of formality or familiarity, the power dynamics between you and your audience, and any cultural norms or expectations that may have an effect on the communication.
For instance, if you are writing to a group of coworkers with whom you have a casual and friendly relationship, you might adopt a tone and language that are more laid-back to reflect that connection. In contrast, if you are writing to a prospective client or a superior in a professional setting, you might adopt a tone and language that are more formal to convey respect and professionalism. You can better tailor your message and develop a rapport with your readers if you know how you interact with them.
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Email takes the place of printed letters in much business correspondence. Which of the following might still remain in a letter format? A) Nothing. Emails is the fasted communication B) Body shop estimate for insurance claim C) Death certificate for insurance claim
The correct option is C. Death certificate for the insurance claim might still remain in a letter format.
Commercial enterprise economics is an area in applied economics that makes use of monetary concepts and quantitative strategies to investigate business companies and the factors contributing to the range of organizational structures and the relationships of companies with labor, capital, and product markets.
Enterprise economics is a field of carried out economics that research the economic, organizational, market-related, and environmental troubles faced by businesses. commercial enterprise economics encompasses topics inclusive of the idea of scarcity, product factors, distribution, and intake. enterprise is likewise the efforts and activities of a person who is producing items or imparting offerings with the cause to sell them for earnings. commercial enterprise Definition. commercial enterprise refers to an enterprising entity or employer that contains professional sports. They can be business, commercial, or others.
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Limitations of GDP
Drop downs-
1. Consumption, investment, government purchase
2. Decreasing, increasing
3. An overall decrease, no overall change, an overall increase
Gross Domestic Product (GDP) is a commonly used measure of the size and growth of an economy, but it has some limitations that should be taken into account when interpreting and using the data.
What is Limitations of GDP?
Limited scope: GDP only measures the final value of goods and services produced within the borders of a country, and does not take into account important factors such as the distribution of income, the state of the environment, or the well-being of citizens.
Short-term focus: GDP is often used as a short-term indicator of economic performance, but it may not accurately reflect long-term trends or the sustainability of economic growth.
Basis of measurement: GDP is measured in nominal terms, which means it is not adjusted for changes in the overall price level. This can make it difficult to compare GDP across different countries or time periods, as differences in inflation rates can significantly impact the data.
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An example of opportunity cost
If you spent money on going out to a restaurant to eat, you might not be able to spend it on something else.
Answer the next question(s) based on the following supply and demand schedules in units per week for a product. Price $60 50 40 Quantity Demanded 100 140 180 220 260 300 Quantity Supplied 400 340 280 220 160 100 30 20 10 The government's introduction of a guaranteed price floor of $50 will result in The government's introduction of a guaranteed price floor of $50 will result in Multiple Choice a shortage of 200 units. an unstable market. a surplus of 200 units. no shortage or surplus
Due to the government's implementation of a $50 guaranteed price floor, there will be a surplus of 200 units. Here option A is the correct answer.
The quantity supplied and quantity demanded of a product at different prices are given. The equilibrium price and output are determined at that point where the quantity demanded equals to quantity supplied.
In the table, it can be seen that at a price of $30, the quantity supplied is equal to the quantity demanded. It means the equilibrium price is $30 and the output is 220 units.
Now there is a price floor of $50, which is more than the equilibrium price. When the price is more than the equilibrium price, it will create a situation of EXCESS SUPPLY or SURPLUS. When the price is more than the equilibrium price, the quantity supplied will be more than the quantity demanded. The difference is called a surplus.
At a price floor of $50, the quantity supplied is 340 and the quantity demanded is 140. Therefore, the surplus is 340 - 140 = 200.
Complete question:
Answer the next question(s) based on the following supply and demand schedules in units per week for a product. Price $60 50 40 Quantity Demanded 100 140 180 220 260 300 Quantity Supplied 400 340 280 220 160 100 30 20 10 The government's introduction of a guaranteed price floor of $50 will result in The government's introduction of a guaranteed price floor of $50 will result in Multiple Choice a
A - shortage of 200 units.
B - an unstable market.
C - a surplus of 200 units.
D - no shortage or surplus
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Suppose the median household earned $9,243 in 1976 and $52,765 in 2016. During that time, also suppose the CPI rose from 48.2 to 214.68.
a)The total growth rate in nominal median household income from 1976 to 2016 was
b)The total growth rate in real median household income from 1976 to 2016 (use the value in 2016 years dollars in your computations) was
a)Total growth rate in nominal median household income from the year 1976 to 2016 is 470.9%
b)Total growth rate in real median household income from the year 1976 to 2016 is 23.2%
What does growth rate mean?GDP, turnover, wages, and other values' growth rates indicate how much something has changed over time. It is typically stated as a percentage. Economic theory distinguishes between two types of economic growth: extensive and intensive. Additionally, an innovative type of economic growth is included in the extensive category.
Given:
Income in 1976 is $9,243
Income in 2016 is $52,765
CPI in 1976 48.2
CPI in 2016 214.68
a) Growth rate in the nominal median household income from the year 1976 to 2016 was,
= 52,765-9243/9243 * 100 = 43522 /9243 * 100 = 470.86 = 470.9
b) Growth rate in CPI
214.68 - 48.2/48.2 * 100 = 166.48/48.2*100 = 345.39%
Hence, the growth rate in the real median household income from the year 1976 to 2016
= (1+4.709)/ (1-3.454) * 100-100 = 5.709/4.453 * 100 -100 = 23.2%
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FILL IN THE BLANK. Accounts payable is increased with an entry on the ______ side of the T-account
Accounts payable are increased using a debit entry on the entry side of the T-debit account.
The debit entry for an asset account displays an increase in the account, but the asset T-right account shows a decrease in the account. This means that a firm that receives cash will debit the asset account, but a company that sends cash will credit it.
The left side (debit side) of the T Account is often a rise to the account for asset accounts such as cash, inventories, accounts receivable, PP&E, and others. The right side (credit side) reflects a decrease in the asset account in the opposite way.
Accounts payable, sometimes known as "payables" for short, increase when a supplier or vendor extends credit - that is, when a company places an order for products or services, the expense is "accrued," but the cash payment has not yet been made.
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Which of the following do organizations do to ensure future projects can refer to documentation from past documents?Use formal closing process procedures
Record project approvals
Document the paths previous projects take
Warehouse project information
Warehouse project information, do organizations do to ensure future projects can refer to documentation from past documents.
Definition of DocumentationDocumentation has two meanings. The first meaning is to present information or official evidence that is useful as a record. While the second meaning is as an effort to record and categorize information in the form of writing, photos, videos, and others.
From this, it can be concluded that the notion of documentation is a form of systematic activity or process in searching, using, investigating, compiling, providing documents to obtain knowledge, information, and evidence, and disseminating them to interested parties.
Meanwhile, the notion of documentation in research is a document that presents information about original research results or directly from the source. Documentation is different from archiving in a library. Even some experts argue that the meaning of documentation is the collection of documents on a certain subject.
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the trial balance of a company included the following account balances: Cash, $25,000; short-term investments, $10,000; accounts receivable, $40,000; inventory, $90,000; and prepaid insurance, $12,000.How much It's quick assets total?
The trial balance of a company included the following account balances: Cash, $25,000; short-term investments, $10,000; accounts receivable, $40,000; inventory, $90,000; and prepaid insurance, $12,000. It's quick assets total is $75,000.
Quick assets are all current assets that can be swiftly transformed into cash. Since they require a lot more time to be converted into cash than other current assets, inventory and prepaid insurance are not included in this. Because receivables recover faster than inventory, they have greater liquidity.
Quick assets are cash on hand or current assets like accounts receivable that can be converted to cash with little to no discounting. Rapid conversion into cash (high liquidity) is essential because businesses frequently employ quick assets to pay off short-term liabilities as they arise.
Quick assets Total can be calculated as follows
=account receivable + cash + short term investments
= $40,000+$25,0000+$10,000
= $65,000+$10,000
= $75,000
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Managers in high performing organizations with high efficiency and high effectiveness,
-Choose the wrong goals, but make good use of resources
-choose the right Goals to pursue and make good use of resources
-choose the right goals, but do a poor job of using resources
-choose the wrong goals and make poor choice of resources
Managers in high-performing organizations with high efficiency and high effectiveness choose the right goals to pursue and make good use of resources.
The high efficiency and effectiveness of managers help them choose the right goals and effectively use resources to pursue them for high-quality products that customers want.
Goals + Plans = Planning
Setting goals and choosing a course of action to reach those goals is the management function known as planning. In order to support your strategic goals, good managers know how to use resources and make sure the appropriate resources are available.
Managers in high-performing companies are proficient at prioritizing work requests and setting realistic expectations with important stakeholders. They ascertain actual resource availability as well and utilize the right resources on the right work at the right time.
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whether by offering the possibility of repeat business, suppliers and buyers can avoid opportunism problems that incur transaction costs.
Suppliers and buyers can prevent the opportunism-related issues that lead to transaction costs by providing the chance for repeat business.
What exactly is a transaction cost?
Expenses incurred during market exchange are referred to as transaction costs. These expenses include the pricing research expenditures as well as the costs associated with creating and upholding contracts. Labor, travel expenses, broker fees, bank fees, commissions, etc. are a few examples of typical transaction costs.
What is another name for transaction cost?
Costs we incur when we conduct economic transactions, such as the purchase of products and services, are referred to as transaction costs in economics and business. the social cost theory, which is a subset of the transaction cost economics theory.
There are three categories of accounting transactions that are based on the exchange of money: cash transactions, non-cash transactions, and credit transactions.
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Which of the following Uber cultural norms does not align with the expectations of a learning organization?a) The act of Uber employees submitting thousands of ideas to help repair the company’s image.b) Uber wants all employees, regardless of their backgrounds, to feel welcomed, to be open to different approaches, and to come together to execute the best ideas.c) Uber employees "believe that the best ideas can come from anywhere, both inside and outside our company …"d) Uber wants its employees to look for problems and to solve them together, to help each other, and to be accountable for mistakes.e) All of the mentioned norms are aligned with the expectations of a learning organization.
All of the cited norms are aligned with the expectations of a learning organization.
What are Uber's new cultural norms?We stand apart from the average. We make sure human beings of various backgrounds experience welcome. We inspire special opinions and methods to be heard, and then we come together and build.
We accept as true with flexibility and desire allow extra freedom in mobility and work. We provide selections for each drivers and riders, and the network rewards selections that gain the community.
We act like owners. We persevere. We fee thoughts over hierarchy. We make huge bold bets
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https://brainly.com/question/12425056#SPJ4Which of the following statements about the goals and stages of writing effective business messages are true?
1) the stages of business writing often overlap each other
2) the three stages of effective business writing are planning, writing, and reviewing
3) effective business writing is divided into three stages
The three stages of effective business writing are generally considered to be planning, writing, and reviewing is True. So, the correct option is 2.
These stages help ensure that business messages are clear, concise, and effective. In the planning stage, the writer determines the purpose of the message and identifies the audience. They also gather information, create an outline, and consider the tone and format of the message.
In the writing stage, the writer puts the plan into action and creates the message, paying attention to organization, tone, and language usage.
In the reviewing stage, the writer evaluates the message and makes any necessary revisions. This stage is important to ensure that the message is clear and effective and that there are no errors or inaccuracies.
It is common for the stages of business writing to overlap, as writers often need to revisit earlier stages as they progress through the writing process.
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If a firm sets its quantity of output such that its marginal revenue equals its marginal cost, and then sees that its price exceeds its average total cost, this implies that the firm
a.is earning a loss but should stay open.
b.is profitable.
c.is breaking even (earning zero profit).
d.is earning a loss and should shut down.
When the marginal revenue of a firm is equal to its marginal cost, it means that the firm is producing at its optimal level where it can maximize its profits. If the price of the firm's output is higher than its average total cost, it means that the firm is earning a positive profit, so the answer is B.
when a company records an adjusting entry for services previously recorded as deferred revenue, it records which two of the following? -credit to Deferred Revenue -debit to Cash -credit to Revenue -credit to Accounts Receivable -credit to Cash -debit to Deferred Revenue
You report deferred income by way of deciding how much of a fee is for services delivered and how plenty is for offerings that have no longer been furnished yet.
Every month, the accountant will enter the equal entry as every $25 magazine is delivered. By the stop of the year, the $300 will be completely recognized as revenue.
What bills are blanketed in a deferral adjusting entry?A deferral adjusting entry (one of three sorts of adjusting entries) pertains to a transaction that has already been recorded in the accepted ledger accounts. However, at the time that the transaction used to be recorded, section of the quantity ought to be stated as 1) revenue in a future period, or 2) expense in a future period.
The predominant two types are accruals and deferrals. Accruals refer to repayments or charges on credit score that are nevertheless owed, whilst deferrals refer to prepayments the place the merchandise have not but been delivered.
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https://brainly.com/question/13298889#SPJ4constraints are characteristics of the organization and external environment limiting what a manager can do.
The statement is True. It is true that constraints are characteristics of the organization and external environment limiting what a manager can do.
Constraints are factors that limit a leader's ability to make decisions and act. Restrictions can be internal or external to the company. Internal constraints are those that originate within the organization, such as budget constraints, limited human resources, and organizational rules.
External constraints are those that come from outside the organization, such as laws, regulations, customer requirements, or competitors. In either case, these limitations affect decisions and the actions that the manager can take that should be considered when making the decision.
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According to the four-frame model, the _____ frame relates to how an organization builds a culture that gives purpose and meaning to work and builds team cohesion.
The human resource frame relates to how an organization builds a culture that gives purpose and meaning to work and builds team cohesion.
The human resource frame relates to how an organization builds a culture that gives purpose and meaning to work and builds team cohesion.
The four-frame model consists of the structure frame, which focuses on the organization's design and systems, the human resource frame, which focuses on the people and culture within the organization, the political frame, which focuses on power and politics within the organization, and the symbolic frame, which focuses on the organization's image, brand, and identity.
The four-frame model is a framework for understanding organizations that was developed by Peter Senge. The four frames are the structural, human resource, political, and cultural frames. Each frame provides a different perspective on how organizations function.
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The manager of The Cheesecake Factory in Memphis reports that on six randomly selected weekdays, the number of customers served was 240, 185, 165, 180, 130, and 120. She believes that the number of customers served on weekdays follows a normal distribution. (You may find it useful to reference the t table.) Click here for the Excel Data File a. Calculate the margin of error with 99% confidence. (Round final answer to 2 decimal places.) Margin of error b. Construct the 99% confidence interval for the average number of customers served on weekdays. (Round final answers to 2 decimal places.) Lower limit Upper limit c. How can the margin of error reported in part a be reduced? - Increase the sample size - Decrease the sample size - Increase the standard deviation - Increase the confidence level
To reduce the margin of error, Increase the sample size. Increasing the sample size would increase the precision of the estimate, resulting in a smaller margin of error. Here option A is the correct answer.
To calculate the margin of error and construct the confidence interval for the average number of customers served on weekdays at The Cheesecake Factory in Memphis, the following steps can be followed:
a. Calculate the margin of error with 99% confidence:
The sample size is 6, so the degrees of freedom are 6-1=5.
From a t-distribution table with 5 degrees of freedom and a confidence level of 99%, the t-value is 2.571.
The sample mean is calculated as the sum of the sample data divided by the sample size: (240 + 185 + 165 + 180 + 130 + 120) / 6 = 170.
The sample standard deviation is calculated as: ((240-170)^2 + (185-170)^2 + (165-170)^2 + (180-170)^2 + (130-170)^2 + (120-170)^2) / (6-1)) = 28.19.
The margin of error can then be calculated as: t-value * standard deviation/(sample size) = 2.571 * 28.19/(6) = 21.34.
b. Construct the 99% confidence interval for the average number of customers served on weekdays:
The lower limit is calculated as: sample mean - margin of error = 170 - 21.34 = 148.66.
The upper limit is calculated as the sample means + margin of error = 170 + 21.34 = 191.34.
Thus, the 99% confidence interval for the average number of customers served on weekdays is (148.66, 191.34).
c. Reducing the standard deviation or increasing the confidence level would have the opposite effect and would increase the margin of error.
Complete question:
The manager of The Cheesecake Factory in Memphis reports that on six randomly selected weekdays, the number of customers served was 240, 185, 165, 180, 130, and 120. She believes that the number of customers served on weekdays follows a normal distribution. (You may find it useful to reference the t table.) Click here for the Excel Data File a. Calculate the margin of error with 99% confidence. (Round final answer to 2 decimal places.) Margin of error b. Construct the 99% confidence interval for the average number of customers served on weekdays. (Round final answers to 2 decimal places.) Lower limit Upper limit c. How can the margin of error reported in part a be reduced? -
A - Increase the sample size
B - Decrease the sample size
C - Increase the standard deviation
D - Increase the confidence level
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Monique wants to create an advertising brochure to publicize her upcoming store grand opening. What is the first step she should take in preparing the brochure?
Choose the answer.
Question 13 options:
choose the paper
choose the colors and fonts
edit and revise
determine the purpose and goals
The front cover of the folded brochure is this initial portion. It contains an image, the name of the business, and a compelling statement that compels the reader to open it and continue reading.
What is the first step in making a brochure?Create the following folder before you begin so that you have it hand:
If you have a logo, you should use the greatest resolution possible so that it will print well.Choose a couple of the most impressive images of your goods and services.Spend a little time planning out your message in advance since it's crucial.You have the chance to elaborate on who you are and what you stand for in a brochure.Get all the information you need to run your business.To know more about brochure, visit:
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For 2020, what is the maximum tax rate for personal service corporations?
a. 21 percent
b. 28 percent
c. 35 percent
d. 37 percent
e. None of these
Answer:
d. 37 percent
Explanation:
For 2020, the maximum tax rate for personal service corporations is 37 percent. A personal service corporation is a type of corporation that provides services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, and consulting. Personal service corporations are subject to a flat corporate tax rate, which is the same as the individual tax rate for the highest tax bracket. For 2020, the top individual tax rate was 37 percent, so that is also the maximum tax rate for personal service corporations.
Answer:none of those
Explanation:
The outcome of FDI (foreign direct investment) is a foreign subsidiary, a company located in a foreign country that is owned by another company, called the ___ company
A foreign subsidiary is a company located in a foreign country that is owned by another company, referred to as the parent company.
The outcome of foreign direct investment (FDI) is the creation of a foreign subsidiary. A foreign subsidiary is a company located in a foreign country that is owned by another company, referred to as the parent company. The parent company invests capital, resources, and expertise in the foreign subsidiary in order to establish a presence in a new market, access new resources, or pursue new opportunities. Foreign subsidiaries play a significant role in the global economy as they allow companies to expand their operations beyond their home country and tap into new markets. They also provide opportunities for local workers in the host country, as the subsidiary may hire employees and purchase goods and services from the local economy. Foreign subsidiaries may also have an impact on the host country's economy and culture, as they bring in new investment, technology, and management practices.
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what is pricing? explain the factor involved in price determination.
T/F: in a given community, if the government builds more freeways, then the supply curve for freeway space shifts rightward and the demand curve for freeway space shifts leftward.
If the government constructs new motorways in a town, the demand and supply curves for motorway space will move left and right, respectively. This statement is false.
In a given community, if the government builds more freeways, then the supply curve for freeway space shifts rightward and the demand curve for freeway space shifts rightward as well.
This is because the increased supply of freeway space increases the quantity of freeway space that is available to meet the demand, leading to a higher equilibrium quantity of freeway space and a lower equilibrium price.
The demand curve shifts rightward because as the quantity of freeway space increases, the price of freeway space decreases, making it more attractive for drivers to use the freeways.
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Prepayments are: (Select all that apply.)transactions in which cash flow precedes revenue recognition.transactions in which cash flow precedes expense recognition.
Prepayments are A: "transactions in which cash flow precedes revenue recognition" as well as C: "transactions in which cash flow precedes expense recognition".
A: Prepayments are transactions in which cash flow precedes revenue recognition. This means that a customer makes a payment before the delivery of a product or service, resulting in cash inflows prior to the recognition of revenue. This can create a timing difference between cash inflows and the recognition of revenue, which can impact the financial statements.
C: Prepayments can also precede expense recognition. This means that a company may incur expenses related to a product or service before the corresponding payment is received from the customer. This can result in the recognition of expenses prior to the recognition of the related cash inflows, which can also impact the financial statements.
"
Complete question
Prepayments are: (Select all that apply.)
A: transactions in which cash flow precedes revenue recognition.
B: transactions in which cash flow follows revenue recognition.
C: transactions in which cash flow precedes expense recognition.
"
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How do you know if equilibrium is stable or unstable differential equation?
An equilibrium is stable if nearby solutions approach it as time goes on, and unstable if they move away from it as time goes on.
The stability of an equilibrium solution in a differential equation refers to the behavior of solutions near that equilibrium solution as time progresses.
If nearby solutions approach the equilibrium solution as time goes on, it is considered stable. Conversely, if nearby solutions move away from the equilibrium solution as time goes on, it is considered unstable.
To determine the stability of an equilibrium, one can study the direction of nearby solutions as time goes on, using techniques such as linearization or eigenvalue analysis. These methods allow one to determine if nearby solutions move toward or away from the equilibrium as time goes on, indicating stability or instability, respectively.
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Referring to the Modified Circular Flow Model, explain the roles of each party that participates in the factor market.
The Modified Circular Flow Model is a visual representation of how goods, services, and money flow through an economy. In this model, there are two main markets: the product market and the factor market. The factor market is where the factors of production, such as land, labor, capital, and entrepreneurship, are bought and sold.
There are two main parties that participate in the factor market: households and businesses.
Households are the owners of the factors of production, and they supply these factors to businesses in exchange for payment. For example, households supply labor in exchange for wages, they supply land in exchange for rent, and they supply capital in exchange for interest or profits. In this way, households are sellers in the factor market.
Businesses, on the other hand, are the buyers in the factor market. They demand the factors of production to produce goods and services, which they then sell in the product market. Businesses pay for the factors of production through the revenues they earn from the product market. The payments made to households in exchange for the factors of production are considered costs of production for businesses.
In summary, households supply the factors of production in the factor market, and businesses demand these factors to produce goods and services in the product market. Through this exchange, households receive income from the factor market and businesses incur costs of production.
what is the definition of social media marketer?
Utilizing social media sites to market your brand and increase sales of your goods or services is known as social media marketing.
Using social media websites sites and stages to publicize a decent or administration is known as virtual entertainment showcasing.Despite the way that e-promoting computerized advertising prevails in the scholarly world, virtual entertainment showcasing is filling in notoriety among professionals and scientists the same.Most web-based entertainment networks offer incorporated information investigation apparatuses that let organizations screen the turn of events, viability, and commitment of promoting drives.As far as technique, web-based entertainment showcasing involves dealing with an administration, deciding the degree, and laying out the online entertainment.Using social media sites to advertise the image and increment deals of your labor and products is known as virtual entertainment promoting.
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According to the classic five-point question format for purchase intentions, which of the following is true of the top-two-boxes score?
A. This score represents the number or percentage of people who definitely would not buy a product.
B. This score is used as an indicator of group reaction.
C. Researchers who calibrate this score believe that it reflects real figures.
D. This score is used to indicate the number or percentage of people who might or might not buy a product.
The important cause of notion exams is to get a photo of the modern understanding of the class, not of an person student. As a result, notion tests are normally ungraded or very low-stakes.
Which of the following is a commonly used approach for notion testing?Creating a Concept Test Survey
The simplest and most frequent way to behavior a thought take a look at is with a survey. Surveys enable you to without problems collect remarks on-line and achieve a deeper understanding of how shoppers respond to distinctive aspects of your concept.
The fourth kind of thinking format, digital reality, captures the benefits of the prototype without most of the disadvantages.
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https://brainly.com/question/3521552#SPJ4Both costs to serve the customer and commitment between buyer and seller are lowest with this type of relationship strategy.
a. Solutions Relationship
b. Supplier Relationship
c. Transaction Relationship
d. Collaborative Relationship
e. Partnership Relationship
The concept is Collaboration, the act of working with someone to produce or create something. The answer is option D, Collaborative Relationships
Collaboration improves the way your platoon works together and solves problems. This leads to further invention, more effective processes, further success, and better communication.
By harkening to and learning from platoon members, you can help each other achieve their pretensions. cooperative connections are formed when two or further people work together to achieve common pretensions.
Collaboration has come as the favored result for uniting different people with different viewpoints. Collaborative cooperation encourages people from different backgrounds and gets them to work together and help each other.
Everyone can contribute their knowledge, bents, and capacities to the group. They also have new ideas that help break their delicate problems and move their systems forward.
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finance companies make loans to people who could not get credit anywhere else. to compensate for taking this extra risk, finance companies: ____________
Finance companies play a crucial role in providing credit access to people who may not be able to get loans from traditional banks or credit unions.
These individuals may have poor credit scores, limited credit history, or other financial difficulties that make them less attractive to traditional lenders. To compensate for the extra risk involved in lending to these individuals, finance companies charge higher interest rates and fees. The higher interest rates help the company to earn a return on the investment while covering the potential losses they may incur if the borrower defaults on the loan. The higher fees can help to offset administrative costs, such as loan processing and underwriting, which may be more intensive for higher-risk borrowers. Finance companies also typically have stricter loan terms and conditions compared to traditional lending institutions. For example, they may require higher down payments, shorter repayment terms, or more collateral to secure the loan. This helps to reduce their risk, as it increases the chances that the borrower will repay the loan and reduces the potential losses in case of default. In conclusion, finance companies compensate for the extra risk involved in lending to people with poor credit or limited credit history by charging higher interest rates, fees, and imposing stricter loan terms and conditions. This helps to ensure that the company earns a return on investment while also reducing the potential losses from loan defaults.
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suppose the percent change in the quantity demanded for water for any price change is zero. the demand curve for water is , and the price elasticity of demand is perfectly .
The demand curve in this situation is vertical because perfectly inelastic demand means that the change in quantity is zero for any percentage change in price. Price inelastic demand only means that the quantity change is less than the price change in percentage terms.
It does not imply that the quantity change is zero. Demand elasticity is unitary elastic when the percentage change in quantity demanded is equal to the percentage change in price. Demand is said to be price inelastic, or not very responsive to price changes, if the percentage change in quantity demanded is less than the percentage change in price.
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