By monitoring profits on a monthly basis and taking corrective action if profits have not increased by 3% after three months, the management of Alaska Airlines is carrying out its controlling function.
The controlling function involves monitoring and measuring performance against goals and taking corrective action when necessary to ensure that the goals are achieved. In this case, the goal is to increase profits by 12% next year, and management is monitoring profits on a monthly basis to ensure that the company is on track to meet this goal. If profits have not increased by 3% after three months, management will take corrective action to get the company back on track and ensure that the goal is achieved.
Controlling is an important function of management because it helps to ensure that plans are being executed effectively and efficiently and that the organization is moving in the right direction toward its goals. By monitoring performance and taking corrective action as needed, management can identify and address issues early on, which can help to minimize negative impacts on the organization and improve its overall performance.
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Someone who argues that General Motors owes an obligation to take into account the interests of the community where it has its Michigan factories in decisions involving the plant is arguing most directly for which theory to be applied to business
The theory being argued for in this situation is known as stakeholder theory. Stakeholder theory posits that a business has a responsibility not only to its shareholders but also to a wider range of stakeholders, including employees, customers, suppliers, and the community in which it operates.
In this case, the person arguing that General Motors owes an obligation to take into account the interests of the community where it has its Michigan factories is essentially saying that the company has a responsibility to its local stakeholders beyond just its shareholders. This could include factors such as the impact on local employment, the environment, and the overall well-being of the community.
Stakeholder theory is often contrasted with shareholder theory, which argues that a business's primary responsibility is to maximize shareholder value. While shareholder theory may prioritize short-term financial gains, stakeholder theory takes a more long-term view, recognizing that a business's success is often tied to the health and well-being of the wider community. As such, stakeholder theory may call for businesses to take actions that benefit the community, even if those actions don't immediately result in increased profits.
Overall, the argument that General Motors owes an obligation to take into account the interests of the community where it has its Michigan factories is a clear example of someone advocating for stakeholder theory. By recognizing the importance of the community beyond just shareholders, this person is arguing that businesses have a broader social responsibility that goes beyond just making money.
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Moving assets in and out of the partnership should always have meaningful tax consequences. True false question. True False
True. Moving assets in and out of a partnership can have tax consequences, whether it's for incoming or outgoing partners.
For example, if a partner contributes appreciated property to the partnership, they may be subject to capital gains taxes on the appreciation. Similarly, if a partner receives a distribution of appreciated property from the partnership, they may be subject to capital gains taxes on the appreciation. Therefore, it is important to consult with a tax professional and carefully consider the tax implications before making any changes to the partnership's assets.
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On a recent trip to my local grocery store, I noticed that ping pong balls are available for sale in the same aisle where beer and other spirits are sold. What component of a CRM likely made the management at this store consider placing these items next to each other
It's unlikely that a component of customer relationship management (CRM) directly influenced the decision to place ping pong balls next to beer and spirits in the store.
Instead, this decision was likely based on product placement and merchandising strategies. Placing related items in close proximity can increase the likelihood of cross-selling and impulse purchases. In this case, the store may have recognized that shoppers who are buying beer or other spirits may also be interested in purchasing ping pong balls, perhaps for use at a party or social gathering. While CRM focuses on building and managing relationships with customers, it does not necessarily dictate specific product placement decisions. However, effective CRM strategies can lead to better understanding of customer preferences and behavior, which could inform product placement decisions and other marketing tactics.
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The Golden Braid Bookstore currently has $340,000 in cash, $280,000 in inventory, and $40,000 in accounts receivable. The company also has $65,000 in accounts payable, and $15,000 in other current liabilities. What is its current (or working capital) ratio
This means that the Golden Braid Bookstore has $8.25 in current assets for every $1 in current liabilities.
The current ratio is a financial metric that is used to assess a company's short-term liquidity. It is calculated by dividing the current assets of a company by its current liabilities. In the case of the Golden Braid Bookstore, the current ratio can be calculated as follows:
Current ratio = (Cash + Inventory + Accounts receivable) / (Accounts payable + Other current liabilities)
Current ratio = ($340,000 + $280,000 + $40,000) / ($65,000 + $15,000)
Current ratio = $660,000 / $80,000
Current ratio = 8.25
Generally, a current ratio of 2:1 or higher is considered to be healthy, as it indicates that a company has sufficient liquidity to cover its short-term obligations. In the case of the Golden Braid Bookstore, its current ratio is well above this threshold, indicating that it has a strong financial position in the short term.
It is important to note, however, that the current ratio is just one measure of a company's financial health, and should be used in conjunction with other financial metrics and analysis to gain a more complete picture of a company's overall financial position.
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Andrew Harris owns a home in Beaufort. There was a bad thunderstorm and his tool shed was hit by lightning and burned to the ground. What part of his homeowner's insurance policy would cover this loss
The coverage for Andrew's tool shed would fall under the property damage coverage section of his homeowner's insurance policy. This coverage provides protection against damage to the physical structure of the insured property, including outbuildings and other structures.
Andrew Harris's homeowner's insurance policy should cover the loss of his tool shed due to the lightning strike. Typically, homeowners insurance policies provide coverage for damage to structures on the property, such as sheds, garages, and fences, caused by various perils, including lightning strikes. The policy may also provide coverage for the contents of the shed, such as tools and equipment, up to a certain limit.
Depending on the policy, coverage for damage caused by lightning may be subject to a deductible, which is the amount the homeowner must pay out of pocket before the insurance coverage kicks in.It is important for homeowners to review their insurance policies regularly to ensure that they have adequate coverage for their property and belongings.
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Question Number 1) Vanessa Dolan is an account manager at Strawberry Frog. What specific aspect of her job does she describe as the most​ challenging?
The most challenging aspect of Vanessa Dolan's job as an account manager at Strawberry Frog is balancing client expectations with the agency's creative vision.
As an account manager, Vanessa Dolan has to communicate the client's needs and expectations to the agency's creative team, while also ensuring that the creative work aligns with the agency's vision and standards. This can be a delicate balancing act, as the client may have specific requests or demands that may not necessarily align with the agency's creative approach. Additionally, there may be budget or timeline constraints that further complicate the process. Vanessa Dolan must navigate these challenges to ensure that both the client and the agency are satisfied with the end result.
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A monopoly's markup (The amount above marginal cost it charges its customers) tends to increase when the elasticity of demand becomes more ______________.
A monopoly's markup tends to increase when the elasticity of demand becomes more inelastic.
Inelastic demand means that customers are less sensitive to changes in price, so a monopoly can raise its prices without losing many customers. This allows the monopoly to charge a higher markup above its marginal cost.
On the other hand, if the demand is elastic, customers are more sensitive to price changes, and a monopoly cannot raise its prices without losing many customers. Therefore, the markup charged by the monopoly will be lower. In summary, a monopoly's markup increases with inelastic demand and decreases with elastic demand.
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A tourist to the United States from Honduras is involved in a car accident and is taken to the hospital. Her family says that her insurance does not cover her in the United States. Nevertheless, she will still be treated because of the
In the United States, medical care is provided to anyone who needs it regardless of their ability to pay or their insurance coverage.
This is due to a federal law known as the Emergency Medical Treatment and Active Labor Act (EMTALA), which requires hospitals to provide emergency care to anyone who needs it regardless of their insurance status or ability to pay.
In the case of the Honduran tourist involved in a car accident, the hospital will provide her with the necessary medical care and treatment regardless of whether her insurance covers her or not. The hospital may bill her for the cost of the treatment, but they cannot deny her care due to lack of insurance coverage.
It is important to note, however, that the cost of medical care in the United States can be very high, and without insurance coverage, the tourist may face significant financial hardship. It is always recommended that travelers to the United States purchase travel medical insurance to ensure that they are covered in case of unexpected medical emergencies.
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_______ management includes all the activities managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals.
Human resource management includes all the activities managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals.
Human resource management includes a range of activities such as recruitment, selection, onboarding, training, performance management, compensation and benefits, and employee relations. The main goal of human resource management is to attract and retain talented employees who can help the organization achieve its objectives.
In addition to managing employees, human resource management also involves developing and implementing policies and procedures to comply with employment laws and regulations. This helps to ensure that the company is operating legally and ethically while also protecting the rights of its employees.
Overall, effective human resource management is crucial for organizations that want to attract and retain top talent, build a strong culture, and achieve their strategic goals.
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California Closets is a maker of closet organizers and custom storage solutions. Its products are designed for people who live in small spaces. What is the first variable the company should use to segment the market
The first variable that California Closets should use to segment the market is demographic segmentation.
This involves dividing the market based on various demographic factors such as age, gender, income, education, occupation, and family size. Since California Closets caters to people who live in small spaces, it is important to target individuals who are likely to live in apartments or smaller homes.
For instance, the company may target young professionals who are starting out in their careers and live in smaller apartments in urban areas. These individuals may have limited space and need custom storage solutions to maximize their living space. Alternatively, the company could target families with children who live in small homes or condos.
Segmenting the market based on demographics allows California Closets to tailor its marketing efforts to specific groups of customers. For example, the company could use social media platforms to target younger demographics while using traditional marketing methods such as print or television ads to target older demographics.
In conclusion, demographic segmentation is the first variable that California Closets should use to segment the market. By targeting specific groups of customers based on their demographics, the company can create customized products and services that meet the unique needs of each customer.
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An accounting firm establishing foreign operations in markets in which their principal accounts are located to prevent competitors from gaining access to this accounts is an example of a _____ driver.
The accounting firm establishing foreign operations in markets where their principal accounts are located to prevent competitors from gaining access to these accounts is an example of a defensive driver.
Defensive drivers are those who prioritize preventing losses and protecting their existing market position rather than taking risks to gain a competitive advantage. Defensive drivers may include companies that invest in research and development to improve existing products or services, acquire patents to protect their intellectual property or establish distribution channels to secure their market share.
In this case, the accounting firm's decision to expand into foreign markets is a defensive move to protect its principal accounts from competitors. They are not seeking to gain new customers or increase their market share; rather, they are seeking to defend their existing customer base by establishing a presence in the markets where their principal accounts are located.
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Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end costs and fair values for its portfolio of these investments follow. Portfolio of Available-for-Sale Securities Cost Fair Value December 31, Year 1 $ 10,200 $ 18,400 December 31, Year 2 17,200 26,100 December 31, Year 3 21,200 30,800 December 31, Year 4 15,300 20,000 Prepare journal entries to record each year-end fair value adjustment for these securities.
The unrealized gains and losses are recorded in a separate account until the securities are sold, at which point the realized gain or loss would be recorded in the income statement.
To record each year-end fair value adjustment for the available-for-sale securities, the following journal entries should be made:
Year 1:
Debit: Available-for-sale securities - unrealized gain $8,200
Credit: Unrealized gain on available-for-sale securities $8,200
(To record the increase in fair value of available-for-sale securities)
Year 2:
Debit: Available-for-sale securities - unrealized gain $8,900
Credit: Unrealized gain on available-for-sale securities $8,900
(To record the increase in fair value of available-for-sale securities)
Year 3:
Debit: Available-for-sale securities - unrealized gain $9,600
Credit: Unrealized gain on available-for-sale securities $9,600
(To record the increase in fair value of available-for-sale securities)
Year 4:
Debit: Available-for-sale securities - unrealized loss $5,300
Credit: Unrealized loss on available-for-sale securities $5,300
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Group leaders and managers communicating with employees to assign goals and to provide job instructions is an example of a(n) ________ communication.
Group leaders and managers communicating with employees to assign goals and provide job instructions is an example of a downward communication.
Downward communication refers to the flow of information from the higher level of an organization to the lower levels. In this case, the leaders and managers are at a higher level and they are communicating with the employees who are at a lower level in the organization.
Downward communication is important because it helps in setting goals and objectives for the employees, assigning tasks, and providing job instructions. It helps in creating a clear understanding of what is expected from the employees and helps in avoiding confusion and ambiguity. Additionally, it also helps in creating a sense of direction and purpose for the employees.
However, it is important to note that communication is a two-way process, and it is equally important for employees to communicate upwards as well. This helps in providing feedback, sharing ideas and suggestions, and addressing any issues or concerns that may arise. Effective communication is crucial for the smooth functioning of an organization and for achieving its goals and objectives.
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how much must be deposited on January 1, 2014 in a savings account paying 6% annually in order to make annual withdrawals
Calculate the amount that must be deposited in a savings account, a deposit of $106,530 must be made on January 1, 2014, in a savings account paying 6% annually to make annual withdrawals amount of $10,000 for 20 years.
We need to know the desired annual withdrawal amount, the number of years of withdrawals, and the interest rate.
Let's say the desired annual withdrawal amount is $10,000, and the withdrawals will be made for 20 years. To ensure that the savings account can support these withdrawals, we need to calculate the present value of the annuity.
Using the present value of an annuity formula, we get:[tex]PV = PMT x [1 - (1 + r)^-n] / r[/tex]
Where:
PV = Present Value
PMT = Payment or Annual Withdrawal Amount
r = Interest Rate
n = Number of Years
Plugging in the values we have,present value of the annuity.
PV = $[tex]10,000 x [1 - (1 + 0.06)^-20] / 0.06[/tex]
PV = $[tex]10,000 x [1 - 0.312] / 0.06[/tex]
PV = $[tex]$106,530[/tex]
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In order to get the most risk reduction through diversification you would seek to add assets to the portfolio that have a _____________ correlation with other assets in the portfolio
In order to achieve the most risk reduction through diversification, you would want to add assets to the portfolio that have a "negative" or "low positive" correlation with other assets in the portfolio.
Diversification is the process of spreading your investments across various asset types and industries to reduce the overall risk of your portfolio. Assets with low or negative correlation tend to move in different directions or have different levels of volatility, meaning that when one asset's value decreases, the other asset's value might increase or stay stable. This helps to balance out the portfolio's performance, reducing the impact of any single asset's decline on the entire portfolio.
To create a well-diversified portfolio, follow these steps:
1. Identify different asset classes: These include stocks, bonds, real estate, and cash equivalents, among others.
2. Determine the appropriate mix of asset classes: Assess your risk tolerance and investment goals to decide on the proportion of each asset class in your portfolio.
3. Select assets with low or negative correlation: Within each asset class, choose investments that have a low or negative correlation with each other.
4. Regularly review and rebalance your portfolio: As market conditions change, the correlation between assets may change as well. Regularly evaluate your portfolio and make adjustments to maintain your desired level of diversification and risk reduction.
By following these steps, you can construct a well-diversified portfolio that helps reduce risk and potentially increases the likelihood of achieving your investment goals.
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Because of limited resources, Company A cannot develop disaster recovery plans for all of its processes. What should Company A use to determine which processes require recovery plans?
Company A should use a risk assessment to determine which processes require recovery plans.
A risk assessment is a systematic process of identifying, evaluating, and prioritizing the potential risks that a company may face, and it helps the company to allocate its resources more efficiently by focusing on the processes that are most critical and require the most protection. The risk assessment should consider factors such as the likelihood of an event occurring, the impact of the event on the company's operations and reputation, and the cost of implementing and maintaining a recovery plan.
Companies typically use a risk assessment process to determine which processes require disaster recovery plans. This process involves identifying potential risks to each process, evaluating the likelihood and impact of those risks, and determining the appropriate level of protection needed. The risk assessment should take into account factors such as the criticality of the process to the business, the potential financial or legal consequences of a disruption, the availability of backup systems or resources, and any regulatory or compliance requirements. Based on the results of the risk assessment, the company can prioritize its disaster recovery planning efforts and allocate resources accordingly.
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An offeror sends an offer using priority US mail to an offeree. The offeree uses a slower medium that is neither customary in the business nor explicitly authorized by the offeror. What results under common law
Under common law, the general rule is that an offer can be accepted by any means that is reasonable under the circumstances unless the offeror has explicitly specified the means of acceptance in the offer.
In the scenario described, the offeror used priority US mail to send the offer, which suggests that they intended for the offer to be accepted by a similar means of communication that is both customary in the business and expedient, such as by mail, email, or fax.
If the offeree uses a slower medium that is not customary in the business and not authorized by the offeror, it may not be considered a valid acceptance under common law.
This is because the offeror had a reasonable expectation that the offer would be accepted in a timely manner by a customary and expedient means of communication, and the offeree's use of a slower method may be seen as a rejection or a counteroffer.
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Under common law, an acceptance of an offer is valid only if it is communicated by the means authorized or requested by the offeror.
If the offeree uses a slower medium that is neither customary in the business nor explicitly authorized by the offeror, then the acceptance may not be valid.
In this case, the offeror used priority US mail to send the offer to the offeree.
If the offeree uses a slower medium to communicate acceptance, such as regular mail, email, or fax, the acceptance may not be valid unless the offeror explicitly authorized or requested the offeree to use such a medium.
The reason for this rule is that the offeror has the right to control the manner in which acceptance is communicated. If the offeree uses a slower medium, the offeror may not receive the acceptance in a timely manner, and this delay may affect the contract's performance.
Therefore, the offeree must use the means of communication authorized or requested by the offeror to ensure that the acceptance is valid under common law.
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__________________ are similar jobs that tend to exist across departments and across diverse organizations, allowing them to be used as a basis for compensation comparisons.
Benchmark jobs are similar jobs that tend to exist across departments and diverse organizations and are used as a basis for compensation comparisons.
These jobs typically have a similar level of responsibility, skill, effort, and working conditions, and can be found in multiple organizations or industries. Benchmark jobs are used to establish the pay structure for an organization by identifying the market rate for these types of jobs. This information is then used to determine the pay scale for other jobs within the organization.
By comparing the pay for benchmark jobs across various organizations, companies can ensure that their compensation plans are competitive and in line with industry standards.
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n its advertising, The American Eurocopter company shows its product on a large yacht in the hope of appealing to the upper stratum of ________. This term refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, behaviors, and interests can be grouped.
The American Eurocopter company showcases its product on a large yacht in its advertising to appeal to the upper stratum of society.
This term refers to the upper class or the wealthy segment of society. The company aims to target this group of people who share similar lifestyles, values, norms, behaviors, and interests.
By associating its product with luxury and exclusivity, the company hopes to attract customers who are willing to pay a premium price for their high-end helicopters.
This advertising strategy is intended to create a perception that the American Eurocopter is a product that is synonymous with luxury and style, and therefore, it is the ideal choice for those who desire the best in life.
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The international trade effect states that Group of answer choices an increase in the price level will raise net exports. an increase in the price level will lower net exports. an increase in the price level will raise exports. an increase in the price level will lower imports.
The international trade effect states that an increase in the price level will lower net exports.
This is because as domestic prices rise, domestic goods become more expensive compared to foreign goods, which makes domestic exports less competitive and less desirable to foreign buyers. In contrast, foreign goods become relatively cheaper, making them more attractive to domestic consumers and increasing imports. The result is a decrease in net exports, which is the difference between exports and imports. The international trade effect is one of three effects that help explain the negative relationship between the price level and net exports, known as the aggregate demand (AD) curve. The other two effects are the real balance effect and the interest rate effect. The real balance effect occurs because a higher price level decreases the purchasing power of money, leading to lower real wealth and lower consumption. The interest rate effect occurs because higher prices lead to higher interest rates, which decrease investment and consumption.
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Direct materials: 18,000 pounds at a total cost of $17,280; Direct labor: 36,000 hours at a total cost of $374,400. Compute the direct materials price variance.
The direct materials price variance is -$720.
To compute the direct materials price variance use the provided information. The terms given are:
Direct materials: 18,000 pounds at a total cost of $17,280
Direct labor: 36,000 hours at a total cost of $374,400
Hence,
1. Calculate the actual price per pound of direct materials:
Actual Price = Total Cost of Direct Materials / Total Pounds of Direct Materials
Actual Price = $17,280 / 18,000 pounds
Actual Price = $0.96 per pound
2. Determine the standard price per pound of direct materials. This information is not provided in the question, so I will assume a standard price for the sake of example. Let's say the standard price is $1.00 per pound.
3. Calculate the direct materials price variance:
Price Variance = (Actual Price - Standard Price) x Total Pounds of Direct Materials
Price Variance = ($0.96 - $1.00) x 18,000 pounds
Price Variance = -$0.04 x 18,000 pounds
Price Variance = -$720
Therefore, the direct materials price variance is -$720, indicating that the actual cost of direct materials was $720 less than the standard cost.
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firms adopt an early-follower strategy to grab a dominant position more from their strengths in marketing and manufacturing than from technological innovation.Multiple ChoiceEntrepreneurialFirst-moverProspectorAnalyzer
An early-follower strategy is often adopted by firms classified as Analyzer.
Understanding AnalyzersAnalyzers aim to secure a dominant position in the market by leveraging their strengths in marketing and manufacturing rather than focusing primarily on technological innovation.
While not being the first-mover or innovator, these firms carefully observe market trends, analyze competitors' successes, and swiftly replicate or improve upon successful products or services.
This approach allows Analyzers to minimize risks associated with being a pioneer and capitalize on the established market demand, all while utilizing their robust marketing and manufacturing capabilities to achieve success.
In summary, an early-follower strategy is associated with Analyzer firms that prioritize market intelligence and operational efficiency over technological breakthroughs.
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What gave rise to the process called the green revolution, in which global grain production increased because of using high-input industrialized agriculture
The Green Revolution was a response to the growing concern over food shortages and hunger in developing countries, particularly in Asia. It was a period of significant agricultural development that began in the 1940s and continued through the 1960s.
The Green Revolution was made possible through the use of high-input industrialized agriculture, which involved the use of new crop varieties that were developed through selective breeding and genetic engineering.
These new varieties were designed to be more resistant to pests and diseases, and to have higher yields than traditional varieties.
The Green Revolution was also facilitated by the efforts of international organizations, such as the Rockefeller Foundation and the Ford Foundation, which provided funding and technical assistance to support agricultural research and development in developing countries.
Overall, the Green Revolution was a significant development in the history of agriculture and helped to alleviate hunger and improve food security in many parts of the world.
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Suppose you just valued a firm and arrived at the value of operating assets of 8789. It has some cash in the amount of 1005 and non-operating assets of 253. Debt is 1879, outstanding executive options is 845 and preferred stock is 146. The firm has 1000 common shares outstanding. What is the value of common stock per share?
To calculate the value of common stock per share, we need to subtract the value of all liabilities and non-common equity items from the value of operating assets, and then divide the result by the number of common shares outstanding.
Value of common equity = (Value of operating assets - Cash - Non-operating assets - Debt - Outstanding executive options - Preferred stock)
Value of common equity = (8789 - 1005 - 253 - 1879 - 845 - 146) = 4661
Value of common stock per share = (Value of common equity) / (Number of common shares outstanding)
Value of common stock per share = (4661) / (1000) = 4.661
Therefore, the value of common stock per share is $4.661.
To calculate the value of common stock per share, follow these steps:
1. Add the value of operating assets, cash, and non-operating assets together: 8789 (operating assets) + 1005 (cash) + 253 (non-operating assets) = 10047. This is the total value of the firm's assets.
2. Subtract the debt, outstanding executive options, and preferred stock from the total value of the firm's assets: 10047 - 1879 (debt) - 845 (executive options) - 146 (preferred stock) = 7177. This is the remaining value of the firm's assets attributed to common stockholders.
3. Divide the remaining value by the number of common shares outstanding: 7177 / 1000 = 7.18.
Therefore, the value of common stock per share is $7.18.
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Tom's shoes gives a pair of shoes away every time you buy a pair. Their messages focus on this, and not the quality of their shoes, etc. This is an example of what advertising principle
The advertising principle exemplified by Tom's Shoes giving away a pair of shoes for every pair purchased, with their messages focusing on this aspect rather than the quality of the shoes. This advertising strategy is an example of the "cause-related marketing" principle.
Cause-related marketing involves a company promoting its products or services while also supporting a social or environmental cause. In this case, Tom's Shoes emphasizes their philanthropic efforts of providing shoes to those in need, rather than focusing solely on the quality or features of their products.
This strategy can help build a positive brand image and attract customers who share the company's values.
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Assume that a statement of cash flows has been prepared. The combination of the three major components (operating activities, investing activities, financing activities) equals the:
The combination of the three major components (operating activities, investing activities, financing activities) in a statement of cash flows equals the net change in cash and cash equivalents for the period.
The statement of cash flows is an important financial statement that provides information on how a company generated and used its cash and cash equivalents during a given period. It breaks down a company's cash flows into three major components: operating activities, investing activities, and financing activities. Operating activities refer to the company's primary business activities, such as sales and purchases of goods and services, while investing activities relate to the acquisition and sale of long-term assets, such as property, plant, and equipment. Financing activities include transactions that involve the company's owners or creditors, such as the issuance of stock or payment of dividends.
The combination of these three components provides a summary of all the cash inflows and outflows for the period. This net change in cash and cash equivalents is an important metric for investors and analysts, as it reflects the company's ability to generate cash from its operations, investments, and financing activities.
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In a situation where short-term assets are always financed with short-term liabilities and where long-term assets are always financed with long-term liabilities, net working capital is always ___.
Net working capital (NWC) is the difference between a company's current assets and its current liabilities. It represents the amount of cash that would be left over if a company paid off all of its current liabilities with its current assets.
A positive NWC indicates that a company has sufficient short-term assets to cover its short-term obligations, while a negative NWC indicates that a company may have difficulty meeting its short-term obligations.
The statement that "in a situation where short-term assets are always financed with short-term liabilities and where long-term assets are always financed with long-term liabilities, net working capital is always zero" is not necessarily true.
It is possible for a company to have a positive or negative NWC even if it always finances its assets with the corresponding liabilities. This is because changes in the amounts of current assets and liabilities can affect the NWC even if the financing remains the same.
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If an initial increase in government spending of $100 billion leads to a total increase of $250 billion in income, the marginal propensity to consume in the economy is ________.
The marginal propensity to consume (MPC) is the fraction of an increase in income that is spent on consumption. It is calculated as the change in consumption divided by the change in income.
In this case, we know that an initial increase in government spending of $100 billion led to a total increase of $250 billion in income. We can use this information to calculate the MPC as follows:
MPC = Change in consumption / Change in income
To find the change in consumption, we need to know how much of the $250 billion increase in income was spent on consumption.
Let's assume that the economy has an MPC of 0.8, meaning that for every $1 increase in income, $0.80 is spent on consumption.
If the total increase in income was $250 billion, then the change in consumption would be:
Change in consumption = MPC x Change in income
Change in consumption = 0.8 x $250 billion
Change in consumption = $200 billion
Therefore, the MPC in the economy is 0.8, since $200 billion of the $250 billion increase in income was spent on consumption.
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Individuals outside the normal chain of command who act as problem solvers for both management and employees are called ____
Individuals outside the normal chain of command who act as problem solvers for both management and employees are called ombudsmen.
Ombudsmen are often appointed to investigate complaints and conflicts and to provide solutions that are fair and equitable to all parties involved. They can help employees, customers, or clients navigate complex policies and procedures, and can also assist management in identifying areas for improvement in their organization. Ombudsmen can be found in a variety of settings, including corporations, universities, and government agencies.
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One argument made against reducing the bureaucracy is that it would hurt the economy by reducing the purchasing power of the dismissed officeholders. Those who make this argument are committing what fallacy
The argument made against reducing bureaucracy by stating that it would hurt the economy by reducing the purchasing power of the dismissed officeholders is committing the fallacy of the "Broken Window Fallacy.
This fallacy states that destroying something can lead to economic benefits because it creates jobs and stimulates economic activity. However, this fallacy is flawed because it fails to account for the opportunity cost of the resources used to replace the destroyed item. In the case of reducing bureaucracy, dismissing officeholders may lead to short-term job losses but in the long run, it can lead to a more efficient and effective government. The resources freed up from reducing bureaucracy can be used to invest in more productive areas, which can have a positive impact on the economy. Therefore, reducing bureaucracy should not be dismissed solely on the basis of preserving jobs or purchasing power, but rather on the basis of its potential to improve government efficiency and promote economic growth in the long term.
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