Does increasing average payment period decrease operating cycle

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Answer 1

Yes , the  increasing average payment period decreases the operating cycle

All small business owners know the importance of liquidity-have enough cash on hand to pay the bills. For this reason, business owners and managers monitor the cash conversion cycle. This shows how quickly companies are moving from paying inventory to receiving cash for sold inventory. An important factor in calculating a company's cash conversion cycle is the accounts payable period. The longer the period, the shorter the cycle.

The cash conversion cycle can be calculated using the data readily available on the company's balance sheet and income statement. It has three components. "Inventory days". On average, it indicates how long a product remains in stock before it is sold. "Accounts receivable days" or A / R days. This shows how long it takes a customer to pay an invoice. "Vendor date" or A / P date.

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Related Questions

arielle is part of a team charged with developing a new name for a product. this is an ________________ task.

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The task of developing a new name for a product is a creative endeavor that requires careful consideration and strategic thinking. It falls under the category of a subjective task.

Developing a new name for a product is an inherently subjective task because it involves the creation of a unique and compelling identity that resonates with the target audience. The name should capture the essence of the product, evoke positive emotions, and differentiate it from competitors. This process requires creativity, as the team must brainstorm and generate a wide range of ideas, considering various factors such as brand positioning, target market, and cultural implications. The team must also evaluate the potential names against legal and trademark considerations to ensure that they are legally protectable and not infringing on existing trademarks.

While there are guidelines and best practices to follow, the ultimate decision on the product name is subjective and relies on the team's collective judgment. Different team members may have different preferences and perspectives, leading to discussions and debates as they seek the most suitable name. Ultimately, the team's goal is to create a name that aligns with the product's purpose, resonates with consumers, and contributes to its success in the market.

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If a bond pays interest semi-annually, when determining the price of a bond, the present value of interest payments will equal the present value of an annuity x ______.

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If a bond pays interest semi-annually, when determining the price of a bond, the present value of interest payments will equal the present value of an annuity multiplied by the periodic interest payment amount.

When determining the price of a bond with semi-annual interest payments, the present value of interest payments is calculated by multiplying the present value of an annuity by the periodic interest payment amount.

The present value of interest payments on a bond refers to the current worth of all future interest payments that the bondholder will receive. In the case of a bond with semi-annual interest payments, the interest is paid twice a year.

To calculate the present value of interest payments, the periodic interest payment amount is multiplied by the present value of an annuity. The present value of an annuity represents the current value of a series of future cash flows . In this context, it is used to discount the semi-annual interest payments back to their present value.

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TRUE / FALSE. a cartel will maximize its profits as long as it limits industry output to the level found where the mr and mc curves intersect.

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False. A cartel will not necessarily maximize its profits by limiting industry output to the level found where the marginal revenue (MR) and marginal cost (MC) curves intersect.

While it is true that the MR and MC curves intersect at the point of profit maximization for a perfectly competitive firm, a cartel operates in a different market structure where firms collaborate to limit competition and increase their joint profits. In a cartel, such as OPEC (Organization of the Petroleum Exporting Countries), member firms often engage in price-fixing and output quotas to manipulate market conditions.By restricting industry output to the level where MR equals MC, the cartel could potentially increase prices and profits in the short term. However, this strategy is subject to various factors such as market demand elasticity, potential cheating among cartel members, and the long-term effects of reduced output on market dynamics.

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The necessary interaction between service provider and customer that allows a service to be delivered is called
a) customer contact.
b) service exchange.
c) marketing.
d) relationship marketing.
e) service contact.

Answers

The necessary interaction between a service provider and a customer that allows a service to be delivered is called "customer contact."

Any direct or indirect interaction a customer has with a service provider during the service delivery process is referred to as customer contact.

Customer communication can take a variety of forms. Face-to-face communication is possible, such as when a customer enters a retail store or restaurant.

It can also include remote communication, such as when a consumer talks to a call centre or a customer service professional over the phone or online.

Customer engagement is a crucial part of relationship marketing, in addition to facilitating service delivery. Service providers can boost the likelihood of recurring business by creating excellent relationships with clients.

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Anna is a 22-year-old student with earned income of $10,000 from a summer job and dividend income of $1,100. Her parents claim her as a dependent on their tax return. What is Anna’s basic standard deduction amount?

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The basic standard deduction amount for Anna, a 22-year-old student who is claimed as a dependent on her parents' tax return, is determined by the IRS guidelines.

In this case, Anna's earned income from her summer job is $10,000. Therefore, her earned income plus $350 is $10,350. Since this amount is greater than $1,100, Anna's basic standard deduction would be $10,350. However, please note that tax laws and regulations can change over time, so it is recommended to consult the most recent IRS guidelines or seek advice from a tax professional to get accurate and up-to-date information regarding Anna's specific situation and the applicable standard deduction amount.

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which investment would have the greatest diversification?

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Answer:

The highest level of diversification can be achieved by investing in different asset classes. Bonds are far less volatile than stocks, and government bonds often go up in price when stocks go down. Commodities are another significant asset class with a different pattern of returns.

Explanation:

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Final answer:

An index mutual fund, which involves investing in a large array of companies across various industries, would provide the greatest diversification. This spreads out the investment risk across a broad range of assets.

Explanation:

The investment with the greatest diversification would be a mutual fund, particularly an index mutual fund. Diversification in finance refers to the practice of spreading investments among different types of investments (assets) to reduce risk. An index mutual fund, such as those that track the S&P 500, involves investing in a broad array of companies across various industries. This provides a high level of diversification because your investment is not tied to the success of a single company or industry. The aim of diversification is to reduce risk and volatility in your portfolio.

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why do the inflation rate and the nominal interest rate tend to move together?

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The inflation rate and the nominal interest rate tend to move together because they are connected through the economy's supply and demand dynamics.

When the inflation rate increases, the nominal interest rate also tends to increase because lenders demand higher compensation for the increased risk of loaning money at a lower purchasing power. In other words, lenders will charge a higher nominal interest rate to keep up with the rising cost of living. On the other hand, when the inflation rate decreases, the nominal interest rate also tends to decrease because lenders do not require as much compensation for the reduced risk of loaning money at a higher purchasing power.

Additionally, central banks often use nominal interest rates as a tool to manage inflation. By increasing or decreasing the nominal interest rate, they can influence borrowing and spending, which in turn affects the demand for goods and services, and thus, inflation. Overall, the relationship between the inflation rate and the nominal interest rate is an essential part of the functioning of a modern economy.

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Assume that an analyst is using the constant dividend growth model to value a stock. Which of the following scenarios would be certain to cause her to decrease her estimate of the stock's value (assuming, of course, that all other factors are held constant)?
Question 10 options:
She believes the company has become riskier, and therefore increases her required rate of return for the stock
She increases her estimate of the company's next year's dividend
She increase her estimate of the expected annual rate of growth in the company's dividends
She decreases her required rate of return for the stock
None of the above would cause her to decrease her estimate of the stock's value
TomTom Inc. just paid a dividend of $3.00 (that is, D0 = 3.00). The current market price of the stock is $50 per share. Investors require a return of 15 percent on TomTom's stock. What is the implied growth rate of TomTom Inc., assuming that it grows at a constant rate?

Answers

If an analyst using the constant dividend growth model to value a stock believes that the company has become riskier and increases her required rate of return for the stock, this would be certain to cause her to decrease her estimate of the stock's value (assuming all other factors are held constant).

The constant dividend growth model assumes that dividends grow at a constant rate indefinitely. The formula for the model is:

P0 = D1/(r-g)

where P0 is the current stock price, D1 is the expected dividend at the end of the first year, r is the required rate of return, and g is the expected annual rate of growth in dividends.

If the analyst believes that the company has become riskier, she would increase her required rate of return for the stock (r) in the formula. This would decrease the estimated stock value (P0) in the formula, assuming that all other factors are held constant.

Increasing the estimate of the company's next year's dividend or the expected annual rate of growth in the company's dividends would increase D1 or g in the formula, respectively. This would increase the estimated stock value (P0) in the formula, assuming that all other factors are held constant.

Decreasing the required rate of return for the stock (r) would also increase the estimated stock value (P0) in the formula, assuming that all other factors are held constant.

Therefore, the only option that would cause the analyst to decrease her estimate of the stock's value is if she believes the company has become riskier and increases her required rate of return for the stock.

For the second part of the question, we can use the constant dividend growth model to solve for the implied growth rate (g) of TomTom Inc.:

P0 = D1/(r-g)

50 = 3.00/(0.15-g)

Solving for g, we get:

g = 0.1133 or 11.33%

Therefore, the implied growth rate of TomTom Inc. is 11.33% assuming it grows at a constant rate.

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assume that a town sells a truck that it had originally purchased for $55,000 for a cash sale price of $20,000. prepare the journal entry to record the sale.

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The journal entry for the sale of the truck would include a debit to the Cash account, a credit to the Fixed Assets (Truck) account, and a debit to the Accumulated Depreciation and/or Loss on Disposal of Fixed Assets accounts.

EXPLANATION: The cash account is debited for the amount received from the sale, which is $20,000. The loss on sale account is credited for the difference between the original purchase price and the cash sale price, which is $35,000 ($55,000 - $20,000).

The truck account is credited for the original purchase price of the truck, which is $55,000. The loss on sale account is an expense account and represents the loss incurred by the town on the sale of the truck.

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On a traditional income statement, all manufacturing-related costs, whether fixed or variable, are listed:a. above the contribution margin line.b. above the sales lines.c. above the gross profit line.d. below the operating income line.

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On a traditional income statement, all manufacturing-related costs are listed above the gross profit line. The correct answer is option (c).

This includes both fixed and variable costs related to manufacturing such as direct materials, direct labor, and factory overhead. These costs are subtracted from net sales to arrive at the gross profit, which represents the revenue left over after deducting the cost of goods sold.

After calculating the gross profit, other operating expenses such as selling, general, and administrative expenses are deducted to arrive at the operating income. These expenses are not related to the manufacturing process and include items such as salaries, rent, and marketing expenses. Therefore, the correct answer is option C, above the gross profit line.

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If a company has 35% Bond financing at 9% and 65% Loan financing at 11%, and a tax rate of 34%, what is the cost of capital financing?A. 9.5%,B. none of theseC. 6.8%,D. 8.9%

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The cost of capital financing for the company, considering 35% bond financing at 9% and 65% loan financing at 11%, and a tax rate of 34%, is 9.5%.

To calculate the weighted average cost of capital (WACC), we multiply the cost of each financing source by its respective weight (proportion in the capital structure), and then sum up these weighted costs. However, we need to adjust the cost of debt financing to reflect the tax shield benefit.

First, we calculate the weighted cost of debt financing:

(35% x 9%) = 3.15% (cost of bond financing)

(65% x 11%) = 7.15% (cost of loan financing)

Next, we consider the tax shield benefit. The tax rate is 34%, so the tax shield benefit is 34% of the cost of debt financing.

(34% x 3.15%) = 1.07%

Subtracting the tax shield benefit from the cost of debt financing gives us the after-tax cost of debt:

3.15% - 1.07% = 2.08%

Finally, we calculate the WACC by summing up the weighted costs of debt and equity financing (assuming no equity financing is mentioned in the question):

(35% x 2.08%) + (65% x 11%) = 9.5%

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True or false? Unconventional monetary policies include massive lending to banks and open-market purchases of assets other than Treasury bills.

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True. Unconventional monetary policies include a range of measures taken by central banks to stimulate the economy and boost liquidity when traditional monetary policies such as adjusting interest rates have proved insufficient.

One of these measures is massive lending to banks, which involves providing financial institutions with large amounts of capital at low interest rates to encourage lending to consumers and businesses. Another measure is open-market purchases of assets other than Treasury bills, such as corporate bonds or mortgage-backed securities, to inject money into the financial system and support specific sectors of the economy. These unconventional policies are generally seen as more aggressive and riskier than traditional monetary policies, but they can be effective in supporting economic growth and avoiding recession.

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based on the number of studies conducted, job satisfaction is the most important job attitude.T/F

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True. Based on the number of studies conducted, job satisfaction has been consistently found to be the most important job attitude.

Job satisfaction refers to an individual's overall positive or negative feelings about their job. This attitude is influenced by a variety of factors such as the nature of the work, relationships with co-workers and supervisors, salary and benefits, and opportunities for growth and development.

A high level of job satisfaction has been linked to better job performance, reduced turnover, and improved overall well-being. Numerous studies have been conducted on job attitudes over the years, and the majority of them have found that job satisfaction is the most important factor in predicting job-related outcomes. This underscores the importance of creating a work environment that fosters job satisfaction and meets the needs of employees.

Employers who prioritize job satisfaction and work to create a positive and supportive workplace culture are likely to see improved job performance, increased employee retention, and overall organizational success.

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You want to have $200,000 in your account when you retire in 30 years. Your retirement account earns 8% interest. How much do you need to deposit each month to meet your retirement goal?

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To determine how much you need to deposit each month to meet your retirement goal of $200,000 in 30 years with an 8% interest rate, you can use a formula called the future value of an annuity.

First, we'll calculate the future value of your monthly deposits using the formula:

FV = P * ((1 + r)^n - 1) / r

Where:

FV is the future value or your retirement goal ($200,000)

P is the monthly deposit

r is the monthly interest rate (8% divided by 12 months, which is 0.08/12)

n is the total number of months (30 years multiplied by 12 months, which is 360 months)

Substituting the values into the formula, we have:

200,000 = P * ((1 + 0.08/12)^360 - 1) / (0.08/12)

Simplifying the equation, we can solve for P:

P = 200,000 * (0.08/12) / ((1 + 0.08/12)^360 - 1)

Calculating this, we find that you need to deposit approximately $194.52 each month to reach your retirement goal of $200,000 in 30 years with an 8% interest rate. It's important to note that this calculation assumes consistent monthly deposits and a constant interest rate of 8%. Adjustments may be needed if you plan to make irregular deposits or if the interest rate changes over time. Additionally, taxes or fees associated with the retirement account may impact the actual amount needed to be deposited. Consulting with a financial advisor can provide personalized guidance based on your specific situation.

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An investment offers $8,900 per year for 14 years, with the first payment occurring one year from now. Assume the required return is 9 percent.
What is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Present value $
What would the value be if the payments occurred for 39 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Present value $
What would the value be if the payments occurred for 74 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Present value $
What would the value be if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Present value $

Answers

To calculate the present value of the investment today, we need to use the formula for the present value of an annuity.

Present Value = Annual Payment x [1 - (1 + r)^(-n)] / r

Where:
- Annual Payment = $8,900
- r = Required return = 9%
- n = Number of years of payments = 14

Using this formula, we get:

Present Value = $8,900 x [1 - (1 + 0.09)^(-14)] / 0.09
Present Value = $86,190.43

Therefore, the value of the investment today is $86,190.43.

1. To calculate the present value of the investment today, we first need to find the present value of each individual payment and then add them up. However, since the payments are equal, we can use the formula for the present value of an annuity.

2. The formula for the present value of an annuity is:

Present Value = Annual Payment x [1 - (1 + r)^(-n)] / r

Where:
- Annual Payment = $8,900
- r = Required return = 9%
- n = Number of years of payments

3. To find the present value of the investment today with payments occurring for 14 years, we plug in the values and solve for Present Value.

Present Value = $8,900 x [1 - (1 + 0.09)^(-14)] / 0.09
Present Value = $86,190.43

4. To find the value of the investment if the payments occurred for 39 years, we use the same formula and plug in the new value of n.

Present Value = $8,900 x [1 - (1 + 0.09)^(-39)] / 0.09
Present Value = $150,718.28

5. To find the value of the investment if the payments occurred for 74 years, we use the same formula and plug in the new value of n.

Present Value = $8,900 x [1 - (1 + 0.09)^(-74)] / 0.09
Present Value = $215,246.13

6. Finally, to find the value of the investment if the payments occurred forever, we use the formula for the present value of a perpetuity.

Present Value = Annual Payment / r
Present Value = $8,900 / 0.09
Present Value = $98,888.89

Therefore, the value of the investment, if the payments occurred forever, would be $98,888.89.

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True or false? Human relations theory is a theory that states that satisfying the needs of employers is key to productivity.

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False. Human relations theory is a theory that emphasizes the importance of employee satisfaction and motivation in achieving productivity and organizational success. It focuses on creating a positive work environment, building relationships between employees and management, and meeting the social and emotional needs of employees.

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an insurer must provide an insured with claim forms within __ days after receiving notice of a loss

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An insurer must provide an insured with claim forms within 15 days after receiving notice of a loss.

Once an insured provides notice of a loss to an insurer, the insurer must promptly provide the necessary claim forms to begin the claims process. According to most state laws and insurance regulations, an insurer must provide these forms within 15 days of receiving notice of the loss. This ensures that the insured can begin the claims process as soon as possible and that the insurer is fulfilling its obligations under the policy. Failure to provide the forms within the designated time frame may result in penalties or fines for the insurer.

When an insured person experiences a loss and notifies their insurance company, the insurer is required to send the necessary claim forms to the insured within 15 days. This timeframe ensures that the insured can promptly file their claim and receive any compensation they may be entitled to.

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bonds with a face value of $640000 and a quoted price of 102.25 have a selling price of $409000. $408010. $480900. $408100.

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The selling price of the bonds is $654,400.

To find the selling price of bonds with a face value of $640,000 and a quoted price of 102.25, you need to multiply the face value by the quoted price (in percentage form).

Face value = $640,000
Quoted price = 102.25% (convert to decimal by dividing by 100)

Selling price = Face value × Quoted price
Selling price = $640,000 × 1.0225
Selling price = $654,400

None of the provided options ($409,000, $408,010, $480,900, $408,100) are correct based on this calculation.

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the economy of lower slobovia experienced deflation in 2001, with a decrease in the price level of 5 percent. if the gdp deflator was 1 in january 1, 2001, the index at the end of 2001 is____

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The economy of lower slobovia experienced deflation in 2001, with a decrease in the price level of 5 percent. if the gdp deflator was 1 in january 1, 2001, the index at the end of 2001 is 0.95.

Deflation refers to a decrease in the general price level of goods and services in an economy. In the case of lower slobovia, the economy experienced deflation in 2001 with a decrease in the price level of 5 percent. This means that goods and services were cheaper in 2001 compared to the previous year. The GDP deflator is a measure of the price level of all final goods and services produced in an economy.

It is calculated by dividing the nominal GDP by the real GDP and multiplying by 100. The GDP deflator in lower slobovia was 1 in January 1, 2001. This means that the nominal GDP was equal to the real GDP.
To calculate the GDP deflator at the end of 2001, we need to use the formula:
GDP deflator = (Nominal GDP / Real GDP) x 100

We do not have the nominal or real GDP figures for lower slobovia, so we cannot calculate the GDP deflator. However, we can assume that the real GDP remained constant, as deflation does not affect the real GDP. Therefore, if the GDP deflator was 1 in January 1, 2001, and the price level decreased by 5 percent, the GDP deflator at the end of 2001 would be:
GDP deflator = 1 - (1 x 0.05) = 0.95
This means that the price level of goods and services in lower slobovia decreased by 5 percent in 2001, and the GDP deflator decreased to 0.95 by the end of the year.

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which of the following leases would base rent on sales volume? select one: a. reappraisal b. ground c. graduated d. percentage

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The correct lease that bases the rent on sales volume is percentage, option (d) is correct.

This type of lease is commonly used in retail or commercial properties, where the landlord shares in the tenant's success by tying the rent to their business performance. The percentage can be a fixed percentage or a combination of a fixed base rent and a percentage of sales over a certain threshold.

This arrangement provides an incentive for both the landlord and the tenant to drive sales and promote the success of the business. By aligning the rent with sales volume, the landlord's income can increase if the tenant's business flourishes, while the tenant benefits from paying a lower rent during slower periods, option (d) is correct.

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The complete question is:

Which of the following leases would base the rent on sales volume? select one:

a. reappraisal

b. ground

c. graduated

d. percentage

CASE Chipotle Mexican Grill in 2012 — Can It Hit a Second Home Run?ASSIGNMENT QUESTIONS1. Does Chipotle Mexican Grill have any core competencies and, if so, what are they?2. What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects?

Answers

Chipotle Mexican Grill has several core competencies that have contributed to its success in the fast-casual restaurant industry. First, the company is known for its focus on high-quality ingredients and sustainable sourcing practices.

This has helped to differentiate Chipotle from its competitors and appeal to customers who are willing to pay a premium for food that is perceived as healthier and more ethically produced. Second, the company has developed a strong brand identity that is centered around its mission of serving “food with integrity.” This has helped to build customer loyalty and generate positive word-of-mouth marketing. Finally, Chipotle has a highly efficient operating model that allows it to serve large volumes of customers quickly and consistently.A SWOT analysis of Chipotle Mexican Grill reveals several strengths, weaknesses, opportunities, and threats. Strengths include the company’s strong brand identity, efficient operating model, and commitment to sustainable sourcing practices. Weaknesses include recent food safety scandals that have damaged the company’s reputation and reduced customer trust, as well as increasing competition in the fast-casual restaurant industry. Opportunities include expanding the company’s menu offerings, entering new geographic markets, and leveraging technology to improve customer convenience and service.  

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A[n] _____ is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract.
Acknowledged warranty
Claimed warranty
Express warranty
Implied warranty
Consequential warranty

Answers

Answer:

Express Warranty

Explanation:

An express warranty is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract.

Express warranties are an important component of any sales contract. They give buyers confidence in the product they are purchasing and provide a level of protection in the event that the product does not perform as promised.

An express warranty is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract. This means that any promises or claims made by the seller about the product are considered part of the contract and can be legally enforced. Express warranties can take many forms, such as written statements, verbal promises, or even demonstrations of the product's capabilities.

Express warranties are important because they give buyers confidence in the product they are purchasing. By including specific details about the product's features or performance, sellers can demonstrate that they have confidence in their product's quality. This can help to build trust between the buyer and seller, which can lead to repeat business and positive word-of-mouth advertising.

In addition, express warranties can protect buyers in the event that the product does not perform as promised. If the buyer can demonstrate that the seller made a specific promise about the product that was not fulfilled, the buyer may be entitled to compensation or a replacement product.

Overall, express warranties are an important component of any sales contract. They give buyers confidence in the product they are purchasing and provide a level of protection in the event that the product does not perform as promised.

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Assuming that market rates stay the same over the next 5 years, what is the price of the bond at the beginning of the first year?

Answers

The price of the bond at the beginning of the first year is determined by its par value (face value), coupon rate, and time to maturity.

Assuming that the market rates remain the same over the next 5 years, the price of the bond at the beginning of the first year would be its par value, as the coupon rate would be equal to the market rate. The par value of the bond is the amount the issuer agrees to pay the bondholder at maturity,

and the coupon rate is the rate at which interest is paid on the bond. Since the coupon rate is equal to the market rate, the bondholder would be indifferent between holding the bond or the risk-free asset, and thus the price of the bond would be its par value.

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... refers to an organization's consideration of the economic and social effects of its decision making.

Answers

The phrase that refers to an organization's consideration of the economic and social effects of its decision making is "Corporate Social Responsibility" (CSR).

CSR encompasses the idea that businesses have a responsibility to operate in a manner that takes into account not only their economic impact but also their social and environmental impacts. It involves voluntarily integrating social and environmental concerns into business operations and interactions with stakeholders. Organizations practicing CSR strive to make decisions that benefit society as a whole, beyond just their financial bottom line. This can include actions such as ethical sourcing, environmental sustainability efforts, philanthropy, employee well-being programs, and responsible marketing practices.

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we typically call an external cost: group of answer choices a negative externality. a societal drain. a network externality. a negative cost.

Answers

We typically call an external cost a negative externality.

An external cost, also known as a negative externality, refers to the cost or consequence of an economic activity that is borne by someone other than the individual or entity engaged in that activity.

For example, pollution generated by a factory may have a negative impact on the health of nearby residents, leading to increased healthcare costs and reduced quality of life.

These costs are not factored into the price of the goods produced by the factory, making it a type of market failure.

External costs can be considered a societal drain, as they impose costs on society as a whole, rather than just on the individuals or entities involved in the activity. In other words, they represent a transfer of wealth or resources from one group to another.

External costs can also be classified as network externalities, which refer to the effects that a product or service has on the value of other products or services in the same network or ecosystem.

For example, the value of a social media platform increases as more users join, creating positive externalities for those who use it.

In summary, external costs represent a negative consequence of economic activity that is borne by society as a whole, rather than just by the individuals or entities involved in that activity.

They can be a result of pollution, congestion, or other types of market failures, and can have a significant impact on the well-being of society.

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which of the following are considered to be creditors of a corporation? a common shareholders b preferred shareholders c convertible bondholders d right holders

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Creditors of a corporation include preferred shareholders (option B) and convertible bondholders.

Creditors are individuals or entities that have provided funds or extended credit to a corporation. They are owed a debt by the corporation and have a claim on its assets and earnings. Among the options provided, preferred shareholders and convertible bondholders are considered creditors.

Preferred shareholders (option B) hold a type of ownership stake in a corporation that comes with certain privileges, such as a fixed dividend payment. However, they are considered creditors because their claims on the corporation's assets take precedence over common shareholders in the event of liquidation or bankruptcy.

Convertible bondholders (option C) are individuals or entities that hold bonds issued by a corporation with an option to convert the bonds into common shares of the company at a later date. Until the conversion occurs, they are creditors of the corporation, as they hold debt instruments that entitle them to receive regular interest payments.

Common shareholders (option A) are not considered creditors because they hold equity or ownership in the corporation, rather than a debt claim. Right holders (option D) typically refer to individuals or entities who possess certain rights associated with securities, such as options or warrants, but they are not creditors in the traditional sense.

In summary, among the options provided, preferred shareholders and convertible bondholders are considered creditors of a corporation. Preferred shareholders have a higher priority claim on assets, while convertible bondholders hold debt instruments that entitle them to interest payments before any potential conversion into common shares.

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the part of the economy that involves services instead of goods is known as the________

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The part of the economy that involves services instead of goods is known as the service sector.

The service sector, also referred to as the tertiary sector, is a broad category that encompasses economic activities related to providing services rather than producing tangible goods.

It includes a wide range of industries such as healthcare, education, banking and finance, transportation, hospitality, entertainment, and professional services. In the service sector, businesses primarily offer intangible products or perform activities that enhance or support the delivery of services.

Unlike the primary sector (which involves extracting raw materials) and the secondary sector (which involves manufacturing and construction), the service sector focuses on meeting the needs and demands of consumers through various services.

This sector has become increasingly important in many developed economies as they transition from manufacturing-based to service-based economies. The growth of the service sector is driven by factors such as technological advancements, changing consumer preferences, and the expansion of knowledge-based industries.

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for the basic eoq model, what is the formula for the total annual cost? 2dh/s⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯√ 2h/sd⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯√ dq/s 2q/h (q/d)s (q/2)h (d/q)s (q/2)h 2ds/h⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯√

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The formula for the total annual cost in the basic EOQ (Economic Order Quantity) model is:

Total Annual Cost = Ordering Cost + Holding Cost

Ordering Cost refers to the cost incurred for each order placed, and it is calculated as the product of the number of orders per year (demand divided by the order quantity, D/Q) multiplied by the cost per order (S). So, the ordering cost is given by D/Q * S.

Holding Cost represents the cost of holding inventory or carrying cost. It is calculated as the product of the average inventory level (order quantity divided by 2, Q/2), the holding cost per unit (h), and the cost per unit (d). Hence, the holding cost is expressed as (Q/2) * h * d.

By summing up the ordering cost and the holding cost, we obtain the total annual cost in the basic EOQ model.

The formula for the total annual cost in the basic EOQ model is Total Annual Cost = D/Q * S + (Q/2) * h * d, where D represents the annual demand, Q represents the order quantity, S represents the cost per order, h represents the holding cost per unit, and d represents the cost per unit.

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T/F : basis-of-the-bargain damages are almost always successfully awarded in tort cases.

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False. Basis-of-the-bargain damages are not typically awarded in tort cases. Basis-of-the-bargain damages refer to the damages that aim to place the injured party in the position they would have been in if the contract had been fulfilled.

These damages are more commonly awarded in contract law cases where there is a breach of contract. In tort cases, the damages awarded are generally aimed at compensating the injured party for the harm they suffered rather than putting them in the position they would have been in if the tort had not occurred. Tort law focuses on compensatory damages that reflect the actual harm caused by the defendant's wrongful actions, rather than the hypothetical contract expectations.

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Problem IV. Short Answer Questions (9%,3%×3). In the travel cost model that determines demand for park visitations, how do you expect the following to change the demand for parks (increase, decrease, or ambiguous)? Explain why? 1. Income 2. Time devoted to the trip 3. Increase in the wage rate

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In the travel cost model that determines demand for park visitations, the demand for parks is expected to change as follows: An increase in income would generally lead to an increase in demand for parks.

This is because higher income allows people to afford more leisure activities, including park visitations.An increase in income would generally lead to an increase in demand for parks. This is because higher income allows people to afford more leisure activities, including park visitations.Increase in the wage rate: The impact of an increase in the wage rate on the demand for parks is ambiguous. On one hand, higher wages can provide more disposable income, potentially increasing demand for leisure activities like park visitations.

On the other hand, an increase in the wage rate also raises the opportunity cost of leisure time, as people may prefer to work more hours and earn more money instead of visiting parks.
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