how do the life-cycle and permanent-income hypothesis resolve the seemingly contradictory pieces of evidence regarding consumption behavior?

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Answer 1

According to the life-cycle hypothesis and permanent-income hypothesis  the income will vary over a person's life. This means consumers save more when income is more and less will save when income is low.

What is  life-cycle hypothesis?

The life-cycle hypothesis (LCH) is an economic theory that suggests that individuals have a tendency to maintain the same level of spending over time.

They achieve this goal by borrowing in when they're younger and their income is low, saving during their middle years when income is high, and living off their assets in their older years when income is low again.

According to the life-cycle hypothesis and permanent-income hypothesis  the income will vary over a person's life. This means consumers save more when income is more and less will save when income is low.

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Related Questions

the fastest way for a salesperson to win the respect of a buyer is to: a. exhibit unfaltering loyalty toward one's company. b. offer the lowest price in the market. c. self-proclaim product superiority in the market. d. avoid discussing policy issues. e. be perceived as being an expert.

Answers

The fastest way for a salesperson to win the respect of a buyer is to be perceived as an expert.

This means that the salesperson should have a deep understanding of the product or service being sold, and be able to provide buyers with valuable information that can help them make the best purchase decision. This involves being able to answer any questions the buyer might have and providing them with accurate data about the product or service. Additionally, the salesperson should be able to build a positive rapport with the buyer by showing interest in their needs and demonstrating a genuine commitment to helping them find the best solution. It is also important to be loyal to one’s company and avoid discussing policy issues, as this can create tension and distrust. Finally, offering the lowest price in the market may be tempting, however it is not the best way to win the respect of a buyer, as it could be perceived as a sign of desperation or lack of expertise.

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one employee of a computer store is paid a base salary of $1,096 a month plus a 5% commission on all sales over $5,464 during the month. how much must the employee sell in one month to earn a total of $3,553 for the month?

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The employee must sell $54,604 in one month in order to make a total of $3,553 for the month.

What exactly does the word "commission" signify in business?

The term commission, also referred to as sales commission, refers to the payment paid to employees depending on the sales they produce. You may create invoices with SumUp Invoices for free. Most often, commission is calculated as a percentage of the sale's value.

A commission is a sum of money offered to a salesperson for each successful transaction. If a salesperson is paid on commission, their compensation is determined by the quantity of things they sell. The salesperson receives only commission.

Let x represent the whole quantity of sales the employee brings in during a particular month.

One employee of a computer retailer receives a base salary of $1,096 per month in addition to a 5% commission on any sales that surpass $5,464 per month. Therefore, if a worker makes $x in monthly sales, his monthly profits will be $x.

= $1,096 + 5/100(x - $5,464)

= $1,096 + 0.05(x - $5,464)

= $1,096 + 0.05x - $273.2

= 0.05x + 822.8

Consequently, the volume of sales would have to be in order for the employee to make a total of $4,000 for the month.

0.05x + $822.8 = $3,553

0.05x = $3,553 - $822.8

0.05x = 2,730.2

x = 2,730.2/0.05

x = $54,604

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many management gurus believe that marketing has succeeded so well that it shouldn't be a function in an organization anymore. select one: true false

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False. While there may be some conversations and disputes in the management world concerning the role and relevance of marketing in an organization, it is not universally accepted.

that marketing has achieved such success that it should no longer be a function. Marketing is still an important job in most organizations because it helps businesses understand their consumers, identify their needs and desires, and develop goods and services to fulfill those needs and desires. Marketing also assists businesses in communicating the value of their products and services to customers, increasing brand awareness and reputation, and driving demand and sales. Marketing's position and relevance may change throughout time, but it is unlikely to disappear totally.

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managers with a strong commitment to csr working in an ethical culture generally fit which of the following descriptions? answers comply with all laws. employ a laissez-faire management style. practice trust-building behaviors. ensure that contractual obligations are met.

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All of the aforementioned, managers who have a strong commitment to CSR and work in an ethical environment are more likely to abide by all rules.

Implement a laissez-faire management structure. Develop trust-enhancing habits. guaranty the performance of contractual commitments.

Employees and stakeholders' moral judgement is influenced by a company's culture.

Every employee is encouraged to speak and act honestly and ethically by organisations that seek to build a strong ethical culture.

Customers are drawn to businesses that exhibit high ethical standards for their goods and services.

Traditions are the culmination of a group's acquired behaviours that are passed down from generation to generation.

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: tom is planning to deposit the following amounts in a bank account paying 4 percent annual interest: today, $400; end of first year, $500; end of second year, $800; and end of third year, $900. how much money will he have saved at the end of year 3 just after the last deposit?

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After making 4% interest-bearing deposits of $400, $500, $800, and $900, Tom will have $2520 in the bank at the end of year 3.

Compound interest may be used to determine Tom's total savings at the end of year three. Compound interest is computed on the initial principle of a deposit or loan, which includes all of the accumulated interest from earlier periods. Tom's total savings at the end of the first year would be [tex]\begin{equation}\$ 400+(\$ 400 * 4 \%)=\$ 416\end{equation}[/tex]. Tom's total savings at the end of year 2 would be [tex]\begin{equation}\$ 416+\$ 500+(\$ 416 * 4 \%)=\$ 932\end{equation}[/tex]. Tom's total savings at the conclusion of the third year would be [tex]\begin{equation}\$ 1,774(\$ 932 * 4 \% * \$ 932+\$ 800+\$ 800)\end{equation}[/tex]. Tom's total savings would therefore be $1,774 plus $900, or $2,674, immediately following the last $900 contribution.

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Consider the following information for Maynor Company, which uses a periodic inventory system: TransactionUnitsUnit CostTotal Cost January 1Beginning Inventory25 $75 $1,875 March 28Purchase35 81 2,835 August 22Purchase50 85 4,250 October 14Purchase55 91 5,005 Goods Available for Sale 165 $13,965 The company sold 55 units on May 1 and 50 units on October 28. Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. FIFO LIFO Weighted Average

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With each of the following inventory costing techniques, the determination of the company's ending inventory and cost of goods sold:

                               Inventory Balance (End)        Cost of Goods Sold

FIFO Method                   $5430                                          $8535

LIFO method                    $4710                                          $9255

WAC Method                   $5078                                          $8887

                                           

The products and materials that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The location and shape of stocked commodities are the key concerns of inventory management. Inventory valuation can be done using FIFO (First In, First Out), LIFO (Last In, First Out), or WAC (Weighted Average Cost).

First-in, first-out, sometimes known as FIFO, refers to the practice of recording sales of the oldest inventory items first even when the oldest physical goods may not have actually been tracked and sold.Last-in, first-out, or "LIFO," refers to the practice of recording sales of the most recently produced goods first.An approach to figuring out ending inventory costs is to use weighted average cost. It can also go by the name "WAVCO." The price of the things up for sale is divided by the number of units up for sale.

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the tools that can help companies measure online conversations about their products and their personnel are called - tools.

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Text Mining is a tool that can help companies measure online conversations about their products and their personnel. It helps in customer relationship management.

The technique of extracting high-quality information from text is known as text mining, text data mining, or text analytics. It entails "the automatic extraction of data from many written sources, resulting in the discovery by computer of new, previously unknown information.

To find patterns and connections in unstructured material, text mining employs artificial intelligence and natural language processing. It makes it possible for companies to automatically find valuable information in texts such as emails, social media postings, support tickets, chatbots, and other types of text.

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mindy is an investor who has been looking into a number of potential investments. she has been receiving a lot of financial information from the companies she is looking at, but some of it is not reliable. what is the most likely outcome when mindy receives relevant and reliable financial information?

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The most likely result is that Mindy will be able to make wise investment selections when she receives pertinent and trustworthy financial information.

She can use this information to better evaluate the performance and financial health of the businesses she is thinking about investing in. Additionally, it can shed light on their potential for future growth, potential dangers, and other crucial elements. When presented with precise information, Mindy is better able to evaluate the possible returns of each investment and decide how to allocate her resources. Additionally, she can use the knowledge to bargain better terms for her assets, such bigger dividends or more enticing conditions for potential buyouts. Even with the best information, investment always has a certain amount of risk and uncertainty, so it's crucial to remember that.

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recognizing expenses in the same period as the revenues they help to generate implies what type of relationship?

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Recognizing expenses in the same period as the revenues they help to generate implies matching principle

Recognizing expenses in the same period as the revenues they help to generate implies what type of relationship?

Recognizing expenses in the same period as the revenues they help to generate implies a causal relationship between the two. In other words, the expenses incurred directly contributed to the generation of the revenues.

This method of accounting, known as accrual accounting, is based on the matching principle, which states that expenses should be matched with the revenues they help generate in the same accounting period. This approach provides a more accurate picture of a company's financial performance, as it considers the relationship between expenses and revenues in the same period, rather than just recording cash inflows and outflows.

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if congress allowed 100,000 more people from the sudan to immigrate to the united states, how would demand for u.s. goods and services be impacted?

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The effect that 100,000 new immigrants from Sudan would have on the demand for American goods and services would depend on a number of variables, including their age, education, income level, and purchasing habits.

The majority of these immigrants would likely become new consumers of American goods and services if they are able to find stable employment, have a good education, and possess the necessary job skills.

This would boost demand in a number of economic sectors, including housing, transportation, food, and entertainment.

Although a surge in new customers might increase demand and spur economic growth, it can also put strain on public services and infrastructure, especially in regions with substantial immigration.

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suppose you paid off a $1,200 loan by paying $400 in principal each year plus 10 percent annual interest over a 3-year period. what is the total payment (interest plus principal) in year 3? multiple choice question.

Answers

Answer:

$1,320

Explanation:

the total payment is $1,320

This is because 10% of $400 is $40, so you add 400 and 40 to get the amount of money you pay each year. Then you multiply $440 by 3 to get the total you pay after 3 years :)

jordon is a salesperson in a cosmetic firm. while selling a product to a customer, he lies to the customer that other competitors in the market use banned substances in their products. this is an example of

Answers

unethical behaviour. False promises made to customers in an effort to sell them a product are regarded as dishonest and can harm the reputation of both the salesperson and the business. It is crucial for salespeople to uphold high moral standards and give customers accurate information.

Actions that go against moral or ethical principles are referred to as unethical behaviour. This can involve dishonesty in the form of lying, cheating, stealing, and other behaviours. Unprofessional conduct in the workplace can take many different forms, from petty transgressions like taking office goods for personal use to more serious crimes like embezzlement or fraud. The reputation, trust, and productivity of both individuals and organisations can be damaged by such behaviour. Individuals should hold themselves to the highest ethical standards and uphold integrity in all facets of their lives, particularly at work. By establishing explicit codes of conduct and putting policies in place to stop and deal with unethical behaviour, organisations can encourage ethical behaviour.

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the returns from an investment are 4% in year 1, 7% in year 2, and 11.8% in the first half of year 3. calculate the annualized return for the entire period

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The annualized return is a widely used method of measuring investment performance over a certain period of time.

Annualized return is also known as annualized total return or average annual return. It is calculated by dividing the total return by the number of years and multiplying the result by 100 to express it as a percentage. The total return is calculated by multiplying the returns from each year, or fraction of a year, and subtracting 1. To calculate the annualized return for the entire period, you need to first find the total return and then divide it by the number of years. The formula for calculating the total return is:

Total Return = (1 + Year 1 return) * (1 + Year 2 return) * (1 + Year 3 return/2) - 1

In this case, the total return would be:

Total Return = (1 + 0.04) * (1 + 0.07) * (1 + 0.118/2) - 1 = 1.04 * 1.07 * 1.059 - 1 = 1.162784 - 1 = 0.162784

So the total return over the 3-year period is 16.2784%.

To find the annualized return, you need to divide the total return by the number of years and multiply by 100 to express it as a percentage. In this case, the annualized return would be:

Annualized Return = Total Return / 3 * 100 = 0.162784 / 3 * 100 = 5.42608%

So the annualized return over the 3-year period would be 5.42608%. Note that this is a simple average and does not take into account compounding. In reality, the actual return would be different due to compounding.

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true or false: the excess of operating revenues over the operating costs incurred to generate those revenues is net income.

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False Justification: This is an operating profit. Operating profit is reduced by interest, income taxes, and other costs to produce net income.

The sum of a company's earnings from its core business operations for a specific time period, before deducting interest and taxes, is known as operating profit. Additionally, it does not include any gains from auxiliary investments, such as earnings from other companies in which the corporation owns a stake. When expenses exceed core business income, an operational loss results.

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What would happen to the global economy if all marketing ceased?

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If all marketing stopped, the global economy would look like this, the world economy will collapse.

An "economy" is a framework for managing resources, business, and trade in a nation or region. The most crucial aspect of the nation is its economy. The industrial and agricultural sectors are the two primary pillars of the economy. Both families (consumption) and businesses (selling goods) are part of the economy.

The economist suggests that if marketing did so, the global economy would collapse. The term global economy falls means that prices, rates and volumes fall vertically.

Marketing can attract customers through various value creation, sales and communication opportunities in global corporate management.

International economic factors such as exchange rates, customs duties, and shipping costs affect your costs and product prices. If the cost of offering your product to the international market is higher than domestically manufactured products, you may need to target the luxury market segment

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stone and brick are substitutes in home construction. consider the market for bricks depicted in the graph. suppose the price of stone increases due to new regulations for the stone quarrying industry. illustrate the impact this will have on the market for bricks.

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In the construction of homes, brick and stone are interchangeable. Consider a scenario where new rules governing the stone quarrying business result in higher stone prices. Then the price and quantity reach equilibrium.

It has been stated that bricks and stone are acceptable alternatives for homes.

When two goods are substitutes, a price increase for one causes demand for the other to rise, whereas a price decrease for one causes demand for the other to fall.

New rules for the stone quarrying business have increased the price of stone.

Increased demand for bricks will be brought on by higher stone prices because they are substitutes for one another.

This will cause a rightward shift in the brick demand curve.

Therefore, the price of equilibrium rises.

The quantity of equilibrium rises.

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fun time toys produced $60 million worth of toys in 2020. because of a slow christmas shopping season, only $50 million worth was sold to consumers, and the remaining $10 million worth went into inventories. based on this information, how was gdp affected in 2020?

Answers

$60 million was added to GDP; $50 million was classified as consumption spending and $10 million was classified as investment.

The phrase "gross domestic product" is used to assess the market value of all final goods and services produced and sold (not resold) by countries over a specific time period (GDP). Due to the measurement's complexity and subjectivity, it must be repeatedly adjusted before it can be considered a reliable indication. In contrast to nominal GDP, which is better for comparing national economies on the international market, utilising GDP per capita at purchasing power parity (PPP) may be more beneficial for comparing living standards between nations. However, variations in the cost of living and inflation rates of the nations are not reflected in GDP (nominal) per capita.

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Question: Which Strategy Requires A High Level Of Understanding Of What Consumers Value? Multiple Choice ( ) Leadership Focus Ο Cost-Leadership Ences Ο Focused-Differentiation Ο Cost-Focus Differentiation Major Organizational Elements What Comprises The Features Of An Organization Is Not Universally Agreed Upon, But Most Authorities Believe That There Are A Small

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The correct option is E. Differentiation Strategy Requires A High Level Of Understanding Of What Consumers Value.

Customer fee is first-class and defined as how plenty a service or product is really worth to a client. it is a degree of all of the prices and benefits associated with a service or product. Examples encompass price, satisfaction, and what the product or service can do for that particular individual.

Consumer value may be stricken by own family and additionally environment. The construct of purchaser price has widely been considered to play a vast position in the fulfillment, competitive gain, and lengthy-term success of a business, and is the premise of all marketing activities. customers want short service and true after-income carriers, which regularly leads them to being loyal customers. in addition, they need merchandise with useful and precious functions. which will have the ability to resolve a problem or make an assignment easier, customers also want products that might be tailor-made to their particular wishes.

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Which Strategy Requires A High Level Of Understanding Of What Consumers Value?

A). Leadership Focus

B). Cost-Leadership

C). Focused-Differentiation

D). Cost-Focus

E). Differentiation

12 a customer paid $53.00 for a jacket after a 6 percent sales tax was added. what was the price of the jacket before the sales tax was added?

Answers

$50 was the price of the jacket before the sales tax was added as per the given data.

The given data is as follows:

The price of the jacket is $53.00.

sales tax percentage = 6% = (6/100)

Let us assume that m is the price of the jacket before the sales tax was added.

After the sale tax is added to the price,

(sales tax/100)* m = price of the jacket

= (106/100)* m =  $53.00.

m = $50

Therefore we can conclude that $50 was the price of the jacket before the sales tax was added.

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1. what would be the revised net operating income per month if the sales volume increases by 80 units? 2. what would be the revised net operating income per month if the sales volume decreases by 80 units? 3. what would be the revised net operating income per month if the sales volume is 7,300 units?

Answers

The increase in net operating income would be $400 and the variable cost per unit rises by $5 while the quantity increases by 80 units.

Operating income is a financial metric that measures the amount of profit a company generates from its core operations, after deducting all operational expenses such as cost of goods sold, salaries, utilities, and other expenses. It is considered an important metric for evaluating a company's financial performance, as it provides a clear picture of how well the company is able to generate revenue and control its costs Operating income is often used in combination with other financial metrics, such as gross profit and net income, to gain a more complete understanding of a company's financial health. A high operating income indicates that a company is running efficiently, while a low operating income may signal the need for cost cutting measures or operational

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which of the following would typically be considered a primary stakeholder group? question 4 options: competitors community trade associations special interest groups the mass media

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The concept is Stakeholders, a wide variety of people impacted or invested in the project. The answer is option B, community trade associations.

Primary stakeholders - Those whose continued collaboration is absolutely essential to the survival of the business. i.e. employees, customers, suppliers, and shareholders.

A stakeholder is a person who has an interest in the company and who influences or can influence the company's operations. The main task of a stakeholder is to help the company achieve its strategic goals by bringing their experience and point of view to the project.

You can also provide the necessary materials and resources. Your support is critical to the success of the project. However, as interest in corporate social responsibility has grown, the concept has been expanded to include communities, governments, and industry associations.

Question:

which of the following would typically be considered a primary stakeholder group?

A)   competitors

B) community trade associations

C) special interest groups

D)  the mass media

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while there are a number of recommended contents of the portfolio strategic plan, a guiding principle is to:

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The correct option is D. Define the portfolio vision and objectives to align with organizational strategy.

The Portfolio vision is an outline of the future kingdom of a portfolio's fee Streams and answers and describes how they'll cooperate to achieve the portfolio's targets and the wider purpose of the company. while the imaginative and prescient is a grand idea, the vision statement is a clear and concise statement and outline of the huge picture.

The vision describes a future view of the solution to be evolved, reflecting consumer and stakeholders' desires as well as functions and skills which might be proposed to address those needs. It offers the bigger, contextual evaluation and cause of the answer below development. A mission vision announcement is a description or statement of what a business enterprise/venture group wants to obtain or accomplish upon the entirety of a challenge.

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Complete Question:

While there are a number of recommended contents of the portfolio strate-gic plan, a guiding principle is to:

a) Document assumptions and constraints

b) Recognize stakeholder risk tolerances

c) Recognize the portfolio will evolve through progressive elaboration

d) Define the portfolio vision and objectives to align with organizational strategy

Period Costs vs. Product Costs: What's the Difference?

Answers

Product costs are those directly associated to the manufacturing of a for-sale product or service. Period costs include all other indirect costs incurred during manufacturing.

Period expenses encompass any costs that are not included in product costs. Period costs are not directly related to the manufacturing process. Period costs include overhead, often known as sales, general, and administrative (SG&A) costs.

SG&A costs include corporate office expenses, sales, marketing, and overall company administration. Period costs are not attributed to a specific product or inventory cost like product costs.

Period costs are thus recorded as an expense in the accounting period in which they occur. Product expenses are frequently handled as inventory and are known as "inventoriable costs" since they are used to value inventory. When products are sold, the product expenses are included in the cost of goods sold, which is reflected on the income statement.

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which are specific segmentation strategies? (select all that apply) multiple select question. segments of one multiple products and multiple markets one product and multiple markets one product and one market

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Specific segmentation strategies are multiple products and multiple markets, segments of one and one product, and multiple markets.

What are Specific segmentation strategies?

A company's strategy for identifying each sector of its target market is referred to as a segmentation strategy in marketing terms. Businesses create a segmentation plan to correctly classify their clients and select the best markets for their goods and advertising. A segmentation strategy can be as simple as a list of your target consumers or as detailed as a manual for making short- and long-term strategies to interact with various audiences. Almost any criterion, such as demographics, consumer behavior, location, lifestyle, and personality, can be used to define a market segment.

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4. Should the revelation that Tucker's chief financial officer had been convicted of
embezzlement affect the assessment of Tucker? Why or Why not?

Answers

Yes, since if word got out that Tucker's senior economic officer had been found guilty of theft, it would undoubtedly change how Tucker was viewed.

What is the meaning of finance?

The process of securing financing for all kinds of expenses is referred to as finance. It comprises distributing different financial resources, including as credit, leases, and investment capital, to the businesses that can make the most use of them.

On the other hand, even if the theft occurred before the individual worked for Tucker and the company was unaware of a criminal record, this could still be harmful to the hiring and screening processes at Tucker. If the corruption conviction was made public, it would definitely affect how people view Tucker as a company and cast doubt on its morals, management philosophy, and financial stability.

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Using marketing information to gain customer insights is of little value unless​ __________.A.it is used to make better marketing decisionsB.marketers gather as much information as possibleC.it is obtained as cheaply as possibleD.it comes exclusively from big dataE.it increases company profits

Answers

Option A is correct. Using marketing information to gain customer insights is of little value unless​ it is used to make better marketing decisions

A marketing information system, or a MIS, is a framework for social occasion, putting away, examining and disseminating significant showcasing information to assist advertisers with settling on better choices. The contribution of a showcasing data framework centers around gathering important inner and outside information to dissect and decipher. The result of a showcasing data framework connects with dispersing the discoveries to all fundamental inward promoting colleagues and supervisors. Advertisers can then utilize the information to settle on more educated showcasing choices to advance the progress of the business.

A marketing information system can be helpful for numerous kinds of showcasing choices, for example,

1. Control choices: Center level promoting chief choices connected with restorative activities in view of deviation from well thought out courses of action carried out by more elevated level showcasing supervisors

2. Functional choices: Choices connected with the everyday exercises of promoting experts, particularly connected with achieving explicit errands

3. Vital choices: Significant level showcasing administrator choices about issues that influence the whole association, like hierarchical arrangements, targets and design

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what is the inventory turnover ratio for abc corporation if cost of goods sold equals $6,400, current ratio equals 3, quick ratio equals 1.5, and the firm has $2,220 in current assets? enter the answer rounded to 1 decimal place.

Answers

The inventory turnover ratio for ABC corporation is 5.76 times the answer rounded to 1 decimal place.

Given the following information:

Cost of goods sold: $6,400Current ratio: 3Quick ratio: 1.5Current assets: $2,220

Computation of current liabilities

Current ratio = Current assets / Current liabilities

3 = $2,220 / Current liabilities

Current liabilities = $2,220 / 3 = $740

Computation of liquid/quick assets

Liquid ratio = Liquid assets / Current liabilities

1.5 = Liquid assets / Current liabilities

1.5 = Liquid assets / $740

Liquid assets = 1.5 × $740 = $900

Computation of Inventory

= Current assets - Liquid assets

= $2,220 - $1110

= $1110

Inventory Turnover Ratio

= Cost of goods sold  / Inventory

=$6,400 / $1110

= 5.76 times

An organization is an agency—normally a collection of people or a business enterprise—legal by way of the country to act as an unmarried entity (a felony entity recognized by private and public law "born out of statute"; a prison character in felony context) and recognized as such in regulation for certain purposes.10  Early integrated entities were mounted by charter (i.e. through an ad hoc act granted by means of a monarch or surpassed through a parliament or legislature).

Maximum jurisdictions now allow the advent of the latest organizations thru registration. businesses are available in many different types however are usually divided by means of the regulation of the jurisdiction wherein they may be chartered based totally on aspects: by way of whether they are able to trouble stock, or through whether or not they are shaped to make a profit. relying on the wide variety of proprietors, a company can be labeled as a combination (the problem of this article) or sole (a legal entity including an unmarried incorporated workplace occupied by means of a single natural character).

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what is the absolute highest value attained by the stock during the month of february? how do you know?

Answers

The value stock `t` days into February is given by:

S(t) = [tex]0.2(\frac{2}{3}t^{3}-20.5t^{2}+90t+1150\right))[/tex]` for [tex]0\le t\le28[/tex]

What is a value stock?

A value stock is a term used to describe shares of a firm that appear to sell for less than its fundamentals, such as dividends, earnings, or sales, attracting value investors. Typically, a common stock and a value stock can be compared. A value stock is one that is regarded to be trading at a discount to its fundamentals.

High dividend yield, a low P/B ratio, and a low P/E ratio are all common traits of value stocks. Because investors believe that a company is undesirable in the marketplace, value stocks often have a low price. A value stock is a security that trades for less money than the company's performance might otherwise suggest.

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if the cpi rises from 206.7 to 212.7 between two consecutive years, by how much has the cost of living changed between these two years?

Answers

The cost of living has gone up by 2.9 percent. The CPI and GDP deflector typically present two distinct perspectives on the rate of price rise.

Is the rate of inflation the total change in the level of prices from the previous period?

The rate of inflation is: d. the percentage change in price level between periods. An economic metric used to calculate the percentage of positive variation in the price of basic goods and services is the inflation rate.

Why is the CPI used more frequently than the GDP deflector to measure inflation?

It is easier to measure the CPI. The GDP deflector is calculated less frequently than the CPI. The consumption of goods and services is better captured by the CPI. Inflation cannot be measured with the GDP deflector.

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the bike company wants to make a 40% profit. wholesale a certain bike costs $450. how much will the bike company sell the bike for?

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The bike company will sell the bike for $630 to make a 40% profit ( 40% of $450 added to $450)

The term "profit" refers to the monetary gain realised when the income from a commercial operation outweighs the expenses, charges, and taxes related to operating that enterprise. The proprietors of the business get any profits made and have the option of keeping them for personal use, paying dividends to shareholders, or reinvesting them back into the business. Profit, which is an absolute number, is the amount of income or revenue that a business makes over and above its costs or expenses. It is calculated as total revenue less total expenses and can be found on an organization's income statement.

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