In early January 2019, Ayayai Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Ayayai incurred $7,200 of legal fees in a successful defense of its trade name. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years. 2019 amortization $ 12/31/19 book value $ 2020 amortization $ 12/31/20 book value $ Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Ayayai determines that the trade name will provide no future benefits beyond December 31, 2023. 2020 amortization $ 12/31/20 book value $ Ignoring the response for part (b), compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Ayayai determines that the fair value of the trade name is $14,400. Estimated total future cash flows from the trade name is $15,400 on January 3, 2021.

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Answer 1

On January 3, 2021, there will be a total of $12,000 in future cash flows from the trade name. By accounting for inflation and returns, it contrasts the present worth of money today with the present value of money in the future.

The 2019 amortisation would be $16,000/10 = $1,600 if the trade name were to be depreciated over a period of ten years. The book value as of 12/31/19 would be $14,400 ($16,00 Minus $1,600). The book value as of December 31, 2020 would be $14,400 minus $1,600, or $12,800. The 2020 amortisation would be $1,600.

The 2020 amortisation would be $12,800/3 = $4,266.67, and the 12/31/20 book value would be $12,800 - $4,266.67 = $8,533.33 if Ayayi finds that the trade name would not give any additional advantages after December 31, 2023.

The amortisation for 2021 would be ($12,800 - $14,400)/(10-1) = -$800, and the book value for December 31, 2021 would be ($12,800 - $800) = $12,000. This is assuming that Ayayai deems the trade name's future cash flows to be $14,400 on January 3, 2021.

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Related Questions

what is the difference between utility and productoin functoin micro economics

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In microeconomics, a production function refers to the relationship between inputs (e.g. labor, capital) and outputs (e.g. goods and services) in the production process. It is used to measure the efficiency with which inputs are transformed into outputs.

On the other hand, the utility function is a measure of the satisfaction or happiness that a consumer derives from consuming goods and services. It is used to describe consumer behavior and preferences, and helps economists understand how consumers allocate their limited resources to maximize their satisfaction.

In summary, the production function is concerned with the production process, while the utility function is concerned with consumer behavior and satisfaction.

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In the previous chapters, we discussed being a natural spender or a natural saver. How can your money personality affect your ability to save?

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When deciding how to invest, spend, save, and manage your finances as a whole, it may be helpful to be aware of the different money personalities.

Investors, savers, heavy spenders, borrowers, and consumers are the five most prevalent money personalities.

Debtors and consumers could have a tendency to overspend.

When it comes to handling household finances, the personality qualities of investors and savers may be similar.

Shoppers and heavy spenders frequently have similar tendencies, although big spenders might not worry as much about debt while shoppers could spend more time looking for deals.

A saver is someone who refrains from spending money when it is unnecessary or unimportant and instead saves it. Money is saved by a saver, who then puts it in an account to earn interest.

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personal selling can be a part of ____ and involves direct spoken communication between sellers and customers.

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Personal selling can be a part of Promotion and involves direct spoken communication between sellers and customers.

Promotions cover the full range of actions taken to inform customers about a given good, service, or brand. The goal is to raise awareness, draw attention to, and encourage consumers to purchase the product over competing options. There are various different kinds of promotions. A promotion can include increasing an employee's position, spreading word about certain product bargains, or generating interest in undervalued stocks. In the marketing industry, promotions are routinely given. The most frequent usage of the phrase is in reference to a work promotion. Giving out coupons or vouchers, temporarily lowering prices through discounts, offering samples, holding giveaways, holding flash sales or buy one get one free deals, and many other techniques are examples of sales promotion that is frequently employed.

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Hamir, Darci, and Pete are partners sharing income in the ratio of 3:2:1. After the firm’s loss from liquidation is distributed, the capital account balances were Hamir, $45,000 Dr. ; Darci, $90,000 Cr. , and Pete, $64,000 Cr. If Hamir is personally bankrupt and unable to pay any of the $45,000, what will be the amount of cash received by Darci and Pete upon liquidation?

Answers

The amount of cash received by Darci and Pete upon liquidation is  

$8, 667 and $13,000.

So the total ratio amounts to 3,2,1 which add up to 8.

At liquidation the total capital amounts to 90,000 - 64,000 = $26,000. Initially Hamir's share amounts to 3/6 * 26,000 = $13,000.

Hamir doesn't receive anything. He still owes $45,000 - 13,000 = $32,000 while Darci receives 2/6 * $26,000 = $8, 667 and

Tanaka 3/6 * $26,000 = $13,000

The term liquidation in finance and economics is the process of ending a business and distributing its assets to beneficiaries.

A bankrupt company ceases to exist after the liquidation proceedings are completed and the company is deregistered.

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banking and financial systems practice case study fbla

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FBLA should prioritize the creation of an online presence in order to better serve its clientele. The company should invest in cutting-edge technology and internet-based services including digital purchasing, billing, and bill pay.

FBLA is a significant provider of financial services and banking. The organization has been offering services to people and companies for over 25 years. Over the years, the firm has expanded its offerings to include banking, insurance, investments, and financial planning. FBLA is well-known with its excellent customer service and easy access to financial services.

To better serve its clients, FBLA should prioritize the development of an online presence. The corporation should invest in technology and internet services such as online banking, account management, and payment services. Furthermore, the firm should have a complete customer service plan that includes a customer service website, support, and other methods via which consumers may contact the organization.

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Which broad economic goal i related to the extent of peronal choice an individual ha for participating in economic market

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Personal autonomy, market access, market competition, market trade, and personal property protection all fall under the broad economic objective of freedom.

What are the broad economic goals?Stability, security, economic freedom, equity, economic growth, efficiency, and full employment are seen as the main objectives for the American economy.Goals Economic growth, full employment (or low unemployment), and stable pricing are the three main objectives to keep in mind while assessing the macroeconomy's overall health (or low inflation). The level of living a nation currently enjoys is ultimately determined by its economic growth.Economic effectiveness, economic equity, economic freedom, economic prosperity, economic security, and economic stability are some of the broad societal goals covered in this course.Efficiency, equity, economic freedom, full employment, economic growth, security, and stability are all aspects of the national economy that should be prioritized. The cost of addressing any one objective or group of goals is having fewer resources to devote to the other goals. Economic goals are not necessarily mutually compatible.

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Is it better to have an LLC or a corporation?

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It better to have corporation because LLCs are preferred by small, owner-managed enterprises that want flexibility without a lot of corporate formality, corporations are a smart option for a business that expects to seek outside investment.

With an LLC, you can take use of both the benefits of the corporation and partnership firm structures. LLCs typically protect you from personal liability. Your personal assets, such as your car, house, and savings accounts, won't be in jeopardy if your LLC files for bankruptcy or is sued.

In comparison to a sole proprietorship or general partnership, an LLC typically costs more to establish and manage. States impose a fee at initial formation. Many states also charge recurring costs, such as franchise tax or annual report fees. Consult the Secretary of State's office in your state.

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the car on the bridge which is green is mine

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The car on the bridge is yours because you said so. This statement is an example of an assertive sentence, which is a type of declarative sentence in which the speaker expresses a firm belief, opinion, or conclusion about something.

An assertive sentence is usually followed by a supporting statement and usually ends with a period. When the speaker states something and backs it up with evidence, it carries more weight and is inherently more convincing than a statement that is not supported by evidence.

In this example, the speaker firmly declares that the car on the bridge is their own, and doesn't offer any evidence to back this up. To make the statement more convincing, the speaker could have provided evidence such as registration documents, proof of ownership, or any other relevant information.

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Complete question:

What type of sentence "the car on the bridge which is green is mine" statement is?

the record in which transactions are initially recorded in chronological order as they occur is a(an):

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The records in which transactions are initially recorded in chronological order as they occur is a(an) journal.

What are transactions?

An agreement or communication between a buyer and a seller to trade products, services, or assets in exchange for money is a financial transaction. Any transaction involves a shift in the financial situation of two or more entities, whether they be people or businesses. A transaction is a commercial occurrence that results in a monetary impact on the financial statements of a company and is noted as an entry in the accounting records of that firm. Here are some examples of transactions: paying a supplier for products or services received. A transaction is a financial activity that involves money and is noted as an entry in accounting records and affects the financial statements financially. Several examples of trades are as follows: paying a company for the goods or services they have provided.

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which of the following is most likely to require interpersonal skills? question 16 options: working overtime writing notes about a meeting understanding how a new product works working on a team

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Working on a team is most likely to require interpersonal skills.

What purposes do interpersonal skills serve?Uses of Interpersonal Communication,influence other people's views and actions. Make acquaintances, establish contacts, and uphold existing connections. better comprehend our experiences in the world by making sense of it. We should communicate our own demands and be aware of others' needs.Empathy, active listening, and emotional intelligence are typical illustrations of interpersonal abilities. All facets of life require interpersonal skills, which are crucial in both social and business contexts.The ability to engage with others effectively is referred to as interpersonal skills. These abilities demonstrate how you will fit into a company, making them crucial to include on a resume.

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Explain how an HIM manager might use the AHIMA Code of Ethics to guide behavior and decision making in an HIM department.

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The HIM manager use the AHIMA code of Ethics to guide Behavior and decision making in an HIM department because AHIMA code of ethics   has an obligation to demonstrate actions that reflect values and improve overall quality of healthcare.

AHIMA code of ethics  credentialed HIM professionals include providing service, protecting medical, social, and financial information, promoting confidentiality; and preserving and securing health information.The AHIMA Code of Ethics serves Promotes high standards of HIM manager, Summarizes broad ethical principles that reflect the profession's  values.Establishes a set of  principles to be used to guide decision-making and actions. AHIMA code of ethics provide a framework for professional behavior and responsibilities when professional obligations conflict or ethical uncertainties arise.

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what is the total dollar amount owed to riegel motors company by its customers at december 31, 2015

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The information of he total dollar amount owed to riegel motors company by its customers at december 31, 2015 is not publicly available.

Total amount owed to Riegel Motors Company by its customers" would be the sum of all outstanding balances owed by customers for goods or services purchased from the company.

This information would typically be recorded in the accounts receivable section of the company's balance sheet.

It is important to note that the total amount owed to Riegel Motors Company by its customers may change frequently due to customers making payments or incurring new debts to the company.

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What is the net ROMI for each campaign?
A.27 (TV); 44 (Social Media); 14 (Web)
B.27 (TV); 40 (Social Media); 10 (Web)
C.31 (TV); 44 (Social Media); 40 (Web)
D.29 (TV); 46 (Social Media); 12 (Web)

Answers

Without more context, it is not possible to determine the net ROMI (Return on Marketing Investment) for each campaign as it depends on various factors such as the cost of each campaign, the target audience, the marketing objectives, and the metrics used to measure success.

A company may use different methods to calculate the ROMI for each campaign and may consider different metrics, such as sales, revenue, customer acquisition, and engagement. The ROMI for each campaign will also depend on the company's overall marketing strategy and the marketing mix used for each campaign.

In the options provided (A, B, C, D), there is no information about the context or the metrics used to calculate the ROMI, so it is not possible to determine the correct answer.

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Ewing Company sells household furniture. Customers who purchase furniture on an installment basis make payments in equal monthly installments over a two-year period, with no down-payment required. Ewing's gross profit on installment sales equals 40% of the selling price of the furniture. For financial accounting purposes, sales revenue is recognized at the time the sale is made. For income tax purposes, however, the installment method is used. There are no other book and income tax accounting differences, and Ewing's income tax rate is 30%. If Ewing's December 31, 2017, balance sheet included a deferred tax liability of $450,000, arising from the difference between book and tax treatment of the installment sales, it should also have included installment accounts receivable of ________

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The installment accounts receivable, we need to determine the total revenue from installment sales and then multiply that amount by the gross profit percentage of 40%. is $2.5 million

Let's assume the total revenue from installment sales is $1 million. The gross profit from these sales would be $400,000 ($1 million x 40%).

Next, we need to calculate the deferred tax liability.

The difference between book and tax treatment of the installment sales results in a deferred tax liability.

The deferred tax liability is calculated as follows:

Deferred Tax Liability = Taxable Income x Tax Rate

Taxable Income = Gross Profit - Book Revenue

Substituting the values we have:

Deferred Tax Liability = ($400,000 - $1 million) x 30%

Deferred Tax Liability = ($600,000) x 30%

Deferred Tax Liability = $180,000

Since the deferred tax liability on December 31, 2017, was $450,000,

the book revenue must be higher than the taxable revenue by =$450,000/$0.30

= $1.5 million.

Therefore, the installment accounts receivable would be:

Installment Accounts Receivable = $1 million + $1.5 million

= $2.5 million

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FILL IN THE BLANK. labor costs charged to manufacturing overhead represent ______ labor costs.

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Labor costs charged to manufacturing overhead represent indirect labor costs, which are expenses incurred in the production process but not directly tied to the creation of a specific product.

Examples of indirect labor costs include the wages of supervisors, maintenance personnel, and quality control inspectors. These costs are considered indirect because they cannot be traced directly to the production of a specific product, but are considered necessary for the overall functioning of the manufacturing process. To allocate these costs, they are charged to a manufacturing overhead account and then absorbed into the cost of the final product through a cost allocation process. By doing so, indirect labor costs are included in the cost of the final product, allowing the company to accurately calculate its overall production costs.

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how does transportation help to enhance economic value of products? *

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Transportation helps to enhance the economic value of products by making them more accessible to a larger market and reducing the cost of goods. This, in turn, helps to boost economic growth and development.

Transportation plays a crucial role in enhancing the economic value of products. Transportation helps to move goods and services from one place to another, making them accessible to a larger market. This increased accessibility leads to increased demand and higher economic value for the products.

For example, if a farmer produces crops in rural areas and transport them to urban areas through efficient transportation systems, the crops can be sold at a higher price in the urban market. This increased price can be attributed to the higher demand for the crops in the urban market, made possible by the transportation system.

Similarly, transportation also helps to reduce the cost of goods by facilitating the movement of raw materials and finished goods. The cost of production can be reduced when transportation is efficient and cost-effective, which can result in lower prices for the final products, making them more affordable and accessible to consumers.

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several factors that are probably more important to an explanation of differential economic growth rates over time than culture include

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Several factors that are probably more important to an explanation of differential economic growth rates over time than culture include:

Natural resources: The availability and quality of natural resources, such as land, water, minerals, and energy, can have a significant impact on a country's economic growth.Infrastructure: Well-developed transport, communication and electricity infrastructure can facilitate economic activity and support growth.Education and human capital: A highly educated workforce with the skills necessary to participate in a modern economy can drive economic growth.Political and legal institutions: Stable political and legal systems that provide a predictable and transparent business and investment environment can support economic growth.Technology: The adoption of new technologies and innovations can increase productivity, competitiveness and drive economic growth.Access to finance: Access to capital and credit can help businesses thrive and create jobs, contributing to economic growth.Trade and globalization: Open trade policies and participation in the global economy can provide access to new markets and facilitate the exchange of goods and services, contributing to economic growth.

The rate of economic growth refers to the rate at which a country's gross domestic product (GDP) increases over a period of time, usually measured from year to year. It is an indicator of increased production of goods and services in an economy. A higher economic growth rate indicates that the economy is expanding and becoming more productive, while a lower growth rate indicates that the economy is slowing or contracting.

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in order to financially support himself, evander either had to

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Evander had to choose between working in the military sector or unemployment benefits to become financially independent.

Evander couldn't choose an answer, but he had to in order to qualify for unemployment benefits.

Evander's employer chose not to answer him, instead giving him the opportunity to return to work, albeit in the military sector.

Thomas had to either continue working in the military sector or claim unemployment benefits in order to remain financially stable.

If you are able and want to work but cannot find a suitable job, you are considered unemployed. The group of unemployed is called 'unemployed' or given a number.

Defined by the U.S. Bureau of Labor Statistics as the number of people who are unemployed, actively looking for work, and available for work (BLS) in the past four weeks.

BLS unemployment data includes people who are currently unemployed but are waiting for a callback. BLS provides unemployment information in the U-3 report, which is part of the monthly employment report.

A monthly household survey, the so-called Current Population Survey (CPS), is used to determine the unemployment rate.

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Complete question:

In order to financially support himself, evander either had to select answer working for the military division or needed to select answer unemployment benefits. in order to receive unemployment benefits, evander could not select answer , but instead had to select answer . evander’s company did not select answer him; instead, it allowed him an opportunity to continue working, but for the military division.

Describe a situation in which a person allowed a stereotype related to age to affect something that was said or done. The situation can be a real one you have witnessed or one you have read about or seen on TV.

Answers

A situation where a person has allowed an age-related stereotype to affect something that was said or done could be a woman struggling to enter the workforce because of her age.

What is ageism?

It corresponds to a type of prejudice existing in society, where the individual is negatively characterized according to her age, and this can affect both social and professional life.

Therefore, all forms of prejudice must be extinguished, be it racial, gender or age prejudice, as is the case with ageism, because every individual must be respected as he is.

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the most complex method of site valuation is the

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The most complex method of the site valuation is the option d) Subdivision development method.

The Subdivision Development Method is a way to gauge the worth of a piece of land when subdivision and development are the highest and best uses for the property. Site value is the price that the fee simple of the hereditament, if sold at the time the site value is determined in the open market by a willing seller, might be expected to realize if the hereditament were divested of any buildings and improvements any enhancements made by a developer who has divested himself of his own work, as well as any permanent or attached machinery that is attached to or used in connection with any such buildings.

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Question

The most complex method of site valuation is the _______________

a) allocation method

b) extraction method

c) sales comparison method

d) subdivision development method

In the market for newly developed real estate, adverse selection could occur when:
a. The buyers can observe and detect all the features of the properties.
b. Neither party knows about the item properly.
C. The buyers know more about the property than the developers.
d. The developers of the property know more about the properties than the buyers.

Answers

Adverse selection is a phenomenon that can occur in any market, including the newly developed real estate market. It occurs when the developers of the property know more about the properties than the buyers. Thus, Correct answer is option D.

 this can lead to an imbalance of power and an unfavorable outcome for one or both parties. In the real estate market, adverse selection can occur when buyers and developers have different levels of knowledge about the properties being sold.

For example, if buyers have more information about the properties than the developers, they may be able to detect features that the developers are unaware of. This could lead to buyers making decisions based on this information, which could result in an unfavorable outcome for the developers.

On the other hand, if the developers know more about the properties than the buyers, they may be able to take advantage of the buyers’ lack of knowledge and charge higher prices.

In either case, adverse selection can lead to an imbalance of power and an unfavorable outcome for one or both parties. It is important for buyers and developers to be aware of the potential for adverse selection in the real estate market so that they can make informed decisions and avoid unfavorable outcomes.

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the task of stitching together a strategy does not involve addressing

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The task of stitching together a strategy does not involve addressing every single detail or nuance of the plan. Instead, it is focused on identifying the key components and priorities that will guide the overall plan.

It is like putting together a puzzle, where the strategy is the final picture, and the pieces are the individual elements of the plan. In this sense, the task of stitching together a strategy is more about understanding the big picture and ensuring that all the pieces fit together seamlessly.

Another aspect that is not involved in the task of stitching together a strategy is the constant revision and refinement of the plan. While it is important to continually evaluate and adjust a strategy as needed, the focus at this stage is on putting the plan together and ensuring its overall viability.

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the extent with which debt is utilized in the firm is known as: a. break-even leverage b. operating leverage c. financial leverage d. combined leverage.

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The extent to which debt is utilized in a firm is referred to as financial leverage.

Financial leverage refers to the use of debt in a firm's capital structure to finance its operations and investments. The extent of financial leverage is determined by the ratio of debt to equity in a firm's capital structure.

A firm with a high level of financial leverage has a larger proportion of debt in its capital structure, whereas a firm with a low level of financial leverage has a smaller proportion of debt.

Financial leverage can increase the potential return on equity for a firm, but it also increases the risk associated with its operations as the firm is required to make interest payments on its debt.

It is important for firms to carefully consider the trade-off between the benefits and risks of financial leverage in order to determine the optimal level of debt utilization for their specific situation.

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All of the following are ways to improve quality except: a. Implementing a new information system b. Reducing cycle time c. Improving production precision d. Improving products and services based on customer demands e. Simplifying the production process

Answers

The following strategies can all be used to raise quality, with the exception of putting in a new information system. So, the right choice is A.

Processes must be constant across time and across the entire organization for small and midsize organizations to increase quality. The simplest approach to do this is to document your processes and make sure that the real method the work is done matches the documentation.

Increased customer loyalty is a benefit of using quality control in manufacturing.

Obtain recurring business.Obtain new clients by word-of-mouth.Maintain or strengthen your market position.Boost security.Cut back on liability risks.bolster the overall reputation of your product's brand.

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1. what 3.try to identify two possible weaknesses of the business case. role does a business case serve in project management?

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A business case is an important document used in project management to evaluate the feasibility and potential benefits of a proposed project. The purpose of a business case is to provide decision-makers with a clear and concise assessment of the costs, risks, and benefits associated with a project, in order to help them determine whether it is worth pursuing.

The role of a business case in project management is to provide a comprehensive overview of the project, including its objectives, scope, budget, timeline, and expected outcomes. By providing this information, a business case helps project managers to justify the allocation of resources and support for a project, and it helps decision-makers to evaluate the potential benefits and risks associated with the project.

In order to effectively evaluate a project, it is important to identify possible weaknesses in the business case. Two possible weaknesses of a business case include:

Over-optimism: Business cases often rely on estimates and projections, and it is possible for these estimates to be overly optimistic. This can lead to a project that ends up being more expensive or taking longer than expected.Lack of consideration for external factors: A business case should take into account any external factors that may impact the project, such as changes in the market, technology, or competition. If these factors are not considered, the business case may not accurately reflect the true potential benefits and risks of the project.

It's important to keep these potential weaknesses in mind when evaluating a business case, as they can help to ensure that the project is well-designed and that the resources allocated to it are used effectively. By providing a comprehensive overview of the project, a business case can help project managers to make informed decisions and to ensure that the project is successful.

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question 5 which of the following investments do you prefer? (a) purchase a bond with a single payment of $1000 in ten years, for a price of $550. (b) invest $550 for ten years in pnc bank at a guaranteed annual interest rate of 4.5%.

Answers

Out of the following investments I prefer to purchase a bond with a single payment of $1000 in ten years, for a price of $550.

What is a bond?

Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental). A bond can be compared to an agreement outlining the terms of the loan and the associated payments between the lender and borrower. Companies, municipalities, states, and sovereign governments utilise bonds to finance operations and initiatives. Bondholders are the issuer's debtors or creditors.

Bond specifications typically include the terms for variable or fixed interest payments made by the borrower, as well as the end date by which the principle of the loan is expected to be paid to the bond owner.

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TRUE/FALSE. intangible assets derive their value from the right (claim) to receive cash in the future.

Answers

The statement is false as intangible assets do not derive their value from the right to receive cash in future.

An asset which is not physically tangible is said to be abstract or intangible. Intangible assets encompass goodwill, brand recognition, and proprietary information like inventions, copyrights, and royalties. Contrasted with tangible assets like property investment, transportation, equipment, and stock are intangible assets. Financial assets like stocks and bonds are also regarded as tangible assets because they receive their value from contractual rights. The right (claim) to receive money in the future is what gives intangible assets their worth. Intangibles produced internally are documented at cost. Intangible assets created internally are initially recorded at fair value. Expected residual values shouldn't affect how long intangible assets have to be used before being amortised.

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Which business letter feature is found at the top of the page?

Answers

I believe it is the “letter head”

Good luck hope this helps


:)))

Header

Hard copy business letters feature a header that includes the sender’s name, phone number, address and email address, which may be left or right justified or centered at the top of the page. This is followed by the date the letter was sent, which in turn is followed by the “inside address.”

the income statement of lashari design shows depreciation of $1,611, sales of $21,415, interest paid of $1,282, net income of $1,374, and costs of goods sold of $16,408. what is the amount of the noncash expenses?

Answers

Lashari Design's revenue statement displays $1,611 in depreciation, $21,415 in sales, and $1,282 in interest paid. The amount of noncash expenses is $2,893.

Noncash expenses are expenses that don't involve any immediate outflow of cash. They are reflected in the financial statements as reductions in a company's assets or increases in its liabilities, but they do not impact the company's cash balance.

Examples of noncash expenses include depreciation, amortization, and accretion. In the income statement of Lashari Design, depreciation, and interest paid is the noncash expenses.

The noncash expenses can be calculated as follows:

Depreciation + Interest paid = $1,611 + $1,282

= $2,893

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if a bond has a face value of $1000 and a coupon rate of 4.25%, the bond owner will receive annual coupon payments of

Answers

A bond with a face value of $1,000 and a coupon rate of 4.25% receives a yearly coupon payment of $42.50. Hence, option C is correct answer.

A fixed-income security pays a nominal yield known as a coupon rate. It refers to how often the issuer pays annual coupons in relation to the bond's face value or par value.

The coupon holder will yield less than the current market conditions when the market improves, as the bond won't pay more because its value was predetermined at issance. When a bond is bought on the secondary market, the yield to maturity is the difference between the bond's interest payments, which may be higher or lower than the coupon rate at the time the bond was issued.

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Complete Question:

If a bond has a face value of $1,000 and a coupon rate of 4.25%, the bond owner will receive annual coupon payments of:

(A) $425.00

(B)  $4.25

(C) $42.50

(D) a value that cannot be determined from the information provided

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