Make a list of at least 5 business ideas that interest you. Then explain which one you think is the best opportunity for you. Give at least 3 reasons why this opportunity is better for you than the others.Make a list of at least 5 business ideas that interest you. Then explain which one you think is the best opportunity for you. Give at least 3 reasons why this opportunity is better for you than the others in a Business

Answers

Answer 1

The five business idea is:

Reusable productTours & TravelsEducation programRestaurant Street food.

The main tours and the travel are the biggest opportunity.

What is business?

The term “business” refers to earning a profit. The business is taking the risk and earning the profit. The business is mainly focused on the activities of the creation, distribution, and selling of concepts.

According to the management theory, the five basic and the interesting idea on the business are:

Reusable productTours & TravelsEducation programRestaurant Street food.

The tours and the travel and the street food business was the biggest opportunity. The both the business are the profit is high and the not to the interference to the other.

As a result, the significance of the business are the aforementioned.

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Related Questions

to maintain a competitive advantage, gabriela’s company must be responsive to customers, be innovative, make high quality products, and do the work efficiently.

Answers

It's true that to maintain a competitive advantage, a company must be responsible to guests, be innovative, make high quality products, and do the work efficiently.

Competitive advantage is what makes an reality's products or services more desirable to guests than that of any other rival.

Competitive advantages can be broken down into relative advantages and discriminational advantages.

relative advantage is a company's capability to produce commodity more efficiently than a rival, which leads to lesser profit perimeters.

A discrimination advantage is when a company's products are seen as both unique and of advanced quality, relative to those of a contender.

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brown office supplies recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. it had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. how much was the firm's ebit (earnings before interests and taxes)? a. $4870 b. $2922 c. $1948 d. $5500

Answers

To find the firm's EBIT (Earnings Before Interests and Taxes), we need to calculate the operating income, which is calculated as Sales - Operating Costs - Depreciation. For Brown Office Supplies, the operating income can be calculated as follows:

$15,500 (Sales) - $8,250 (Operating Costs) - $1,750 (Depreciation) = $5,500 (Operating Income)

So, the firm's EBIT is $5,500, which is the amount of income that the firm has generated from its core operations, before paying interest on its debt and taxes.

Note that while the interest payment on the firm's bonds is not considered as part of the operating costs, it is still considered as a separate line item when calculating the net income. Similarly, taxes are also not included in the calculation of EBIT, but they will reduce the net income once calculated.

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A manufacturer of computer chips claims that less than 10% of its products are defective. When 1,000 chips were drawn from a large production, 7.5% were found to be defective.
Explain briefly how the statistic can be used to make inferences about the parameter to test the claim.

Answers

The statistic can be used to make inferences about the parameter to test the claim because the sample proportion is less than 10%, we can conclude that the claim is true.

A claim is a legal notification to an insurance company that you believe you are entitled to reimbursement because you have experienced a loss. The owner's claim to the company's assets is shown in the balance sheet's shareholder equity column. The asset balance excluding any unpaid liabilities equals the shareholder's equity in every case.

The sample proportion is a variable, meaning it can't be predicted exactly how it will change from sample to sample. Sampling is frequently used to calculate the percentage of a population that possesses a particular attribute, such as the percentage of all defective goods that come off an assembly line or the percentage of all customers who enter a store and make a transaction before leaving.

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What are the impacts of marketing environment towards the company marketing strategy?

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The marketing environment can have significant impacts on a company's marketing strategy.  A company must be aware of both internal and external factors in order to develop an effective marketing strategy that meets the needs of its customers and allows it to remain competitive. Understanding the marketing environment and its various components is crucial to the success of any marketing effort.

Internal factors that can impact a company's marketing strategy include its resources, culture, and organizational structure. For example, a company with limited resources may have to focus its marketing efforts on cost-effective tactics such as social media marketing. On the other hand, a company with a strong culture of innovation may prioritize the development of cutting-edge products and marketing campaigns.

External factors in the marketing environment include economic, technological, political, and cultural trends. For example, a company operating in a recessionary economy may need to adjust its marketing strategy to focus on value-oriented messages and cost-saving measures. Advances in technology, such as the widespread adoption of mobile devices, can also impact a company's marketing strategy by creating new channels for reaching and engaging with customers.

In addition, the competitive landscape can also play a major role in shaping a company's marketing strategy. Companies must be aware of their competition and how they are positioning themselves in the market in order to stay ahead. Understanding the strengths and weaknesses of competitors can help a company to differentiate itself and create a more effective marketing strategy.

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the aggregate production function shows a positive relation between the output produced and capital used per worker. what does the slope of the production function signify?

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The slope of the aggregate production function signifies the marginal product of capital (MPK), which represents the increase in output that results from an increase in the usage of capital per worker.

In economics, the aggregate production function is a relationship between the inputs (such as capital and labor) and the output produced by a firm or an entire economy. The production function typically shows a positive relationship between output and capital per worker, meaning that the output will also increase as the usage of capital per worker increases.

The slope of the marginal production function represents the rate at which the output changes concerning changes in capital per worker. This means that the MPK reflects the output per unit increase in capital usage per worker. A high MPK indicates that the firm or economy is utilizing its capital efficiently, while a low MPK indicates that the firm or economy is not using its capital effectively.

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As a small business owner, you might use an affiliate to promote your products and services online. What is the potential challenge of working with a single affiliate? a. The affiliate may limit your ability to work with others. b. The affiliate may discontinue use of your product or service. c. The affiliate may increase traffic to your website. d. The affiliate might have a targeted audience for your brand. e. All of the above are true.

Answers

As a small business owner, the affiliate may limit your ability to work with others.

As a small business owner, it can be difficult to work with other companies or organizations due to the restrictions that come with being an affiliate. Affiliates are typically required to abide by certain rules and regulations that limit the scope of their work. This can make it difficult to collaborate with other businesses or organizations, as the affiliate may be restricted from certain activities or services.

Additionally, the affiliate may be limited in the amount of resources they can access or use, which can further limit their ability to work with others. Ultimately, the affiliate's ability to work with others is dependent on the specific terms of their agreement with the organization they are affiliated with.

Hence, the correct option is "A".

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A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.
Choose matching definition
1. time value of money
2. future value
3. discounting
4. compounding

Answers

Option future value is the correct option

Calculating the present value of a cash flow or series of cash flows that will be received or paid in the future is the process of discounting.

Describe cash flow.

The net change in cash and cash equivalents entering and exiting a firm is referred to as cash flow. Money received and spent, respectively, reflect inflows and outflows.

Discounting is the act of calculating the current value of a future payment or stream of payments. The temporal value of money means that a dollar is worth more today than it would be tomorrow. Discounting is the primary factor that has been used to value or estimate a stream of future cash flows.

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Arlene runs Aquabuddies, a company that makes figurines for aquariums. What type of strategy would be expected?

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In the context of Arlene's company, Aqua buddies, the following type of strategy would be expected: Marketing strategy, Product strategy, Distribution strategy, Pricing strategy.

A strategy is a plan of action that an organization uses to achieve its goals and objectives.

Marketing strategy: This involves identifying the target market for Aquabuddies' figurines, understanding their needs and preferences, and creating a plan to reach and engage with this audience. This could involve promotions, advertising, and product design that appeals to the target market.Product strategy: This involves developing and refining the product offerings of Aquabuddies' figurines, ensuring that they are of high quality and meet the needs of the target market. This may involve researching and testing new designs, materials, and features to ensure that the figurines are unique and appealing to customers.Distribution strategy: This involves determining the most effective ways to get the Aquabuddies' figurines into the hands of customers. This may involve developing relationships with retailers, distributors, and online platforms to ensure that the figurines are widely available to the target market.Pricing strategy: This involves setting the prices for the Aquabuddies' figurines that are competitive, yet still allow for a profit. This may involve researching the prices of similar products in the market, considering the cost of production, and analyzing the target market's willingness to pay for the figurines.

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what is the main cause of a change in quantity demanded?

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The main cause of a change in quantity demanded  is a change in the price. A price change in the stock market is a shift in the value .

A change in quantity demanded refers to a change in the specific quantity of a product that buyers are willing and able to buy. This change in quantity demanded is caused by a change in the price.

A price change in the stock market is a shift in the value of a security or another asset to either a higher or lower level. The term also refers to the difference between a stock's closing price on a trading day and its closing price on the previous trading day.

If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy.

A 75% change in the price of a box of cereal, for example, may only involve a few dollars while a 75% change in the price of Berkshire Hathaway may involve thousands of dollars.

The effect of a price change on the consumer's equilibrium choice is often divided into two effects—known at the substitution effect of a price change and the income effect of a price change.

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If a car manufacturer wanted to segment its marketplace it would (select all applicable answers):a: offer the same car model to all consumers in the marketplace.b: identify customer needs for different types of cars (such as sports cars, SUVs, and family sedans).c: divide consumers into groups based on their incomes.

Answers

The correct response is b. identify customer needs for different types of cars (such as sports cars, SUVs, and family sedans) and c. divide consumers into groups based on their incomes.

An individual who buys a thing for personal use and uses or consumes it is referred to as a consumer. The good, product, or service cannot be resold, but a customer can use it to support themselves and their life by using it. Customer definition. Any product or service's final user is the consumer. Any individual or group who uses a product or service for the very last time is considered a consumer. Consider these instances: a client who pays a stylist to cut and style their hair. an organization that purchases a printer for business use. An individual who uses a good or service is referred to as a consumer. Frequently, the terms "consumer" and "client" are used synonymously. The statement is not totally true.

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a) Corporations can enter contracts
b) Corporations can vote in general elections
c) Corporations are separate legal entities
d) Corporations can sue and be sued

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The firm itself has the authority to engage into contracts after registering with the state since, in the perspective of the law, a corporation is a separate entity from its owners.

legal name if you have been given permission to do so. A person must have the necessary authorization before acting on behalf of another entity under a contract. To enter into the contract, this person, the "agent," must have received some kind of authorisation from that company. Because a corporation is a distinct legal entity from its owners, it is allowed to engage into agreements, acquire assets, take on obligations, and enjoy protection from having its property seized.

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The price of milk at the local grocery store rises by 25%, and the quantity of milk demanded falls by 10%. The absolute value of the price elasticity of demand for milk is _____, and demand is _____. 0. 4; elastic 2. 5; elastic 0. 4; inelastic 2. 5; inelastic

Answers

The absolute value of the price elasticity of demand for milk is 0.4, and demand is  inelastic .

What do you mean by price elasticity?

The responsiveness of a good's supply or demand to a change in price is measured by price elasticity. It is calculated by dividing the percentage change in the quantity that is required (or delivered) by the percentage change in the price.

                                     Demand responsiveness to a change in a product's price is measured by price elasticity of demand.

Why is it called price elasticity?

It is said that a product is elastic if a change in price results in a sizable alteration in either its supply or its demand.

                         Generally speaking, it denotes that the product is replaceable with adequate alternatives. Cookies, high-end vehicles, and coffee are a few examples.

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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 48,800 Costs 34,800 Taxable income $ 14,000 Taxes (22%) 3,080 Net income $ 10,920 Dividends $ 3,200 Addition to retained earnings 7,720 The projected sales growth rate is 17 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all answers as positive values. Do not round intermediate calculations. )

Answers

A pro forma income statement is a forward-looking financial statement that projects future results based on certain assumptions.

To prepare a pro forma income statement for the Heir Jordan Corporation,

we need to make the following assumptions:

Sales growth rate: 17%

Cost of sales varies with sales

Dividend payout ratio is constant

Here is the pro forma income statement for the Heir Jordan Corporation assuming a sales growth rate of 17%, cost of sales varying with sales, and a constant dividend payout ratio:

HEIR JORDAN CORPORATION

Pro Forma Income Statement

Sales:

Projected sales for the next period = $48,800 x (1 + 17%) = $57,056

Costs:

Projected cost of sales = Projected sales x (Cost of sales / Sales) = $57,056 x (34,800 / 48,800) = $42,996

Taxable income:

Projected taxable income = Projected sales - Projected cost of sales = $57,056 - $42,996 = $14,060

Taxes:

Projected taxes = Projected taxable income x 22% = $14,060 x 22% = $3,085.20

Net income:

Projected net income = Projected taxable income - Projected taxes = $14,060 - $3,085.20 = $10,974.80

Dividends:

Projected dividends = Projected net income x (Dividends / Net income) = $10,974.80 x (3,200 / 10,920) = $3,200

Addition to retained earnings:

Projected addition to retained earnings = Projected net income - Projected dividends = $10,974.80 - $3,200

= $7,774.80

The pro forma income statement projects the future results of the Heir Jordan Corporation based on the assumptions made. It provides a useful tool for management to plan and make informed decisions.

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how did the increase in industrial production in europe lead to a decline of manufacturing in other regions?

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During the 18th and 19th centuries, Europe experienced a massive increase in industrial production, which was driven by the development of new technologies and increased demand for goods. This growth was driven by the development of new manufacturing methods and the use of machines, which allowed for faster and more efficient production of goods.

As a result, European manufacturing became more competitive and efficient, making it possible for Europe to produce a wider range of goods at lower costs than other regions. As Europe became the center of industrial production, other regions, such as Asia, saw a decline in their manufacturing industries.

This was due to several factors, including the competition from European goods, the lack of investment in new technologies, and the inability to keep up with the demands of the rapidly changing global market.

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marketing research provides managers with new information to help them make decisions.T/F

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Marketing research provides marketing managers with new information to help them make decisions.True

For the benefit of the business and its efficiency, marketing managers require data from marketing research. Managers evaluate the present reach of their company among consumers through marketing research by taking into account a variety of elements. These include the company's reach and awareness on a national and international level, consumer affinity for the company's products, and the need to learn more about its rivals.

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When quantity demanded is greater than quantity supplied, there ___.
a) is a shortage
b) is a surplus
c) may be either a shortage or a surplus
d) may be neither a shortage nor a surplus

Answers

Excess Demand: When there is a surplus of demand relative to supply at a particular price. This is referred to as a scarcity.

The correct answer is option a.

When the quantity supplied at the market price is less than the quantity required, there is a shortage. Three factors, including rising demand, falling supply, and government action, are the main causes of shortages. It's important to distinguish between shortage and "scarcity" when using the term in economics. When a price ceiling is set below the equilibrium price, there will be excess demand or shortages since there will be more demand than supply.

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phil used his rental property for personal use for 7 days and rented it for 63 days. in most cases, what percentage of his expenses are not rental expenses and cannot be deducted on schedule e?

Answers

That 10% cannot be deducted as rental expenses because he used these for personal use.

Find the solution ?

To figure out how much money you'll make from renting, multiply your monthly rent payment by the number of months in a year. Then, divide that sum by the increase in the value of your home.

Based on how many personal days you have compared to how many rental days you have, you'll divide your spending accordingly.

The personal share of the costs, which may include qualifying mortgage interest, qualified property taxes, and qualified casualty loss (if any), shall be reported on Schedule A in accordance with standard procedures.

The total number of days the property was used:

= 7 + 63

= 70 days

He used the property for personal use for 7 days out of that:

= 7/70

= 10%

That 10% cannot be deducted as rental expenses because he used these for personal use.

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That 10% cannot be deducted as rental expenses because he used these for personal use.

What is Rent expense?

Rent expense is the cost a business incurs to use a structure or location as a factory, warehouse, retail space, or office. Rent costs are an example of a company's constant operational costs, or absorption costs, as opposed to variable costs. Rental cost agreements between the lessor and lessee are often signed for one or two years with the possibility of extension. Rent expense is the price a company must pay to use a property as an office, a store, a warehouse, or a factory. One of a retail company's largest operational expenses, along with employee salaries and marketing expenses, might be rent.

Rent for administrative offices is separate from production-related leasing costs in manufacturing enterprises.

The total number of days the property was used:

= 7 + 63

= 70 days

He used the property for personal use for 7 days out of that:

= 7/70

= 10%

That 10% cannot be deducted as rental expenses because he used these for personal use.

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efficiency means doing the right things to create the most value for the company. true or false

Answers

TRUE!! A worker can be efficient without being effective. Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. This shows that this is “True.”

the set of values, ideas, and attitudes that is learned and shared among the members of an organization is referred to as

Answers

A group's taught and shared values, concepts, and attitudes are referred to as its culture.

Which four types of organizational culture are there?

They distinguished between four different types of culture: clan, adhocracy, market, and hierarchical. Using the Organizational Culture Assessment Instrument (OCAI), you may evaluate your company's culture quickly and strategically and create an environment that will support the success of your team.

What does it mean for members of a community to share a set of values, ideas, beliefs, and preferences?

The culture of a civilization is the set of important beliefs that its members share. Its distinctiveness is derived from a core set of beliefs, conceptions, perceptions, preferences, moral standards, rules of conduct, etc.

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what is the purpose of industry coverage groups in investment banks?

Answers

The industry coverage groups play the role in investment banks of providing expert advices on all deals related to a certain field only that they have expertise in.

The industry coverage groups perform a variety of functions apart from providing advices. These are: presenting pitches and ideas to clients, preparing pitch books, writing industry reports, and executing transactions. Thus, a certain group deals with a certain project of the investment banks.

Investment banks are the intermediates between a certain corporation and financial markets. Investment banks are more actively seen in the startup businesses. These banks advise on meeting financial challenges to the organization they are associated with.

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Al's has a positive net income and a marginal tax rate of 34 percent. Given this, an increase in which one of the following will cause the operating cash flow to increase?A. Fixed assetsB. TaxesC. Net working capitalD. Cost of goods soldE. Depreciation

Answers

Depreciation cause the operating cash flow to increase when, Al's has a positive net income and a marginal tax rate of 34 percent .

Option e is correct .

The expected decline in value of fixed assets over the course of a fiscal year is known as depreciation. For tangible items like real estate, machinery, vehicles, and so on, large lump sum purchases are made. The useful life of an item must be precisely estimated when using time-based approaches. Straight-line depreciation, which takes a time-based approach, is the most straightforward and widely used depreciation method.

Annual depreciation is the regular annual rate at which depreciation is applied to a fixed asset. When using the straight-line method, this rate does not change from year to year. An accelerated method will cause annual depreciation to increase sooner and decline later.

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sectoral shifts: group of answer choices depend on the level of the minimum wage. explain the payment of efficiency wages. depend on the level of the unemployment benefit level. make frictional employment inevitable.

Answers

Sectoral shifts are modifications to how demand is distributed among industries or geographical areas. Sectoral shifts make frictional unemployment inevitable.

Because their skills are no longer required or appropriate, those working in outmoded industries will not be able to find work in the rest of the economy when there are sectoral shifts. Structural unemployment results from this.

Sectoral shifts are modifications to how demand is distributed among industries or geographical areas. Sectoral transitions could result in unemployment because it takes time for workers to look for work in the new sectors.

Sectoral movements result in frictional unemployment since it takes time for people to switch industries.

Seasonal unemployment is the best way to characterize the transient unemployment brought on by such sectoral changes in the economy. Unemployment that results from a brief decline in a product's demand is known as seasonal unemployment.

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a firm has two factories for which costs are given by

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The costs associated with two factories typically include direct costs and indirect costs. Direct costs refer to costs directly related to the production of goods and services, such as labor, materials, and supplies. Indirect costs refer to costs not directly associated with the production process, such as administrative costs and overhead.

Other costs that may be included in the calculations of the two factories are taxes, rent, and utilities.

The costs associated with each factory may also differ depending on their size and location. For instance, larger factories may require more staff, which will increase labor costs. Additionally, factories located in cities may incur higher taxes and rent than factories located in rural areas.

It is also important to factor in any additional costs associated with the upkeep and maintenance of the two factories. These may include repairs, replacement parts, and other related expenses. Additionally, any costs associated with the storage, transportation, and distribution of the goods produced in each factory should also be taken into account.

Overall, the costs associated with two factories can vary greatly depending on their size, location, and the costs associated with the production process and associated maintenance and distribution costs.

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Complete question:

A firm has two factories for which costs is given which might be any value explain the components included in the costs.

Which market structure has the highest barriers to entry?

Answers

A monopoly market system is a structure that has entry barriers. The market usually has entry barriers because it is characterized by having one seller of a particular good. No other firm produces that specific product; thus, the product being sold has no replacements.

Your answer is monopoly market system

Hope this helps have an excellent day!

How overhead is assigned to production?

Answers

Overhead is the indirect costs associated with producing goods or services.

How is overhead allocated to production?Overhead costs cannot be easily traced to specific products or services, but they still need to be assigned to production in order to accurately calculate the cost of goods sold. The following are common methods used to assign overhead to production:Direct Labor Hours: Overhead costs are assigned based on the number of direct labor hours required to produce a product or service.Activity-Based Costing: Overhead costs are assigned to products or services based on the specific activities that are required to produce them.Cost Pools: Overhead costs are grouped into pools based on common factors, such as departments or production processes, and then assigned to products or services based on a specific allocation method.Normal Capacity: Overhead costs are assigned based on the normal capacity of the production process, rather than actual production levels.

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Variable cost does not include
A) raw materials and resources.
B) staff and management salaries.
C) material handling and freight.
D) direct labor and packaging.

Answers

Variable cost does not include staff and management salaries.  

There are two types of costs – fixed and variable costs. Fixed costs do not change with the increase or decrease in the quantity of goods produced by a firm. Examples include rent, taxes, mortgage, salaries, etc.

On the other hand, variable costs might increase or decrease based on the output achieved by a firm. Variable costs are quite unpredictable in nature. Examples include direct labor and packaging, commission, raw material, material handling and freight etc. 

For a firm, the higher the variable cost, the lower is its profit margin.   

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when best buy provides a loyal customer with a relevant coupon on their mobile phone, based on previous purchases, while the customer is in the store, this is an example of which element of the 4e framework?

Answers

This is an example of the Engage element in the 4E Framework. The Engage element focuses on providing customers with relevant and personalized experiences in order for companies to create and maintain customer loyalty.

in every choice, you weigh the group of answer choices benefit and opportunity cost revenue and profit supply and demand opportunity cost and scarcitytrue or false

Answers

This statement is True, in every choice, you weigh the group of answer choices benefit and opportunity cost revenue and profit supply and demand opportunity cost and scarcity.

Scarcity refers to the lack of resources to meet the unlimited wants and needs of individuals. It is a fundamental concept in economics that states that the availability of resources is limited and therefore, we must make choices about how to allocate them. This leads to the concept of opportunity cost, which is the value of the next best alternative that must be given up to obtain a particular good or service.

Scarcity affects our daily lives as we are constantly faced with making decisions about how to allocate our time, money, and energy. For example, we have to decide between buying a new car or saving for retirement, or choosing between working overtime and spending time with family.

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assume a $100 investment earns a stated interest rate of 10 percent, compounded monthly. what will be the investment value after 1 year? multiple choice question. $110.47 $110.00 $108.16 $113.09

Answers

Suppose a $100 investment generates a 10 percent stated interest rate that is compounded monthly. The investment value after 1 year will be $110.47.

What will be the investment value after 1 year?

$100 investment earns a stated interest rate of 10 percent, compounded monthly. The percentage of a loan, deposit, or borrowing that must be used to pay interest each period is known as the interest rate. The total amount of interest charged depends on the amount lent or borrowed, the interest rate, how often interest is compounded, and how long it is lent, deposited, or borrowed for.

A = $110.47

P (principal) equals $100.00, and A = P + I.

Interest equals $10.47

Calculation Procedure:

To begin, change R from a percentage to a decimal, using the formula: r = R/100 r = 10/100 r = 0.1 rate per year;

Then, resolve the following equation: A = P(1 + r/n)

nt A = 100.00(1 + 0.1/12)(12)(1) (1)

A = 100.00(1 + 0.0083333333333333)(12) (12)

A = $110.47

The sum of the principal and interest rate accumulated on a $100.00 principal during a one-year period at a rate of 10% per year, compounded 12 times, is $110.47. The investment value after 1 year will be $110.47.

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The theory of _ capabilities explains how companies must be stable enough to deliver value to customers yet resilient and flexible enough to shift focus when situations demand a different approach

Answers

According to the theory of dynamic capacities, companies must be able to adapt quickly to changing conditions and shift their focus while being stable enough to satisfy customers.

What is the Theory of Dynamic Capabilities?

According to dynamic capabilities theory, senior managers of successful businesses must devise plans for adapting to severe discontinuous change while upholding minimal capability criteria to secure their organizations' competitive survival.

Functional, or zero-level, capabilities are different from dynamic capabilities.

These are industry-wide learned practices.

Building an assembly plant in the auto industry is an illustration of such a procedure.

It follows a clearly laid out process with established precedents and criteria.

According to the theory of dynamic capabilities, businesses must be resilient and flexible enough to change their emphasis when circumstances call for a different strategy while yet steady enough to provide value to customers.

Therefore, according to the principle of dynamic capacities, companies must be able to adapt quickly to changing conditions and shift their focus while being stable enough to satisfy customers.

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