Non-constant growth means________ growth rates over some finite length of time. A. unexpected B.weighted C. supernormal D. required E. declining

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Answer 1

Non-constant growth means Declining growth rates over some finite length of time.

Companies frequently alter the growth rate of their dividends for a number of reasons, such as providing extremely high growth during periods when they anticipate larger earnings or luring in more investors. Super-normal growth or non constant growth is the term used to describe dividend growth that exceeds the typical rate. By dividing the timeline into various annuities and perpetuities and summing their individual present values, non-constant growth models can be used to solve for the stock price. According to conventional finance theory, a corporation with little growth should generate significant dividend returns. The part of earnings that is not distributed to investors should ideally be kept for investment to ensure future earnings development.

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Related Questions

Determine whether each of the following tops would more likely be studied in microeconomics or macroeconomics: A consumer's optimal choice when buying a flat-screen TV ,The government's decision on how much to spend on public projects ,The effect of an increase in consumer income on demand for smart phones

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A consumer's optimal choice when buying a flat-screen TV: Microeconomics. The government's decision on how much to spend on public projects: Macroeconomics.

The effect of an increase in consumer income on demand for smart phones: Microeconomics. The effect of an increase in the interest rate on the stock market: Macroeconomics. The interest rate on the stock market varies depending on the type of security and the market conditions.

Generally speaking, stocks tend to offer higher returns than bonds, but the rate of return can vary depending on the individual stock and market conditions. Additionally, some stocks may pay dividends which can also affect the rate of return.

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In the context of open market operations, when inflation is a concern, the Fed sells securities to buyers who write checks to the Fed to pay for securities they bought, and the Fed withdraws these funds from banks. With fewer funds, credit become tighter. True/false?

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In the context of open market operations, when inflation is a concern, the Fed sells securities to buyers who write checks to the Fed to pay for securities they bought, and the Fed withdraws these funds from banks. With fewer funds, credit become tighter is true statement.

When inflation is a problem in the context of open market operations, the Fed sells assets to buyers who send checks to the Fed to pay for the securities they purchased, and the Fed takes these monies out of banks. It is true that credit becomes more difficult when resources decrease.

According to the Federal Reserve System's documentation, the Fed's goals are to oversee and control banking institutions, maintain the stability of the financial system, make decisions about the nation's monetary policy, and provide financial services to deposit institutions, the US government, and official foreign institutions.

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Fill in the blankthe ____ describes a situation faced in command economies in which producers have no reason to adjust production in response to shortages and surpluses in the economy.

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The incentive problem describes a situation faced in command economies in which producers have no reason to adjust production in response to shortages and surpluses in the economy.

An incentive problem arises from the character's ability and desire to steer the mastering system, and therefore the salary process, with the aid of taking unobserved movements that affect contemporary performance. Incentives are advantages or costs of a movement that influence humans' decisions and conduct. stated any other manner, incentives could make people do something they would not otherwise do.

Cultural norms might also provide incentives through rewarding with social acclaim individuals who help the needy or may offer disincentives with the aid of punishing individuals who engage in robbery. economic incentives may additionally involve providing monetary prizes or economic fines for good or bad conduct, or often only trade in the fee that ends up together.

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Liquidation and dissolution have the same legal meaning. (T/F)

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The statement is False. Liquidation and dissolution are two different terms that refer to two different processes in the lifecycle of a company.

Liquidation refers to the process of selling off a company's assets and distributing the proceeds to its creditors and shareholders. This process is typically initiated when a company is unable to pay its debts and is facing bankruptcy.

Dissolution, on the other hand, refers to the formal process of closing down a company and ending its existence as a legal entity. Dissolution can happen voluntarily, through a vote of the shareholders, or involuntarily, through a court order. After dissolution, the company's legal existence ends, and its assets are usually sold to pay off its debts, with any remaining assets distributed to its shareholders.

So, while liquidation is a part of the process of dissolution, the two terms are not synonymous and have distinct legal meanings.

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If the normal distribution is used to estimate losses when the true loss distribution is in fact positively skewed, which of the following errors will occur?
A. The maximum probable loss will be overestimated. B. The maximum probable loss will be underestimated. C. The standard deviation will be underestimated. D. The standard deviation will be overestimated.

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If the normal distribution is used to estimate losses when the true loss distribution is in fact positively skewed, in that case, Option B. The maximum probable loss will be underestimated.

In a distribution that is positively skewed, the mean, median, and mode are all positive rather than zero or negative, meaning that the data distribution is more skewed to one side of the scale with a lengthy tail to the right.

It is sometimes referred to as a right-skewed distribution because the mean typically lies to the right of the median of the data.

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Which of the following items is a permanent difference between taxable and financial accounting income?A) net capital lossB) depreciationC) dividends-received deductionD) bad debts

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Dividends-received deduction is a constant difference between taxable and financial accounting income.

What is income in accounting?

The money that a company keeps from its sales revenue after paying all necessary expenses is known as accounting income. The bottom of the income statement is frequently where you'll see net income, which is the same thing. While gross income only accounts for direct spending, accounting income takes into account all indirect costs. The statistic differs from gross income in this way.

Accounting income is calculated as a component of the income statement, starting with sales revenue. This is an illustration of the revenue generated by the sale of goods or services. The direct costs of producing the items or providing the services are subtracted from the total to determine gross profit.

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______: Collective actions of sellers and buyers create an equilibrium price.
The equilibrium price and quantity reflect a compromise between buyers and sellers.
No other compromise yields a quantity demanded that is exactly equal to the quantity supplied.

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The concept of equilibrium price in economics refers to a state where the quantity of goods demanded by buyers is equal to the quantity of goods supplied by sellers.

This balance is achieved through the collective actions of both buyers and sellers, as they adjust their behavior to reach a mutually agreeable price. The equilibrium price and quantity reflect a compromise between buyers and sellers, as they each try to maximize their own benefits. No other compromise will result in a situation where the quantity demanded is exactly equal to the quantity supplied, as this particular balance is unique and can only be achieved through the market forces of supply and demand. The concept of equilibrium price is important as it represents the most efficient allocation of resources in a market economy.

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When investors determine that a security is overvalued, a(n) ____ in demand causes the security price to ____ and equilibrium is reestablished.

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When investors determine that a security is overvalued, a decrease in demand causes the security price to fall and market equilibrium is reestablished.

When investors determine that a security is overvalued, they may decrease their demand for the security, leading to a decrease in the price of the security. This decrease in price reestablishes market equilibrium as the supply and demand for the security are now in balance.

In a market, prices are determined by the intersection of supply and demand. When demand for security is high, the price of the security will increase. Conversely, when demand for security decreases, the price of the security will decrease.

In this scenario, investors have determined that the security is overvalued, so they decrease their demand, causing the price to fall and restoring balance in the market.

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OSHA requires that employers incorporate which of the following elements into their emergency action plans?

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Employers must include the following elements in their emergency action plans, per OSHA regulations:

A means by which fire and other emergencies are reported to employees.Evacuation procedures and emergency escape route assignments.Procedures to account for all employees after an emergency evacuation have been completed.Rescue and medical duties for those employees who are to preform them.

The Occupational Safety and Health Administration (OSHA) requires employers to have a well-defined emergency action plan in place to ensure the safety of employees in the event of a fire or other emergency.

The plan should include a means of reporting emergencies to employees, clear evacuation procedures and emergency escape route assignments, procedures to account for all employees after evacuation, and designated rescue and medical duties for employees.

This helps to ensure a coordinated and effective response in the event of an emergency, reducing the risk of injury or harm to employees and improving the chances of a successful outcome. For the safety of employees at work, it's important to have a well-thought-out emergency action plan. 

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FILL IN THE BLANK. a foreign subsidiary is a company owned in a foreign country by another company called the ____ .

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A foreign subsidiary is a company owned in a foreign country by another company called the daughter company.

What does the term "foreign subsidiary corporation" mean?

Any corporation where at least 50% of the equity shares are owned by a company formed in a different foreign country is said to have a foreign subsidiary.

                   The holding company or the parent firm is what is referred to as the aforementioned foreign corporation in this situation.

Describe a subsidiary.

A subsidiary is a business that is a part of a larger organization, often known as the parent company or holding company, in the corporate world. It means that the parent owns or has control over more than half of the stock in the subsidiary company.

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You purchased a ticket to the musical Hamilton through a verified reseller for $457.00. When your ticket arrives, you see the face value printed on it is $259.00. Based on this transaction, is the face value price being charged by the show’s producers above, below, or equal to the equilibrium price? How do you know?

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In the case of a ticket to the musical Hamilton purchased for $457.00 with a face value of $259.00, it is important to determine whether the face value price is above, below, or equal to the equilibrium price.

When purchasing a ticket for a show, it is common for the face value price to differ from the actual price paid. This can occur for a variety of reasons, including supply and demand, market competition, and ticket reselling.

The face value price of $259.00 is below the price paid ($457.00), indicating that the market price for the ticket was higher than the face value due to supply and demand.

When the demand for a show is high and there is a limited supply of tickets, market forces drive up the price of tickets above their face value.

In this case, the verified ticket reseller was able to sell the ticket for a higher price due to the high demand for the musical Hamilton.

The price paid ($457.00) is the equilibrium price, meaning it is the price at which the quantity of tickets supplied and the quantity of tickets demanded are equal.

The market forces of supply and demand determine the equilibrium price, and in this case, the high demand for the musical Hamilton pushed the market price above the face value.

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The following is Sheridan Company's income statement for the past year. Sales revenue Cost of goods sold Gross margin Operating expenses Operating income $348,000 139,200 208,800 150,800 $58,000 Tal (d) If the company wants to sell a new product that costs $53 wholesale while keeping the same markup structure, what will be the price of the new product? (Use the gross margin percentage and round final answer to 2 decimal places, e.g. 25,124.25.) $ Price of the new product Teythookand Media

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Rounding to 2 decimal places, the price of the new product would be $185.50.

To calculate the price of the new product, we need to use the gross margin percentage, which can be calculated as follows:

Gross margin percentage = (Gross margin / Sales revenue) * 100%

Gross margin percentage = (208,800 / 348,000) * 100%

Gross margin percentage = 60%

With the gross margin percentage, we can now determine the markup for the new product:

Markup = (Cost of goods sold / (100% - Gross margin percentage)) * 100%

Markup = (53 / (100% - 60%)) * 100%

Markup = 53 / 40% * 100%

Markup = 132.50

Finally, to find the price of the new product, we can add the markup to the wholesale cost:

Price of the new product = Wholesale cost + Markup

Price of the new product = 53 + 132.50

Price of the new product = $185.50

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choose all that apply. a sole proprietorship whose name is a trade name is liable for injuries caused by

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A sole proprietorship whose name is a trade name is liable for injuries caused by the business's debts.

What is sole proprietorship?

A sole proprietorship was the based on the single owner. A sole proprietorship was the enjoy the profit. The profit of the business are doesn't share it and without interfere anyone.

As sole trader you alone are responsible in the sole proprietorship. It was the owner are the responsible for business's debts, liabilities, crises, and all the losses. It was not the legal entity.

As a result, the significance of the sole proprietorship are the aforementioned.

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TRUE/FALSE. it is essential an individual finds a balance amongst all eight dimensions to achieve optimum wellness.

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True To reach optimum wellness, a person must find a balance across all eight dimensions.

Why are the eight facets of wellness significant?

Eight interdependent components make up wellness: financial, emotional, physical, occupational, social, spiritual, and intellectual. One's health, wellbeing, and quality of life will suffer if one of these dimensions is neglected over time.

Is it accurate to say that the six dimensions of health must be balanced for overall health to exist?

People who are in a state of wellness have long-term equilibrium in all six areas of health. Everyone experiences ups and downs in different areas of their lives, but a person who is well-adjusted constantly works to improve their six dimensions of health.

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Develop another plan for the Mexican roofing manufacturer described in Examples 1 to 4 (pages 538 – 542 ) and Solved
Problem 13.1 (page 554 ).
a) For this plan, plan 5, the firm wants to maintain a constant
workforce of six, using subcontracting to meet remaining
demand. Is this plan preferable?
b) The same roofing manufacturer in Examples 1 to 4 and Solved
Problem 13.1 has yet a sixth plan. A constant workforce of seven
is selected, with the remainder of demand filled by subcontracting.
c) Is this better than plans 1–5?

Answers

ANSWER-

a) Whether this plan is preferable depends on several factors, including the cost of subcontracting, the quality of work performed by subcontractors, and the ability to manage and oversee the subcontractors effectively. If the cost of subcontracting is low, the quality of work is high, and the company is able to effectively manage the subcontractors, then maintaining a constant workforce of six and using subcontracting to meet remaining demand may be preferable. However, if the cost of subcontracting is high, the quality of work is low, or the company is unable to effectively manage the subcontractors, then this plan may not be preferable.

b) Whether this plan is better than plans 1-5 also depends on several factors. The company would need to consider the cost of hiring and maintaining a constant workforce of seven compared to the cost of subcontracting and the quality of work performed. The company would also need to consider the benefits of having a larger internal workforce, such as increased control over production and quality, versus the potential benefits of subcontracting, such as lower costs and increased flexibility. Ultimately, the decision will depend on a careful evaluation of the costs and benefits of each option and a consideration of the specific needs and goals of the company.

In conclusion, whether either plan 5 or 6 is preferable will depend on a careful evaluation of the costs and benefits of each option and a consideration of the specific needs and goals of the company. It is important for the company to consider all factors and make a well-informed decision that aligns with its goals and priorities.

Fashion Design
Besides brand, what other information is listed on a garment label?
Select all that apply.

- care instructions
- garment price
- technology used
- fiber percentage

Answers

In fashion Design, besides brand, the information is listed on a garment label is garment price. The correct option is (B).

What do you mean by garment label?

A label for a garment is more than just a scrap of material. It converses with the client. It is a feature that makes the client notice the outfit. It explains what the product is in its truest form. Today's labels genuinely aid in the sale of a garment.

It also shows the price which can make the consumer's mind set whether that thing affordable or not.

It directs us regarding care and the components of the clothing. It facilitates brand name and logo recognition.

Therefore, in fashion Design, besides brand, the information is listed on a garment label is garment price.

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Corporate Social Responsibility strategies encourage:

a competitive pay structure.

an increase in the profit margin of a corporation.

actions which capitalize on the latest social trends to boost sales.

a positive impact on the environment and stakeholders.

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a positive impact on the environment and stakeholders

For tax year 2020 all of the following are true regarding the Claim of Right deduction under California tax law except:
a. Deductions of $3,000 or less are not allowed because they are subject to the 2% Federal adjustedgross income (AGI) limit
b. If the amount repaid was not taxed by California, then no credit is allowed
c. If the taxpayer is eligible to take the credit for California, he or she adds the credit amount on line 76, the total payment line, of the Form 540
d. If the taxpayer claimed a credit for the repayment on his or her Federal tax return and is deducting the repayment for California, enter the allowable deduction as a positive amount on Schedule CA (540), line 21

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Deductions of $3,000 or less are not allowed because they are subject to the 2% Federal adjusted gross income (AGI) limit is False regarding the Claim of Right deduction under California tax law. Thus, options b, c, and d are correct.

The following are true regarding the Claim of the Right deduction under California tax law:

No credit is granted if California did not tax the amount that was refunded. If the taxpayer qualifies for the California tax credit, they must add the credit amount to line 76 of Form 540, which is the total payment line.

The person must report the allowable deduction as a positive amount on Schedule CA if they are deducting the repayment for California and claiming credit for the repayment on their federal tax return. California does not tax benefits from the US Social Security system or comparable Tier 1 railroad retirement benefits.

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Which of the following are primarily responsible for the information provided in a company's financial statements? A.The internal and external auditors. B.The Securities & Exchange Commission (SEC) and the external auditors. C.The chief executive officer (CEO) and the chief financial officer (CFO). D.The external auditors and the board of directors. C. The CEO and CFO are primarily responsible for the content of a company's financial statements.

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C. The CEO and CFO are primarily responsible for the content of a company's financial statements(C).

The CEO and CFO, as the top executives of the company, are ultimately responsible for the accuracy and reliability of the financial information presented in the company's financial statements.

They are responsible for ensuring that the financial statements accurately reflect the company's financial position and performance, as well as for ensuring compliance with accounting standards and legal requirements.

However, it is important to note that the CEO and CFO are not solely responsible for the preparation of the financial statements. They are assisted by the finance and accounting departments and may also work with internal and external auditors to verify the accuracy of the financial information.

The external auditors, who are independent of the company, are responsible for conducting a thorough review of the financial statements and issuing an opinion on the company's financial position.

In conclusion, while the CEO and CFO have primary responsibility for the content of a company's financial statements, they work with other stakeholders, including internal and external auditors, to ensure the accuracy and reliability of the information provided.

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Your investment club has only two stocks in its portfolio. $35,000 is invested in a stock with a beta of 0.9 and $50,000 is invested in a stock with a beta of 1.5. What is the portfolios beta?

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The volatility of a stock in proportion to the economy as a whole is measured by beta. It is frequently used to assess the danger of a stock.

A beta of 1 means that the stock is as volatile as the market, a beta less than 1 means that the stock is less volatile than the market, and a beta greater than 1 means that the stock is more volatile than the market. A portfolio's beta represents the combined risk of all the stocks in the portfolio. To calculate a portfolio's beta, you need to weight the beta of each stock by the fraction of the total portfolio invested in that stock, and then sum these weighted betas. For example, if you have a portfolio with two stocks, Stock A and Stock B, and you have invested $35,000 in Stock A and $50,000 in Stock B, the fraction of the portfolio invested in each stock would be:

Stock A: $35,000 / ($35,000 + $50,000) = 0.4117

Stock B: $50,000 / ($35,000 + $50,000) = 0.5883

These fractions represent the weight of each stock in the portfolio. We can now use these weights to calculate the weighted beta of each stock:

Stock A: 0.4117 * Beta(Stock A) = 0.4117 * 0.9 = 0.3703

Stock B: 0.5883 * Beta(Stock B) = 0.5883 * 1.5 = 0.8825

Finally, the portfolio beta is the sum of the weighted betas:

0.3703 + 0.8825 = 1.2528

So, in this case, the beta of the portfolio is approximately 1.25, meaning that the portfolio is slightly more volatile than the market as a whole. It's important to note that beta is just one of many factors to consider when evaluating the risk of a portfolio. Other factors, such as the correlation between the stocks in the portfolio and the diversification of the portfolio, can also play a role in determining the overall risk of a portfolio.

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The consumer decision process has seven major stages. Which of the following is not one of these stages?a. Need recognitionb. Purchasec. Information processingd. Divestmente. All the above are stages in the consumer decision process.

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The consumer decision process has seven major stages.  Divestmente is not one of these stages .

What is the buying procedure for consumers?

Five fundamental steps make up the decision-making process for consumers. Consumers go through this procedure to assess whether to make a purchase.

                               The five processes include problem identification, information search, examination of alternative options, purchase choice, and post-purchase analysis.

What are customer decisions, and why are they significant?

Understanding the consumer decision-making process helps you foresee the demands of the consumer, which in turn enables you to develop marketing or sales tactics based on those needs.

                         A person describes their need as being thirsty when they purchase water or another cold beverage. Information gathering and weighing options are lacking in this case, though.

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a company was replacing the single-use plastic bags with cloth bags. however, the selected fabric is on backorder and will not be in stock for three weeks. the vendor suggested using another fabric that is in stock, but it is less sturdy than the original choice.

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Option D, The timeline of the project will change if the company waits for the original fabric.

If the company decides to wait for the original fabric to become available, this will delay the completion of the project as the fabric will not be in stock for three weeks. As a result, the timeline of the project will change and it will take longer to replace the single-use plastic bags with the cloth bags made from the original fabric. The delay in completion of the project can have a ripple effect on other aspects of the business, such as marketing, sales, and customer timeline satisfaction. Thus, it's important for the company to weigh the benefits and drawbacks of using a different fabric or waiting for the original fabric before making a decision.

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The Complete Question is:

A company was replacing the single-use plastic bags with cloth bags. However, the selected fabric is on backorder and will not be in stock for three weeks. The vendor suggested using another fabric that is in stock, but it is less sturdy than the original choice.

If the company decides to wait until the original fabric is available, this will change the __________ of the project.

a.) scope

b.) cost

c.) quality

d.) timeline

what do we call the application of dds for executive managers

Answers

A decision support system (DSS) is a computer software that an organisation or corporation uses to support decisions, judgements, and courses of action.

What do we call the application of dds for executive managers ?

A DSS sorts and examines enormous amounts of data, amassing thorough knowledge that may be applied to problem-solving and decision-making.

A DSS typically uses data on target or predicted revenue, sales numbers or historical sales data from various time periods, and other inventory or operations-related information.

Data is gathered, examined, and then synthesised by a decision support system to create detailed information reports. A DSS varies from a standard operations application, which only serves to collect data, in that it is an informational application.

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A directed search of published works (including periodicals and books) that discusses theory and presents empirical results relevant to the topic at hand is called a literature review. True

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The statement a directed search of published works that discusses theory and presents empirical results relevant to the topic at hand is called a literature review is true. A literature review is a focused search of published works (including periodicals and books).

That discusses theory and presents empirical findings pertinent to the subject at hand. A formal research technique that yields directed results is pilot studies. a research method in which a sample is in some way interviewed or in which respondents' behaviour is observed and described. Any procedure that generates conclusions based on data collected from a subset of the population is considered sampling.

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shown here are astronomical objects located at different distances from earth. rank the objects based on their distances from earth, from farthest to nearest.

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The objects based on their distances from earth, star on far side of Andromeda Galaxy being the farthest and The Sun being the nearest.

The ranking goes this way:

star on far side of Andromeda Galaxy

star on far side of Milky Way Galaxy

star on near side of Andromeda Galaxy

star near center of Milky Way Galaxy

Alpha Centauri

Orion Nebula

Pluto

The Sun

It is important to note that this ranking assumes that all objects are located at a fixed distance from Earth. In reality, the distances between Earth and astronomical objects are constantly changing due to the motions of both Earth and the objects themselves. Additionally, some of the listed objects, such as the Orion Nebula and the Alpha Centauri star system, are actually composed of multiple stars and may span a significant portion of the sky.

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TRUE/FALSE. a conflict of interest occurs when an activity may benefit the individual to the detriment of his or her employer.

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When a person's interests are at odds with those of his or her employer, a conflict of interest arises. This statement is true.

A conflict of interest is a situation in which an individual has competing loyalties or interests that may compromise their judgment or loyalty to their employer. When an individual's personal interests and obligations clash with those of their employer, it creates a conflict of interest.

For example, if an employee has a financial interest in a company that they are negotiating a contract with on behalf of their employer, it creates a conflict of interest. In this scenario, the employee's personal interest in the success of the company they have a financial stake in may influence their decision-making, potentially benefiting themselves at the expense of their employer.

Therefore, it is crucial for individuals to avoid conflicts of interest and disclose any potential conflicts to their employer in order to maintain the integrity and credibility of their work and relationships.

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on the statement of cash flows, _____ is related to an operating activity. multiple choice a. increase in net fixed assets b. decrease in accounts payable c. purchase of equipment d. dividends paid e. repayment of long-term debt

Answers

(B) Decrease in accounts payable is associated with an operating activity on the statement of cash flows.

The portion of a company's cash flow statement called cash flow from operations shows how much money the business generates over time by carrying out its daily operations.

By monitoring an organization's cash flow, a CFS is a crucial tool for managing finances. One of the three main reports that determine a company's performance is this one. A cash flow statement, also known as a statement of cash flows, is a financial document that breaks down the analysis into operating, investing, and financing operations. It shows how adjustments to income and balance sheet accounts impact cash and cash equivalents.

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which is not a physical property? select the correct answer below: density color melting point flammability

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Flammability is not a physical property.

Physical properties are characteristics of a material that can be measured or observed without changing the chemical composition of the material. Examples of physical properties include density, melting point, and Color . Color, on the other hand, is a visual characteristic that can be influenced by a variety of factors, including the lighting conditions and the observer's perception, and is not directly related to the intrinsic properties of the material.

A quality of matter known as a physical property is one that is unrelated to a change in its chemical makeup. Physical characteristics include things like density, color, hardness, melting and boiling points, and electrical conductivity, to name a few.

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The primary reason a physical inventory is taken is to: Ensure the periodic inventory record is valued correctly. Ensure the perpetual inventory record is being stored in a secure manner. Both ensure the periodic inventory record is being stored securely and that it is valued correctly. Adjust the perpetual inventory record for unrecorded shrinkage losses.

Answers

The primary reason a physical inventory is taken is to: adjust the perpetual inventory record for unrecorded shrinkage losses.

A physical inventory is a count of the items in stock. This can include counting, weighing, and measuring objects, as well as requesting counts of inventory items entrusted to third parties.

If a company keeps inventory records for every item in stock, the physical counts are confirmed to the recorded balances, and the recorded quantities are adjusted to reflect the physical counts.

A physical inventory can guarantee an accurate inventory count. Each piece of inventory is physically counted by staff. This physical inspection of products should validate the information contained in the inventory management system report. Any disparity should alert you to the existence of another problem and potential losses.

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Suppose that when converting to the same currency values, the nominal GDP per capita in the fictional country of Islandia is 25 percent higher than the nominal GDP per capita in the fictional country of Mountainia. However, the purchasing power for the same amount of Islandia currency is about 40 percent lower in Islandia than in Mountainia. If we use Islandia as the base country for comparison, the PPP-adjusted GDP per capita in Mountainia is ________ its nominal GDP. Which country has the higher average standard-of-living? a. Mountaina
b. both are equal
c. it is not possible to detemine
d. Islandia

Answers

c. It is not possible to determine.

It is not possible to determine which country has a higher average standard of living based on the information provided.

The nominal GDP per capita in Islandia is 25 percent higher than in Mountainia, but the purchasing power for the same amount of currency is 40 percent lower in Islandia, which would mean that the same amount of goods and services cost more in Islandia.

The PPP-adjusted GDP per capita in Mountainia compared to its nominal GDP is also not specified.

To determine which country has a higher average standard of living, it would be necessary to have more information about factors such as the cost of living, quality and availability of goods and services, and other relevant economic indicators.

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