Answer: 3) Avoidance
Explanation:
The decision made by Zoogle Inc. not to develop the self-driving car as a result of potential lawsuits is a risk avoidance decision. As the term implies, Zoogle is avoiding the risk of being hit by lawsuits by removing the principal reason that they may be sued which is the car.
In so doing they do not have to worry about any future lawsuits in that regard because the reason for the lawsuits would never have been initiated in the first place.
Speedy gas
High Price Low price
Swifty Gas High Price $100, $100 $25,$150
Low price $150, $25 $50,$50
(Table: Two Rival Gas Stations) Use Table: Two Rival Gas Stations. The table shows a payoff matrix for two gas stations in a small town. Each firm can set either a high price or a low price, and customers view these two firms as nearly perfect substitutes. Profits in each cell of the payoff matrix are given as (Swifty's profit, Speedy's profit). Which statement describes a dominant strategy?
a. Swifty will always set a low price,no matter Speedy's choice.
b. Swifty will always set a high price,no matter Speedy's choice.
c. Swifty will set a low price when Speedy sets a high price,but Swifty will set a high price when Speedy sets a low price.
d. Swifty will set a high price when Speedy sets a high price,but Swifty will set a low price when Speedy sets a low price.
Answer:
a. Swifty will always set a low price,no matter Speedy's choice.
Explanation:
Swifty's dominant strategy should result in maximizing its profits regardless of what Speedy does. This is achieved by setting a low price, since that strategy could yield $150 + $50 = $200
If Swifty sets a high price it could earn = $100 + $25 = $125
Since $200 is higher than $125, then that would be Swifty's dominant strategy.
What percentage of medical insurance payments can self-employed taxpayers deduct as a deduction for adjusted gross income on their 2019 tax returns?
Answer:
"100%" would be the right answer. A further explanation is given below.
Explanation:
Self-employed employees become entitled to withhold the remainder of premiums for individuals, eligible families, and certain dependents, namely the 100 percent including its medical benefit payment (which includes dental and even deep-term healthcare insurance). Because it is the law unless net profits exceed the compensation premium, which is likely to subtract $100.Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. This item would be included on the bank reconciliation as a(n):_______
a. addition to the balance per bank statement
b. deduction from the balance per company's records
c. deduction from the balance per bank statement
d. addition to the balance per company's records
Answer:
d. addition to the balance per company's records
Explanation:
Since in the question it is mentioned that the receipts generated from cash sales is $3,200 is not reported correctly in the journal of cash receipts as it is wrongly reported i.e. $2,300
So this type of error would be involved in the balance according to the records of the company
hence, the correct option is d
The same is to be considered
Select the correct text in the passage.
Which sentences indicate that Thomas is dealing with a prototype product?
Thomas got the idea of inventing a low-voltage air conditioner. After several months of trial and error, he developed an AC model blueprint. He finally began his work on its production. With every test, Thomas went on making changes to his new product. Once convinced, he sold the rights of his invention to ABEC Corp for a handsome fee.
Thomas got the idea of inventing a low-voltage air conditioner. After several months of trial and error, he developed an AC model blueprint. He finally began his work on its production. With every test, Thomas went on making changes to his new product. Once convinced, he sold the rights of his invention to ABEC Corp for a handsome fee.
Answer: With every test, Thomas went on making changes to his new product.
Explanation: key word test he is testing and that is what you do with a prototype
A company purchased factory equipment on April 1, 2014, for $96,000. It is estimated that the equipment will have a $12,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2014, is A) $9,600.B) $8,400. C) $6,300.D) $7,200.
Answer:
Depreciation for 9 month = $6,300
Explanation:
Given:
Cost of equipment = $96,000
Salvage value = $12,000
Use full life = 10 year
Total time in 1st year = 9 month
Find:
Depreciation for 9 month
Computation:
Depreciation = [(96,000-12,000)/10)]
Depreciation = 8,400
Depreciation for 9 month = 8,400 (9/12)
Depreciation for 9 month = $6,300
g Distinguish between the total U.S. debt and the debt held by the public. Why is the debt as a percentage of GDP more relevant than the total debt
Answer:
The total US debt is all the money that the US federal government owes. While the debt held by the public is only the portion of the US debt held by private entities (e.g. private investors or foreign governments).
In the past (around 20 years ago), government debt owned by federal agencies was much higher, over 40%, with social security being the largest debt holder. This is called intragovernmental debt. That means that around 60% of the debt was held by the public. But in recent years this has changed. Currently. intragovernmental national debt has fallen to 23%. This means that the debt hold by the public is more or less 77%.
Even as intragovernmental debt has decreased, the total size of the national debt is not as important as the percentage of the national debt compared to the GDP. Currently, national debt represents 98.3% of the GDP which is the highest level since WWII. This is really something to worry about because the government spends a huge portion of its budget paying interests on existing national debt and the higher it is, the less money available for other expenses. As the national debt increases in relation to the GDP, it is more difficult for the country to pay it back. The said thing is that politicians do not pay for it, taxpayers pay it.
Swifty Corporation sells one product and uses a perpetual inventory system. The beginning inventory consisted of 76 units that cost $22 per unit. During the current month, the company purchased 478 units at $19 each. Sales during the month totaled 360 units for $42 each. What is the number of units in the ending inventory
Answer:
Ending inventory in units= 194
Explanation:
Giving the following information:
The beginning inventory consisted of 76 units.
During the current month, the company purchased 478 units.
Sales during the month totaled 360 units.
To calculate the number of units in ending inventory, we need to use the following formula:
Ending inventory in units= total inventory - sales in units
Ending inventory in units= 554 - 360
Ending inventory in units= 194
You have always viewed images, but you have never been in a position of creatingthemâlet alone creating them for a variety of uses and circumstances. You decide to giveyourself a crash course in graphics file formats so you know exactly which format is ideal foreach situation in your new graphics design internship, and so you know the disadvantages ofeach format.An easy project is a quick one: a collection of basic shapes and images with few colors. What does your manager tell you is the best format for these?a. JPGb. TIF c. PN Gd. BM P
Answer: a) JPEG
Explanation:
Joint photographic experts group is a widely known method for compression of digital images, especially those produced by a digital photography. They can be adjusted in their degree of compression between their size, image and quality.
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1.6.2 Test (CST): Goals and Career Planning
Question 3 of 25
If Lucinda's top priority is being able to express her creative side, her most
likely long-term goal is to become a(n)
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A. lawyer
B. interior designer
C. teacher
0
D. police officer
Disinflation is defined as a:__________
a. negative rate of inflation.
b. constant rate of inflation.
c. zero rate of inflation.
d. reduction in the rate of inflation.
Answer:
Option d (reduction in the rate of inflation) is the appropriate option.
Explanation:
Disinflation seems to be a decline throughout the pace of price growth that happens traditionally throughout a recession because this availability of commodities exceeds the threshold value for themselves. Although unlike deflation, whenever consumer prices inevitably decline, disinflation income levels don't collapse, perhaps the inflation rate appears zero.Some other choices being made aren't connected to the circumstance offered. So the answer above is the right one.
Cash equivalents meet all of the following criteria except:
a. More liquid than cash.
b. Readily convertible to a known cash amount.
c. Have a market value that is not sensitive to interest rate changes.
d. Short-term U.S. treasury bills.
e. Short-term investments purchased within 3 months of their maturity dates.
Answer:
a. More liquid than cash.
Explanation:
Cash equivalents can be defined as the total amount of cash at hand reported on a company's balance sheet and short-term financial securities having its maturity period typically around 90 days or even less.
Generally, it comprises of certificate of deposits, securities, bank accounts etc.
Hence, cash equivalents meet all of the following criteria:
1. Readily convertible to a known cash amount.
2. Have a market value that is not sensitive to interest rate changes.
3. Short-term U.S. treasury bills.
4. Short-term investments purchased within 3 months of their maturity dates.
The financial segment of a business plan will cover a specific period of time. The length of this projected period may be:______
a. for 1 year, which may be too short to show true outcomes.
b. for 10 years, which may be too long to meaningfully forecast.
c. over a range of 1 year to as many as 10 years.
d. All of these are correct.
Answer:
d. All of these are correct.
Explanation:
Financial analysis can be defined as the process of analyzing the stability, profitability, accuracy and viability of a business entity through its financial statements.
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
The objective of financial reporting include all of the following to provide information that:
1. Is useful to those making investment decisions. This information would help creditors to determine whether they should lend to a client or not; or assist investors in deciding whether they should invest in a business or not.
2. Is useful to those lending out money to business entities. When investors and creditors are well furnished with financial information about an organization, they would be able to assess the amounts of cash, timing, and uncertainty of cash flows from dividends or interest.
3. Is useful to creditors in making decisions about providing resources to business entities.
In conclusion, the financial segment of a business plan will cover a specific period of time. The length of this projected period may be;
a. for 1 year, which may be too short to show true outcomes.
b. for 10 years, which may be too long to meaningfully forecast.
c. over a range of 1 year to as many as 10 years.
Top Flight Stock currently sells for $53. A one-year call option with strike price of $58 sells for $10, and the risk-free interest rate is 5.5%. What is the price of a one-year put with strike price of $58
Answer:
$11.97
Explanation:
Calculation for the price of a one-year put
Using this formula
Price=Call option-Stock+Strike price(1+Risk-free interest rate)
Let plug in the formula
Price = $10 - $53 + $58/(1+.055)
Price = $10 - $53 + $58/(1.055)
Price= $11.97
Therefore the price of a one-year put with strike price of $58 will be $11.97
The put price for one year for a stock would be $14.21. The calculations are done on the basis of call option prices and risk free rate of return given in the query.
Put price generally refers to the asking price to sell the stock at a future price either up or down with respect to current situations of the stock market.
The formula for calculating the Put price for one year will be calculated is as given below.[tex]\rm {Put\; price}= \dfrac{Call\; option- current\; stock\ price + current\; strike\; price}{(1+ risk\; free\; interest\; rate)}\\[/tex]
Putting the values available in the formula above we get
[tex]\rm {Put\ price} = \dfrac{10-53+58}{1+0,055}[/tex]
Value obtained will be[tex]\rm Put\ price = 14.21[/tex]
Hence, the put price for a stock whose strike price is $58 will be $14.21 for a period of 1 year.
To Know more about option pricing, click on the link below.
https://brainly.com/question/15926283
The expected return of a portfolio is computed as ___________ and the standard deviation of a portfolio is ___________.
Answer:
The expected return of a portfolio is computed as PROBABILITY DISTRIBUTION OF THE PORTFOLIO'S POSSIBLE RETURNS and the standard deviation of a portfolio is BASED ON THE STANDARD DEVIATION OF EACH WEIGHTED ASSET'S RETURN.
Explanation:
The expected return of a portfolio is basically the sum of the expected returns of each individual asset, e.g. a portfolio is made up of two assets with equal weights.
Asset A's expected returns = 15%, with a probability of 0.4, 10%, with a probability of 0.2, and 1% with a probability of 0.4. This assets expected return = (15% x 0.4) + (10% x 0.2) + (1% x 0.4) = 8.4%
Asset B's expected return = 10%, with a probability of 0.3, 8%, with a probability of 0.4, and 6% with a probability of 0.3. This assets expected return = (10% x 0.3) + (8% x 0.4) + (6% x 0.3) = 8%
Portfolio's expected return = (8.4% x 1/2) + (8% x 1/2) = 8.2%
standard deviation = √variance
variance = [(weight stock A)² · (σ of stock A)²] + [(weight stock B)² · (σ of stock B)²] + (2 · weight of stock A · weight of stock B · covariance between stocks A and B)
Purple Turtle Group is analyzing a project with the following cash flows: Year Cash Flow 0 -$795,000 1 $375,000 2 $-500,000 3 $600,000 4 $400,000 This project has cash flows. Purple Turtle Group’s WACC is 5.50%. Calculate this project’s modified internal rate of return (MIRR).
Answer:
MIRR = 4.32%
Explanation:
year cash flow
0 -$795,000
1 $375,000
2 -$500,000
3 $600,000
4 $400,000
Since there are 2 cash outflows, the IRR calculation would result in two different answers (1 for every cash outflow), that is why we use the MIRR function in excel.
=MIRR (cash flows, finance rate, reinvestment rate)
=MIRR (-795000 to 400000, 5.5%, 5.5%)
Since we are only given one interest rate, we will use it as our finance rate and our reinvestment rate.
MIRR = 4.32%
A company issued 5-year, 6% bonds with a par value of $97,000. The company received $94,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:______.
Answer:Interest expense=$2,704.70
Explanation:
Cash Interest paid for the first semiannual interest period = Principal x Rate x Time (Period)
$97,000 × 0.06 × 1/2 year =$2,910
Straight line method to calculate the premium amortized=Bond Issue Price – Face Value)/ Bond term
= ($97,000 − $94,947) / 5 /2 = $2,053/10 =$205.30
Interest expense=Cash Interest paid - premium amortized
$2,910 − $205.30 = $2,704.70
A group of management consultants is studying OGSI Manufacturing and its team management strategy. Once Pete Jazoni's work group was selected for special attention by the management consultants, the work group's production output nearly doubled. Jazoni's group's reaction to the special attention is an example of
Answer:
the Hawthorne effect
Explanation:
The Hawthorne Effect is the theory that states that people are more likely to modify their behavior because they are under study or evaluation and not as a result of response to stimuli.
Therefore, according to the given question, Pete Jazoni's output nearly doubled once it was selected for special attention by experts. This is an example of the Hawthorne effect.
Suppose you have $850 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures?
Answer:
FV= $772
Explanation:
Giving the following information:
Initial investment (PV)= $850
Interest rate (i)= 3.5% = 0.035
Number of periods (n)= 5 years
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1+i)^n
FV= 650*(1.035^5)
FV= $772
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $1,100 per unit, of which $750 is product cost and $350 is selling and administrative expenses. In addition, the total cost of $1,100 is made up of $630 variable cost and $470 fixed cost. The desired profit is $143 per unit.
Required:
Determine the mark up percentage on total cost.
Answer:
The mark up percentage on total cost is 13%.
Explanation:
Mark up percentage on total cost refers to the profit as a percentage of the total cost.
Therefore, the mark up percentage on total cost can be calculated using the following formula:
Mark up percentage on total cost = (Desired profit / Total cost) * 100 ......... (1)
Where;
Desired profit = $143
Total cost = $1,100
Substituting the values into equation (1), we have:
Mark up percentage on total cost = ($143 / $1,100) * 100 = 0.13 * 100 = 13%
Therefore, the mark up percentage on total cost is 13%.
As the marginal propensity to consume (MPC) increases, the spending multiplier:______.a. remains the same. b. increases. c. decreases. If the marginal propensity to consume is 0.60, then, assuming there are no taxes or imports, what is the multiplier?
Answer:
b. increases ; 2.5
Explanation:
MPC stands for Marginal Propensity to Consume. In economics, the MPC may be defined as the metric that quantifies the induced consumption. It is the concept that determines that the increase in the spending of personal consumer occurs with increase in the disposable income.
It is estimated that as the MPC increases, the spending multiplier also increases. MCP is the ratio of consumption function to the disposal income change. When the MCp is 0.6, then the multiplier becomes 2.5 if there is no imports and taxes involved.
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is:____________
A) the order quantity divided by the number of inventory cycles per year.
B) the annual demand divided by the number of inventory cycles per year.
C) half of the order quantity.
D) half of the annual usage.
Answer:
C) half of the order quantity
Explanation:
The constant demand assumption in the economic order quantity (EOQ) model permits that there should be a minimum number of goods any company should purchase in order to help minimize different types of costs accrued through this system.
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is half of the order quantity.
This professional analyzes statistics and uses them to calculate risks and premiums
Answer:
Explanation:
An actuary compiles and analyzes statistics and uses them to calculate insurance risks and premiums. Mehmud and associates created the tool, called “Wakely Risk Insight,” to aid the consulting firm’s clients.
On January 1, 2021, Lizzy's Lemonade issues 6%, 10-year bonds with a face amount of $98,000 for $91,035, priced to yield 7%. Interest is paid semiannually. What amount of interest expense will be recorded on June 30, 2021, the first interest payment date
Answer: $3186
Explanation:
The interest expense that will be recorded on June 30, 2021, the first interest payment date will be calculated as:
= Issue price × Yield price × 1/2
= $91035 × 7% × 1/2
= $91035 × 7/100 × 1/2
= $91035 × 0.07 × 0.5
= $3186
Which cost flow assumption generally results in the highest reported amount for ending inventory when inventory costs are rising
Answer:
FIFO method (first in, first out)
Explanation:
When inventory costs are increasing, the FIFO method (first in, first out) results in the lowest cost of goods sold, which in turn result in the highest ending inventory value. On the other hand, the LIFO method (last in, first out) results in the highest cost of goods sold and the lowest ending inventory value. Goods purchased last will have a higher cost since the price of the merchandise increased during the year.
Grace wants to sell her motorcycle, and Damarius is looking for a used motorcycle to buy. Damarius takes it for a test drive. Grace knows that the clutch is going out on her motorcycle, the fuel filter is leaking, and the tires will need to be replaced soon. If she does not disclose this information to Damarius and he cannot tell from his test drive, this is an example of:
a. an external cost.
b. asymmetric information.
c. an external benefit.
d. a public good.
Answer:
The correct answer is the option B: Asymmetric information.
Explanation:
To begin with, in the microeconomics theory the concept known as "Asymmetric information" refers to a particular situation that can happens when two economic agents are going to have a transaction between them and one of the parties, most commonly the one that sells, is aware or has in his power information that can harm the other party or that puts the first one in a situation of more power due to the fact that the other one does not possess that information. So in that situation the first one who has the information is taking an advantage over the other and that makes it totally unethical because is acting in bad faith.
When Olamede, the Marketing department chair, passes information to his faculty and staff about new policies through memos and emails, he is acting as a:_________
A) disseminator. B) monitor. C) leader. D) liaison. E) resource allocator.
Answer:
A. Disseminator
Explanation:
A disseminator is referred to as an individual which helps to pass information from a primary source to other people. Such individual is usually tasked with ‘disseminating’ informations through various means such as orally or in written form.
Olamede passes information to his faculty and staff about new policies through memos and emails which makes him a disseminator.
Mendelson Laboratories purchased engineering equipment at a cost of $420,000. Shipping costs totaled $15,000. Installation cost was $8,000. An additional electrical line had to be run to the equipment at a cost of $3,000. Labor and testing costs totaled $6,000. Materials used up in testing cost $3,000. The capitalized cost is:
Answer:
The capitalized cost is $455,000
Explanation:
According to the Standard (IAS 16) costs of an item of Property, Plant and equipment include the Purchase Costs and any other costs directly attributable to placing the asset in the location and condition for use as intended by management.
Calculation of Costs of Equipment :
Purchase Costs $420,000
Shipping costs $15,000
Installation cost $8,000
Electrical line $3,000
Labor and testing costs $6,000
Material in testing $3,000
Total cost $455,000
A Japanese carmaker plans to expand its production in the United States. The company borrowed $170 million for this expansion at an interest rate of 8% per year. The loan will be repaid in equal payments at the end of each year over a 15-year period. What is the amount of the annual payment?
Answer:
$35,951,249
Explanation:
Future value = PV*(1+r)^n
Future value = 170,000,000 * (1+0.08)^15
Future value = 170,000,000 * (1.08)^15
Future value = 170,000,000 * 3.172
Future value = $539,268,749
The total amount to be paid in 15 years is $539,268,749
Annual payment = Future value/n
Annual payment = $539,268,749/15
Annual payment = $35,951,249
A stock has a beta of 1.08, the expected return on the market is 10.2 percent, and the risk-free rate is 4.85 percent.
Required: What must the expected return on this stock be? (Do not include the percent sign (%).Round your answer to 2 decimal places (e.g., 32.16).)
Expected return ____________%?
Answer:
im sorry
Explanation:
Barry’s expectation that employees will complete his requests immediately is typical of —— leaders.
Answer: Commanding leaders
Explanation: The commanding leader is a type of leadership where the leader is someone who is very controlling. These leaders are tough and direct people, they are those who take charge of situations regardless of what others may think.
In the commanding leadership style, the leader is someone very focused and does whatever it takes to get the desired results. They are often intimidating and expect their employees to always do what they ask.