"Capital structure is irrelevant and Financial managers should only focus on investments." Discuss. [100\%]

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Answer 1

The argument that capital structure is irrelevant and financial managers should only focus on investments is a controversial viewpoint. While investments play a crucial role in generating returns, the capital structure also holds significance in determining the cost of capital.

Therefore, a balanced approach considering both investments and capital structure is necessary for effective financial management.

Capital structure refers to the mix of debt and equity financing a company uses to fund its operations. The argument that capital structure is irrelevant implies that the source of funding has no impact on the company's value or performance.

However, this viewpoint disregards important considerations. The capital structure decisions of a company have a direct influence on the cost of capital. Different sources of financing, such as debt or equity, have varying costs associated with them, which can affect the overall profitability of investments.

Furthermore, capital structure decisions affect the financial risk of a company. Higher levels of debt increase the financial leverage, which can amplify both returns and risks. Financial managers need to evaluate the appropriate level of debt based on factors such as interest rates, cash flow stability, and industry norms.

Neglecting capital structure can lead to increased financial risk and vulnerability to economic downturns or changes in interest rates.

Moreover, the capital structure also impacts the company's ability to raise funds in the future. Financial managers need to consider the impact of capital structure on the company's creditworthiness and ability to attract investors.

An excessively leveraged company may face challenges in accessing capital markets or may have to pay higher interest rates on debt, limiting their investment opportunities.

In conclusion, while investments are crucial for a company's growth and profitability, dismissing the importance of capital structure is shortsighted. Financial managers need to adopt a comprehensive approach that considers both investments and capital structure decisions.

By analyzing the trade-offs between risk, return, and cost of capital, they can make informed decisions that maximize shareholder value and ensure the long-term financial health of the company.

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Related Questions

Samuel is taking off from work for four hours this afternoon and going to a baseball game. The ticket to the game costs $20, and it costs $5 to park at the stadium. Samuel earns $10 an hour at his job. Samuel's opportunity cost of going to the ball game is:

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Opportunity cost refers to the value of the benefits of the next-best alternative forgone. Samuel's opportunity cost of going to the ball game can be calculated as follows.

Opportunity cost = benefits of the next-best alternative forgoneLet's suppose that Samuel would have worked for four hours in the afternoon if he had not gone to the ball game. Then, his earnings during those four hours would have been:$10/hour × 4 hours = $40Therefore, the benefits of the next-best alternative forgone is $40.

This represents the value of what Samuel would have earned if he had not gone to the ball game.Hence, Samuel's opportunity cost of going to the ball game is $40.

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At a price of $10.89 per pound, the supply of beef ribeye is 358 thousand pounds and the demand is 402 thousand pounds. At a price of $12.74, the supply of beef ribeye is 412 thousand pounds and the demand is 348 thousand pounds. (a) Find a price-supply equation of the form p=mx+b, where x is the quantity in thousands of pounds. Since one sido of the equation has aiready been provided, you may provide your answer below is a constant times x plus a constant, or any algebraically equivalent expression. p= (b) Find a price-dersand equation of the form n=mu+b, where x is the quantity in thousands of pounds. p= (c) What is the equalsium quantity? thousand pounds (6) What is the equllbnum orice? do

Answers

(a) At a price of $10.89 per pound, the supply of beef ribeye is 358 thousand pounds,

and the demand is 402 thousand pounds.

At a price of $12.74, the supply of beef ribeye is 412 thousand pounds, and the demand is 348 thousand pounds.

The slope of the supply equation ism = (12.74-10.89)/(412-358) = 1.925/54 = 0.03565(approx).

Therefore, the equation is of the form p = 0.03565x + b.

Since we know that at x = 358, p = 10.89,

we can use this point to solve for b.

Therefore:10.89 = 0.03565 (358) + b b ≈ -1.47

Therefore, the supply equation isp = 0.03565x - 1.47

(b) The slope of the demand equation is: mu = (10.89-12.74)/(402-348) = -1.85/54 = -0.03425 (approx).

Therefore, the equation is of the form n = -0.03425x + b.

Since we know that at x = 402, p = 10.89, we can use this point to solve for b.

Therefore:10.89 = -0.03425 (402) + b b ≈ 24.12

Therefore, the demand equation isn = -0.03425x + 24.12

(c) The equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.

We can set the demand equation equal to the supply equation and solve for x:0.03565x - 1.47 = -0.03425x + 24.12 0.0699x = 25.59 x ≈ 367.24 thousand pounds

Therefore, the equilibrium quantity is about 367.24 thousand pounds.

(d) The equilibrium price is the price that corresponds to the equilibrium quantity.

We can use either the demand or supply equation to find this price.

Using the demand equation is more convenient,

since we already have it in the form of n = mu + b. T

herefore:n = -0.03425x + 24.12 n = -0.03425(367.24) + 24.12 n ≈ 11.72

Therefore, the equilibrium price is about $11.72 per pound.

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frederick taylor believed that more efficient workers should be paid higher wages than their lower-performing coworkers, a system referred to as the

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Answer:

piece rate system

Explanation:

Piece-rate, or piecemeal pay, means that employees are paid by the unit when completing a particular task, for instance, bushels harvested, trees pruned, or acres mowed. In this case, a worker is compensated by individual output and not by an hourly rate.

if an employee is a high performer in task performance, what does this mean for contextual performance?

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Being a high performer in task performance does not necessarily mean that an employee will also excel in contextual performance.

Task performance refers to an employee's ability to complete their assigned duties and responsibilities effectively and efficiently. Contextual performance, on the other hand, refers to an employee's ability to contribute to the overall success of the organization beyond their assigned tasks, such as being a team player, helping colleagues, and going above and beyond to meet organizational goals.

While high task performance is certainly valuable to an organization, it does not guarantee that an employee will also excel in contextual performance. For example, an employee may complete their tasks exceptionally well but not work well with others, or they may be unwilling to take on additional responsibilities that would benefit the team or organization as a whole.

Therefore, organizations should strive to evaluate both task performance and contextual performance when assessing employee performance and making decisions about promotions, bonuses, and other rewards. This can help ensure that high performers are not only meeting their individual goals but also contributing to the success of the organization as a whole.

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which of the following is not a characteristics of a corporation? a. it is a legal entity of its own. b. it is able to be sued and to sue. c. it is usually managed by its shareholders.

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The answer is "c. it is usually managed by its shareholders". A corporation is a legal entity that is separate from its owners, shareholders, and managers.

This means that the legal entity can sue or be sued, own property, enter into contracts, and be held liable for its actions. However, the shareholders are not responsible for managing the corporation. They may have the authority to appoint directors to run the company, but they do not usually manage it directly.The characteristic that is not related to a corporation is usually managed by its shareholders. Explanation:In the business world, a corporation is a type of business organization that is created under the laws of a particular state as a separate legal entity. It is not considered as a characteristic of a corporation that is usually managed by its shareholders. The corporation is separate from its owners, known as shareholders, who are not liable for the corporation's debts or obligations. Corporations, unlike partnerships and sole proprietorships, can issue stock to raise money. There are a few more traits that are commonly found in corporations, and these are as follows:It is a legal entity of its own.A corporation has the right to be sued and to sue.It is a legal entity with its own set of rights and obligations.Corporate shareholders are not liable for the company's debts.Corporations have a unique tax status that enables them to be taxed separately from their owners.Corporate officers are responsible for managing the corporation.Corporations are a distinct legal entity that is capable of suing or being sued in its own name. The corporate structure provides the benefit of limited liability, which means that the shareholders' liability is limited to the amount of their investment in the company.In conclusion, the characteristic that is not related to a corporation is usually managed by its shareholders.

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A carpenter i making plan to purchae material for a gable roof the roof will be intalled on a 48 long building the pacing of the rafter will be 16 oc both ide of the gable roof are the ame ize and one ide of the roof meaure 16 x 48 how many common rafter will be needed to build the roof 74 78 70 72

Answers

Therefore, the right response is that the roof will require 72 common rafters to be constructed.

What is carpenter example?

Wooden components are prepared for construction by carpenters, who then install them on roofs, walls, floors, or other timber-framed buildings. They build doors, architraves, skirting boards, and other home furnishings. Carpenters may prepare shuttering, build steps, install doors, or build window frames.

What did the carpenters do?

Sisters Karen (1950–1983) and Richard Carpenter, collectively known as The Carpenters, were a vocal and instrumental American family group (born 1946). Combining Karen's contralto vocals with Richard's abilities in harmonies, arrangements, and composition, they created a distinctive, delicate musical style.

Briefing:

Step 1: Determine the usual rafters' length.

length of building

rafter spacing:

48/16=3

Step 2: To determine how many common rafters there are overall.

=length of the common rafters x 2

3 x 2 = 6.

Step 3: The total quantity of common rafters required to construct the roof is:

A gable roof's breadth times the total number of common rafters

6 x 16 = 96.

Step 4: The quantity of regular rafters required to construct the roof is:

number of ridge rafters - total number of common rafters

96 - 2 = 94.

Step 5: The number of common rafters needed to build the roof:

The number of gable end rafters - total number of common rafters

94 - 2 = 92.

Step 6: The number of common rafters needed to build the roof:

number of hip rafters - total number of common rafters

92 - 2 = 90.

Step 7:The number of common rafters needed to build the roof:

the number of valley rafters - the total number of common rafters

90 - 2 = 88.

Step 8: Subtract the number of jack rafters (2) from the total number of common rafters (88). This gives us the number of common rafters needed to build the roof: 88 - 2 = 86.

Step 9: Subtract the number of gusset rafters (2) from the total number of common rafters (86). This gives us the number of common rafters needed to build the roof: 86 - 2 = 84.

Step 10: Subtract the number of eaves rafters (2) from the total number of common rafters (84). This gives us the number of common rafters needed to build the roof: 84 - 2 = 82.

Step 11: Subtract the number of truss rafters (2) from the total number of common rafters (82). This gives us the number of common rafters needed to build the roof: 82 - 2 = 80.

Step 12: Subtract the number of purlins (2) from the total number of common rafters (80). This gives us the number of common rafters needed to build the roof: 80 - 2 = 78.

Step 13: Subtract the number of gable braces (2) from the total number of common rafters (78). This gives us the number of common rafters needed to build the roof: 78 - 2 = 76.

Step 14: Subtract the number of hip braces (2) from the total number of common rafters (76). This gives us the number of common rafters needed to build the roof: 76 - 2 = 74.

Step 15: Subtract the number of valley braces (2) from the total number of common rafters (74). This gives us the number of common rafters needed to build the roof:

74 - 2 = 72.

Therefore, the answer is D) 72

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The activities of the federal reserve board have the most direct influence on.

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Answer:

The activities of the Federal Reserve Board have the most direct influence on: bank interest rates, monetary policy (interest rates, credit, etc.) 

A few simple business questions, 50 points

A few simple business questions, 50 points

Answers

Answer: Human resource Management

Explanation: In a buisness people wouldn't be able to mantain employess and recruit new ones without HRM.

Recruitment and onboarding.Training and development.Compensation and benefits.Corporate policy.Employee relations.Risk management.

Concentrated ownership is when there are very few shareholders so that each one gets a. Share of the profits

Answers

Answer:

yes it was correct but i was in shields and i’m going on the right now so it is a

Explanation:

if you invest $10,000 today at 10% interest, how much will you have in 10 years?multiple choice$13,860$25,940$3,860$80,712

Answers

If you invest $10,000 today at 10% interest, how much you will have in 10 years depends on the type of compounding used. Compounding is the process of reinvesting the interest earned on an investment to generate more earnings over time.

There are two types of compounding: simple and compound.Simple interest is calculated based only on the principal amount invested, while compound interest is calculated based on the principal amount plus any interest earned. The formula for calculating the future value of an investment using compound interest is:
FV = PV x (1 + r/n)^(n x t)
Where:
FV = future value
PV = present value
r = interest rate
n = number of compounding periods per year
t = number of years
Assuming that the investment compounds annually (n=1), the calculation for the future value of the investment is:
FV = $10,000 x (1 + 0.10/1)^(1 x 10)
FV = $10,000 x (1.10)^10
FV = $10,000 x 2.5937
FV = $25,937.50
Therefore, the correct answer to this question is option B: $25,940. In 10 years, the investment of $10,000 at 10% interest compounded annually will be worth $25,940. It's important to note that this calculation assumes that no withdrawals or additional contributions are made to the investment during the 10-year period.

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using a perpetual inventory system, the entry to record the return of goods you previously purchased on account includes a .

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The entry to record the return of goods purchased on the account using a perpetual inventory system includes a debit to Accounts Payable and a credit to Inventory.

When utilizing a perpetual inventory system, the entry to document the return of items you had previously bought on account also contains a debit to Accounts Payable to lower the sum payable to the vendor for the returned items. In order to decrease the amount of inventory on hand, credit is also made to the inventory account at the same time. If the returned items are being expensed, placed back into inventory, or trashed determines which account will receive the credit. Credit is given to inventory if the items are in sellable condition and will be added back to it. A credit is applied to a Loss or Expense account if the products are damaged or useless. This transaction allows for accurate tracking of inventory and ensures that the accounts payable balance are updated to reflect the returned goods.

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In for peny, in for a pound , taking care of the rands and cents​

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Answer:

l don't understand the question you ask

the of data acquired through secondary research is how well it applies to your specific business problem.

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When conducting research, there are two types of data sources that can be utilized: primary and secondary research. Primary research involves gathering new data through methods such as surveys, focus groups, or experiments. On the other hand, secondary research involves analyzing and interpreting existing data from sources such as journals, government reports, or company websites.

One of the benefits of secondary research is that it is often more cost-effective and time-efficient compared to primary research. However, the challenge with secondary research is determining the relevance and applicability of the data to your specific business problem.

In order to ensure that the data acquired through secondary research is useful for your business, it is important to critically evaluate the quality and validity of the sources. This includes examining the methodology used to gather the data, the sample size and demographics, and the date of publication. It is also important to consider the context in which the data was collected and whether it is still relevant to your current business situation.

Overall, secondary research can provide valuable insights and support for business decisions, but it is essential to carefully evaluate the data and its applicability to your specific needs.

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What should investors consider when planning for their retirement? Check all that apply. -the amount an employer will match for a 401(k) -the contributions an employer will make to an IRA -the ideal age to establish a particular retirement plan -the amount an investor is allowed to contribute annually -the tax laws and breaks related to different retirement plans -the amount that can be withdrawn early without getting taxed

Answers

In a 401k the employer usually matches a percentage and if you are lucky dollar for dollar, where in an IRA it is does an an extra option with a set amount of money usually 2500 or more for each IRA contribution.

Correct option is A, C, D and E.

1. The amount an employer will match for a 401(k):- you don't have to forget when you will need the money, retirement  is years away, but you have to know what choices will make it worth by the time you need the money back. And it is also important to know really how much you can invest. When you have a large amount more options are available. But using a variety of investments will reduce the risk.  

3. The ideal age to establish a particular retirement plan:- that will set you up for the plan you need. Below 50 or older.

4. The amount an investor is allowed to contribute annually, the federal law allows a maximum contribution for participants older than 50.

5. The tax laws and breaks related to different retirement plans:- retirement plans can often give you tax benefits in the present it depends to the one you choose. For example, the payment of the tax on the money deposited in a traditional 401 (k) plan can be delayed until the money is withdrawn from the account.

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Answer:

A,C,D,E

Explanation:

I did it and this was correct.

A bond issued by the state of Alabama is priced to yield 6.40%. If you are in the 30% tax bracket, this bond would provide you with an equivalent taxable yield of _________.

Answers

Answer:

9.14%

Explanation:

Tax exempt yield = 6.40% = 0.064

Marginal tax rate = 30% = 0.30

Equivalent taxable yield = Tax exempt yield / (1 - marginal tax rate)  

Equivalent taxable yield = 0.064 / (1 - 0.30)

Equivalent taxable yield = 0.064 / 0.70

Equivalent taxable yield = 0.0914286

Equivalent taxable yield = 9.14%

why doesn't school teach taxes

Answers

Answer:

Well, Who knows but I'd assume they deem it unimportant. for our class because of we were a higher class our parents would teach us how when we were ready

Answer: People file different kinds of taxes. They can't teach you every kind of tax in depth on how to go through it. For example, for personal income taxes, there are currently three different types of forms that someone could file.

Which is a steppingstone towards future education

A. A high school diploma
B. On the job training
C. Vocational courses
D. Technical courses

Answers

Answer:

a high school diploma or on the job training

How is a person counted as unemployed ?

How is a person counted as unemployed ?

Answers

The person must have worked within last six months or have been injured on the job.

Assume today is March 16, 2021. Natasha Kingery is 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service representative for a telephony corporation located in Seattle, Washington, and earns $38,000 a year that she anticipates will grow at 3% per year. Natasha hopes to retire at age 65 and has just begun to think about the future. Natasha has $75,000 that she recently inherited from her aunt. She invested this money in 30- year Treasury Bonds. She is considering whether she should further her education and would use her inheritance to pay for it. She has investigated a couple of options and is asking for your help as a financial planning intern to determine the financial consequences associated with each option. Natasha has already been accepted to both of these programs, and could start either one soon. One alternative that Natasha is considering is attaining a certification in network design. This certification would automatically promote her to a Tier 3 field service representative in her company. The base salary for a Tier 3 representative is $10,000 more than what she currently earns and she anticipates that this salary differential will grow at a rate of 3% a year as long as she keeps working. The certification program requires the completion of 20 Web-based courses and a score of 80% or better on an exa m at the end of the course work. She has learned that the average amount of time necessary to finish the program is one year. The total cost of the program is $5000, due when she enrolls in the program. Because she will do all the work for the certification on her own time, Natasha does not expect to lose any income during the certification. Another option is going back to school for an MBA degree. With an MBA degree, Natasha expects to be promoted to a managerial position in her current firm. The managerial position pays $20,000 a year more than her current position. She expects that this salary differential will also grow at a rate of 3% per year for as long as she keeps working. The evening program, which will take three years to complete, costs $25,000 per year, due at the beginning of each of her three years in school. Because she will attend classes in the evening, Natasha doesn’t expect to lose any income while she is earning her MBA if she chooses to undertake the MBA.

Questions:

1. Determine the interest rate she is currently earning on her inheritance by going to Yahoo! Finance (http://finance.yahoo.com) and typing the word "Treasury" in the search field and picking the 30 year yield (ticker: ^TYX) off the dynamic menu that appears. Then go to "Historical Prices" (located in the left column) and enter the appropriate date, March 16, 2021 to obtain the closing yield or interest rate that she is earning. Use this interest rate as the discount rate for the remainder of this problem.

2. Create a timeline in Excel for her current situation, as well as the certification program and MBA degree options, using the following assumptions: o Salaries for the year are paid only once, at the end of the year. The salary increase becomes effective immediately upon graduating from the MBA program or being certified. That is, because the increases become effective immediately but salaries are paid at the end of the year, the first salary increase will be paid exactly one year after graduation or certification.

Answers

The interest rate Natasha is currently earning on her inheritance can be obtained by checking the 30-year yield on Treasury bonds on Yahoo! Finance website.

How can the interest rate on Natasha's inheritance be determined?

To determine the interest rate Natasha is currently earning on her inheritance, we need to check the 30-year yield on Treasury bonds. By visiting the Yahoo! Finance website and searching for "Treasury," we can find the 30-year yield (ticker: ^TYX) from the dynamic menu that appears. Going to "Historical Prices" and entering the specific date, March 16, 2021, will provide the closing yield or interest rate that Natasha is earning on her investment.

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File cabinets are conventional storage cabinets that are deeper than they are wide and have files arranged from front to back.

Answers

Answer:

Vertical

Explanation:

THIS IS THE COMPLETE QUESTION BELOW

_______ file cabinets are conventional storage cabinets that are deeper than they are wide and have files arranged from front to back.

A filing cabinet can be regarded as piece of office furniture that is utilized in storage of paper documents in set file folders. It could be vertical files or lateral files. A vertical file posses drawers which extends from short sides of cabinet. It should be noted that vertical file cabinets are conventional storage cabinets that are deeper than they are wide and have files arranged from front to back.

Nadine (62) took a $6,000 distribution from her roth ira. Twenty percent, or $1,200, is a distribution of earnings on her contributions. The remaining $4,800 is a distribution of her basis. Nadine established the account more than 20 years ago, when roth iras first became available. How much of her distribution is taxable?.

Answers

Because Roth IRAs do not impose tax on contributions or earnings for distributions that take place after the account has been open for at least five years, none of the distribution is taxable.

What Does Taxable Income Mean?

Any gross income that is used to calculate your tax burden is referred to as taxable income. It is essentially your adjusted gross income less any deductions. This covers any compensation received from employers, such as wages, tips, salaries, and bonuses. Investments and interest income are included as well.

What is the lowest taxable income?

Your filing status and age affect the minimal income amount. For single filers who are younger than 65 in 2022, the minimal amount is $12,950. You typically do not have to submit a federal tax return if your income is below that cutoff. For more information on age ranges and other filing statuses, see the complete list below.

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what is the most useful thing that a marketer needs to know to learn what customers need? a Data that reveals customer consumption patterns. b The manner in which customers evaluate product options. с A customer's zip code. d The customer characteristic that emerges as the biggest growth driver. e The demographics of customers in a given market.

Answers

To understand what customers need, marketers need to understand how customers evaluate different product options.

The evaluation process typically involves considering multiple criteria, such as price, quality, features, and benefits, to determine which product best meets their needs and preferences. One way for marketers to gain insights into how customers evaluate products is to conduct market research. Market research involves gathering and analyzing data on customer behavior, preferences, and attitudes, as well as information on market trends and competition. This information can help marketers identify the most important product criteria for customers and develop products that meet those criteria. For example, if customers place a high value on price, marketers may need to develop products that are affordable and offer good value for the money. On the other hand, if customers prioritize quality and features, marketers may need to invest in product development to create high-quality, feature-rich products that meet customer needs. Market research can be conducted using a variety of methods, such as surveys, focus groups, and customer interviews. Surveys are a popular market research method as they allow marketers to collect large amounts of data quickly and efficiently. Focus groups and customer interviews provide more in-depth insights into customer behavior and preferences, but are more time-consuming and expensive to conduct. In addition to market research, marketers can also use data analytics to gain insights into customer needs. Data analytics involves analyzing large amounts of data to identify patterns and trends that can help inform marketing strategies.

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How does completing a Free Application for Federal Student Aid (FAFSA)
application assist in postsecondary education?
OA. The FAFSA determines the credit limits that a student or their
guardian can meet.
OB. The FAFSA identifies which trade schools are best suited to your
mechanical skills.
OC. The FAFSA identifies which colleges would match to your interest
inventory.
OD. The FAFSA guides students to financial aid packages for which
they qualify.

Answers

Option (d), The Free Application for Federal Student Aid (FAFSA) application assists students in finding the financial aid packages for which they are eligible in postsecondary education.

Who is qualified to fill out an FAFSA?

The Free Application for Federal Student Aid is a vital resource for students looking for financial aid (FAFSA). In addition to requesting federal aid for higher education, students must file the FAFSA in order to be considered for awards from organizations, states, and private benefactors.

To be qualified to submit the FAFSA, a student must have financial need, be enrolled in a college or university's diploma or certificate program, be a U.S. citizen, or be an eligible noncitizen. A valid Social Security number, maintaining satisfactory academic progress, and receiving a high school diploma are only a few of the additional requirements for federal eligibility.

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When anti-poverty programs from the government have declining benefits as people earn higher incomes, this has the possibility of leading to ________. Group of answer choices

Answers

When anti-poverty programs from the government have declining benefits as people earn higher incomes, this has the possibility of leading to a welfare trap.

A welfare trap refers to a situation where individuals face disincentives to increase their income or work more hours due to the reduction or loss of benefits as their income rises. In such cases, the diminishing benefits can create a situation where individuals find it financially disadvantageous to increase their earnings beyond a certain threshold, as the reduction in benefits offsets or even exceeds the additional income earned. This can result in a cycle of dependency on government assistance and discourage individuals from pursuing higher-paying job opportunities or advancing in their careers.

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Identify which of the following statements is true. Group of answer choices In a tax-free reorganization, the acquiring corporation's holding period for the acquired properties includes the period of time the target corporation held the properties. The receipt of cash by a shareholder results in the recognition of all of his or her realized gain even if the transaction qualifies as a tax-free reorganization. In a tax-free reorganization, if the acquiring corporation uses nonmonetary boot property, gains or losses will be recognized by the acquiring corporation. All of the above are false.

Answers

Answer:

d

Explanation:

A vast global network that is made up of many smaller interconnected networks is known as

Answers

Answer:

The internet

Explanation:

What is it called when you make money on
the percentage of the total sales you make?

Answers

Answer:

Commission

Explanation:

Commission is a payment based on the amount of sales an employee makes and is usually based on a percentage of total sales.

Common overhead allocation methods for companies with process operations includes ______ hours or _____ hours than labor hours to allocate overhead\

Answers

Answer:

machine and direct labor

Explanation:

Common overhead allocation methods for companies with process operations include machine hours or direct labor hours to allocate overhead.

In process operations, where multiple stages or processes are involved in the production of goods, allocating overhead costs accurately is important for determining the cost of each product or process. Two common methods for allocating overhead are machine hours and direct labor hours.

The machine hours method allocates overhead costs based on the amount of time each machine is used in the production process. This method assumes that the more a machine is used, the more it contributes to the overall overhead costs.

The direct labor hours method, on the other hand, allocates overhead costs based on the amount of time spent by direct labor workers on a particular product or process. It assumes that the more direct labor hours are dedicated to a product, the more it consumes overhead resources.

Both methods provide a systematic approach to allocate overhead costs, but the choice between machine hours or direct labor hours depends on the nature of the industry, the production process, and the specific cost drivers relevant to the business.

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Competition among sellers (producers) lowers costs and prices, and encourages producers to produce more of what consumers are willing and able to buy.

A. Explain how the above (free market competition) would be an advantage for you, the consumer.

B. Describe how an oligopoly OR monopoly could inhibit competition among businesses.

Answers

Answer:

A. Explain how the above (free market competition) would be an advantage for you, the consumer.

Free market competition is advantageous to the consumer because it promotes the supply of many goods and services, at a lower price than other market structures like oligopoly or monopoly.

In the free market, there are many firms, none have market power, and they produce goods and services that have many substitutes. This means that if a firm raises the price of a good, consumers simply flock to another firm that offers a similar product. This mechanism obliges firms to offer their goods at the market-clearing price, which is the best price for the consumer.

B. Describe how an oligopoly OR monopoly could inhibit competition among businesses.

Oligopolies ocurr when there are only a few firms in the market, and monopoly ocurrs when there is only one firm. These two market structures allow firms to charge higher prices than the market-clearing price, and to supply less quantity than the market-clearing quantity.

Besides, oligpolies and monopolies are characterized by high barriers to entry and exit, which keep potential competing firms out of market, inhibiting competition.

the metro transportation authority is governed by a seven-member board. four of the board members are appointed by the town of metro and the remaining three are appointed by the governing board of metro county. neither the town nor the county share in any profits, nor are they required to fund any deficits, of the authority. the town, however, does approve the authority's proposed budget. the county may make budgetary recommendations to the authority, but they are not required to approve the proposed budget. the authority should be reported as:

Answers

The Metro Transportation Authority is an organization governed by a seven-member board, with four members appointed by the town of Metro and the remaining three by the governing board of Metro County.

Although the town and county are involved in the appointment of board members, they do not share in the profits nor are they responsible for any deficits incurred by the authority. The town of Metro plays a role in the authority's financial management by approving its proposed budget. This indicates that the town has some level of oversight and influence over the authority's financial planning. On the other hand, Metro County can provide budgetary recommendations but does not have the power to approve or disapprove the proposed budget. This suggests that the county has a more advisory role in the authority's financial affairs.

Given the information provided, the Metro Transportation Authority should be reported as a component unit of the town of Metro. This classification is due to the town's involvement in appointing the majority of board members and its authority to approve the organization's budget. While the county also appoints some board members and can make budgetary recommendations, its influence is not strong enough to consider the authority a joint component unit of both the town and county. Therefore, the authority is primarily affiliated with the town of Metro and should be reported as a component unit of the town.

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