Perry's job title can be described as a tailor or seamstress. As he creates, modifies, and fixes clothing at the request of customers, he is essentially providing custom clothing services.
His job requires specialized skills such as cutting, stitching, and sewing. In addition, he may also need to have a good understanding of different fabrics and materials to ensure that the finished product meets the customer's expectations.
Hassan's job title can be described as a nail technician or manicurist. As he cleans, cuts, and polishes customers' fingernails, he is providing services related to nail care. This can include shaping nails, applying nail polish or acrylics, and providing hand massages. To excel in this role, he would need to have good dexterity, knowledge of nail care products and techniques, and an ability to engage with customers in a friendly and professional manner.
Monica's job title can be described as a beauty therapist or esthetician. As she applies makeup and gives skin care treatments to clients, she is providing services related to beauty and skin care. This can include applying makeup for special occasions, providing facials, waxing, and other treatments to improve skin health and appearance. To excel in this role, she would need to have a good understanding of skin care products and techniques, as well as excellent customer service skills.
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Answer:
Tailor, Manicurist, Cosmetologist
Explanation:
Took The Test On Edge.
In March, a derivatives dealer offers you the following quotes for June British pound option contracts (expressed in U.S. dollars per GBP):
MARKET PRICE OF CONTRACT
Contract Strike Price Bid Offer
Call USD1.44 0.0634 0.0642 Put 0.0234 0.0242 Call USD1.48 0.0435 0.0443 Put 0.0406 0.0414 Call USD1.52 0.0234 0.0242 Put 0.0634 0.0642 Assuming each of these contracts specifies the delivery of GBP 31,100 and expires in exactly three months, complete a table similar to the following (expressed in dollars) for a portfolio consisting of the following positions:
Long one 1.48 call
Short one 1.52 call
Long one 1.44 put
Short one 1.48 put
Do not round intermediate calculations. Round your answers to the nearest cent. Enter the net initial costs as negative values. Use a minus sign to enter negative values. If the answer is zero, enter "0".
June
USD/GBP Net Initial
Cost Long Call 1.48
Profit Short Call 1.52
Profit Long Put 1.44
Profit Short Put 1.48
Profit Total Net
Profit
$1.40 $ $ $ $ $ $ $1.44 $ $ $ $ $ $ $1.48 $ $ $ $ $ $ $1.52 $ $ $ $ $ $ $1.56 $ $ $ $ $ $
We can complete the table:
June | USD/GBP | Net Initial Cost | Long Call 1.48 Profit | Short Call 1.52 Profit | Long Put 1.44 Profit | Short Put 1.48 Profit | Total Net Profit
$1.40 | -$1,352.85 | -$2,488 | $1,244 | $2,488 | $5,982
To calculate the net initial cost and profit for each position in the portfolio, we need to determine the cost and profit for each individual option contract.
Given:
Contract specifications: GBP 31,100
Expiration: 3 months
We'll calculate the net initial cost and profit for each position based on the quotes provided.
Long one 1.48 call:
Net Initial Cost = -Bid Price * Contract Size
Profit = (Market Price - Strike Price) * Contract Size
Using the provided quotes:
Net Initial Cost = -0.0435 * 31,100 = -$1,352.85 (rounded to nearest cent)
Profit = (1.40 - 1.48) * 31,100 = -$2,488 (rounded to nearest cent)
Short one 1.52 call:
Net Initial Cost = -Offer Price * Contract Size
Profit = (Strike Price - Market Price) * Contract Size
Net Initial Cost = -0.0242 * 31,100 = -$752.82 (rounded to nearest cent)
Profit = (1.52 - 1.40) * 31,100 = $3,738 (rounded to nearest cent)
Long one 1.44 put:
Net Initial Cost = -Bid Price * Contract Size
Profit = (Strike Price - Market Price) * Contract Size
Net Initial Cost = -0.0242 * 31,100 = -$752.82 (rounded to nearest cent)
Profit = (1.44 - 1.40) * 31,100 = $1,244 (rounded to nearest cent)
Short one 1.48 put:
Net Initial Cost = -Offer Price * Contract Size
Profit = (Market Price - Strike Price) * Contract Size
Net Initial Cost = -0.0414 * 31,100 = -$1,287.54 (rounded to nearest cent)
Profit = (1.48 - 1.40) * 31,100 = $2,488 (rounded to nearest cent)
To calculate the total net profit, we sum up the profits and net initial costs of each position:
Total Net Profit = Profit (Long Call 1.48) + Profit (Short Call 1.52) + Profit (Long Put 1.44) + Profit (Short Put 1.48)
Total Net Profit = -$2,488 + $3,738 + $1,244 + $2,488 = $5,982 (rounded to nearest cent)
Now we can complete the table:
June | USD/GBP | Net Initial Cost | Long Call 1.48 Profit | Short Call 1.52 Profit | Long Put 1.44 Profit | Short Put 1.48 Profit | Total Net Profit
$1.40 | -$1,352.85 | -$2,488 | $1,244 | $2,488 | $5,982
Note: The values for net initial cost and profits in the table are rounded to the nearest cent.
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The contribution margin as a percentage of sales is referred to as the contribution margin or cm.
it is an accounting term that helps business proprietors and executives song product profitability. The contribution margin is vital to apprehend as it suggests how a lot of a product's revenue is available to cowl fixed fees and make a contribution to the company's income.
Formulae: Contribution = general income much less total variable expenses. Contribution consistent with unit = promoting fee according to unit less variable charges in keeping with unit. the total contribution also can be calculated as a Contribution in line with unit x wide variety of devices sold.
The value of materials or product acquisitions is a number of the key variable product costs taken into consideration in the contribution margin. in case your raw materials prices grow as a manufacturer, your contribution margin diminishes due to a higher cost basis.
The Contribution margin consistent with the unit is the selling rate of 1 unit of goods minus the variable charges of making that unit. The contribution margin in keeping with the unit is the quantity of cash each sale contributes closer to paying fixed expenses. once the constant charges are paid, it's going to suggest how tons profit is earned in line with units bought.
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This assignment will help you apply porter's forces to an organization to find competitive opportunities using technology. ASSIGNMENT In this assignment you will choose an organization, and then walk through each force and ultimately choose a technology strategy to create an advantage. - Choose an industry, and then choose an organization within that industry. Describe both briefly. - Using Porter's Five Forces, for each force describe a 'problem' and an 'opportunity' within each force for the organization you selected in the above step. For Example: If I chose fast food and McDonald's, a problem for McDonalds in the customer force is that customers are increasingly becoming health focused. An opportunity for McDonald's would be to explore 'power shakes' that include workout supplements. - Next, examine the four basic competitive strategies. For each strategy, identify your selected organization's main competitor that would fit in that strategy (describe why you feel it fits). Which strategy (area) provides the most opportunity for your organization and which area does your organization belong to? - Finally, make a statement on what your selected organization's strategy should be.
Industry and Organization The industry that has been chosen for this analysis is the Automobile industry. The organization that has been selected for this analysis is Tesla. Tesla is an American company that specializes in the manufacturing of electric vehicles, solar panels, energy storage, and related products. Tesla is considered as one of the leading companies in the electric vehicle industry.Porter's Five Forces Porter's Five Forces is a framework that is used for industry analysis and is utilized to identify the competitive intensity of an industry.
The five forces are Supplier Power, Buyer Power, Competitive Rivalry, Threat of Substitution, and Threat of New Entry. The following is the analysis of each force for Tesla.Supplier Power The supplier power is considered to be low for Tesla as the company produces most of its own parts and components. Furthermore, Tesla has partnerships with suppliers that help the company in maintaining a steady supply chain. The opportunity for Tesla is to invest in research and development to find new materials and reduce the cost of manufacturing.Buyer Power The buyer power is moderate for Tesla as the company has a loyal customer base, which has a limited number of choices in the electric vehicle market. The opportunity for Tesla is to expand its product line and cater to a wider customer base.Competitive Rivalry The competitive rivalry in the electric vehicle industry is intense with companies such as BMW, Chevrolet, and Nissan as its competitors. Tesla has a competitive advantage due to its brand image, superior technology, and charging infrastructure. The opportunity for Tesla is to expand its presence in the market and focus on its unique selling points.Threat of Substitution The threat of substitution for Tesla is moderate, as some customers might opt for hybrid vehicles or traditional gasoline vehicles. The opportunity for Tesla is to expand its product line and offer vehicles with different price ranges and models.Threat of New Entry The threat of new entry is low for Tesla as the company has established itself as a leading company in the electric vehicle market.
Furthermore, the company has an extensive charging infrastructure and access to a large pool of talent. The opportunity for Tesla is to expand globally and reach out to untapped markets.Competitive Strategies The four basic competitive strategies are Cost Leadership, Differentiation, Cost Focus, and Differentiation Focus. The following is the analysis of each strategy for Tesla.Cost Leadership The main competitor that fits in this strategy for Tesla is Chevrolet Bolt. Chevrolet Bolt has a lower price point as compared to Tesla, but Tesla has an advantage in terms of range, charging infrastructure, and technology. Tesla should focus on reducing the cost of manufacturing and introducing an entry-level electric vehicle to cater to the mass market. Differentiation The main competitor that fits in this strategy for Tesla is BMW i3. BMW i3 is considered to be a premium electric vehicle that has a unique design and advanced features.
Tesla should focus on developing innovative technologies and expanding its product line to cater to a wider customer base.Cost Focus The main competitor that fits in this strategy for Tesla is Nissan Leaf. Nissan Leaf has a lower price point as compared to Tesla, but Tesla has an advantage in terms of range, charging infrastructure, and technology. Tesla should focus on reducing the cost of manufacturing and introducing an entry-level electric vehicle to cater to the mass market.Differentiation Focus The main competitor that fits in this strategy for Tesla is Porsche Taycan. Porsche Taycan is considered to be a premium electric vehicle that has a unique design and advanced features. Tesla should focus on developing innovative technologies and expanding its product line to cater to a wider customer base.
The strategy that provides the most opportunity for Tesla is Differentiation as it is an established brand that has a loyal customer base. Tesla should focus on introducing new products, expanding its charging infrastructure, and improving its technology. Tesla belongs to the Differentiation area.StatementTesla should focus on differentiation and offer unique products and services that cater to the needs of its customers. Tesla should expand its charging infrastructure and invest in research and development to improve its technology. Tesla should also consider introducing an entry-level electric vehicle to cater to the mass market.
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Which of the following choices incur speculative risk?
a.stocks
b.fire insurance on a house
c.options
d.life insurance
e.high interest savings account
Answer: correct option is A.
Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.
Stocks incur speculative risk. Therefore option A is correct.
What are Stocks?A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.
Common stock and preferred stock are the two primary categories of stocks.
Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.
Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.
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How many different ways are there to buy 8 fruits when the choices are apples, pears, and oranges?
The total different ways are 65536.
How many ways can you buy 8 fruit?
8 choices from 4 options with repetition, so the number of ways is (8+4 − 1 4 − 1 ) = (11 3 ) = 165.
What is the rule of permutation and combination?If the order doesn't matter then we have a combination, if the order do matter then we have a permutation.
One could say that a permutation is an ordered combination.
The number of permutations of n objects taken r at a time is determined by the following formula: P(n,r)=n!.
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What are the three methods commonly used to distribute door-to-door purchases to customers?
Door-to-door purchases are commonly distributed by the post office, through couriers, or dierctly with the seller at the time of purchase.
Door-to-door purchases or Door-to-door sales are selling activities of goods or services in the consumer's house. Door-to-door sales can be initiated by either the seller or the buyer. Door-to-door sales includes:
Door-to-door salesStreet salesSales demonstrationSales partiesDoor-to-door consists of several stages, such:
ProspectingQualifyingPitchingClosingFollowing-upUntil today, door-to-door purchases is still an effective selling approach. Door-to-door purchases have some benefits, they are:
Allow customers to see productsBuild a customer baseDevelop relationshipDistinguish the brand from other competitorsEnsure people see the brand's offeringsGenerate demandMeasure successProvide a personal approachReveal body language and optimized it as a selling toolSupport market researchUse an adaptable approachUse time effectivelyLearn more about Door-to-Door Purchases here: https://brainly.com/question/1395199
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Which of the following are critical aspects of maintaining good relationships between a firm and its stakeholders
Maintaining good relationships between a firm and its stakeholders involves several critical aspects. First, effective communication is essential. The firm should engage in open and transparent communication with its stakeholders, providing timely updates and addressing their concerns.
Second, mutual trust and respect are crucial. The firm should build trust by delivering on promises, being honest and ethical in its actions, and respecting the interests of its stakeholders. Third, understanding and meeting stakeholder expectations is key.
In conclusion, effective communication, trust, meeting expectations, stakeholder engagement, and long-term thinking are critical aspects of maintaining good relationships between a firm and its stakeholders.
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Which of the following is not one of the four perspectives included in the balanced scorecard?
(a) Internal growth
(b) Learning and growth
(c) Financial
(d) Customer
Internal growth is not one of the four perspectives included in the balanced scorecard. The four perspectives included are financial, customer, internal processes, and learning and growth. Option A is correct.
The balanced scorecard is a strategic management framework that helps organizations measure and track their performance from multiple perspectives to achieve long-term success. The financial perspective focuses on financial indicators and goals, such as profitability and return on investment.
The customer perspective emphasizes customer satisfaction and loyalty. The internal processes perspective looks at the efficiency and effectiveness of internal operations. The learning and growth perspective focuses on the development of employees, skills, and organizational culture to support future success.
Option A holds true.
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why irs warns millions across us to hold off on filing taxes
Millions of people in more than 20 states, including California, Colorado, and Florida, who got tax refunds the previous year are being urged by the IRS to postpone filing their taxes.
Briefing:-According to the government, it wants to know if these tax breaks and special refunds are regarded as taxable income.
Can a firm be closed down by the IRS?If you owe taxes and are unable to pay them, the IRS may shut down your company. The IRS has the right to take legal action to enforce a lien. The business might be forced to close its doors and all of its assets might be taken.
What causes a business audit by the IRS?An IRS audit may result from excessive spending or significantly different expenses from one year to the next. Even though you could have a company credit card, you shouldn't make a lot of purchases. For instance, it may be suspicious to claim all of your meals throughout the working day as business costs.
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Demetri overhears his colleague say, "I cannot believe the Yankees lost that game! Did you see that home run?" How would Demetri BEST classify this type of communication
introductions
small talk
making a request
giving condolences
If Demetri overhears his colleague say, "I cannot believe the Yankees lost that game! Did you see that home run?" Demetri would BEST classify this type of communication as: D. giving condolences.
What is communication?Communication can be defined as the way in which two or more people tend to interact with one another. Communication can be inform of written, verbal or non-verbal.
This scenario is an example of giving condolence based on the fact that the Demetri colleague is showing empathy as well as giving condolence because yankees lost the games.
Therefore the correct option is D.
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During the current year, Sokowski Manufacturing earned income of $316,910 from total sales of $4,730,000 and average capital assets of $11,000,000. A. Based on this information, calculate asset turnover. If required, round your answer to two decimal places. Fill in the blank 1 times B. Assume sales margin is 6. 7%, what is the total ROI for the company during the current year
a buyer signs a purchase agreement for a duplex that she intends to occupy. if she forfeits the good faith deposit as liquidated damages for breach of the purchase agreement:
If a buyer signs a purchase agreement for a duplex that she intends to occupy and subsequently breaches the agreement, resulting in forfeiture of the good faith deposit as liquidated damages, there are a few key considerations to understand.
Firstly, a good faith deposit is a sum of money provided by the buyer as a sign of their commitment to purchasing the property. If the buyer fails to fulfill the obligations outlined in the purchase agreement, the seller may have the right to retain the deposit as compensation for the breach.
The specific terms regarding liquidated damages, including the amount and conditions for forfeiture, should be clearly outlined in the purchase agreement. Liquidated damages serve as a pre-determined amount agreed upon by both parties to compensate the non-breaching party for the losses incurred due to the breach. In this case, if the buyer breaches the purchase agreement, the seller has the right to enforce the liquidated damages clause and retain the good faith deposit as compensation. The amount forfeited would depend on the terms specified in the agreement.
It's important for buyers to carefully review and understand the terms and conditions of a purchase agreement before signing to ensure they are aware of the potential consequences, including the forfeiture of the good faith deposit in the event of a breach.
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PLEASE HELPPPPP due by tomorrow pleaseeee
write a one-page report that details the individual’s job position, education, and career training, current job responsibilities, and what the person enjoys the most about the job position.
The job description contains sufficient information to describe major responsibilities and essential functions as they exist today. They provide the information necessary to classify the position, not the person; thus they are “incumbent neutral” and not based on any specific quality of an incumbent (such as knowledge, skills, abilities, performance, dedication, loyalty, years of service, or degree). The document should not include every detail of how and what work is performed so that it remains useful even when minor changes occur. Job descriptions can be written as a joint effort between supervisor and employee, but the supervisor must approve.
Should a business email contain a salutation?
Answer:
A business email is meant in a professional way. It can be sought out as multiple different approaches, one of them, in this case, can include a friendly and welcoming business approach, including a salutation. All in all, it is up to the writer, there is no fully correct answer. Hope this helps :)
Economists know it is best to track inflation because a. It distorts prices b. It distorts statistics about overall economic performance c. it makes prices rise d. it worries people
Answer:
c. it makes prices rise
Explanation:
Inflation describes a situation where there is a general increase in prices in the country. Inflation is directly linked to economic growth. A high growth rate results in high inflation.
Inflation causes prices to rise, reducing the purchasing power of money. A reduction in purchasing power means a unit of money will buy fewer items than it did previously. The government puts in measures to counter inflation to stabilize prices and prevent erosion of purchasing power.
Low inflation indicates slow economic growth, low employment, and a reduction in prices.
what is the meaning of deplation
Answer: The meaning of depletion to allocate the cost of extracting natural resources like oil and minerals from the earth.
Explanation:
The term depletion is a concept generally we use in tax and accounting.The meaning of depletion is to move the cost of extracting natural resources like oil and minerals from the earth to the income sheets. It is a non-cash expense that lowers the cost value of an asset gradually scheduling charges to the income.To evaluate the depletion per unit we divide the total cost less salvage value by the total number of estimated units.You see an ad for a payday lender which ends with the tagline, “One payday loan is all it takes to get you back on track.” Does the data above support their advertising claim?
You see an ad for a payday lender which ends with the tagline, “One payday loan is all it takes to get you back on track.” Does the data above support their advertising claim? No, it does not support their advertising claim.
9) Which is a risk of being a stockholder?
A) may not get an increase in the amount of one's investment
B) can increase investment if the price of one's stock goes up
C) might receive dividends when the company makes a profit
D) able to vote for members of the board of directors
Answer: A.
Explanation:
The answer to this problem is A. The answer is A because B, C, and D are all positive parts of being a stockholder whereas A is negative.
A) may not get an increase in the amount of one's investment is a risk of being a stockholder.
Stockholders or shareholders are investors who own a portion of a company's equity, represented by shares of stock. While being a stockholder comes with potential benefits such as capital gains, dividends, and voting rights, it also carries risks.
One of the most significant risks of being a stockholder is that the value of the stock can decrease, and the stockholder may lose some or all of their investment. This can happen due to a variety of factors, such as changes in the market, the company's financial performance, or global events that impact the economy.
Therefore, A) may not get an increase in the amount of one's investment is the risk of being a stockholder.
the two types of assignments are
The two types of assignment are Collateral (partial), and Absolute (entire face amount).
Which does collateral mean?valuable property owned by a borrower, which the borrower acknowledges will pass to the lender (i.e., the person or company who lends the money) if the debt is not repaid: For the loan, she pledged her property as security.
What is a collateral example?Mortgages – When you take out a mortgage, you frequently use the house or other real estate you buy as security. Car loans – When you obtain a car loan, your new vehicle is often put up as collateral. Credit cards that are secured by a cash deposit serve as the card's security.
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Consumer goods classes (convenience, shopping, etc.) are based on the:- characteristics of the product.- importance of the product’s brand name.- buying habits of consumers.- age, income, and occupation of consumers.
Consumer goods classes, such as convenience, shopping, specialty, and unsought goods, are primarily based on the buying habits of consumers. These classes categorize products according to how frequently consumers purchase them and the effort they put into the buying process.
Convenience goods are everyday items that consumers buy regularly with minimal effort, such as groceries or toiletries. These products are widely available and affordable, making them easily accessible for most consumers.
Shopping goods, on the other hand, require more effort and consideration from consumers before making a purchase. Examples of shopping goods include clothing, electronics, and furniture. Consumers usually compare different brands, prices, and features before deciding on a particular product.
Specialty goods are unique or high-quality products that consumers invest significant time and effort in purchasing, such as luxury cars or designer clothes. These products are not frequently bought and often have a high price tag, attracting a specific target audience.
Unsought goods are products that consumers do not actively seek out but may purchase due to sudden need or awareness. Examples include life insurance and emergency medical supplies. These goods typically require aggressive marketing efforts to generate consumer interest.
In summary, consumer goods classes like convenience, shopping, specialty, and unsought goods are categorized based on the buying habits of consumers. While factors such as product characteristics, brand name, age, income, and occupation can influence consumer behavior, it is primarily their purchasing patterns that determine the classification of consumer goods.
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What would CRM software help you
do?
CRM software can help you in the following ways.
They can help in streamlining deals and marketing efforts, manage client connections, and see to client satisfaction.Also, the capability to track client relations and data can help businesses optimize their operations and identify areas for improvement.What is CRM software?CRM software or Customer Relationship Management software is an important tool which was created to help businesses manage their relations with customers and potential customers.
It allows businesses to store client data like contact information, purchase history, and communication preferences, all in one centralized location.
This data gotten from the software can be analyzed and used to perceive how a customer behaves, his preferences, and needs.
Thus, a CRM tool can help businesses cultivate strong relations with their customers and drive long- term growth.
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Your friend Becky is filling out a credit card application in the public computer lab at school and has all of her important information written down on a piece of paper. What caution would you give Becky to avoid these popular types of identity theft for people 39 and under?
Answer:Hide the credentials
Explanation: Exposing the information may lead to people peeking at it and stealing it.
Which of the following sections of a business plan contains information about the different departments in the company and what they do? A. Organization B. Products and Services C. Marketing and Sales D. Executive Summary
Answer:
A. Organization
Explanation:
The organization and management section outlines the hierarchy of the people involved in the business. It provides the company's organizational structure in a chart format. This section detail the management team, internal and any external human resources that the company uses or intends to use. It may list their names and remunerations paid to each of them.
The organization section also defines how the different roles relate to each other when executing the business mandate.
What is defined as a budget surplus? (1 point)
O Spending exceeds income.
OA spending necessity.
OA spending desire or luxury.
O Take-home pay exceeds spending.
Take-home pay or income exceeds spending is defined as a budget surplus.
When income surpasses expenditure, there is a budget surplus. Since people often have "savings" rather than a "budget surplus," which is a sign that a government's finances are being handled well, the word is frequently used to describe the financial situation of the government.
A budget excess might be put to use for a purchase, debt repayment, or retirement planning. If a community has a budget surplus, it could utilize that money to make renovations, such reviving a run-down park or downtown. There is a budget imbalance when expenses go beyond revenues. Similar to when someone spends more than they make and pays interest on a credit card debt, deficits require borrowing money and paying interest. When spending and revenue are equal, a budget is balanced.
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Identify the users of financial information (select all that apply):customersownerssuppliersbanks.
The study of money, money systems, and capital assets is a part of the discipline of finance. It is related financial information to economics, but they are not the same.
Economics is the study of the creation, transfer, and consumption of money, assets, goods, and services (the discipline of financial economics bridges the two). A variety of financial information activities are supported by financial systems, therefore the field of finance can be broadly divided into three categories: personal, corporate, and public. Assets like cash, loans, bonds, shares, stocks, options, futures, etc. are bought, sold, or traded as financial instruments in a financial system. To improve value and reduce loss, assets can also be banked, insured, and invested in. In actuality, every financial transaction and business has some level of risk.
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Suppose you are in charge of a bank, which is considering making a short-term loan to a private equity fund so that it can buy a company. This loan would involve you giving the private equity fund L dollars today. The fund would then need to repay (1 + r) x L dollars next year. If they choose not to deliver this payment, then you get the value of the company. The company is currently worth $92.5m. Next year, the company will be worth either $100m (up state) or $80m (down state). The prevailing riskless rate is 2%.
A short-term loan is a type of loan that is usually repaid within a year or less. These loans are typically used to cover short-term financial needs, such as unexpected expenses, cash flow gaps, or to fund a temporary business opportunity.
To evaluate whether the short-term loan is a good investment for the bank, we need to calculate the expected return and the risk associated with it. We can use the following steps:
Calculate the expected value of the investment next year:
Expected value = [Probability of up state] x [Value in up state] + [Probability of down state] x [Value in down state]
The probability of up state is the probability that the company value will increase to $100m, which we can denote as P(up). Similarly, the probability of down state is the probability that the company value will decrease to $80m, which we can denote as P(down). The probabilities must add up to 1, so P(up) + P(down) = 1.
Given that we only receive the value of the company if the private equity fund defaults on the loan, the expected value of the investment is:
Expected value = P(default) x $92.5m + (1 - P(default)) x [Probability of up state] x [$100m x (1 + r)] + (1 - P(default)) x [Probability of down state] x [$80m x (1 + r)]
Calculate the expected return of the investment:
Expected return = (Expected value / Initial investment) - 1
If the loan amount is L dollars, then the initial investment is L dollars. The expected return is calculated based on the expected value calculated in step 1.
Calculate the risk associated with the investment:
The risk associated with the investment can be measured by its standard deviation. We can calculate the standard deviation as follows:
Standard deviation = sqrt{[P(default) x (Value if default - Expected value)^2] + [(1 - P(default)) x [P(up) x (Value in up state - Expected value)^2 + P(down) x (Value in down state - Expected value)^2]]}
where Value if default is $92.5m and the Value in up state and Value in down state are $100m x (1 + r) and $80m x (1 + r) respectively.
Using the above formulas, we get:
Expected value of the investment next year:
Expected value = P(default) x $92.5m + (1 - P(default)) x [P(up) x $100m x (1 + 0.02)] + (1 - P(default)) x [P(down) x $80m x (1 + 0.02)]
Since we do not have any information about the probability of default, let's assume it is 10% (i.e., P(default) = 0.1) and the probabilities of up state and down state are equally likely (i.e., P(up) = P(down) = 0.5). Then we get:
Expected value = 0.1 x $92.5m + (1 - 0.1) x [0.5 x $100m x 1.02 + 0.5 x $80m x 1.02] = $95.8m
Expected return of the investment:
Expected return = (Expected value / Initial investment) - 1
If the loan amount is L dollars, then the initial investment is L dollars. So, the expected return is:
Expected return = ($95.8m / L) - 1
Risk associated with the investment:
Standard deviation = sqrt{[0.1 x ($92.5m - $95.8m)^2] + [(1 - 0.1) x [0.5 x ($100m x 1.02 - $95.8m)^2 + 0.5 x ($80m x 1.02 - $95.8m)^2]]}
Standard deviation = $4.4m
Therefore, the expected return of the investment is ($95.8m / L) - 1, and the risk associated with it is $4.4m.
The bank should compare this expected return and risk with its required rate of return and risk tolerance to make a decision on whether to make the loan. If the expected return is higher than the required rate of return, and the risk is within the bank's risk tolerance, then the loan could be considered a good investment.
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Unlike a limited partnership, a general partnership has which of the following?
O A. An unlimited number of partners.
B. Option to declare bankruptcy without penalty.
C. Unlimited liability for all partners.
D. Stockholders and a board of directors.
Answer:
C. Unlimited liability for all partners.
Explanation:
A general partner has unlimited liability to the debts of the business. It follows that in a general partnership business, all partners will have unlimited liability to business debts.
A general partnership is not a separate entity from its owners. Assets and liabilities of the business will be treated as those of the partners. Should the business fail in paying its debts, the partners' personal properties may be sold to clear the debts.
Disadvantages of choosing a job that is extremely popular or in demand
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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__ I can help protect clients’ confidential information.
A. Anti-virus software
B. Piracy
C. Identity theft
D. Licensing infringement
Answer:
a.
Explanation:
I think it’s a. Or anti-virus software because, it helps to prevent or try and help prevent someone from stealing your personal information.
A university spent $2 million to install solar panels atop a parking garage. These panels will have a capacity of 300 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.20 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero.
Approximately how many hours per year will the solar panels need to operate to enable this project to break even?
a. 6,371.11
b. 4,900.85
c. 2,450.43
d. 5,881.02
Answer:
10,053 Hours
Explanation:
The total capacity of Solar panels = 300 KW
Electricity cost per KWh = $0.20
Savings per hour of operation per year = 300KW * $0.2 = $60 per year
Now we will compound this benefit for 20 years:
Present Value of Savings = [$60/(1+0.3)] + [$60/(1+0.3)^2] + [$60/(1+0.3)^3] + [$60/(1+0.3)^4] + ------------------------- [$60/(1+0.3)^20]
Present Value of Savings for 1 hour = $198.948
Now
Break-even = Fixed Cost / PV of operating 1 hour per year = $2,000,000 / $198.948 per hour = 4,900.85 hours
The number of Hours per year the solar panels must operate to breakeven the situation is as under:
Break-even = Fixed cost / PV of operating 1 hour per year
= 1,300,000 / 265.64 = 10,053 Hours