The costs of a purely competitive firm and a monopoly could be different because the monopoly might experience economies of scale not available to the competitive firm. Option d is correct.
Economies of scale refer to the cost advantages that companies can achieve when production increases, causing the average cost per unit to decrease. Monopolies have a larger market share, allowing them to produce and sell more goods at a lower cost than purely competitive firms, which have a smaller market share.
In contrast, the competitive firm has a lower price and is unregulated, but the monopoly controls the input prices. The competitive firm has no control over the price of inputs, but the monopoly can exert some control over input costs, allowing them to lower their overall production costs.
Regardless of this, economies of scale may only be achievable in the long run. Thus, in the short run, the costs of a purely competitive firm and a monopoly could be similar or different, but in the long run, economies of scale will cause a considerable difference in the costs of production between a competitive firm and a monopoly.
Therefore, d is correct.
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Read the case properly and answer the question
Company x is considering the transformation to be a fully digital firm, you have been consulted to demonstrate the features of the company after successful transformation?
The successful transformation to a fully digital firm would empower Company X with streamlined processes, data-driven decision-making, enhanced customer experiences, and greater agility, enabling it to thrive in the digital era.
After a successful transformation to become a fully digital firm, Company X would experience several notable features that would position it for growth and efficiency in the digital era.
Firstly, the company would have streamlined and automated processes throughout its operations. This would lead to increased productivity and reduced costs, as manual tasks are replaced by digital solutions.
Secondly, Company X would have enhanced data analytics capabilities. With digital systems in place, the company can collect and analyze vast amounts of data in real time, enabling data-driven decision-making.
This would provide valuable insights into customer behavior, market trends, and internal operations, allowing the company to make informed strategic choices.
Furthermore, a fully digital firm would have improved customer experiences. Through personalized and interactive digital channels, such as mobile apps and online platforms, Company X can engage customers in a more targeted and convenient manner. This would enhance customer satisfaction, loyalty, and retention.
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The loans that were most profitable tended to
have the shortest/ longest terms and the
lowest/highest monthly payments.
Circle the correct term
Question:
The loans that were most profitable tended to have the
A) Shortest terms, lowest monthly payments
B) Shortest terms, highest monthly payments
C) Longest terms, lowest monthly payments
D) Longest terms, highest monthly payments
Answer:
The correct option is C) Longest terms, lowest monthly payments
Explanation:
We don't know the nature of the loan and the conditions of disbursement so I'll make certain assumptions here.
As with all debts, every credit given must be paid back.
If the nature of the credit is that it has a short term and high monthly payback, it may put the business under undue pressure, thus defeating the real purpose behind the reason for the credit. Many businesses borrow money to solve a problem. It may be expansion problems, or business recovery problems. In either case, the business always requires ample time to regain traction.
So to request for the payback in less time than it takes for the business to generate traction in terms of customers, market awareness, and real business activity is counter-productive. Many times this is the case, as investors want to recoup their capital as quickly as possible.
So, from the standpoint of the loan recipient, when loan facilities, however, are spread over a longer period with low monthly paybacks, it gives the business room for more operational flexibility as far as finances are concerned. The business is able to weather "teething" periods and payback the funds. Long terms allow the business more time to trade the funds thus generating more profit.
Cheers
As there is no known form of the loan or the terms of disbursement, there will be made assumptions here to answer the queston. Every credit issued must be repaid, just like any other loan.
The Longest term, lowest monthly payments are the correct answer:If the credit has a short-term and a large monthly payback, it may put the business under unnecessary stress, negating the factful objective of the credit. So requesting payment sooner than the time it takes for the business to gain market awareness, momentum in terms of clients, and actual commercial activity is counterproductive. This is often the case since investors want to get their money back as soon as possible.As a result, from the perspective of the loan recipient, when loan facilities are stretched over a longer length of time with modest monthly paybacks, it allows the business to have greater operational flexibility in terms of finances.
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Suppose utility of an individual is U=min [2X, Y]. If that person has 10 units of X and 15 units of Y, what is her utility? Is X and Y are complementary, perfect substitutes or neither of these?
Suppose the utility of an individual is U=min [2X, Y]. If that person has 10 units of X and 15 units of Y, X and Y are complementary goods in this case.
To find the utility of the individual, we need to substitute the given values of X and Y into the utility function U = min[2X, Y].
Step 1: Substitute the values of X and Y
U = min[2(10), 15]
Step 2: Simplify the equation
U = min[20, 15]
Step 3: Choose the minimum value
U = 15
The individual's utility is 15. Now, let's determine if X and Y are complementary, perfect substitutes, or neither of these.
In the given utility function, U = min[2X, Y], the individual's utility depends on the minimum of 2X and Y.
This means that the individual cannot increase her utility by consuming more of one good without consuming more of the other. This is the characteristic of complementary goods. Therefore, X and Y are complementary goods in this case.
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A possible warning signal that you may be headed for financial problems with credit is that you
a.
pay only the minimum required.
c.
you only buy sale items.
b.
only buy what you can afford.
d.
all of the above.
Answer:
I can't provide a definite answer (apologies), but I can definitely say that the answer is narrowed down to where it's either A or D.
Explanation:
Answer:
A- pay only the minimum required.
Explanation:
Help. business management
Answer: The break-even point is 66 units.
Explanation:
The break-even point can be found by dividing total fixed costs by the difference between selling price and variable cost.
(fixed cost) / (sale price - variable cost)
1980 / (50 - 20) = 66 units
Salt & Battery must sell 66 units of product before breaking even.
Red Company and Green, Inc., are candy manufacturers. The two companies agree to exchange pieces of equipment, with Red Company exchanging its equipment plus $30,000 for Green, Inc.'s equipment. The transaction lacks commercial substance. On the date of the exchange, the companies' records showed the following information:
Red Company Green, Inc. Historical cost $280,000 $300,000 Accumulated depreciation (150,000) (160,000) Fair value 250,000 275,000
To prepare each required journal entry:
Click on a cell in the Account Name column and select from the option list the appropriate account.
An account may be used once, more than once, or not at all.
Enter the corresponding debit or credit amount in the associated column.
Round all amounts to the nearest whole number. Not all rows in the table might be needed to complete each journal entry. If no journal entry is needed, check the "No entry required" box at the top of the table as your response.
1. Prepare the journal entries Red Company must record to account for the exchange of equipment.
2. Prepare the journal entries Green, Inc., must record to account for the exchange of equipment.
Green, Inc. must account for a gain of $35,000.
Prepare the journal entries Green, Inc., must record to account for the exchange of equipment.
The entry Green, Inc., must record to account for the exchange of equipment is:
JournalEntryAccount
NameDebitCreditEquipment 275,000
Accumulated depreciation160,000
Equipment 300,000 Gain on exchange35,000Explanation:
Green, Inc. exchanged its equipment for Red Company's equipment plus $30,000.
The transaction lacks commercial substance.
Historical cost of Green, Inc. is $300,000, accumulated depreciation is $160,000, and fair value is $275,000.
Therefore, Green, Inc. must account for a gain of $35,000.
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State two ways in which trade unions could assist workers in addressing non compliance with working conditions
Ways in which change unions should assist workers in addressing noncompliance with operating conditions are the standard sports of alternate unions consist of supplying assistance and services to their contributors, collectively bargaining for better pay and conditions for all people, and running to enhance the excellent of public offerings, political campaigning, and commercial movement.
The definition of a worker is someone or animal that performs a particular or essential project or who completes duties in a certain way. someone who works in a store is an instance a retail employee. someone who works diligently on his homework for hours a day is an instance of a tough employee.
A person is normally classed as a 'worker' if: they have a contract or other association to do work or offerings personally for praise (a contract may be written or unwritten) their reward is for money or an advantage in type, for example the promise of a settlement or future paintings.
Workers are the people employed by using a selected organization or company. Manpower is all the employees available to paint for a business enterprise or USA. A colleague or co-employee is a person you figure with, mainly in the workplace.
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An application, a course guidebook, and a counselor’s phone number are all a. Expert resources c. Material resources b. Support resources d. Leader resources.
A material resources entails the itrems that includes an application, a course guidebook, and counselor’s phone number.
What is a material resources?A material resources refers to some tangible items that are use to achieve its an objectives and targets.
Hence, the material resources entails the items that includes an application, a course guidebook, and counselor’s phone number.
Therefore, the Option C is correct.
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Ability is the ability and vision to combine land, labor, and capital into a productive process, taking on the risks and rewards that are inherent in any new venture.
Entrepreneurial skill is the capacity and vision to integrate land, labor, and capital into a productive process, accepting the risks and rewards that each new endeavor entails.
Work, often known as labor, is any deliberate activity that individuals engage in to support themselves, others, or the needs and desires of a larger community. Work may also be defined as the human activity that contributes together with other components of production to the creation of products and services within an economy.
Labor is vital to all cultures, although it varies greatly within and across them, from harvesting natural resources by hand to running complicated technology that replace physical or even mental effort by many people. All but the most basic jobs need the use of particular skills, equipment or tools, and other resources such as raw materials for manufacturing things.
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who was in paris????
Answer: i wish i was in paris
Explanation:
Answer:
Ernest hemlingway
Explanation:
he was a Paris writer in 1899-1961
As a modern business manager, you no longer need to be concerned with how fast the computers your company buys are because ________?
As a modern business manager, you no longer need to be concerned with how fast the computers your company buys are because Moore's Law.
As a contemporary business manager, you now not must fret with how briskly the computers your company buys are because Moore's Law has proven to be true over the last several decades and also the cost of computing speed has fallen dramatically.
Moore's Law refers to Gordon Moore's perception that the amount of transistors on a microchip doubles every two years, though the price of computers is halved. Moore's Law states that the quantity of transistors on a microchip doubles about every two years, though the value of computers is halved. In 1965, Gordon E. Moore, the co-founder of Intel, made this observation that became called Moore's Law.
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3. What is an annual percentage rate (APR)? Describe one similarity and one
difference between the APR and the interest rate on a credit card or loan. Why
would the APR differ from a creditor's posted interest rate? In your response, also
explain how borrowers can use the APR to evaluate loan options, and describe why
borrowers should be wary of low introductory APRs. (8 points)
7
An annual percentage rate, or APR, is a figure that expresses the entire cost of borrowing money as a proportion of the loan's principle. An accurate picture of how much it costs to borrow money is intended to be provided by the APR on a loan or credit card.
What is annual percentage rate?The term annual percentage rate of charge refers to the interest rate for an entire year rather than just a monthly fee or rate as applied on a loan, home loan, credit card, etc. It can also be referred to as a nominal APR or an effective APR. It is an annual rate of a finance charge. An annual percentage rate, or APR, is a figure that expresses the entire cost of borrowing money as a proportion of the loan's principle. An accurate picture of how much it costs to borrow money is intended to be provided by the APR on a loan or credit card.
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Which of the following is not an example of professional behavior
?
Which statement best explains the decrease in manufacturing jobs over the next few years?
1)There is not enough demand for manufactured goods.
2) These jobs are often outsourced to overseas factories.
3)There are not enough skilled workers to fill the positions.
4)The cost of technical training and on-the-job training is high.
Answer:
2) These jobs are often outsourced to overseas factories.
Explanation:
The correct option is B. These jobs are often outsourced to overseas factories which best explains the decrease in manufacturing jobs over the next few years.
What is the effect of outsourcing jobs?Outsourcing jobs enables American businesses to compete more effectively on a global scale. With abroad branches, they are able to sell to foreign markets. By employing in developing nations with lesser standards of living, they maintain low labor prices. As a result, the prices of the commodities they ship back to the US are reduced.
Production outsourcing has significant effects on labor and material costs, with a tendency to drive up material costs and drive down labor costs. This study also demonstrates that process techniques do not moderate the impact of high levels of supplier integration on total COGS.
The best choice is B. The loss in manufacturing jobs over the next years can be best explained by the fact that these positions are frequently outsourced to manufacturers in other countries.
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how would you handle a situation in which the supervisor of another department approaches you with a strong complaint about one of your employees? would you give your employee an opportunity by listening to their side of the story? or would you take the supervisor's word for it? from the chapter, which management skills do you think you might need to utilize?
When faced with a complaint about an employee from another department, it's important to be objective, gather all facts, and listen to both sides of the story. Effective conflict resolution, active listening and clear communication skills are crucial in this situation.
Why is employee complaint important?Handling employee complaints is important for improving employee satisfaction, reducing conflict, fostering trust and respect, and contributing to the overall success of the organization. Effective complaint management demonstrates a commitment to valuing and addressing employee concerns.
Hence, the answer is, when faced with a complaint about an employee from another department, it's important to be objective, gather all facts, and listen to both sides of the story. Effective conflict resolution, active listening band clear communication skills are crucial in this situation. The goal should be to resolve the conflict fairly, while maintaining impartiality and supporting the organization's goals. It's also important to keep the complaining supervisor informed and maintain open communication.
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For the cost function C(Q) = 100 +2Q +3Q²2, the marginal cost of producing 3 units of output is Multiple Choice 14 20 O
Given the cost function, C(Q) = 100 + 2Q + 3Q²2. To find the marginal cost of producing 3 units of output, we'll need to differentiate the cost function with respect to Q.
Therefore, MC(Q) = dC(Q)/dQ To find the derivative of C(Q), we will need to apply the power rule for differentiation as well as the constant multiple rule .C(Q) = 100 + 2Q + 3Q²2Then, dC(Q)/dQ = 0 + 2 + (3/2) (2Q) dQ/dQ = 2 + 3QAnd, MC(3) = 2 + 3(3)MC(3) = 11Thus, the marginal cost of producing 3 units of output is 11.
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please answet this questions??? PLEASE!!!!
2. Pass journal entry for purchase of merchandise with amount of birr 10,000 at cost?
3. List and discuss the four methods that commonly used in assigning cost to inventory and cost of merchandise
2. Inventory Account Dr. 10,000
Accounts Payable Account Cr. 10,000
3. The four commonly used methods of assigning cost to inventory and cost of merchandise are First-in, First-out (FIFO) method, Last-in, First-out (LIFO) method, Weighted Average method, Specific Identification method.
2. To record the purchase of merchandise with an amount of Birr 10,000 at cost, the following journal entry is made:
Inventory Account Dr. 10,000
Accounts Payable Account Cr. 10,000
This entry records the increase in inventory by debiting the Inventory account and the increase in liability by crediting the Accounts Payable account.
3. The four commonly used methods of assigning cost to inventory and cost of merchandise are:
a) First-in, First-out (FIFO) method: This method assumes that the first items purchased are the first ones sold, and the last items purchased are the ones left in inventory. This method is useful when there is a regular turnover of inventory and prices are rising.
b) Last-in, First-out (LIFO) method: This method assumes that the last items purchased are the first ones sold, and the first items purchased are the ones left in inventory. This method is useful when there is a regular turnover of inventory and prices are falling.
c) Weighted Average method: This method calculates the cost of inventory by dividing the total cost of goods available for sale by the total number of units available for sale. This method is useful when there are frequent price changes.
d) Specific Identification method: This method assigns the actual cost of each item of inventory to the units sold. This method is useful when the inventory consists of unique items with identifiable costs. Each method has its own advantages and disadvantages, and the choice of method depends on the nature of the business and the industry.
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In variable costing, fixed costs do not become part of the cost of goods manufactured, but are considered an expense of the period. True False
In variable costing, fixed costs do not become part of the cost of goods manufactured, but are considered an expense of the period. This statement is true.
What is variable costing? Variable costing is a method of accounting for manufacturing that assigns only variable costs to the cost of goods manufactured. Under variable costing, fixed costs are expensed as period costs on the income statement rather than being included in the cost of goods sold. As a result, variable costing is frequently referred to as direct costing since only direct production costs are assigned to the cost of a unit of product.
In variable costing, all production costs that vary with the level of production are included in the cost of goods sold, while fixed costs are expensed in the period incurred. As a result, the cost of goods manufactured (COGM) under variable costing will only include variable production costs (direct materials, direct labour, and variable overhead) and no fixed overhead will be added to the cost of goods manufactured. This makes sense since fixed overhead does not vary with the level of production and, as a result, should not be included in the cost of goods manufactured.
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what is meant by globalization? question 5 options: a) an economy in which most economic decisions are made by buyers and sellers, who may be individuals or firms. b) the trend in which buying and selling in markets have increasingly crossed national borders. c) the market in which households sell their labor as workers to businesses or other employers. d) a market in which firms are sellers of what they produce and households are buyers.
Globalization is the trend of cross-border buying and selling, integrating economies and societies worldwide. Option B
Globalization refers to the process of increasing interconnectedness and integration of economies, societies, and cultures across the world. It is characterized by the growing flow of goods, services, capital, technology, and information across national boundaries.
Globalization has been facilitated by advancements in transportation, communication, and technology, which have made it easier for businesses and individuals to engage in cross-border transactions.
Globalization has led to the emergence of a global marketplace where goods and services are produced and consumed on a global scale.
It has expanded international trade and investment, allowing companies to access larger markets and tap into resources and labor from different countries. Global supply chains have become more complex, with components and production processes taking place in multiple countries.
Furthermore, globalization has facilitated the exchange of ideas, knowledge, and cultural influences among different nations. It has led to increased cultural diversity and the spread of information and communication technologies, enabling people to connect and interact across borders.
In summary, globalization is the trend of increasing economic, social, and cultural interconnectedness among nations, characterized by the cross-border flow of goods, services, capital, and information. So OptioN B is correct.
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Leopardstown Fitness Centre in Dublin is considering the purchase of some new training equipment which has a retail price of €8,600. The club has only €600 available to fund the purchase at this time. Following discussions with its local bank, as well as a sales representative from the suppliers, the centre is faced with the following possibilities.
Rental: Pay a monthly rental of €140 for five years, plus an annual maintenance payment of €150.
Hire purchase: Pay a deposit of €600, plus 60 monthly instalments of €150.
A final payment of €480 must then be paid.
Bank loan: Borrow the amount needed for five years on which interest is charged at a flat rate of 7% per annum.
Calculate the total cost of each option over a five-year period.
Answer:
The cost of each option is as below
Explanation:
Option A: Rental
monthly rental for five years: each month €140
Each year has a maintenance fee of €150.
The total of the rental will be monthly rent plus yearly charges.
One year has 12 months; five years will have = 12 x 5 = 60 months
For 60 months, rental payments will total 60 x €140= €8,400
Yearly charges = €140 x 5 = €700
Total for rental = €700 + €8,400
Total cost for rental = €99, 1100
Option B: Hire purchase
Total for hire purchase will be the deposit plus the total of monthly installments plus the final payment.
The deposit is €600
Total for monthly installments: 60 x €160= €9,600
the final payment is €480
Total for hire purchase= €600 + €9,600, + €480
Total cost for hire purchase=€10,680
Option Bank loan:
cost of the loan will be the principal amount plus the interest charged. Interest is 7% per year for five years. Principal amount is
€8,600
Interest = P x r x t,, since interest on a flat rate
=8600 x 7/100 x 5
=8600 x 0.07 x 5
=€3,010
The cost of the loan is €3,010+€8,600
=€11,610
100 points! PLEASE HELP. DO NOT SKIP THIS!
PLEASE DON'T DO FUNNY BUSINESS HERE.
You are now familiar with government and how it plays a role in our economy. Using what you learned in the lesson, describe two advantages and two disadvantages of governmental involvement. What changes would you make to improve government’s role?
You can say answers other than-
there are more restrictions
Answer:
There are many advantages of government intervention such as even income distribution, no social injustice, secured public goods and services, property rights and welfare opportunities for those who cannot afford. Whereas, according to some economists the government intervention may also result in few disadvantages.
I would try to remove corruption
Explanation:
Plz mark brainliest thanks
Answer:
(Disadvantages)
Government and political interference may lead to poor management.
-Operation in large scale may lead to diseconomies of scale arise.
(Advantages)
-Protecting the safety and health of the public and the environment.
-Offering consumers increased safety when choosing products.
Explanation:
Stop trying to legislate morality. Where we get tripped up is in the conversation about "beliefs". We have been stuck in fights that keep our country in a holding pattern. It is not only detrimental to our unity, it undermines our ability to concentrate on areas that need it.?
true or false, to advance the progress completion percentage in a smartbook assignment, only one question per concept must be answered correctly
Answer:
FalseExplanation:
A SmartBook assignment's progress completion % may not always be dependent on correctly answering just one question per idea. The requirements for increasing a SmartBook assignment's progress completion percentage can change based on the particular assignment, the course, and the instructor. It could be determined by properly answering a predetermined number of questions overall, a predetermined number of questions in each topic area, or by doing a predetermined number of activities or evaluations inside the assignment. The easiest way to find out the precise requirements for raising the progress completion percentage in a SmartBook assignment is to study the assignment instructions or speak with the instructor.
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HELP FAST AND YOU GET 50 POINTS Choose a company you frequently buy from.
For example: Nike, McDonald's, Wawa
Now, identify that company's target market and marketing mix.
It needs to be a paragraph/essay long
Answer:
McDonald's is a fast-food restaurant chain that has been around for over 60 years. The company's target market is broad and includes people of all ages, genders, and income levels. However, their primary target audience is families with children, young adults, and teenagers. McDonald's has a reputation for being a fun and affordable place to eat, and they have a menu that appeals to a wide range of tastes.
McDonald's marketing mix includes product, price, promotion, and place. The company's product mix includes burgers, chicken sandwiches, fries, salads, and other fast-food items. They also offer breakfast items, desserts, and beverages such as coffee, soda, and smoothies. McDonald's prices are generally lower than other fast-food chains, which helps to attract budget-conscious customers. The company uses various promotional tactics to reach its target audience, including advertising on TV, social media, and billboards. They also offer promotions such as coupons and discounts to encourage customers to try new items or visit the restaurant more often. Finally, McDonald's has a large number of locations around the world, making it accessible to customers in many different places.
Explanation:
i think this is right
Under a perpetual inventory system, the account to which transportation charges on incoming merchandise is generally entered is:
A. inventory.
B. FOB shipping.
C. delivery expense.
D. FOB destination.
Option A is the correct answer. Under a perpetual inventory system, the account to which transportation charges on incoming merchandise is generally entered is Inventory.
Under a perpetual inventory system, transportation charges on incoming merchandise are generally entered in the account for inventory. This is because transportation charges incurred to bring goods into the company's possession are considered part of the cost of inventory.
When goods are purchased and transported to the company's location, the transportation costs are added to the cost of the inventory. This increases the cost of inventory and is recorded as an increase in the inventory account.
The perpetual inventory system keeps a continuous and up-to-date record of inventory levels and transactions. It requires the recording of each purchase, sale, and inventory adjustment as they occur. As part of this system, transportation charges are directly added to the inventory cost to reflect the total cost of acquiring the goods.
The other options, such as FOB shipping, delivery expense, and FOB destination, are related to different terms and expenses associated with the shipment of goods but do not specifically address the entry of transportation charges in the accounting records under a perpetual inventory system.
Under a perpetual inventory system, transportation charges on incoming merchandise are entered in the account for inventory. This allows for the accurate tracking and inclusion of transportation costs in the cost of inventory, reflecting the total cost of acquiring the goods.
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What are two things a good investment might do?
Answer: With a good investment there should be very little chance of losing the total amount invested. Good investment ideas will hold their value or increase in value for a long time. The way any investment product is structured and regulated should offer investors protection.
Explanation:
Good investment must contain
Long term planPast records The fund where you invest must have good past records of benifit.If it has Andy fraud records of misleading money you shouldn't invest thereAlso the growth rate must be measured for long term interest and benifitsSubmit your CIRAC evaluation of The Case of United States v. Caronia,576 F. Supp. 2d 385 (E.D.N.Y. 2011); 703 F.3d 149 (2d Cir. 2012). The 2nd Circuit decision reviewed the Eastern District of NY decision-read the 2ndCircuit court and you can review the Eastern District of NY decision if you want more background in this case -but you will CIRAC the 2ndCircuit Court’s decision for this assignment.
In United States v. Caronia, the Second Circuit Court reversed the conviction of a pharmaceutical sales representative for off-label drug promotion, citing the First Amendment's protection of free speech.
Explanation:
The Second Circuit Court reversed the conviction of a pharmaceutical sales representative in United States v. Caronia. They ruled that the First Amendment's right to free speech prevented the government from criminally punishing the truthful and non-misleading promotion of an FDA-approved drug for off-label use.
Issue: The central issue in the Caronia case was whether the First Amendment's free speech clause prevented the government from criminally punishing a pharmaceutical sales representative for promoting an FDA-approved drug off-label.
Rules: The rule established in United States v. Caronia was that the government could not criminally punish a pharmaceutical manufacturer's truthful and non-misleading promotion of an FDA-approved drug for a use not approved by the FDA, based on the protection of free speech under the First Amendment.
Application: The Second Circuit Court applied the rule protecting truthful and non-misleading off-label promotion to the specific facts of the Caronia case. They determined that the prosecution had failed to meet its burden of proving that the sales representative's off-label promotion was false or misleading.
As a result, the Second Circuit Court concluded that the First Amendment's protection of free speech prevented the government from criminally punishing a pharmaceutical sales representative for promoting an FDA-approved drug off-label if the promotion was truthful and non-misleading. Consequently, the conviction of the sales representative was reversed.
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Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The issue price will be $1,000. The tax rate is 35%. If the flotation cost is 2% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shield from the amortization of flotation costs. Round your answer to two decimal places. % What if the flotation costs were 11% of the bond issue? Round your answer to two decimal places. %
Answer:
if the flotation costs were 2%, the after-tax cost of debt is 5.10%
if the flotation costs were 11%, the after-tax cost of debt is 4.63 %
Explanation:
After-tax cost of debt = Market Interest × ( 1 - tax rate)
Calculation of the Market Interest
Hint : Use the time value of money principles
Pv = -$1,000
Pmt = $1,000 × 8 % = $80
P/yr = 1
N = 20
Fv = $1,000
YTM = ?
Using a financial calculator, the market interest is 8%
After-tax cost of debt = Market Interest × ( 1 - tax rate)
= 0.08 × (1- 0.35)
= 0.052 or 5.20 %
If Flotation cost is 2%
Net Receipts after flotation cost = Cost × ( 1 - flotation rate)
= 5.20 % × (1-0.02)
= 5.096 % or 5.10% (two decimal places)
If Flotation cost is 11%
Net Receipts after flotation cost = Cost × ( 1 - flotation rate)
= 5.20 % × (1-0.11)
= 4.628 % or 4.63 % (two decimal places)
Explain the impact of effective purchasing on an operation’s cash flow.
Answer:
Thus, effective purchasing Implies buying the right items needed for operations at the right/fair price so as to reduce the total cost of operations, which invariably leads to more Profit since there's reductions in costs.
The effective purchasing is very important to a small business. Purchasing is a key factor for any small business as it influence the performance at all levels.
When the supplies you purchase for consumption do not meet one's needs they will limit the efficiency of the operations you want to carry out and also cash flow in the organization or business. One must to create the right purchasing procedures and closely handle them.
Purchasing systems play an key role in controlling a company's cash outflows this is because they ensure that only the key purchases are made and that they are to be done at good or reasonable prices.
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Lilly, Briah, Chloe, and Terry are the directors and equal shareholders of Fantastic Holidayz Pty Ltd, a company that runs an exclusive airline company and operates in several high-rise office buildings in Melbourne. Briah is the Managing Director and Terry is the Chief Financial Officer. Lilly and Chloe are non-executive directors. The Company has adopted a written constitution which contains the following clauses: (36) A directors' meeting may be called by a director giving reasonable notice individually to every other director (37) Quorum for directors' meetings is four directors and the quorum must be always present during the meeting (42) A resolution of the majority of directors may resolve to remove another director of the company. Business is booming, and Fantastic Holidayz has made a great deal of money over the last few years. However, the Board of Directors have rejected Lilly's proposal to declare a dividend for the last 7 years in a row - and she is getting fed up. The other directors always outvote her, arguing that it is better to keep the profits in reserve and continue to expand the business. Terry is currently investigating the possibility of opening further destinations to their itinerary In October 2017 Lilly was overseas for a family funeral and on her return to Melbourne, she discovers that the other directors have met and passed resolutions to remove her as a director of the company. Lilly did not receive any notice of the director's meeting. In another resolution, the remaining directors voted to pay themselves $500,000 in bonuses - equating to the entire year's profit. Lilly is angry that she has been removed and not paid a bonus and comes to you for your professional advice and opinion. Further, Fantastic Holidayz has a longstanding agreement with several travel agencies, and in January 2018, Fantastic's financial accounts showed that one agency owed the company $85,000, and there was no applicable security Recently, Lilly discovered that by June 2018 the debt owing to Fantastic Holidayz had blown out to $200,000. Terry had approved additional credit without the knowledge of the other directors. He did this, even though the agency had been taking a long time to pay its overdue account. Additionally, there are now rumours that are insolvent, but this cannot be proven. REQUIRED: 1. Discuss whether Lilly can bring any action to challenge the other directors' decision to deny dividends for several years and then pay themselves bonuses? (5 marks) 2. Advise Lilly about the process and potential outcomes if the travel agency is placed into voluntary administration - and any implications of this on Fantastic Holidayz. (5 marks) 3. Advise Lilly about whether Terry has breached any of his statutory duties as a director of Fantastic Holidayz. Include in your answer the consequences of a breach of duty, whether Lilly could bring an action for compensation on behalf of the company against Terry, and whether there are any defences available.
It is important for Lilly to consult with a legal professional to assess the specific circumstances and determine the most appropriate course of action. Legal advice tailored to the jurisdiction and applicable laws should be sought.
1. Lilly's Challenge to Dividend Denial and Bonus Payment:
Lilly may have grounds to challenge the other directors' decision to deny dividends for several years and then pay themselves bonuses. The key considerations are as follows:
a) Breach of Fiduciary Duty: Directors owe a fiduciary duty to act in the best interests of the company. By consistently rejecting dividends despite profitable operations, the directors may be breaching this duty if their decision is not justifiable and reasonable. The decision to pay themselves bonuses without Lilly's approval further strengthens her case.
b) Unfair Prejudice: Lilly may argue that the denial of dividends and payment of bonuses unfairly prejudice her interests as an equal shareholder and director. This argument can be supported by the fact that dividends have been consistently denied for several years, and the bonuses were paid without her knowledge or consent.
c) Oppression of Minority Shareholder: If the other directors' actions substantially interfere with Lilly's rights as a shareholder and director, it could constitute oppression of a minority shareholder. Denying dividends and paying bonuses in a manner that excludes Lilly's interests may be viewed as oppressive.
Lilly can potentially bring legal action seeking remedies such as an injunction to stop the bonuses, an order for dividends to be paid, or a buyout of her shares at a fair value.
2. Travel Agency in Voluntary Administration:
If the travel agency owing $200,000 to Fantastic Holidayz is placed into voluntary administration, the process and potential outcomes can be summarized as follows:
a) Voluntary Administration: Voluntary administration is a process where an external administrator (usually a registered liquidator) takes control of the insolvent company to maximize returns for creditors. The administrator assesses the company's financial position and explores options, such as restructuring or selling the business.
b) Outcomes and Implications: During voluntary administration, the administrator may propose a Deed of Company Arrangement (DOCA) to the creditors. If approved, it could allow the travel agency to continue operating and repay the debt over an agreed period. Alternatively, if the company's financial situation is deemed irreparable, the administrator may recommend liquidation.
For Fantastic Holidayz, the outcome depends on the recovery of the debt. If the travel agency is unable to repay the owed amount, Fantastic Holidayz may have to write off the debt as a loss, potentially impacting their financial position. The impact could be significant if the debt is material to the company's operations.
3. Terry's Breach of Director's Duties:
Terry, as the Chief Financial Officer and a director of Fantastic Holidayz, may have breached his statutory duties. The key considerations are as follows:
a) Duty of Care and Diligence: Directors must exercise reasonable care, skill, and diligence in fulfilling their roles. Terry's approval of additional credit without the knowledge of other directors could be seen as a failure to exercise due care and diligence. The consequences of a breach may include personal liability for any loss suffered by the company.
b) Duty to Act in Good Faith and for Proper Purpose: Directors must act in good faith and in the best interests of the company. By approving additional credit for a customer with an outstanding overdue account, despite potential insolvency concerns, Terry may have breached this duty.
c) Consequences and Action for Compensation: If Terry is found to have breached his statutory duties, consequences may include personal liability for any loss suffered by the company due to his actions. Lilly, as a shareholder, may have standing to bring a derivative action on behalf of the company to seek compensation from Terry for any losses incurred.
d) Defenses: Terry may raise defenses such as relying on professional advice, acting in good faith, or having the belief that his actions were in the company's best interests. However, these defenses may not absolve him entirely from liability if his actions are found to be unreasonable or against the company's interests.
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You open a new bank account at Eastside Savings. You see FDIC stickers around the bank, and the teller specifically mentions that Eastside
Savings is "FDIC Insured". A few months later, you hear on the radio that Eastside Savings is struggling to stay in business. Your savings balance
Is $500. What would happen to that money if Eastside Savings failed?
A.You could lose $250 since FDIC Insurance only covers 50% of the money you have deposited.
B.You would lose all of your money.
C.You would receive $250,000 since FDIC Insurance provides each account at the bank with $250,000 regardless of how much they
have deposited
D.You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250,000.
Answer:
The correct option is D. You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250,000.
Explanation:
Based on the information given what would happen to that money in a situation where Eastside Savings failed is that such individual would receive all the money he/she have deposited at Eastside Savings reason been that FDIC which is fully known as FEDERAL DEPOSIT INSURANCE CORPORATE insurance covers accounts up to the amount of $250,000 and Secondly Eastside Savings is "FDIC Insured".