A portfolio's beta is a gauge of its volatility in relation to the market as a whole. The weighted average of the betas of the various securities is used to compute it.
What happens in this instance ?In this instance, the investor is funding two stocks: GB Corporation and ABC Inc. The beta of GB Corporation is 2.5, whereas that of ABC Inc. is half the market beta (ß). We must first determine the weight of each stock in order to compute the portfolio's beta.
Divide the amount invested in each stock by the total amount invested in the portfolio to get the weight of each stock. The investor is making an R15 000 investment in ABC Inc. and a R 20,000 investment in GB Corporation in this example.
totaling 35,000 Rand. As a result, the weight of GB Corporation is 20 000/35 000, or 0.571, while the weight of ABC Inc. is 15,000/35 000, or 0.429. We can determine the portfolio's beta now that we know the weights of each component.
By averaging the betas of the several equities, this is accomplished. The portfolio's beta is determined as follows: 0.429 x (ß/2) + 0.571 x 2.5 = 1.786. Consequently, the portfolio's beta value is 1.786.
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Define Red Gross Society.
Answer: The Indian Red Cross Society is a voluntary humanitarian organization to protect human life and health based in India.
Explanation: It is part of the International Red Cross and Red Crescent Movement, and so shares the Fundamental Principles of the International Red Cross and Red Crescent Movement.
Which industry is Amazon involved in ?
Answer:
Cloud computing e-commerce artificial intelligence consumer electronics digital distribution self-driving cars
Explanation:
Answer:
Cloud computing e-commerce
Explanation:
it is used for artificial intelligence or the use of robots
what does the going concern concept mean?
A)a business is profitable
B)a business will continue to operate for the foreseeable future
C) the assets of a business exceed its liabilities
D)the assets of a business should be evaluated at disposal value
Answer:
B)a business will continue to operate for the foreseeable future
Explanation:
The concept of 'going concern' means that a business will continue to operate into the foreseeable future. It implies that a business has a long life and is no danger of shutting down or being liquidated.
The going concern concept may be applied when a business is being sold or acquired. When a business is being sold as a going concern, it means that it is being sold as a unit. After the transaction, the business is expected to continue with its operations as normal.
Which of the following would be the most unique selling proposition for a
pizza restaurant?
A. "We let you put the toppings on the pizza - as much as you want."
B. "We make the pizza, and then we bring it to you."
C. "Good pizza at a reasonable price."
D. "Hot and fresh pizza - made to order."
Answer: the answer is “We let you put the toppings on the pizza-as much as you want.”
Explanation:
Unique because it grabs the customers attention
Most unique selling proposition for a pizza restaurant is "We let you put the toppings on the pizza - as much as you want."
Thus, the correct option is A.
What is unique selling proposition?The one thing that sets your company apart from the competitors is known as a unique selling proposition, or USP. When compared to other companies in your market, it is a specific feature that distinguishes your company.
Using terms like "new and improved" or "more advanced" to highlight the novelty, superiority, or advancement in any area of your product above one or more competitors' products would be a successful example of a USP.
A strong USP should emphasize benefits. It should be crystal apparent to the buyer what your good or service can accomplish for them, not just what it is. Simple, precise, succinct, and consistent Keep your USP straightforward and easy to comprehend.
The best value proposition examples frequently incorporate a headline, subhead line, or brief text in addition to a visual that heightens curiosity, like an image, video, or illustration.
Customers should comprehend what a brand stands for and what it can provide them after reading value propositions.
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Mention the importance of saddle point in game theory?
Saddle point in game theory is an outcome that occurs when both players choose the optimal strategy, and no other strategy provides a better outcome for either player.
A saddle point is a point of equilibrium in a game in which both sides have alternatives that are equal and stable.
In game theory, the saddle point is significant for the following reasons: In game theory, the saddle point is a concept that assists in determining the best possible strategy.
It is a factor that can be considered when determining the winner of a game. A game that relies on an understanding of probability theory can be played in a risk-free manner using a saddle point.
A game's complexity can be reduced by using a saddle point, which in turn makes the game simpler and easier to grasp. It is beneficial for judging the overall worth of a game.
The worst-case scenario for one person can be determined by using a saddle point, which also helps to determine how much damage will be done by the scenario.
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Momentum, a brand of sports cars, launched an advertising campaign with a tagline that states, "Our cars outperform most cars on the road even before you step on the accelerator." In this scenario, the company is using ________ segmentation as it targets its product to satisfy consumers who want to satisfy performance needs. benefit
demographic
geographic
socioeconomic
Momentum, a brand of sports cars, launched an advertising campaign with a tagline that states, "Our cars outperform most cars on the road even before you step on the accelerator." In this scenario, the company is using benefit segmentation as it targets its product to satisfy consumers who want to satisfy performance needs.
Benefit segmentation is a type of market segmentation strategy in which the target market is divided into segments based on the perceived benefit that consumers seek from a product or service. In other words, the company divides the market into different groups of consumers based on the specific benefits they are looking for in a product or service.
For example, Momentum is using benefit segmentation by targeting consumers who want to satisfy their performance needs. The company is emphasizing the superior performance of its sports cars, which appeals to consumers who are looking for high-performance vehicles. By doing so, Momentum is trying to differentiate its product from other cars in the market and attract consumers who value performance and speed over other features.
Therefore the correct option is benefit
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Devon is very good with people. she works for a pharmaceutical company and often visits doctors to see if they will sell her product to their patients. in which career pathway is devon most likely involved? marketing communications professional sales and marketing distribution and logistics e-marketing
Marketing Communications is the utilization of many marketing channels and techniques in tandem.
What are the four kinds of marketing communication?Advertising, public relations, sales promotions, and online media are the four methods of marketing communication.
Advertising, being the most potent commercial communication tool, provides a broad audience reach and a high frequency of information transmission.
Public relations is the second sort of marketing communication. In a more subtle way, public relations will aid in the creation of brand awareness among customers. This is what distinguishes public relations from advertising.
Discounts on sales promotions are the most popular sort of sales promotion. When you realize this, you may begin to consider how you may make the most of the circumstance.
Media on the Internet Many businesses use online media as a marketing communication tool. This might be accomplished by purchasing appealing advertisements and placing them in promising places such as online newspapers and magazines.
Thus Option A is the career pathway Devon is involved in.
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Answer:
Marketing Communication
Explanation:
Edge 2022
multi-divisional structures are complex organizational designs that try to take advantage of two types of structures (i.e., functional and product structures) at the same time. group of answer choices
Multi-divisional structures are complex organizational designs that aim to leverage both functional and product structures simultaneously. While they are more complex and require effective coordination and communication mechanisms, multi-divisional structures offer the potential for improved product development, market responsiveness, and overall organizational performance.
Multi-divisional structures, also known as multi-divisional organizations or M-form structures, are organizational designs that combine elements of both functional and product structures. In functional structures, departments are organized based on specific functions such as finance, marketing, and operations. In contrast, product structures group employees and resources based on specific products or services.
The multi-divisional structure attempts to capture the benefits of both functional and product structures by organizing divisions around specific products or markets while maintaining functional departments to support the divisions. This design allows for greater focus on product development and market responsiveness within each division, while functional departments provide expertise and support services shared across divisions.
By adopting a multi-divisional structure, organizations seek to balance the advantages of specialization and efficiency provided by functional structures with the flexibility and customer orientation offered by product structures. It enables better coordination and integration across different divisions and enhances decision-making at both the divisional and corporate levels.
Multi-divisional structures represent a strategic approach to organizational design, aiming to combine the strengths of functional and product structures. While they are more complex and require effective coordination and communication mechanisms, multi-divisional structures offer the potential for improved product development, market responsiveness, and overall organizational performance.
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1) The skills and knowledge a person has acquired through experience and/or
education.
O Human Capital
O Entrepreneurial talents
O Physical Capital
O Perfect competition
Answer:
O Human Capital
Explanation:
Human capital is an employee's knowledge, skills, and competencies that a company uses in productivity. It is the attributes of labor that impact production and influence compensation. Human capital is enhanced through education, job training, work experiences, and research.
Human capital is compensated through wages and salaries. Its cost is monetized as labor and is one of the factors of production.
QUESTION 5 of 10: The first step in the marketing process is to:
Answer:
Understand the market place, which includes customer needs and wants.
Grand, Inc. produced 1,000 units of the company's product in 2024. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.05 per yard. The accounting records showed that 2,700 yards of cloth were used and the company paid $1.10 per yard. Standard time was two direct labor hours per unit at a standard rate of $15.00 per direct labor hour. Employees worked 1,500 hours and were paid $14.00 per hour. What are the benefits of setting cost standards?
Setting cost standards has several benefits for a company, including:
Planning: Cost standards help to plan the production process efficiently by determining the quantity and price of materials needed for production, as well as the labor hours required to produce the finished product.
Control: By setting cost standards, a company can compare actual costs with the expected costs, identify differences or variances, and take corrective measures to control costs.
Performance evaluation: Standards provide a basis for evaluating performance and identifying areas where improvements are needed. This information can be used to adjust production processes, improve efficiency, and reduce costs.
Decision-making: Cost standards provide reliable information that can be used in decision-making, such as pricing decisions, make-or-buy decisions, and investment decisions.
Benchmarking: Cost standards can be used to benchmark a company's performance against industry averages or best practices, enabling the company to identify areas where it is lagging behind and take steps to improve.
In summary, cost standards provide a useful tool for planning, controlling, evaluating performance, making decisions, and benchmarking.
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when the government goes into deficit spending to stimulate the economy, it has to borrow more money. this borrowing may have a negative impact by when the government goes into deficit spending to stimulate the economy, it has to borrow more money. this borrowing may have a negative impact by causing interest rates to fall due to increased demand. causing the government to stop issuing bonds. increasing the national debt causing banks to go bankrupt.
To stimulate the economy, Because of the additional demand brought on by this borrowing, it can have a negative effect by pushing up interest rates.
A percentage of the principal, or the economy amount loaned, is what a lender charges a borrower as interest. The annual percentage rate, or APR, is the usual unit used to express the interest rate on a loan (APR).
The amount earned from a savings account or certificate of deposit at a bank or credit union may also be subject to interest rates (CD)interest rates. on these bank accounts is calculated as an annual percentage yield (APY).
The borrower is essentially charged interest for economy the usage of the asset. Cash, consumer goods, vehicles, and real estate are all examples of lent assets. As a result, an interest rate can be viewed as the "cost of money" because it increases the cost of borrowing the same amount of money.
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Which is not an expense account?
Repairs
Advertising
Rent
Interest
Accrued
The answer option which is not an example of an expense account is: E. Accrued.
What is an expense account?An expense account can be defined as a type of account that include an amount of money (funds) that are paid to an employee by an employer of labor, so as to enable the employee spend the fund on things related to his or her job.
In Business management, some examples of an expense account include the following:
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ames is an undergraduate student who has £800 of income to spend each semester on pizza and books. The price of a pizza is £8 and the price of a book is £40. (a)In a diagram with pizza on the vertical axis and books on the horizontal axis, draw James's budget constraint. (2 marks) (b)Now suppose James's parents buy him a £400 gift voucher each semester that can only be used to buy books. In the same diagram for part (a), draw James's budget constraint when he has the gift voucher in addition to his £800 income. (3 marks) (c)ls James better off with the gift voucher? Explain your answer.
(a) In a diagram with pizza on the vertical axis and books on the horizontal axis, James's budget constraint can be represented as follows:
The slope of the budget constraint line represents the relative price of pizzas and books, which is given by the ratio of their prices: £8/£40 = 1/5. The budget constraint line starts at the point (0, 800/40) = (0, 20) on the books axis and (800/8, 0) = (100, 0) on the pizza axis. The line connects these two points.
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What are the total assets reported by Panther Enterprises if operating income is $252,750, its return on investment (ROI) is 15%, and its target rate of return is 5%?
$5,055,000
$252,750
$1,685,000
$37,912.5
Panther Enterprises operates with an ROI of 15%, a target rate of return of 5% and an operating income of $252,750. Here, we are required to determine the total assets reported by Panther Enterprises. First, we need to calculate the total assets with the help of the ROI.
ROI = Net Income / Total Assets Hence, Total Assets = Net Income / ROI We know that Target Rate of Return = ROI, then Net Income = Target Rate of Return * Total Assets Now, Operating Income = Net Income + Interest Hence, Interest = Operating Income - Net Income Operating Income = $252,750Target Rate of Return = ROI = 15%Target Rate of Return = 5%Let the total assets be x. Now, 5/100 * x = 1/15 * x + (252,750 - x/15)Here, the first term, 5/100 * x, is the net income, 1/15 * x is the interest, and the second term is the operating income. Now, solving for x, x = 5,055,000Hence, the total assets reported by Panther Enterprises is $5,055,000.
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Broussard Skateboard's sales are expected to increase by 15% from $8.6 million in 2019 to $9.89 million in 2020. Its assets totaled $3 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 60%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.
The Additional Funding requirement (AFN) will be $743,240.
Additional funding needed for next year [AFN]
Next year's expected sales = $9,890,000
Profit margin after tax
Profit margin after tax = next year's expected sales × profit margin
= $9,890,000 × 4.00%
= $395,600
Dividend pay-out
Dividend pay-out = after tax profit margin × dividend payout ratio
= $395,600 × 60%
= $237,360
Add to retained earnings
Additions to retained earnings = profit margin after tax - dividend pay-out
= $395,600 - $237,360
= $158,240
Increase in total assets
Increase in total assets = Total assets × percentage increase in sales
= $3,000,000 × 15%
= $450,000
Increase in spontaneous responsibilities
Increase in accrued liabilities = [accounts payable + accruals] × percentage increase in sales
= [$450,000 + $450,000] × 15%
= $900,000 × 15%
= $135,000
Additional Funding Needed [AFN]
Therefore, Additional Funds Needed [AFN] = Increase in total assets - Increase in outstanding liabilities - add in retained earnings
= $450,000 - $135,000 - $158,240
= $743,240
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Identifying Which of the tiles you placed in the pure
competition column applies to this bicycle delivery
person?
Pure competition simply means a market that's has a wide range of competitors who are selling the same products.
Your information is incomplete. Therefore, an overview of pure competition will be given. In pure competition, all the companies sell identical products.
In pure competition, the market share does not influence the price. Also, companies can enter or exit the industry whenever they like as there's no barrier. The buyers have perfect information as well.
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variable costing treats blank______ manufacturing costs as product costs.
Variable costing treats only direct materials, direct labor, and variable manufacturing overhead costs as product costs.
In variable costing, only those costs that change with the level of production are considered product costs. These include direct materials, direct labor, and variable manufacturing overhead. Under this method, fixed manufacturing overhead costs are treated as period costs and are expensed during the period in which they are incurred. This approach provides a clearer picture of the actual cost of producing each unit, as it only includes costs that are directly tied to production.
Variable costing is often used for internal decision-making, as it allows management to better understand the relationship between costs and production levels. It is also helpful in analyzing the impact of changes in production levels on overall profitability.
However, it is important to note that variable costing is not used for external financial reporting purposes, as it does not conform to Generally Accepted Accounting Principles (GAAP). Instead, absorption costing, which includes both variable and fixed manufacturing costs as product costs, is used for financial reporting.
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Define demand and supply
Felipe's uncle owns a large manufacturing business with offices in three states. This type of business would BEST be described as what?
The type of business that the uncle is said to have would be described as an entrepreneurial business.
What is an entrepreneurship?This is used to refer to the business that is owned by a single person. This person is called the entrepreneur who gets to enjoy either the profit or the loss that may occur in the business that he is operating.
The question says that the uncle has a chain of these businesses across three states, we can say that the uncle is an entrepreneur.
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Answer: corporate
Explanation: it has three locations in different states, which gives it a wide range of clients.
list two of three places where a student can learn about apprenticeship opportunities
Answer: The first and really the best way is Job corps, trade schools, and a regular fast food restuarant
Explanation: But Job corps is better you get a place to stay you get all the benefits like medical coverage, child services, food, drivers liscence, and you can learn over 50 things to do.
The two places where a student can learn about apprenticeship opportunities are Job corps, trade schools.
What is apprenticeship?Apprenticeship is a system for educating a new generation of practitioners of a trade or profession through on-the-job training and, in some cases, additional study.
Apprenticeships can also help practitioners obtain a license to work in a regulated occupation. The majority of their training is completed while working for an employer who assists apprentices in learning their trade or profession in exchange for continued labor for an agreed-upon period after they have demonstrated measurable competencies.
Therefore, Job corps, trade schools are the best places where a student can learn about apprenticeship opportunities.
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Your market value is determined by what you bring to the job.
True
False
Briefly describe a sensible equipment maintenance checklist appropriate for a travel booking agency with about four computers that are used to go online and make flight and hotel reservations and use dedicated calendar, appointment, and customer database software. Include in your description at least three discrete programs, systems, procedures, or operations that would go on this checklist. For at least one of the items on the list, describe in detail how you would actually use that procedure in practice, including how often the procedure should be performed
Answer:
Checklists are clear
Explanation:
checklist:-
Checklist is the simplest method for systematizing scoping of the likely effects of a proposed policy. They help point out areas that require a more detailed assessment. This way, checklists can help to organize the assessment and identify the most important issues.Steps to create
Step 1: Do a “brain dump”
Step 2: Organize and prioritize tasks.
Step 3: Put them on your to-do list.
Step 4: Check off each item as you complete it.
Step 5: Continue adding items as they come up.
The previous balance on your business credit card was $420.87. Then you purchased a new chair for your office that cost $120.63. For the next billing cycle, you paid $380. What is the remaining balance on your business card?
Answer:
$-79.76
Explanation:
Answer:
$161.50
Explanation:
Tammy is talented at craft but lacks the cash flow management skills required to run a business. She opens a store, Tammy's Craft Corner, with the help of her son David - a business major - who manages the budgets and expenses of the business. David prepares the quarterly budget and maintains a company book for recording all transactions. The company book balance that David regularly updates is the sum of:
Answer:
who the hell keeps helping novice businesses people open up? - a business major - yeah the last two were too.
Explanation:
Summary? Left over cash?
Match each concept in Column A with an example in Column B. Column A Column B a. Substitute goods 1. Price and quantity along the supply curve b. A nonprice determinant of demand 2. Tea and coffee c. A nonprice determinant of supply 3. A change in technology d. Mark-up pricing 4. Hunger e. Positive relationship 5. Shoes and shoelaces f. Negative relationship 6. Consumer income g. Inadequacy 7. Price and quantity along the demand curve 24 h. Complementary goods 8. Setting price equal to cost plus 20 percent
Answer:
a. Substitute goods - Tea and coffee
b. A nonprice determinant of demand - Consumer income
C. A nonprice determinant of supply - A change in technology
D. Mark-up pricing - Setting price equal to cost plus 20 percent
E. Positive relationship - Price and quantity along the supply curve
F. Negative relationship - Price and quantity along the demand curve
G. Inadequacy - Hunger
H Complementary goods - Shoes and shoelaces
Explanation:
Substitute goods are goods that can be used in place of another good.
if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.
Complementary goods are goods that are consumed together
The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
There is a positive relationship between price and the quantity supplied. This accounts for why the supply curve is positively sloped.
A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.
Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :
1. A change in the price of input
2. A change in the number of suppliers
3. Government regulations
4. Technological changes
Business Ethics Nine-point Checklist Questions
You own a business in the United States that you have determined needs to move out of the country in order to survive. Choose one of the companies below to complete your quiz.
As you prepare to leave, you need to identify those who are helped (individuals in the new country) and those who are hurt. Next, you need to define your ethical responsibilities to all your shareholders (the individuals in the US).
Choose one of these companies as your company to answer the Business Ethics Checklist.
Apple
IBM
Cisco Systems
Nike
Wal-Mart
What are the facts? Who is affected? Is there an ethical problem? Is it simply right vs. wrong? Is this an ethical dilemma: Right vs. wrong? What resolution principles might be applied? What are your options? Is there a third way? Reflect on why you think this is the best decision? PLEASE SOMEONE HELP ASAP!!!!!!!
YOULL GET 100 POINTS!!!!
The business Ethics Nine-Point Checklist aids in making ethical decisions. The one for Wal-Mart is as follows:
The background: I'm leaving and I have to identify those who have helped and those who have hurt.The facts? I will be leaving and I have to ensure that my absence does not hurt the company.Who is affected? The company as a whole will be affected if I don't put proper succession plans in placeIs there an ethical problem? Yes. My responsibility within the company is to ensure that the company continues to exist and function legally and separately from my person so that other stakeholders (staff and investors) are not put at a disadvantage.Dilemma? The dilemma only exists if the solution to my absence is such a difficult one. The conflict is between my personal interests and that of the company.What resolution principles may be applied? Succession planning and change management is crucial in this case.Is there a third way? Yes. The third way would be to reexamine the reason why I want to leave in the first place and see if there is a possible solution to thatWhat is the best decision? This would be dependent on a lot of subjective factors.What is ethics?Ethics, often known as moral philosophy, is a philosophical field that "involves systematizing, defending, and advocating conceptions of good and bad action." The field of ethics, like aesthetics, is concerned with considerations of worth; together, these subjects compose the branch of philosophy known as axiology.
The Fundamental Ethics Principles The four ethical principles are beneficence, nonmaleficence, autonomy, and justice.
Ethics is what motivates us to speak the truth, honor our promises, and assist those in need. On a daily level, an ethical framework underpins our lives, assisting us in making decisions that have a good influence and directing us away from unjust consequences.
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Give an example of where you would use a credit card versus a debit card. List the pros and cons of each for this purchase you are thinking of. Describe why you would use one form of payment versus the other?
Answer:
Credit Cards vs. Debit CardsCredit cards and debit cards typically look almost identical, with 16-digit card numbers, expiration dates, and magnetic strips, and EMV chips.1 Both can make it easy and convenient to make purchases in stores or online, with one key difference. Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Credit cards allow you to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash.
Explanation:
Pros of Using Credit CardsCredit cards can offer certain advantages over debit cards, though they can also have some downsides. Here’s a closer look at the pros and cons of spending with credit cards.
Build credit historyWarranty and purchase protectionsFraud protectionCons of Using Credit CardsThe main drawbacks of using credit cards involve debt, credit score impacts, and cost.
Spending can lead to debtCredit score impactsInterest and feesPros of Using Debit CardsDebit cards can have both upsides and downsides, just like credit cards.
Avoid debtFraud protectionsNo annual feeCons of Using Debit CardsSimilar to credit cards, the biggest downsides of using debit cards involve credit score impacts and cost.
No rewardsWon’t build creditFeesA Purchasing Specialist is sometimes referred to as what? Select all that apply *
Purchasing Agent
Purchasing Manager
Procurement Manager
Buyer
\(\text{Hello there!}\)
A Purchasing Specialist is sometimes referred as a \(\bold{Procurement Manager.}\)
This is because they're responsible for purchasing/procuring supplies.
They relatively have the same roles, however, occasionally referred to by different names.
\(\text{The job of the}\) \(\bold{Purchasing\;Manager}\) \(\text{\;is to purchase supplies for the company.}\)
\(\text{For example, purchasing lettuce for a}\) \(\bold{fast\;food\;restaurant.}\)
\(\text{The job of the\;}\) \(\bold{Purchasing\;Agent}\) \(\text{is to buy supplies that the company needs.}\)
\(\text{The job of the}\) \(\bold{Procurement\;Manager}\) \(\text{has the same responsibilities as the}\)\(\bold{Purchasing\;Manager.}\)
Therefore, all of the possible referred answers are going to be correct.
The only differences are going to be the names.
\(\rule{300}{1.0}\)
A rightward shift in the aggregate demand curve will cause employment and the price level to change in which of the following ways in the short run?Employment Price LevelA. Increase IncreaseB. Increase DecreaseC. Increase No changeD. Decrease IncreaseE. No change No change
A rightward shift in the aggregate demand curve will cause employment to increase and the price level to increase in the short run. The correct answer is A. Increase Increase.
When the aggregate demand curve shifts to the right, it indicates an increase in overall demand for goods and services in the economy. This increased demand leads to higher production levels, which in turn requires businesses to hire more workers, leading to an increase in employment.
As employment increases, there is a greater demand for labor, which can lead to upward pressure on wages. Higher wages and increased production costs can then translate into higher prices for goods and services, resulting in an increase in the price level.
Therefore, the correct answer is A. Increase Increase.
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A rightward shift in the aggregate demand curve in the short run will cause employment to increase and the price level to potentially increase.
A rightward shift in the aggregate demand curve indicates an increase in aggregate demand in the economy. This can be caused by factors such as increased consumer spending, government spending, or investment. In the short run, this shift in aggregate demand can have significant effects on employment and the price level.
When aggregate demand increases, businesses experience higher demand for their goods and services. To meet this increased demand, businesses may need to hire more workers, leading to an increase in employment.
Additionally, increased demand can lead to higher prices as businesses may raise prices to maximize profits. However, the extent to which prices increase depends on various factors such as the elasticity of supply and the presence of inflationary pressures.
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