a) The minimum price the investor would sell the asset for is the expected value of the asset's payoff, weighted by the investor's probability of receiving each outcome. Therefore, the minimum price to sell would be πG + (1 - π)B.
b) The maximum price the investor would be willing to pay to buy the asset is also the expected value of the asset's payoff. Therefore, the maximum price to buy would be πG + (1 - π)B.
c) The buy and sell prices would be the same if the investor is risk-neutral, meaning that they only care about the expected value of the asset's payoff and are indifferent to risk. In this case, the investor's willingness to sell and buy would be based solely on the expected value of the asset.
d) Given w = 10, G = 10, B = 5, and u(c) = c, we can calculate the buy and sell prices:
- The expected value of the asset's payoff is E = πG + (1 - π)B = π(10) + (1 - π)(5) = 10π + 5 - 5π = 5π + 5.
- The minimum price to sell would be 5π + 5.
- The maximum price to buy would also be 5π + 5.
Therefore, in this case, the buy and sell prices are the same: 5π + 5.
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True or false: HRM is just as important to a company as the company's finance, marketing, and accounting departments.
**True.** HRM (Human Resource Management) is just as important to a company as its finance, marketing, and accounting departments.
While each department plays a crucial role in the overall functioning of a company, HRM is equally significant in ensuring the success and effectiveness of the organization. HRM is responsible for managing the company's human capital, including recruitment, selection, training, performance management, employee engagement, and employee relations.
Effective HRM practices contribute to various aspects of a company's success. For instance, HRM plays a vital role in attracting and retaining top talent, which is crucial for driving innovation, productivity, and competitiveness. HRM also ensures compliance with labor laws and regulations, promotes a positive work culture, fosters employee development, and manages conflicts or issues within the workforce.
Additionally, HRM plays a critical role in aligning the company's human resources with its strategic goals, facilitating organizational change, and promoting diversity and inclusion. Without effective HRM, companies may struggle to attract and retain talented employees, experience low employee morale, face legal and compliance risks, and hinder overall organizational performance.
Therefore, recognizing the importance of HRM as being on par with finance, marketing, and accounting departments is essential for organizations to thrive in a competitive business environment.
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When you plan a presentation, how should you make sure you stay on track as you talk?
A. Make a list of general topics and points you want to cover.
B. Write out every word of the presentation on notecards.
C. Memorize every word of the presentation in your head.
D. Have the audience tell you what else you need to talk about.
Answer:
A make a list
Explanation:
Answer:
It's A. Make a list of general topics and points you want to cover.
Explanation: hope it helps ^w^
assume that coffee and tea are substitutes. given a downward sloping demand curve for tea, an increase in the price of tea will cause
An increase in the price of tea, assuming it is a substitute for coffee, will lead to a decrease in the demand for tea. When coffee and tea are considered substitutes, they serve similar purposes and can be consumed interchangeably. As a result, if the price of tea increases, consumers are likely to switch to the alternative, which is coffee.
The downward sloping demand curve for tea indicates that as the price of tea decreases, the quantity demanded increases. Conversely, as the price of tea increases, the quantity demanded decreases.
When the price of tea rises, consumers may find coffee to be a more attractive option due to its relatively lower price. They may choose to purchase more coffee and reduce their consumption of tea. This behavior leads to a decrease in the demand for tea, as consumers are now substituting it with coffee. The extent of the decrease in demand will depend on the price elasticity of demand for tea and the availability of close substitutes like coffee. Overall, an increase in the price of tea will cause a decrease in its demand as consumers shift to the substitute, coffee.
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Ethan, a former employee of fiber optics, inc., is currently unemployed. to collect unemployment compensation, ethan must?
To collect unemployment compensation, Ethan must go through a few steps: 1. Determine eligibility: Ethan needs to check if he meets the requirements for unemployment compensation. Generally, this includes being unemployed through no fault of his own, actively seeking employment, and meeting specific earnings criteria set by the state.
2. File a claim: Ethan must file an unemployment claim with the appropriate government agency. This can usually be done online or by phone. He will need to provide personal information, employment history, and details about his separation from Fiber Optics, Inc.
3. Attend interviews and orientations: Ethan may be required to attend interviews or orientations as part of the application process.
These sessions help verify eligibility and provide information on job search requirements.
4. Maintain job search records: Ethan must actively search for work and keep a record of his job applications. This is usually a requirement to continue receiving unemployment benefits. These records may be requested for verification purposes.
5. Certify for benefits: Ethan needs to regularly certify or claim his benefits. This is usually done weekly or bi-weekly, depending on the state. He will need to report any income earned during that period, as it may affect his eligibility or benefit amount.
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Ethan may be required to fulfill additional obligations, such as attending job counseling sessions or job training programs, as specified by the unemployment compensation program. It is important for him to follow any guidelines provided and meet these requirements to continue receiving benefits.
To collect unemployment compensation, Ethan, a former employee of Fiber Optics, Inc., must fulfill certain requirements:
1. Check eligibility: Ethan needs to verify if he meets the eligibility criteria set by the unemployment compensation program in his jurisdiction. These criteria typically include factors like the reason for unemployment (e.g., layoff or termination without cause), minimum earnings, and the length of previous employment.
2. File a claim: Ethan should file an unemployment claim with the relevant government agency responsible for administering unemployment benefits. This can usually be done online or by phone, following the instructions provided by the agency.
3. Provide necessary documentation: Ethan will likely be required to provide documentation to support his claim, such as proof of previous employment and earnings, a copy of his termination letter, and any other relevant paperwork.
4. Actively seek employment: To remain eligible for unemployment compensation, Ethan must actively search for new employment opportunities and provide evidence of his job search efforts. This can include keeping a record of job applications, attending job fairs or networking events, and participating in training programs or reemployment services.
5. Report earnings: If Ethan earns any income while receiving unemployment benefits, he must report it to the agency administering the program. The amount of income earned may affect the amount of compensation he is eligible to receive.
6. Meet ongoing requirements: Ethan may be required to fulfill additional obligations, such as attending job counseling sessions or job training programs, as specified by the unemployment compensation program. It is important for him to follow any guidelines provided and meet these requirements to continue receiving benefits.
It's important for Ethan to familiarize himself with the specific guidelines and requirements of the unemployment compensation program in his jurisdiction, as they can vary. He should contact the relevant agency or visit their website for detailed information and assistance with his claim.
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what are the advantages and disadvantages of common stocks
Advantages:
You can invest in companies with limited liability. Common stocks offer a higher earning potential. You can easily purchase common stock on virtually any trading platform. Common stocks can provide dividends. You’ll get to take advantage of a growing economy.Disadvantages:
You are the last person to get paid during a company liquidation. You don’t have much control over your investment. Companies are not required to pay dividends on common stocks. It can take time to generate significant gains. You will face high levels of professional competition when investing in common stocks.Hopes this helps :)
An Insurance aging report can be printed in ______ format, listing all companies alphabetically
\(\huge\bold{\purple{\bold{⚡Landscape⚡}}} \)
Answer:
An Insurance aging report can be printed in landscape format, listing all companies alphabetically
Explanation:
Print - Select this option to print the Insurance Aging report. NOTE: This report should be printed in a landscape format instead of a portrait format.showing in accounting rcords all information needed to prepare financial statements
Preparing financial statements involves recording and organizing financial transactions, events, and data to ensure accurate and comprehensive preparation.
In accounting, it is essential to maintain detailed and accurate records of financial transactions and events. These records serve as the foundation for preparing financial statements, such as the income statement, balance sheet, and cash flow statement.
The process involves systematically recording and organizing information related to revenues, expenses, assets, liabilities, and equity.
By diligently recording and documenting financial data, businesses ensure that all relevant information is captured and included in the financial statements.
This includes details about transactions, supporting documentation, calculations, and other necessary information.
Accurate and comprehensive accounting records provide transparency and facilitate the preparation of financial statements that present a true and fair view of the company's financial position, performance, and cash flows.
Moreover, maintaining complete accounting records allows for effective financial analysis, auditing, and compliance with regulatory requirements.
It enables stakeholders, such as investors, creditors, and government authorities, to assess the company's financial health, make informed decisions, and ensure compliance with accounting standards and regulations.
Overall, showing all the needed information in accounting records is vital for the preparation of reliable and informative financial statements.
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Which of the following statements is true?
Answer:
True
Explanation:
All purchase/sale transactions are made on credit. The company uses the fifo method and perpetual inventory system to report transactions. What is the ending balance of inventory under the fifo method?.
Using the first-in, first-out (FIFO) method, the ending balance of inventory is the most recent costs incurred to purchase merchandise or materials.
The first-in, first-out (FIFO) method is a widely used inventory valuation method that assumes that the goods are sold (by merchandising companies) or materials are issued to production department (by manufacturing companies) in the same order in which they are purchased. In other words, the costs to acquire merchandise or materials are charged against revenues in the order in which they are incurred. Usage of FIFO method is very common to compute cost of goods sold and the ending balance of inventory under both perpetual and periodic inventory systems.
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new product ideas ???
Answer:
a vacuum with a phone holder attached and comes with earbuds so you can watch tv LOL
POSSIBLE POINTS: 5
Use the sample stock quote below to identify the following figures.
Market Summary> Under Armour Inc Class A
NYSE: UAA
+ Follow
9.77 USD +0.080 (0.83%) +
DT
1 day
5 days
1 month
6 months
YTD
1 year
5 years
Max
10.0
9.77 USD 11:17 AM
9.9
98
9.7..
9.6
- Previous
close
959
10:00 AM
12:00 PM
1:00 PM
2:00 PM
SO0 PM
400 PM
Open
High
Low
Mit cap
P/Eroti
Div yield
Prev close
9.91
9.95
9.70
4.198
48.19
52-wk High
52-wk low
22.72
735
Current Price indicates how much one share of stock
costs right now)
Price Change Today (shows if the stock is up or down in
value since the market opened)
Year High Low (shows the highest the price of this stock
has been and the lowest it has been in the past year)
:
Market Cap (shows how much the company is worth in
total. Used to help shareholders understand their
percentage of shares)
Price to Earnings Ratio (shows how much one should
expect to invest in order to experience profits. A high
ratio indicates more money required to see substantial
returns)
Answer:
ok, so it can be all of them but the answer is aaaa
Explanation:
Productivity is a measure of:
A. the investment required to get a business started.
B. the growth of a business over a defined period.
C. the profits generated by a single economic decision.
D. the amount of input needed to create a certain output.
I think the answer you're looking for is 'D' if you're asking what productivity is in a generalized sense.
Productivity is the measure of option D. the amount of input needed to create a certain output.
What is productivity?Productivity should represent the value of the input i.e. required for developing the specific output. It does not have the investment that is needed for the business. Neither the profit should be produced.
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Erica came to Australia from the United States on a working holiday on 1 December 2019 when she finished college. Her parents were separated, and she had been living between their houses over the last 3 years. All her belongings were packed in a box and stored in her father's basement when she left for Australia. Over the last 7 months Jane has worked in various jobs in Sydney staying with various friends and relatives then she went travelling down the east coast of Australia. At the end of September 2020, she left for New Zealand and intends to go back to the United States in 2022. 1 Outline the tax residency consequences for Erica. Explain your answer with reference to the relevant legislative provisions, case law and the relevant guidance provided by the ATO.
Under Australian taxation law, tax liability is based on the individual’s tax residency. Hence, it is important to understand the tax residency status of an individual. Erica, in this case, will be treated as a foreign resident for the Australian tax purposes.
This is because she does not satisfy any of the residency tests of Australia to Australian tax law, the tax liability of an individual depends on their tax residency. Hence, it is important to understand the tax residency status of an individual. The residency status of an individual is important in determining their tax liability in Australia. Erica in this case will be treated as a foreign resident for the Australian tax purposes. This is because she does not satisfy any of the residency tests of Australia. However, being a foreign resident does not imply that an individual is not liable to pay taxes in Australia.Income earned in Australia by a foreign resident is taxed in Australia, which is called a non-resident tax rate. Erica will need to pay tax on any income earned in Australia at the non-resident tax rate. She will need to report her worldwide income to the United States tax authorities and pay any tax liability there. It is important to remember that under the Double Taxation Agreement between Australia and the United States, any tax paid in Australia on income earned in Australia will be credited to her tax account in the US. Furthermore, since Erica left her belongings in her father’s basement, it is important to ensure that these do not constitute a permanent place of abode in Australia. If her belongings are considered as a permanent place of abode.
then Erica may be considered a resident of Australia.The following are the relevant legislative provisions, case law and guidance provided by the ATO Section 6 of the Income Tax Assessment Act 1936 (ITAA 1936) deals with the tax residency of individuals .Section 6 states that an individual who resides in Australia and whose domicile is in Australia, or who has been in Australia for more than half of the year of income (unless the Commissioner is satisfied that their usual place of abode is outside Australia and they do not intend to take up residence in Australia), is a resident for taxation purposes. Case law such as Harding v FCT 79 ATC 4117 and FCT v Applegate 79 ATC 4300 are also relevant in determining tax residency status .The Australian Taxation Office (ATO) also provides guidelines on the tax residency of individuals in TR 98/17 (Taxation Ruling) She will also need to report her worldwide income to the US tax authorities and pay any tax liability there. It is essential that her belongings do not constitute a permanent place of abode in Australia. If her belongings are considered a permanent place of abode, then Erica may be classified as a resident of Australia. Section 6 of the Income Tax Assessment Act 1936, case law such as Harding v FCT 79 ATC 4117, FCT v Applegate 79 ATC 4300 and the Australian Taxation Office (ATO) guidelines on tax residency of individuals are all relevant in determining Erica's tax residency status.
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an import can only occur inside the borders of your home country and an export can only occur outside the borders of your home country an import can only occur inside the borders of your home country and an export can only occur outside the borders of your home country true false
An import can only occur inside the borders of your home country and an export can only occur outside the borders of your home country is FALSE.
Import is a selling activity where a product from the home country is beiing sold to a foreign nation. Meanhwile export is the purchase of foreign product by someone from the home country and bringing it into the home country.
Import and export allows a country to generate more profits from selling its products to a different market (internationally). Import and export also allows a country to produce more products and generate huge employment opportunities.
Import may happen not only inside the borders of someone's home country. You may purchase a product abroad and bring it back to your country and still being counted as importing product. Export transaction also may incurred inside the home country's border. For example a foreigner buy a new product from the home country and bring the product back to his country.
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Why do you think that agriculture and Forestry related occupation and important? Give reasons?
Answer:
These careers supply us with a multitude of food products and alternative energies, among many other important resources for sustaining our country and contribution to the world economy.
Every team requires resources to achieve its goals; however, when leaders are not willing to commit required resources, such as funding or key personnel, this obstacle is known as:
Every team requires resources to achieve its goals; however, when leaders are not willing to commit required resources, such as funding or key personnel, this obstacle is known as resource scarcity.
When leaders are not willing to commit required resources, such as funding or key personnel, the obstacle is known as resource scarcity. The lack of necessary resources to accomplish specific goals is known as resource scarcity. It may lead to underutilization of resources and a decline in efficiency.
This may also lead to a failure to achieve objectives. It's crucial to understand resource scarcity and find strategies to overcome it in any team working on a specific project.
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owen is given value by payday sales company in the form of a commitment to sell goods on credit. in terms of creating an enforceable security interest, this is
Owen receiving value from the Payday Sales Company in the form of a commitment to sell goods on credit creates the basis for an enforceable security interest.
An enforceable security interest refers to a legal claim or right held by a creditor over a debtor's property or assets as collateral for a debt. In this scenario, Owen is receiving value from the Payday Sales Company in the form of a commitment to sell goods on credit.
This means that Owen is being given access to goods without immediate payment, with the understanding that he will pay for them in the future. This arrangement establishes a debtor-creditor relationship, where Owen becomes obligated to repay the amount owed to the Payday Sales Company.
Since Owen is receiving value and assuming an obligation, it provides a basis for creating an enforceable security interest in the goods being sold on credit. This means that the Payday Sales Company has a legal claim or right to the goods as collateral in case Owen fails to fulfill his payment obligation.
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U
1 point
You are at the checkout counter at the local supermarket, use your debit
card to pay for your groceries, and select "credit” when the cashier asks
"Debit or credit?" Where does the money for this purchase come from? *
Your credit card company covers the cost
O It is deducted directly from your checking account
Your credit card company provides you with a cash advance to cover the cost
It is deducted from your credit card account
Answer: It is deducted directly from your checking account
Explanation:
A Debit card is linked to your bank account so when it is used, it will always be deducted directly from your checking account.
The Debit or Credit option simply refers to how the transaction will be processed. With a Debit the transaction goes through a different computer network than the Credit which goes through the Credit computer network.
Bottom-line is that debit cards are bank accounts.
Benefits of forming a Limited Liability Company
Answer:
Separate legal identity : A limited liability company (LLC) is an entity that is separate and apart from its owners, with its own rights, responsibilities and liabilities. This means that an LLC can file a lawsuit (or be sued) in its own nameLimited liability : Because an LLC is a separate entity, the owners of the company have limited liability. This is one of the most important benefits to operating as a limited liability companyPerpetual existence : Unless the articles of organization specify differently, a limited liability company has perpetual existence. This means that the owners can change without triggering the dissolution of the company. A member’s death, retirement, or withdrawal from the company for any other reason does not mean that the company must cease to operate._________________________________________
Question: Hello: ) ✨Benefits of forming a Limited Liability Company?
Answer: It limits liability for managers and members.
Superior protection via the charging order.
Flexible management.
Flow-through taxation: profits are distributed to the members, who are taxed on profits at their personal tax level.
Have a nice Day/Night hun <3
you learn about different tools and techniques companies use to provide consumers with information about their products and services. use what you learned to explain how technology and media affect the families make about purchasing products and services. Provide at least three examples.
Explanation:
The internet has revolutionized the relationship between companies and consumers. Currently, the majority of the population has a cell phone that impacted communication and accessibility. Therefore, companies had to adapt and build new strategies for prospecting and retaining customers through insertion in social media, using active relationship marketing that seeks to engage and generate value for their potential audience through social media, in addition to selling online. to make the experience easier for the consumer.
The online presence of companies is able to offer significant advantages to the consumer, such as a greater discount on products offered online, since companies pass on the reduction of fixed costs with a physical store to the prices offered in an online environment.
which of the following provides the advantage of incorporating other widely accepted standards and frameworks? multiple choice
O ITIL O COBIT 5. O coso 2013. O ISO 27000.
The framework that provides the advantage of incorporating other widely accepted standards and frameworks is COBIT 5. So, the correct option is COBIT 5.
This framework was designed to align with other frameworks such as ITIL, ISO 27000, and COSO 2013. COBIT 5 provides a comprehensive approach to IT governance, management, and operations. It focuses on ensuring that IT services are aligned with business objectives and that risks are managed effectively.
The framework also includes a process reference model that can be used in conjunction with other frameworks. This allows organizations to leverage existing investments in IT management practices and combine them with COBIT 5 to achieve a more integrated approach.
Furthermore, COBIT 5 provides a common language and framework for IT governance and management, making it easier for organizations to communicate and collaborate effectively. Therefore, the correct option for the given question is option COBIT 5.
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The class will be divided into five groups. With the teacher's guide, each group should suggest a business that they want to put up. Each group should then justify their choice of business. Each group will discuss among the members the environment that should be studied in terms of the location they decided to choose. Based on the environmental analysis, the group members should identify all the factor that need to be studied in the specific environment/location.
Each group will suggest a business idea and justify their choice based on their interests, market demand, and potential profitability. They will then discuss the specific location for their business and conduct an environmental analysis to identify factors that need to be studied.
In the first paragraph, each group can briefly mention the type of business they want to put up, such as a restaurant, tech startup, clothing boutique, fitness center, or any other business idea that interests them. They should provide a concise justification for their choice, highlighting factors like market demand, personal passion, unique selling proposition, or potential profitability.
In the second paragraph, the group members will discuss the specific location for their business and conduct an environmental analysis. They need to identify and examine various factors that can influence the success of their business in that particular location. This analysis can include factors such as local competition, target market demographics, economic conditions, regulatory environment, infrastructure, availability of resources, cultural considerations, and any other relevant factors. By studying these environmental factors, the group can gain insights into the opportunities, challenges, and potential risks associated with their chosen location.
Overall, the aim is for each group to select a business idea that aligns with their interests and has potential in the market. They should then analyze the specific location's environmental factors to make informed decisions and develop strategies that maximize their chances of success. This exercise helps students understand the importance of market research, environmental analysis, and strategic planning in business development.
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The Truth in Lending Act requires lenders to make certain ______ to consumers. a. concessions b. disclosures c. loans d. rates available.
The correct option is B.The Truth in Lending Act (TILA) is a federal law that requires lenders to disclose important information to consumers before extending credit.
The law requires lenders to provide consumers with clear and accurate information about the cost of credit, including the annual percentage rate (APR), finance charges, and other fees associated with the loan. TILA also requires lenders to provide consumers with information about their rights and responsibilities as borrowers, such as their right to cancel a loan within a certain period of time. By requiring lenders to provide these disclosures, TILA helps consumers make informed decisions about borrowing and protects them from unfair or deceptive lending practices. It's important to note that TILA applies to most types of consumer credit, including credit cards, mortgages, and auto loans. Overall, TILA is an important tool for promoting transparency and fairness in the lending industry, and it helps ensure that consumers have the information they need to make sound financial decisions.
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3) Bill weighs 220 pounds and is losing 4 pounds each month. Phil weigh 250 pounds and is losing 10 pounds each month. How many months, m, will it take for Bill to weigh the same as Phil? How much will they weigh?
5 months and 200 pounds
4x5 = 20
220-20
200
10x5 = 50
250-50
200
The financial statement that reports the changes in the retained earnings and common stock for a period of time is known as the.
The statement of owner's equity—also called the statement of retained earnings—shows the change in retained earnings between the start and end of a period (e.g., a month or a year). The record reflects a company's solvency and financial position.
What are the three financial statements?The earnings report , record , and statement of money flows are required financial statements. These three statements are informative tools that traders can use to research a company's financial strength and provide a quick picture of a company's financial health and underlying value.
What is the statement of retained earnings ?
Reports the way that net and the distribution of dividends affected the financial position of the company during the accounting period. the sum of the share of net income which is not paid to the shareholder as dividend. the aim of the retained earnings is reinvestment
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What is a smart way to capture the readers attention in a personal easy
Answer:
Explanation:
There are several smart ways to capture the reader's attention in a personal essay, including:
Starting with a strong opening sentence: This could be a provocative statement, an interesting fact, or a personal anecdote that immediately grabs the reader's attention.Creating a relatable scenario: By introducing a scenario that the reader can relate to, you can immediately create a connection with the reader and capture their attention.Using descriptive language: Using descriptive language to paint a vivid picture of the setting, characters, and events in your essay can help to capture the reader's attention and draw them into the story.Creating a sense of urgency: By highlighting a problem or an issue that needs to be addressed, you can create a sense of urgency that will capture the reader's attention and make them want to keep reading to find out more.Asking a question: Asking a question that the reader is likely to be curious about can capture their attention and make them want to keep reading to find out the answer.Showing vulnerability: Being open and honest about your personal experiences, struggles and emotions can help to create a strong emotional connection with the reader and make them want to keep reading.Using humor: Incorporating humor into your essay can make it more relatable, and help to break the ice with the reader and capture their attention.Using pop culture references: Use references from literature, movies, music or TV showsBefore :110 After :143 percentage percentage
Answer:
19%
Explanation:
An organization purchases access to a platform to support growth. How should the organization configure the platform
An organization can configure the platform by performing each phase appropriately. Firms must have the right methodology and perform the right analysis at each stage in order to effectively fill the market.
An organization is a unit (company, institution, club, etc.) made up of one or more people with a specific purpose.
There are various legal forms of organization such as corporations, governments, non-governmental organizations, political organizations, international organizations, armed forces, non-profit organizations, non-profit organizations, partnerships, cooperatives and educational institutions.
A hybrid organization is an entity that operates simultaneously in both the public and private sectors, performing/executing public functions and developing commercial market activities.
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11. Which of the following statements about the role of managers
is true?
a. Managers are responsible for the success or failure of the
company.
b. Managers make up the greatest percentage of employees in a
business.
C. Managers are responsible for completing the day-to-day work
a business.
4. Managers spend most of their time planning for the future.
Che first level of management
The TRUE statement about the first (highest) level of management is 4. Managers spend most of their time planning for the future.
These managers are appointed by the owners of the business to act as agents in the interests of their principals. However, the ordering depends on the person. Sometimes, this first-level is assigned as the third-level, in reverse order.This level of management is not necessarily involved in operational activities. The managers at this level do not constitute the greatest percentage of the workforce.While first-level managers bear the responsibility for the success or failure of their company, they usually assign the function of overseeing business success and failure to the middle-level managers, who also supervise the lower-level managers.Thus, the first-level of managers are the managers who plan for the future of the company.
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our uncle is offering to sell you his t-shirt printing business for $1m. you think a multiple of 10x earnings (profit) is fair. his earnings are $69,000 per year. should you buy it?
An Offering Price T-Shirt Printing Bussiness
Assumption: A multiple of 10x earnings (profit) is fair.His (Uncle) earnings: $69,000A price that u think is fair:$69,000 × 10 = $690,000
An offering price by your uncle: $1MThere is a difference between offering price by your uncle and a price that you think is fair. The difference is $310,000 more than the price that you think is fair.
So the decision you should making is refuse the offering price by your uncle because the price is too expensive.
The definition of price is the amount of money that has to be paid to acquire a given product. Insofar as the amount people are prepared to pay for a product represents its value, price is also a measure of value.
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