As investors, we can try to diversify away systematic risk but we are still left with the unsystematic risk that can't be eliminated through diversification.
Investors face two primary types of risks when investing in financial markets: systematic risk and unsystematic risk. Diversification is a strategy employed by investors to manage risk by spreading their investments across different assets or asset classes. However, while diversification can help mitigate unsystematic risk, it cannot eliminate systematic risk.
Systematic risk, also known as market risk or non-diversifiable risk, is the risk that is inherent in the overall market or economy. It affects the entire market and cannot be eliminated through diversification because it is beyond the control of individual investors. Systematic risk is associated with macroeconomic factors such as interest rate fluctuations, inflation, political instability, and overall market conditions. These factors impact the prices and returns of all investments in the market, regardless of their specific characteristics. Examples of systematic risk events include economic recessions, global financial crises, or geopolitical tensions that affect the broad market.
On the other hand, unsystematic risk, also known as specific risk or diversifiable risk, is the risk that is unique to a particular company, industry, or asset. It can be mitigated through diversification by spreading investments across different assets that are not closely correlated. Unsystematic risk is associated with factors specific to individual investments, such as company-specific events, management decisions, competitive dynamics, or industry-specific risks. By diversifying across different assets or sectors, investors can reduce their exposure to unsystematic risk because the negative events or risks impacting one investment may not affect the others.
While diversification can effectively manage unsystematic risk, it does not eliminate systematic risk because it is pervasive and affects the entire market. Even a well-diversified portfolio is still subject to systematic risk factors that impact the overall market performance. Therefore, investors need to be aware that they cannot fully eliminate the risk associated with systematic factors through diversification alone. To manage systematic risk, investors may consider strategies such as asset allocation, hedging, or using financial instruments designed to hedge against specific systematic risks, such as derivatives or options.
In conclusion, as investors, we can diversify away unsystematic risk through proper asset allocation and diversification strategies. However, systematic risk, which is inherent in the overall market and economy, cannot be eliminated through diversification alone. Investors need to understand and account for both types of risk when making investment decisions and consider additional risk management strategies to address systematic risk.
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Who is a better president Biden or trump ?? Just to see why some people support whoever they support.... but Biden 2020 (HONEST ANSWERS)
Answer:
Sorry dud but Trumps better
Although to be honest both of them suck. Sorry if that offended some people but its my opinion.
Biden is a lier people say he cheated during the election.
Explanation:
Innovative team firms should have managers who provide ________, ________, and perspective to the team.
Based on firms' strategies, Innovative team firms should have managers who provide Support, Guidance, and perspective to the team.
This is because firms that focus on innovation would make many mistakes or trials and errors before the actual innovation of their products is made.
Thus, in these situations, employees need managers that can provide supports and encouragement for them to build on their innovative ideas so as not to fear sanctions or penalties if things go wrong.
The employees also need guidance and perspectives from their managers to quickly and correctly transform their innovative ideas into reality.
Hence, in this case, it is concluded that the correct answer is "Support and Guidance, " accordingly.
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Which of the following choices incur speculative risk?
a.stocks
b.fire insurance on a house
c.options
d.life insurance
e.high interest savings account
Answer: correct option is A.
Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.
Stocks incur speculative risk. Therefore option A is correct.
What are Stocks?A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.
Common stock and preferred stock are the two primary categories of stocks.
Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.
Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.
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Which of the following types of compensation are provided to employees at Bright Horizons? Check all that apply.
a. Perks
b. Base salary
c. Long-term incentives
d. Short-term incentives
Bright Horizons provides the following types of compensation to its employees: Base salary Short-term incentives Long-term incentives Perks All of the given options, (A), (B), (C), and (D) are provided to employees at Bright Horizons.
Let's discuss each of these types of compensation briefly below:
Base salary: Refers to the amount paid to employees in exchange for their work. It is usually paid on a weekly, bi-weekly, or monthly basis.
Short-term incentives: It is given to employees to reward their performance within a short time frame.
This type of compensation includes bonuses, commissions, or profit-sharing.
Long-term incentives: It is given to employees to reward their performance over an extended period.
This type of compensation includes stock options or grants.
Perks: These are non-financial benefits given to employees to improve their quality of life and job satisfaction.
Examples include health insurance, retirement benefits, or paid time off.
Hence, all of the given options are provided to employees at Bright Horizons.
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Roasters Corporation and Outdoor Barbecues, Inc, enter into a contract for a sale of a commercial grill. The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor. Risk of loss passes to Outdoor when
A) Roasters delivers the goods to Speedy
B) Roasters and Outdoor enter into their contract.
C) Speedy transports the goods to Outdoor.
D) Outdoor begins to use the grill.
Answer:
D
Explanation:
DGFGDGFGGDGFGDGFGF GANG
How does competition help consumers?
Producer expectations refer to firms' expectations of ______ for a good or service that they produce.
Producer expectations refer to firms' expectations of future demand and market conditions for a good or service that they produce.
Producer expectations play a crucial role in shaping firms' production decisions and business strategies. These expectations refer to the forecasts or predictions made by producers regarding the future demand for their goods or services, as well as the overall market conditions in which they operate.
Firms consider various factors when forming their producer expectations. They analyze market trends, consumer behavior, economic indicators, and industry-specific information to anticipate future demand levels, pricing dynamics, and competitive pressures. By understanding and predicting these factors, producers can adjust their production levels, pricing strategies, and resource allocation to align with the expected market conditions.
Producer expectations influence firms' investment decisions, production planning, inventory management, and marketing efforts. If firms expect higher future demand, they may increase their production capacity, invest in new technologies, or expand their market presence. On the other hand, if firms anticipate weaker demand, they may reduce production, adjust pricing, or explore alternative markets.
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Some of the most famous and successful entrepreneurs, like Steve Jobs or Richard Branson, never finished or went to college. How do you think they managed to become so successful? Why doesn’t this work for everyone?
Directions:
Select a product or service to sell.
Now determine the target market for your product or service by answering the following questions in a table:
Are your target customers male or female?
How old are they?
Where do they live? Is geography a limiting factor for any reason?
What do they do for a living?
How much money do they make? This is important if you are selling expensive or luxury items.
What other aspects of their lives matter? For example, do they need to be homeowners?
Now, identify your product or service and explain what your target market is and why.
Answer:
1. I intend to sell the luxury car brand, Lamborghini.
2. My main target customers are males.
3. The age range of my target customers is 25 - 45.
4. They live in the cities and urban areas. Geography is a limiting factor because the larger percentage of the males who will patronize the brand have occupations in the cities.
5. They are most likely in the entertainment industry. They could also be top directors in the professional fields.
6. They make $50,000 and above monthly.
7. They are interested in glamor, have high tastes, and associate with the elites in society. They would be financially strong and should have established assets like homes where such expensive cars can be parked.
Explanation:
I intend to sell a luxurious car brand to a target market consisting mostly of males. Most males in the entertainment industry love expensive car brands and are most times competing with themselves on who has the better and latest car. Their age range is 25 to 45-year-old for this group are still in their prime where flashy and expensive things still appeal to them. They would likely reside in the cities where there are good roads for these vehicles and where they can relate with others in the same class.
Identification of a target market is important for it helps the seller to remain focused and not to hit amiss. Time and energy will be thus saved.
nwc requirements at the beginning of each year will be approximately 30 percent of the projected sales during the coming year. the tax rate is 21 percent and the required return on the project is 11 percent.
Year 2 cash flows: Net operating cost savings after tax, depreciation expense, and change in net working capital.
To determine the cash flows for Year 2 of the proposed acquisition, we need to consider the incremental operating costs savings, the depreciation expense, and the change in net working capital (NWC) for that year.
Given the information provided:
- Acquisition cost of the truck: $210,000
- Salvage value of the truck after 10 years: $21,000
- Increase in NWC (spare parts inventory): $5,100
- Operating cost savings per year: $88,000
- Marginal tax rate: 30%
First, let's calculate the depreciation expense using the MACRS depreciation method for a 10-year class asset. The MACRS depreciation rates for Year 2 can be found in the IRS depreciation tables. Assuming a straight-line method, the depreciation expense for Year 2 would be:
Depreciation Expense = Acquisition cost * MACRS depreciation rate (Year 2)
Depreciation Expense = $210,000 * 18.00% (from the IRS depreciation table)
Next, we can calculate the tax savings due to depreciation by multiplying the depreciation expense by the marginal tax rate:
Tax Savings = Depreciation Expense * Marginal tax rate
Now, we can calculate the net operating cost savings after taxes:
Net Operating Cost Savings = Operating cost savings - Tax Savings
Finally, we calculate the cash flows for Year 2 by considering the net operating cost savings and the change in NWC:
Cash Flow Year 2 = Net Operating Cost Savings + Change in NWC
Note: The cash flow for Year 2 will be influenced by the specific details of the project and the timing of cash flows. The calculations provided are based on the information given, but it is important to analyze all relevant factors and consult with financial professionals for an accurate evaluation.
The complete question is:
"You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $210,000. The truck falls into the MACRS 10-year class, and it will be sold after 10 years for $21,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,100. The truck will have no effect on revenues, but it is expected to save the firm $88,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 30 percent. What will the cash flows for this project be during year 2?"
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Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be: Group of answer choices larger.
Seasonal variations are indeed easier to deal with in capacity planning than random variations because they tend to be larger and more predictable. This means that it is possible to plan for and anticipate seasonal changes in demand, which allows businesses to adjust their capacity accordingly.
For example, a retailer might expect a surge in demand for winter clothing as the temperature drops, and can therefore plan to increase production and stock up on inventory in advance. In contrast, random variations are more difficult to predict and plan for, as they can be caused by a range of factors that are often outside the control of the business. Dealing with seasonal variations also allows businesses to optimize their operations and improve their efficiency. By anticipating changes in demand, businesses can avoid over or underutilization of resources, which can result in wasted time, money, and energy. In addition, seasonal variations can provide opportunities for businesses to innovate and differentiate themselves from their competitors. In summary, seasonal variations are easier to deal with in capacity planning than random variations because they tend to be larger and more predictable. By anticipating and planning for these variations, businesses can optimize their operations and improve their efficiency, while also taking advantage of opportunities for innovation and differentiation.
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Grayson really wants to get an a on his upcoming math test but he hates studying. He decides to set a goal for himself to study for 20 minutes every night this week and preparation for the quiz Friday.What kind of goal Grayson set for himself?
Answer: short term goal
Explanation:
A short-term goal is a goal that an economic agent such as an individual or a fitm wants to achieve or accomplish soon. Short term goals are goal that one wants to achieve maybe today, in a week, in a month or even probably a year.
Since Grayson really wants to get an a on his upcoming math which is coming soon, the goal that he sets to study for twenty minutes every night is referred to as a short term goal.
A company is selling a additional issue of common stock. In this situation, all of the following persons are insiders EXCEPTA) The lead underwriterB) A shareholder who currently owns 13% of the outstanding common stock of the company.C) The chief financial officer of the companyD) The Chief Marketing Officer of the company
In the situation of a company selling an additional issue of common stock, the person who is NOT considered an insider is: The Chief Marketing Officer of the company. Correct option is D.
Insiders typically include individuals who have access to non-public information about the company, which may affect the value of the stock. In this case, the lead underwriter, a shareholder who currently owns a significant portion of the outstanding common stock, and the chief financial officer of the company are all likely to have insider status. They may possess privileged information about the company's financials, operations, or future plans that could impact the stock's value.
However, the Chief Marketing Officer is not typically involved in financial matters or privileged information that directly affects the company's stock offerings. Therefore, they would not be considered an insider in this context.
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HELPPPP!!!! WILLL GIVE BRAINLEST!!!
It allows you to rent a car while yours is being repaired. a. auto replacement c. personal damage liability b. comprehensive physical damage d. rental reimbursement
Answer:
I'm pretty sure the answer is d
Explanation:
Alternatively, you may pay out-of-pocket for your rental then seek reimbursement from the other insurance company once it completes its investigation.
Answer:
D
Explanation:
A company sells merchandise on account for $350 that is subject to a sales tax of 5%. Which of the following is true?
a. Accounts receivable and Sales revenue are both increased by $378
b. Accounts receivable and Sales revenue are both increased by $322
c. Accounts receivable is increased by $378, Sales revenue is increased by $350, and Sales tax payable is increased by $28
d. Cash is increased by $378 and Sales tax payable is increased by $28
The correct answer is; Accounts receivable will be increased by $378, Sales revenue is increased by $350, and Sales tax payable will be increased by $28. Option C is correct.
When merchandise is sold on account for $350 subject to a sales tax of 5%, the following journal entries are recorded:
Debit Accounts Receivable: $350
Credit Sales Revenue: $350
This entry records the increase in accounts receivable (the amount owed by the customer) and the increase in sales revenue.
Debit Sales Tax Payable: $28
Credit Sales Revenue: $28
This entry records the sales tax amount that the company collects from the customer on behalf of the government. Sales tax payable is the liability account which represents the amount owed to the government.
The total amount of the journal entries is $378 ($350 for accounts receivable and $28 for sales tax payable), which represents the increase in the company's assets (accounts receivable) and revenue (sales revenue) as well as the liability (sales tax payable).
Hence, C. is the correct option.
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Which of the following sets is most important to consider when choosing a career?
(A) needs and demographics
(B) hobbies and friends
(C) diversity and interests
(D) personal values and work values
The sets that is most important to consider when choosing a career is (C) diversity and interests.
What is a career ?Career can be described as the occupation that ios been undertaken for a significant period whgich one can focus on, through ouut hios or her life with opportunities for progress.
It should be noted that when choosing ba career one should be able to seek for the things that interest you about tyhe field because ythis will help you when the journey is getting tough because to get to the peak of the career can not be seen as one that ios easy.
Therefore, option C is correct.
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8. Shelby owns a small gift shop in a tourist town in Devon. She has the following costs in the
month of May.
Rent £2,225
Wages £800
Salaries £1,500
Stock purchase £950
Calculate her total fixed costs. (don't forget to include £ sign. You do not need to write pence in
your answer
Answer:
£3,725
Explanation:
Fixed costs do not change throughout a financial period. They remain constant regardless of the level business output. A business must incur fixed costs as long as it remains open.
From the list provided, fixed costs are
Rent £2,225Salaries £,1,500Total fixed costs will be £2,225 +£,1,500
= £3,725
Because he mistakenly believes that older workers are not as motivated to work hard as younger workers, a factory foreman is especially vigilant for signs of laziness among his senior employees. His supervision strategy of seeking out evidence to support his belief that older workers are lazy best illustrates
The factory foreman's strategy for seeking out evidence to support his belief that older workers are lazy best illustrates confirmation bias.
What is confirmation bias?Confirmation bias is a type of emotional bias where a person seeks out only information that confirms to previously held beliefs. The factory foreman is only seeking for evidence that the older workers are lazy. Thus, he is displaying confirmation bias.
Confirmation bias can be resolved by actively seeking information that does not go in line with previously held beliefs.
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The housing price in Melbourne is increasing rapidly. Now Katie is 23 years old and just
graduate from Deakin, having a job with an annual after-tax salary of $70,000. She is planning
to buy a three bedroom house in eastern Melbourne without using any home loan. If Katie can
save and deposit half of the after-tax salary at the end of each year in Bank A, what is the
highest house price Kate can afford when she is 35 years old, assuming an annual interest rate
of 3.5% in Bank A?
If Katie wants to buy a house of $700,000 when she is 35 years old, how much she needs to
save and deposit at the end of each year from now.
The highest house price Katie can afford when she is 35 years old, assuming an annual interest rate of 3.5% in Bank A, is approximately $532,128.62.
To buy a house worth $700,000 when she is 35 years old, Katie would need to save and deposit approximately $167,871.38 at the end of each year from now.
To determine the highest house price Katie can afford when she is 35 years old, we need to calculate the future value of her savings and deposits. Assuming an annual interest rate of 3.5% in Bank A, we can use the future value of an ordinary annuity formula.
Katie is 23 years old now and wants to buy a house at the age of 35, so she will be saving and depositing for a total of 12 years. Given that she can save and deposit half of her after-tax salary, which is $70,000, at the end of each year, her annual savings and deposit amount would be $35,000.
Using the future value of an ordinary annuity formula, the future value of her savings and deposits can be calculated as follows:
FV = PMT × [(1 + r)^n - 1] / r
Where:
FV = Future Value
PMT = Payment (annual savings and deposit amount)
r = Interest rate
n = Number of periods
Plugging in the values:
FV = $35,000 × [(1 + 0.035)^12 - 1] / 0.035
Calculating the future value, Katie's savings and deposits would accumulate to approximately $532,128.62.
If Katie wants to buy a house worth $700,000 when she is 35 years old, she would need to save and deposit the difference between the house price and her accumulated savings. Therefore, she would need to save and deposit $700,000 - $532,128.62 = $167,871.38 at the end of each year from now to afford the $700,000 house.
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The aging of accounts receivable recognizes that an account is more likely to
become uncollectable as it gets.
A. delinquent
B. smaller
о
C. larger
O D. older
—
SUBMIT
Answer:
D. Older
Explanation:
The longer it takes, the less likely it will be paid. People who care about their credit pay it off as soon as possible. If they do not care, they know the unpaid debt will likely fall off of their credit report after 7 years depending on the situation
The aging of accounts receivable recognizes that an account is more likely to become uncollectable as it gets older.
Hence, the answer is D. older.
The aging of accounts receivable is a process of classifying accounts receivable according to the length of time they have been outstanding. Accounts that are older are more likely to become uncollectible because the customer has had more time to default on the payment.
Option A, delinquent, is incorrect because it is not the only factor that determines whether an account is likely to become uncollectible. The age of the account is also a significant factor.
Option B, smaller, is incorrect because there is no correlation between the size of an account and its likelihood of becoming uncollectible.
Option C, larger, is incorrect for the same reason as option B.
Therefore, the answer is D. older.
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O A. "I'm a hard worker."
O B. need more help.'
• C. "I wonder if my friends are good at this."
C D. "Will this be
over soon?"
Explique la teoría del valor y de un ejemplo con algún bien o servicio de su uso cotidiano. (colombia)
Answer:
En economía, se habla de teorías del valor para indicar el conjunto de concepciones sobre la génesis y determinación del valor, como propiedad de las mercancías distinta del costo y lógicamente antecedente al precio, que constituye su manifestación fenomenal en esta perspectiva.
La economía política siempre ha tratado de responder a la pregunta: ¿de dónde viene el valor? Las respuestas fueron muy divergentes. Van desde la escasez de bienes disponibles, a su utilidad, a la necesidad de remunerar los factores productivos, incluido el capital y considerando su remuneración; - el beneficio - como recompensa por la abstinencia del capitalista, que puede permitirse renunciar al consumo para utilizar la propia riqueza de forma productiva, etc.
A graph of the rate of inflation in the United States over the twentieth century shows: a constant rate of inflation in the first half of the century followed by an upward trend in the second half an overall upward trend interrupted by a large downturn in the 1930s. O a relatively steady, positive level throughout the century except for deflation in the 1930s. some periods of deflation mixed with mostly positive rates of inflation before 1955 but only positive rates of inflation after 1955.
A graph of the rate of inflation in the United States over the twentieth century shows: An overall upward trend was broken by a severe downturn in the 1930s.
A graph of the rate of inflation in the United States over the twentieth century would show an overall upward trend interrupted by a large downturn in the 1930s, also known as the Great Depression. In the first half of the century, there was a relatively steady, positive level throughout the century except for deflation in the 1930s. However, the rate of inflation began to rise in the post-World War II period, reaching high levels in the 1970s before moderating in the 1980s and 1990s. The Great Recession of 2008 had an effect on the inflation rate as well.Inflation is a measure of the rate at which the general level of prices for goods and services rises, resulting in a decline in purchasing power.
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Cebreaker Company (a U. S. -based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 16,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Icebreaker enters into a forward contract to purchase 16,000 dinars on March 1, 2021. Relevant exchange rates for the dinar on various dates are as follows: Date Spot Rate Forward Rate (to March 1, 2021) December 1, 2020 $ 3. 40 $ 3. 475 December 31, 2020 3. 50 3. 600 March 1, 2021 3. 65 N/A a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U. S. Dollars. A-2. What is the impact on 2020 net income
A-1. Journal entries for the import purchase and foreign currency forward contract are as follows in December 1, 2020, Credit Accounts Payable for $54,400, Credit Cash for $55,600 and in March 1, 2021 Credit Cash for $55,600. There is no impact on 2020 net income as the forward contract is designated as a cash flow hedge of a foreign currency payable.
December 1, 2020
Inventory (cost of goods sold) 54,400 dinars ($16,000 * 3.40)
Accounts payable (foreign payable) 54,400 dinars
December 31, 2020 (recording the change in fair value of the forward contract):
Forward contract asset $750 (16,000 dinars * [$3.60 - $3.475]/dinars)
Other comprehensive income 750
March 1, 2021
Accounts payable (foreign payable) 55,600 dinars ($16,000 * 3.50)
Forward contract asset $1,400 (16,000 dinars * [$3.65 - $3.475]/dinars)
Cash $55,600
The change in fair value of the forward contract, $750, is recorded in other comprehensive income and does not impact 2020 net income. The cost of goods sold related to the foreign purchase is expensed at the date of purchase and recognized in 2020 net income.
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Which factor of production is a wrench:
a.Human capital
b.land
c.labor
d. Physical capital
Answer:
C?
Explanation:
Answer:
I think C.
Explanation:I think C because of the labor.
HELP FAST! What is the correct answer?!?!
When considering the reliability of the management for a business opportunity, what else should one consider at this time?
When considering the reliability of management for a business opportunity, there are several factors to consider in addition to their track record.
Some additional factors needed to be considered are:
Leadership style: The leadership style of management can have a significant impact on the success of a business. Look at how the management team communicates, delegates responsibilities, and makes decisions.Industry expertise: Management should have a strong understanding of the industry in which the business operates. They should have knowledge of market trends, competitors, and challenges faced by businesses in the industry.Financial management: Good financial management is crucial to the success of any business. Check if the management team has experience in financial planning, forecasting, and budgeting.Vision and strategy: The management team should have a clear vision for the business and a well-defined strategy for achieving its goals. They should be able to articulate the mission and goals of the business.Employee relations: The way management treats employees can impact employee morale, productivity, and retention. Look at the management team's approach to hiring, training, and promoting employees.Reputation and ethics: A business's reputation can be affected by the actions of its management team. Check for any past controversies, ethical lapses, or legal issues involving the management team.Communication skills: Communication skills are essential for effective leadership. Check if the management team communicates well with employees, customers, and other stakeholders.These are some factors to consider when assessing the reliability of management for a business opportunity. By considering these factors, you can gain a more comprehensive understanding of the management team's strengths and weaknesses and make a more informed decision about the opportunity.
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what approach supports applying business practices within the public sector
New Public Management (NPM) promotes the adoption of business practices in the public sector to improve efficiency and accountability. It emphasizes results-oriented approaches, customer focus, and performance measurement for better service delivery.
The approach that supports applying business practices within the public sector is known as "New Public Management" (NPM). NPM emphasizes the use of management techniques and principles derived from the private sector to improve the efficiency, effectiveness, and accountability of public sector organizations. It advocates for results-oriented approaches, performance measurement, decentralization, market mechanisms, and customer focus.
By adopting business practices such as strategic planning, performance evaluation, outcome measurement, and customer satisfaction assessment, the public sector aims to enhance service delivery, streamline processes, and increase overall organizational effectiveness. NPM encourages public sector organizations to operate in a more business-like manner, embracing concepts such as cost-efficiency, performance-based funding, and competition.
While the application of business practices in the public sector can bring benefits in terms of effectiveness and accountability, it is important to strike a balance between efficiency and the unique objectives and values of the public sector, such as equitable service provision and social welfare. Therefore, careful consideration and adaptation of business practices to the specific context of the public sector are necessary for successful implementation.
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A customer holds 1,000 shares of ABC stock valued at 80 in a margin account. The debit balance in the account is $35,000. ABC declares and pays a 20% stock dividend. The tax consequence of the distribution to the investor will be: A portfolio income when received B capital gain when received C reduction of cost basis per share D passive income at time received
Answer:
C
Explanation:
Reduction of cost basis per share.
When you take a look at some of the rules that IRS has, you see that stock dividends do not get taxsd at the time of receipt. They don't get taxed because, the shareholder does not receive anything from the company, only but a hope on any increased future share price increment or appreciation.
7. Marianne Gorman had been an assembler for 33 years when she became permanently
disabled. Marianne was 54 years old and had planned to retire in 11 years. Her final average
salary was $41,905. The rate of benefits of the plant is 2.5%. What is her monthly disability
benefit?
The monthly disability benefit is given as $87.30.
How to solve for the disability benefitTo calculate Marianne's monthly disability benefit, we need to find the average of her highest consecutive 60 months of earnings, and then multiply that amount by the benefit rate of 2.5%.
Let's assume that her highest consecutive 60 months of earnings was equal to her final average salary of $41,905.
The monthly average of her earnings would be:
$41,905 ÷ 12 = $3,492.08
And her monthly disability benefit would be:
$3,492.08 × 2.5% = $87.30
So, Marianne's monthly disability benefit would be $87.30.
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