Based on the income statements shown below, which division has the cost structure with the highest operating leverage?
Revenue Variable costs Contribution margin Fixed costs Net income Soft Drinks $50,000 10,000 40,000 30,000 $10,000 Bottled Water $50,000 5000 45,000 40,000 $5,000 Fruit Juices $50,000 30,000 20,000 10,000 $10,000
Multiple Choice
Soft Drinks.
Fruit Juices.
Bottled Water.
The three divisions have identical operating leverage.
Answers
Operating leverage measures how changes in sales revenue affect a company's operating income or net income. The higher the operating leverage, the more sensitive a company's net income is to changes in sales revenue.
To determine which division has the cost structure with the highest operating leverage, we need to look at the contribution margin ratio, which is the contribution margin divided by revenue. A higher contribution margin ratio means that a larger proportion of revenue is available to cover fixed costs and contribute to net income.
Soft Drinks:
Contribution margin ratio = $40,000/$50,000 = 0.8
Bottled Water:
Contribution margin ratio = $45,000/$50,000 = 0.9
Fruit Juices:
Contribution margin ratio = $20,000/$50,000 = 0.4
Based on these calculations, the division with the highest contribution margin ratio is Bottled Water, which means that it has the cost structure with the highest operating leverage. A small change in sales revenue for Bottled Water will have a larger impact on its net income compared to the other divisions.
Therefore, the correct answer is (c) Bottled Water.
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Related Questions
drop the name of a person you want a follow back from on Instagram .
drop names and keep it going of the person of your choice and you get a follow back at the strike of midnight .
Answers
Answer:
addison rae lol because i need a bad bleep hahaha
Explanation:
Answer:
cardi b because I want to know how to get the Wap lol
Mark Simpson earns $980 biweekly as a security guard for Albany Med. His group medical insurance costs $7,000 a year. The company pays 90% of the cost of medical insurance. How much is deducted from Marks biweekly paycheck for medical coverage
Answers
Answer:
$26.923
Explanation:
Biweekly payment means payments every 14 days or 2 weeks. One year has 52 weeks. Mark is paid 26 times per year
if the company pays 90% of $7000, then Mark pays 10% of $7000
Mark pays = 10/100 x $7000
=0.1 x $7000
=$700
The amount of $700 is spread over 26 weeks.
Each paycheck, Mark will be deducted
=$700/26
=$26.923 per check
Name the choreographic element that encourages dancers to rely on musical cues, visual connections, and emotional phrasing.
Answers
The choreographic element that encourages dancers to rely on musical cues, visual connections, and emotional phrasing includes the time, energy, and space
What is the meaning of Choreography?In art, a choreography means the way in which an idea is expressed physically through dance. When developing this concept, the users usually relies on important principles of organization to ensure that the idea takes a clear, appropriate, and aesthetically pleasing form.
These are principles that comprises the basic ingredients for the dancers' movements and patterns and help the choreographer utilize space, express intention and the music, and organize the dancers.
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which of the following is an example of an affirmative easement appurtenant? question 1 options: an easement used to restrict construction on adjacent parcels so as to preserve a valued view of the nearby mountains an easement to allow fishing on a secluded lake a road right-of-way that runs across the front all subdivided properties in a subdivision a common drive easement where owners of adjoining lots must permit each other to use a driveway lying on their shared property line
Answers
An easement is used to restrict construction on adjacent parcels so as to preserve a valued view of the nearby mountains of the following is an example of an affirmative easement appurtenant. The correct option is A.
What is the definition of easement appurtenant?An easement is a legal right to use the property of another person for a specific and limited purpose. An easement appurtenant is a type of easement that connects two properties as servant and dominant tenement estates.
The easement allowing a portion of your neighbor's garage to be built on your property is an appurtenant easement that also happens to be an affirmative easement. The right of your neighbor to use the trail along your real estate as a shortcut to the beach is also an affirmative easement.
Thus, the ideal selection is option A.
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Which is an umbrella term referring to any type of Internet transaction?
Answers
Answer:
e-business
Explanation:
Which is an umbrella term referring to any type of Internet transaction? useful. Businesses evaluate the quality and source of the information they obtain to make sure the information is: It may be one part of a business's overall information management program.
Answer:
e-business
Explanation:
e-business is an umbrella term referring to any type of Internet transaction
When janelle decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but when she visited her local best buy, she limited her search to only those brands she would consider buying. the brands available at best buy represent janelle's set.
Answers
Situational influences are transient circumstances that have an impact on consumer behavior.They include tangible elements like a store's layout, buying areas, music, lighting, and even odors.Businesses work to improve the physical conditions that shoppers encounter.
What are the situational factors that could alter the consumer decision making at the time of purchase?The likelihood that someone will go through all six stages of the purchasing process is probably limited to specific circumstances, such as when purchasing a thing for the first time or when purchasing expensive, durable, infrequently used items.Complex decision-making is what is meant when this occurs. Which of the aforementioned purchases would consumers be most likely to make with limited problem-solving.A regular coffee drinker's typical purchase is generally coffee to go.But problem solving skills will likely be reduced as a result of college courses. Physical surroundings, social surroundings, temporal perspective, task description, and antecedent state are the five components that make up situational factors. There are four different forms of consumer behavior: complex buying behavior, dissonance reduction, variety seeking, and habitual buying behavior. Consumer decision-making can appear complicated, but all buyers follow the same fundamental stages to choose the goods and services that will best meet their needs.Whether purchasing something, especially when it's something substantial like a car, consider your own thought process. When acquiring high-involvement products, buyers don't exhibit routine response behavior.Instead, they participate in what is known as prolonged problem solving, spending a lot of time weighing various factors such product features, costs, and warranties.To learn more about decision making refer
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An early theory that helped factories become more efficient by studying worker movements is called _____ .
administrative management
scientific management
behavioral management
theory X
Answers
Answer:
Scientific management theory
Explanation:
The scientific management theory seeks to improve the productivity of every employee in the organization. The theory applies scientific techniques of analysis, observation, synthesis, rationality, and logic to improve individual and industry efficiency.
Fredrick Taylor developed the scientific management theory in the early 20th century. The theory focused on the technical aspects of efficiency rather than the broader perspectives of human behavior in the organization.
Some of its principles include
Separation of planning function from doingHiring the right person for each job and train to improve performanceScientific determination of the fair amount of work per employeeMonitor and evaluate work performanceHow to study using a 450 pg online college textbook in which you are asked detailed questions and scenarios.. It's overwhelming.
Answers
Answer:
Explanation:
There are many things in life that will seem overwhelming due to the how large and complex all of the data may be. The best way to get through these moments is to divide the task into smaller parts and sit down and dedicate time to it. For such a textbook divide the total amount of pages and read a little bit at a time, take breaks, reflect on what you have read, answer practice questions, and continue to the next group of pages. You will see after getting started that it is not as overwhelming anymore.
the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:
Answers
If there are 40 million people over the age of 16 in a country, there are 24 million employed people, 8 million unemployed people, and there are 8 million employed people, the unemployment rate is 32%.
What makes you ineligible for unemployment in California?If the director determines that a person quit their most recent job voluntarily and without justification, or if they were fired for wrongdoing related to their most recent job, they are not eligible to receive unemployment benefits.
How long does the California unemployment rate take?Most qualified workers receive payment for their unemployment benefits after at least three weeks of processing their claim. You'll get a debit card in the mail when your first benefit payment becomes available. You can track, use, and transfer your benefit payments once the card has been activated.
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Why can communicating with someone with a different background than yours present challenges?
Answers
briefly explain two factors which might influence demand for digital cameras in business
Answers
Answer:
Explanation:
1. The raise of influencer marketing applied on small businesses will demands digital cameras specially when the business owners managed their brands.
2. Every eCommerce must buy digital cameras because the costs for external photographers at long term it is not redituable.
1. Choose a well-known company that you know of, and answer the following questions about it:
Answers
Answer:
what type of company
and which other questions
Which of the following nonverbal signals can you use to indicate interest and enthusiasm?
A. Fidgeting
B. Crossing your arms
C. Making eye contact
D. Sitting at a distance
Answers
C. Making eye contact
Have a great day!
The bookkeeper for Macondray Co. forgot to make an adjusting entry to record revenue earned but not yet billed to customers. The effect of this error is:-An overstatement of assets and net income offset by an understatement of owners’ equity-An overstatement of net income and an understatement of assets-An understatement of assets, net income, and owners' equity-An overstatement of liabilities offset by an understatement of owners' equity
Answers
Option (b), The effect of the bookkeeper's error in forgetting to make an adjusting entry to record revenue earned but not yet billed to customers is an overstatement of net income and an understatement of assets.
If the adjusting entry is not made, the revenue will not be recorded in the accounting records, which will result in an understatement of assets and an overstatement of net income. This is because the revenue earned but not yet billed is not reflected in the accounts receivable balance, which is an asset, and the net income is overstated because the revenue has not been offset by the corresponding expense.
As a result of this error, the financial statements will not accurately reflect the company's financial position and performance. To correct this error, the bookkeeper must make an adjusting entry to recognize the accrued revenue, which will increase both assets and revenue and decrease net income. This will result in a more accurate representation of the company's financial position and performance.
Therefore, the correct answer to your question is B) An overstatement of net income and an understatement of assets.
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the richest 1 % of americans should pay more taxes than the rest of the 99 %. positive economics normative economics
Answers
The statement regarding the richest 1% of Americans paying more taxes than the rest of the 99% involves both positive economics and normative economics.
Positive economics deals with objective analysis and focuses on describing how the economy functions without making value judgments. In this context, positive economics would examine factors such as the income distribution of the top 1% and the remaining 99%, the tax policies currently in place, and the potential impact of adjusting tax rates for different income groups.
On the other hand, the statement also involves normative economics, which addresses subjective opinions and value judgments about what "should" be done in the economy. It expresses a normative position that the richest 1% should pay more taxes than the rest of the 99%. This perspective is based on the belief that redistributing wealth through a progressive tax system is a fair and just way to address income inequality and contribute to societal welfare.
It's important to note that opinions on tax policies and income redistribution can vary widely among economists and individuals, and different normative positions can be supported by different arguments and value systems.
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flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one-of-a-kind parts economically. group of answer choices true false
Answers
The given statement flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one-of-a-kind parts economically is true because flexible manufacturing systems, due to their easily changed control programs, are capable of performing tasks such as manufacturing one-of-a-kind parts economically.
FMS are automated production systems that are designed to be highly flexible and adaptable to changing production needs. They consist of a group of machines that can be reconfigured and programmed to perform a wide range of manufacturing tasks.
The control programs that run the FMS can be easily changed to accommodate different production runs and product designs. This flexibility allows FMS to produce one-of-a-kind parts and small production runs economically, as it eliminates the need for costly retooling or extensive setup times between jobs.
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QUESTION 3 of 10: Two major circus acts have agreed to perform at the stadium if they can get seven consecutive days each. On average,
each performance will provide a profit margin of $35,000 for the stadium. How much will the stadium's profit margin be if it signs both acts to
one-week deals?
a) $100,000
b) $250,000
c) $490,000
d) $500,000
Answers
35000x7 = 245000
245000x2 = 490000
There are 2 acts, and they want to perform for 7 consecutive days each. The stadium gets $35000 per performance, and there will be a total of 14 performances. This means that the stadium will have a profit margin of $490000.
To prevent loss of work on the computer, it is essential to:
A. file your document.
B. save your document frequently.
C. name your document frequently.
D. open your document
Answers
Answer:
B. save your document frequently
Explanation:
Saving your documents time to time will prevent loss of work on computer which could be possible due to different reasons like electricity off, some wiring issue or even hardware/software of computer could be hanged.
So saving frequently can save your work also it is best practice to save in different name so that older history is maintained.
New solution to these problems are using cloud based documents those auto save your work and also maintain history.
A US based company is attempting to merge with a French National conglomerate. With IFRS and GAAP being so different, what would be some of the challenges the two sides may face with the merger from an accounting standpoint?
Answers
The merger between a US-based company and a French National conglomerate can pose several challenges from an accounting standpoint due to the differences between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). Some of the challenges they may face include:
Accounting Principles: IFRS and GAAP have different underlying principles and concepts. IFRS is principles-based, emphasizing substance over form, while GAAP is rules-based, providing specific guidelines for various transactions. The differences in accounting principles can lead to variations in the recognition, measurement, and presentation of financial information.
Financial Statement Presentation: IFRS and GAAP have different requirements for financial statement presentation. The formats and classifications of items on the balance sheet, income statement, and cash flow statement may vary between the two sets of standards. This can make the comparison and consolidation of financial statements challenging.
Revenue Recognition: IFRS and GAAP have differing guidance on revenue recognition, particularly in areas such as the timing of revenue recognition, multiple-element arrangements, and percentage-of-completion method for long-term contracts. Aligning the revenue recognition policies of the merging entities can be a complex task.
Valuation of Assets and Liabilities: IFRS and GAAP may have different rules for the valuation of assets and liabilities, such as inventory, property, plant, and equipment, intangible assets, and financial instruments. Differences in valuation methodologies can impact the reported values of assets and liabilities, which can have implications for financial ratios, financial performance, and tax implications.
Business Combinations and Goodwill: IFRS and GAAP have different requirements for accounting for business combinations and the subsequent treatment of goodwill. For example, IFRS allows for the option of measuring goodwill at cost or using the impairment model, while GAAP follows a more strict impairment-only model. This can result in differences in the recognition and measurement of goodwill and the related impact on financial statements.
Disclosures: IFRS and GAAP have varying disclosure requirements, with differences in the level of detail and specific disclosures mandated for certain transactions and events. Harmonizing the disclosure requirements can be a complex task to ensure compliance with both sets of standards.
These are just a few examples of the challenges that may arise during the merger process from an accounting standpoint. It is crucial for the merging entities to have a thorough understanding of the differences between IFRS and GAAP and work closely with accounting professionals and advisors to address these challenges effectively and ensure accurate financial reporting and compliance with relevant regulations.
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which of the following is not part of a scope baseline
Answers
Answer:
where are the chocies ?
Explanation:
One explanation of the business cycle is that it's caused by changes in business investment, residential construction,
or government spending. If this explanation is correct, how can you use it to determine whether it is a good time or
bad time to buy stocks in the stock market?
Answers
The variations of the economy between times of expansion (growth) and contraction are referred to as the "business cycle" (recession). The present stage of the business cycle can be determined using variables like gross domestic product (GDP), rate of interest, employment levels, and consumer expenditure.
What is business cycle:
Business cycles are one type of variation that can occur in a nation's total economic activity. Broad-based economic growth expansions that almost coincide with one another are followed by broad-based economic activity contractions to form a business cycle (recessions). This set of changes happens periodically but not repeatedly.
During business cycles, economic activity experiences periods of expansion and then decline. Both the general welfare of society and the welfare of private institutions are affected by these changes.
The repeated economic shifts that occur in a nation over time are referred to as business cycles. It can be recognized by changes in the GDP and other macroeconomic indicators. The business cycle has four distinct phases: expansion, peak, recession, and trough.
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1. if you were to start a business, which ownership form would you choose? what factors might affect your choice? 2. why might an investor choose to become a partner in a limited partnership instead of purchasing the stock of an open corporation?
Answers
A. 1. The form of ownership chosen to start a business would depend on several factors, such as the size and type of business, the number of owners, the amount of capital needed, the tax benefits desired, and the degree of control and responsibility. required.
2. An investor may choose to become a partner in a limited partnership (LLP) instead of purchasing shares in an open partnership because a limited partnership offers greater control, tax benefits, and protection from personal liability.
B. An investor may choose to become a partner in a limited partnership instead of purchasing stock in an open partnership because limited partnerships offer greater control and tax benefits, as well as protection from personal liability. Limited partnerships allow the partners to have a say in the management of the business, while open corporations are managed by a board of directors or shareholders.
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Notices provide a cheap way of communicating the same information to a large number of people but they may not be read, or may be ignored. True or false ?
Answers
Answer:
True
Explanation:
Notices can be regarded as a form of
formal communication to pass information to particular person as well as group of people. This could be inform of invitation to attend a meeting, legal notice from court, announcement of a particular event,
Kcco, inc., has current assets of $5300, net fixed assets of $24,900, current liabilities of $4,600, and long-term debt of:_________
Answers
KCCO, Inc. has a long-term debt of $20,600.
Long-term debt refers to financial obligations or liabilities that are due beyond one year or the normal operating cycle of a business.
To determine the long-term debt of KCCO, Inc., we need to subtract the current assets and current liabilities from the total assets. The formula is:
Long-term debt = Total assets - Current assets - Current liabilities
Given that KCCO, Inc. has current assets of $5,300 and current liabilities of $4,600, we can calculate the total assets as follows:
Total assets = Current assets + Net fixed assets
Total assets = $5,300 + $24,900
Total assets = $30,200
Now we can calculate the long-term debt:
Long-term debt = $30,200 - $5,300 - $4,600
Long-term debt = $20,600
Therefore, KCCO, Inc. has a long-term debt of $20,600.
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Suppose that the distribution of the 1-year loss is as follows.
Loss ($ million) Probability
−1 0.4
0 0.2
1 0.2
2 0.1
4 0.1
(a) Find the 1-year 70% VaR.
(b) Find the 1-year 70% ES.
(c) Find the 1-year 80% VaR.
(d) Find the 1-year 80% ES.
Answers
Suppose that the distribution of the 1-year loss is given as:L($ million) Probability 0.1a) 1-year 70% is defined as the maximum possible loss for a given level of confidence and period of time.
The 70% VaR, therefore, implies that the confidence level is 1-70% = 30%, and the period of time is 1 year.To calculate the 70% VaR, we need to find the maximum loss of the 30% probability:1. Sort the loss and probability values in descending order:Loss ($ million) Probability
Cumulate the probability values:Loss ($ million) Probability Cumulative Probability 1.03. Identify the maximum cumulative probability that is less than or equal to 0.3. From the table above, the maximum cumulative probability is 0.2.4.
The corresponding loss is the 70% VaR: 2 $ million.b) 1-year 70% ES:ES is defined as the average loss of the worst 30% of scenarios.
In order to find the ES, we must first calculate the loss corresponding to the 30th percentile. From the cumulative probability column of the table above, the loss corresponding to the 30th percentile is $0 million.To calculate the ES, we need to average the losses exceeding $0 million.
These are losses for which the probability is 0.4, 0.1, and 0.1.Loss Probability Cumulative Probability -1 0.4 0.4 0 0.1 0.5 1 0.1 0.6 2 0.1 0.7 4 0.1 0.8 The average of these losses is: (-1*0.4+0*0.1+1*0.1+2*0.1+4*0.1)/0.3 = 1.13 $ millionThus, the 1-year 70% ES is 1.13 $ million.c) 1-year 80% VaR:To calculate the 80% VaR, we need to find the maximum loss of the 20% probability.
Using the same steps from part (a), the 80% VaR is the maximum cumulative probability that is less than or equal to 0.2.Loss Probability Cumulative Probability -1 0.4 0.4 0 0.2 0.6 1 0.2 0.8 2 0.1 0.9 4 0.1 1.0The maximum cumulative probability that is less than or equal to 0.2 is 0.6.
Therefore, the corresponding loss is 0 $ million.d) 1-year 80% ES:To calculate the 80% ES, we need to find the average loss of the worst 20% of scenarios. The loss corresponding to the 20th percentile is $0 million. The losses exceeding $0 million correspond to probabilities of 0.2, 0.2, 0.1, and 0.1.Loss Probability Cumulative Probability -1 0.4 0.4 0 0.2 0.6 1 0.2 0.8 2 0.1 0.9 4 0.1 1.0 The average of these losses is: (-1*0.4+1*0.2+2*0.1+4*0.1)/0.2 = 0.6 $ millionThus, the 1-year 80% ES is 0.6 $ million.
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With the help of the diagrams, explain the possible channels of distribution from a manufacturer to a customer
Answers
Distribution channels refer to the various channels through which products can reach consumers. Distribution channels can be direct or indirect, but they all serve the same function of transporting products from the manufacturer to the end-user. Here are some possible channels of distribution from a manufacturer to a customer:
1. Direct Distribution Channel: This channel is when a manufacturer sells directly to customers without using intermediaries. It is the simplest distribution channel and involves the shortest chain of distribution.
2. Indirect Distribution Channel: In an indirect distribution channel, intermediaries are involved in getting the manufacturer’s products to customers.
3. Dual Distribution Channel: In this channel, a manufacturer will sell their products through direct and indirect channels simultaneously. This channel offers a manufacturer the best of both worlds, reaching more customers through intermediaries and getting more control through direct sales.
4. Reverse Distribution Channel Reverse distribution is the process of moving goods from the end-user back to the manufacturer or distributor.
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A manager wants to cut costs by laying off all workers who are 50 and older
and replacing them with younger workers. What should the HR department
advise in this situation?
A. The idea is smart because it should bring a significant
improvement in productivity.
B. The idea is illegal because employers must provide reasonable
accommodations to older employees.
C. The idea is illegal under the Age Discrimination in Employment
Act.
D. The idea is legal but will require extra money for training.
SUBMIT
Answers
A manager wants to cut costs by laying off all workers who are 50 and older and replacing them with younger workers, then the HR department should inform that the idea is illegal under the Age Discrimination in Employment Act.
What is Employment Act?The Terms of Employment Act of 1994 mandates that an employer submit a written explanation of wages and working conditions to its employees inside of 2 months of their start date.
This act also indicated that the employees are not removed on the basis of age discrimination.
In the above case, if a management wishes to save money by laying off all employees aged 50 and up and replacing them with younger employees.
Then, the HR department should warn the manager that this is against the Age Discrimination in Employment Act.
Therefore, option C is correct.
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Answer: The idea is illegal under the Age Discrimination in Employment
Act.
Explanation: Just took the test
You are the manager of a project that has an operating leverage rating of 2.8 and a required return of 14 percent. Due to the current state of the economy, he expects sales to decrease by 7 percent next year. What change should you expect in operating cash flows next year given your sales forecast?
Answers
Answer:
The change should you expect in operating cash flows next year would be 19.60%
Explanation:
In order to calculate the change should you expect in operating cash flows next year given your sales forecast we would have to make the following calculation:
change should you expect in operating cash flows=operating leverage rating*percentage of decrease sales next year
change should you expect in operating cash flows=2.8*0.07
change should you expect in operating cash flows=19.60%
The change should you expect in operating cash flows next year would be 19.60%
Which of the following is a way the government encourages employees to save for retirement?
Contribution matching
Opt in or opt out
Lower interest
Tax incentives
Answers
Answer:
Tax incentives.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
A tax incentive can be defined as benefits such as deductions, exclusions or exemptions given by the government to individuals or businesses so as to motivate them to save or spend money by reducing their tax rates i.e the amount of money to be paid as tax.
This ultimately implies that, tax incentives is a way the government encourages employees to save for retirement.
The study of group __________ helps us to recognize the formation of a group and states how the group should be organized, lead and promoted. Fill in the blank.
Answers
Answer:
dynamics
Explanation:
Group dynamics is a term that is used in describing the formation and the actual nature or characteristics of a group in connection to every member of the group and or in relation to how the group interacts with other groups.
Hence, the study of group DYNAMICS helps us to recognize the formation of a group and states how the group should be organized, lead, and promoted.
When the Group of dynamics may be a term that's utilized in describing the formation and also the actual nature or characteristics of a bunch in connection to each member of the group and or in respect to how the group interacts with other groups.
DynamicsHence, the study of social psychology that is Dynamics helps us to acknowledge the formation of a gaggle and states how the group should be organized, lead, and promoted.
Thus, the correct answer is Dynamics
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