Answer: $250 million
Explanation:
The gross domestic product is simply referred to as the total value of the goods and services that a particular country produces for a certain fiscal year.
Based on the information provided in the question, the answer will be $250 million. Since the airplane is sold to China for $250 million, therefore, the record on the GDP of the United States will be $250 million.
How do you choose the brainliest answer?
Project: Facial Feedback Theory Conduct a study to observe facial feedback theory. please I really need help
The facial feedback hypothesis proposes that people's subjective emotional experiences are influenced by their facial expressions. However, the evidence for this hypothesis is mixed.
According to the facial feedback hypothesis, people's emotional experiences are influenced by their facial expressions. Smiling, for example, should make people feel happier, while frowning should make them feel sadder. According to the researchers, these effects occur because facial expressions provide sensorimotor feedback that contributes to the sensation of an emotion, serves as a cue that individuals use to make sense of ongoing emotional feelings, influences other emotion-related bodily responses, and/or influences the processing of emotional stimuli.
The facial feedback hypothesis as well as the original pen-in-mouth effect are both correct. If this is the case, scientists must figure out why others were unable to replicate the pen-in-mouth effect. One theory is that the replicators did not perform a true direct replication because they deviated from the original study by recording the participants openly (per the advice of an expert reviewer).
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Answer: My project is attached for anyone who might still need it
Explanation: Hope this helps! Good luck!
mary a second year college student wants to earn extra pocket money.she is good with making hamburgers,so she is considering opening up a hamburger stall on weekends at the local flea market near the campus
The answer is , since we know that each hamburger costs R5 to make, and Mary would like to sell her double cheeseburgers at the same price as her major competitor, R15 each.
What to do-
In order to cover her costs, she needs to sell enough hamburgers to generate R2000 in revenue. Since each hamburger is sold for R15, this means she needs to sell 133.33 hamburgers per day:
R2000 ÷ R15/hamburger = 133.33 hamburgers/day.
It is good to note that she needs to sell more hamburgers than her competitors, to generate the same amount of money while having additional costs.
What does a company' revenue mean?Revenue for a company is its gross income before deducting any costs. Revenue is the financial benefit from sales and/or services provided and is defined by profits and total earnings.
Difference between revenue and profit?Profit refers to net income after deducting expenditures from earnings, whereas revenue refers to income produced via company activities.
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If yu recieved $10,000, how would you choose to spend it?
Answer:
I would by a house and provide for family hbu???
Explanation:
Give an example of situation in which a surplus of a product lead to decreased prices.
Similarly give an example of a situation in which a shortage lead to increased prices.
Example of a situation in which a surplus of a product leads to decreased prices is food staples in America.
An example of a situation in which a shortage leads to increased prices is increasing prices of fuel due to a lack of fossil fuel availability.
What is refers as a surplus of any product?Surplus of any product refers to a situation when the availability of goods is in more quantity whereas the demands for the products are sufficient which makes it decrease in the prices of products.
Food staples like frozen foods and vegetables along with eggs are considered a surplus product in America.
The prices of fossil fuels are increasing in the world as they are obtained through fossils that are not available in abundance which creates high demands for daily consumption and results in shortage.
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Question 16 of 40
What is the difference between specialization and cross-training?
A. Specialization is for employees at the top management level of
the company while cross-training is for employees at the entry
level.
B. Specialization is for employees who love what they do while cross-
training is for employees who don't love any one particular area of
their work.
C. Specialization leads employees to focus on a single skill or task
while cross-training deals with training employees in multiple skills
or tasks.
D. Specialization is for employees who have an advanced degree
while cross-training is for those who do not have an advanced
degree.
The correct answer is C) , Specialization leads employees to focus on a single skill or task while cross-training deals with training employees in multiple skills or tasks.
Specialization and cross-training differ in terms of the focus of training and development. Specialization involves employees focusing on developing expertise in a particular skill or area of work. It often involves becoming highly proficient and knowledgeable in a specific field or task.
Specialization allows employees to become experts in their chosen area and can lead to increased efficiency and productivity in that particular domain.
On the other hand, cross-training involves training employees in multiple skills or tasks that are outside of their primary area of expertise. It aims to provide employees with a broader skill set and the ability to perform different roles within an organization.
Cross-training helps in creating a more flexible workforce that can adapt to changing needs and handle a variety of tasks. It also enhances collaboration and teamwork by enabling employees to understand and appreciate the work of their colleagues in different areas.
Specialization and cross-training are both valuable approaches depending on the organizational needs and employee roles.
Specialization is beneficial when deep expertise and mastery in a specific area are required, while cross-training is advantageous for fostering versatility and adaptability among employees.
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Task 1: Careers and Educational Requirements Perform online research and choose a career in the financial services industry. Determine the education you will need to prepare for this career.
Task 2: Certification Requirements
For your chosen career, identify the certification or licensing required. Develop a strategy to prepare for certification.
Task 3: Information Technology and Interpersonal Skills
For your chosen career, describe the skills you will need to learn and develop.
For Task 1, I have chosen the career of a financial analyst in the financial services industry. To prepare for this career, a Bachelor's degree in Finance, Accounting, Economics, or a related field is required.
For Task 2, becoming a Certified Financial Analyst (CFA) is highly valued in this career. The CFA program consists of three levels of exams that cover topics such as economics, financial reporting and analysis, ethics, and investment tools.
For Task 3, both information technology and interpersonal skills are important in this career. Financial analysts must have strong analytical skills and be proficient in using financial modeling software and spreadsheet applications.
Task 1- Many employers also prefer candidates with a Master's degree in one of these fields. Additionally, courses in statistics, mathematics, and computer science can be beneficial in this career. Task 2- To prepare for this certification, one should enroll in a CFA program review course, study the material thoroughly, and take practice exams to prepare for the rigorous testing process.
Task 3- They also need to have excellent communication and interpersonal skills to be able to work effectively with clients and team members. Additionally, they must be able to present complex financial information in a clear and understandable manner. Developing and honing these skills can be achieved through a combination of on-the-job experience, training, and continuing education courses.
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What is an example of a good?
A dental examination
A visit to the dog groomer
A delivery van
A manicure
A car warranty
Answer: a dog groomer
Explanation:
because they help keep your dogs clean
A visit to the dog groomer is an example of a good. Hence, option B is correct.
What do dog groomers do?Brushing, bathing, drying off, and cutting or clipping the dog's hair with clean, sterilized tools are typically included in a professional grooming session. Groomers brush or combing the dog to eliminate mats before bathing it.
Aspects of dog grooming include cleaning, styling, and general canine care. Regular grooming is necessary if you own a dog since it keeps them clean and healthy.
One method typically employed by those who sexually abuse children is grooming, which entails misleading methods intended to get access to a potential victim, persuade them to consent to the abuse, and decrease the danger of being detected.
Thus, option B is correct.
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According to the survey article on mergers by Mukherjee et al,
A) a minority of managers believe that diversification can be a good reason to merge.
B) acquiring managers discount targets’ cash flows at the targets’ cost of capital.
C) managers do not believe operating synergies to be important in merger decisions.
D) managers do not use the discounted cash flow formula to value a target in a merger.
Pls can someone answer quick they are multiple choice
2. Which one of the following is not a characteristic generally evaluated in analysing financial
statements?
(1 Point)
O Liquidity
O Profitability
O Marketability
O Solvency
3. Comparisons of financial data made within a company are called (1 Point)
O intracompany comparisons.
O interior comparisons
O intercompany comparisons
O intramural comparisons
Marketability, one of the following is not a characteristic generally evaluated in analyzing financial statements. Thus, option (c) is correct.
Comparisons of financial data made within a company are called intracompany comparisons. Thus, option (a) is correct.
What is company?The term company refers to the legal entities that are legally registered in accordance with the Company Act. Company is the main goal to earn higher profit, and they maintain the goodwill.
According to the financial statements, are the created with the help of the marketability of the product. There was the financial data are the company to the entry are the intracompany comparisons.
Therefore, option (c) and 2. (a) is correct.
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you are the manager of a firm that receives revenues of $60,000 per year from product X and $100,000 per year from product Y. The own price elasticity of demand for product X is −2, and the cross-price elasticity of demand between product Y and X is 1.5. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?
Firm's total revenues will change to $600 if you increase the price of good X by 2 percent
Price elasticity of demand = percentage change in quantity demanded / percentage change in price −2 = percentage change in quantity demanded / 2% percentage change in quantity demanded = --2 x 2% = -4% The quantity demanded of good X would fall by 4% Revenue would change by -0.04 x $60,000= -$2400 Cross price elasticity of demand measures the responsiveness of quantity demanded of good Y to changes in price of good X. 1.5 = percentage change in quantity demanded of good Y / 2% percentage change in quantity demanded of good Y = 1.5 x 2% = 3.0% The quantity demanded of good Y would increase by 3.0% Revenue would change by 0.030 x $100,000= $3000 Total change = -$2400+ $3000=$600
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You are leading a project in which 25% of the team resides outside of your area. They are therefore considered to be virtual resources. Explain how you plan to keep them engaged with your project. Explain some of the challenges you may face in managing these virtual resources. Justify your response.
Keeping virtual team members engaged in a project can be challenging, but there are several strategies that can be used to help them stay connected and motivated.
First, it's important to establish regular communication channels that allow virtual team members to stay informed about project developments and to collaborate with their colleagues. This can include regular video conferences, group messaging platforms, and shared project management tools that allow team members to stay updated on deadlines and milestones.
Second, it's important to provide virtual team members with opportunities to contribute to the project in meaningful ways. This can include assigning specific tasks or deliverables to virtual team members, soliciting their feedback and input on key decisions, and recognizing their contributions through public praise or other forms of recognition.
Third, it's important to foster a sense of team identity and community among virtual team members. This can be done through regular team-building activities, social events, and other forms of informal communication that help to build trust and rapport among team members.
Some of the challenges that may be faced in managing virtual resources include issues with communication and collaboration, time zone differences, and a lack of visibility into the work being done by virtual team members. To address these challenges, it's important to establish clear guidelines and expectations for communication and collaboration, to establish protocols for sharing work and progress updates, and to be proactive in addressing any issues or concerns that arise among virtual team members.
Overall, effective management of virtual resources requires a combination of clear communication, meaningful collaboration, and a strong sense of team identity and community. By implementing these strategies and addressing potential challenges proactively, project leaders can help to keep virtual team members engaged and motivated throughout the project lifecycle.
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The 15-year average return for the S&P 500 from January 1973 to December 2016 (29 separate 15 year periods) was as high as a 20% average annual return and as low as a 3.7% average annual return. Additionally, the average dividend yield for the S&P is 4.11% and the average annual dividend growth rate is 6.11%.
Using this information, please compare the investment in the 5% 15-year corporate bond with a $100,000 investment in a stock with a 3.7% dividend yield (10 percent less than the S&P 500 average yield) and a 3% dividend growth rate (50 percent of the S&P 500 dividend growth rate).
The annual investment returns are as follows:
Year 1 (13.40%) Year 2 (23.37%) Year 3 26.38% Year 4 8.99%
Year 5 3.00% Year 6 13.62% Year 7 3.53% Year 8 (38.49%)
Year 9 23.45% Year 10 12.78% Year 11 0.00 Year 12 13.41%
Year 13 29.60% Year 14 11.39% Year 15 (0.73%)
The bond interest payment of 5 percent is paid annually and not reinvested. To compare accurately with the bond investment, the stock dividend will not be reinvested, but paid annually as well.
Please calculate the value of the stock account at the end of each year and the dividend income from the stock on an annual basis.
Once you have performed the calculations, please let me know if you prefer to invest in a 5% corporate bond for 15 years or the stock and why.
What is the value of the stock after year 2? Year 8? Year 11? When does the annual dividend income of the stock exceed the annual interest income of the bond?
1. The value of the stock account after Year 2 is $155,401.626.
2. The value of the stock account after Year 8 is $96,110.0674.
3. The value of the stock account after Year 11 is $96,110.0674.
4. The annual dividend income of the stock exceeds the annual interest income of the bond at the end of Year 15.
Bond interest rate: 5%
Stock dividend yield: 3.7% (10% less than S&P 500 average yield)
Stock dividend growth rate: 3% (50% of S&P 500 dividend growth rate)
We'll assume an initial investment of $100,000.
Year 1:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $100,000 + ($100,000 * 0.2337) = $123,370
1. Year 2:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $123,370 + ($123,370 * 0.2638) = $155,401.626
2. Year 8:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $155,401.626 + ($155,401.626 * (-0.3849)) = $96,110.0674
3. Year 11:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $96,110.0674 + ($96,110.0674 * 0) = $96,110.0674
4. At the end of Year 15, the dividend income of the stock exceeds the interest income of the bond.
Stock dividend income: $100,000 * 0.037 = $3,700
Bond interest income: $100,000 * 0.05 = $5,000
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Following is the information listed below for Carter State Bank. What is the bank's net profit margin? Net income Total operating revenue Total assets Total equity Capital $ 55 million $ 650 million $4,055 million $ 350 million Multiple Choice 8.46 percent 16.03 percent
18.18 percent is the bank's net profit margin.
Net profit margin= Total operational revenue - net income
= $350 + $650 / $55
= 18.18%
The net profit margin, or simply net margin, is the amount of net income or profit generated as a proportion of revenue. or simply net margin. It is the proportion of a company's or business segment's net profits to revenues. The answer is OPTION D.
Although it can also be expressed in decimal form, net profit margin is frequently expressed as a percentage. According to the general rule of thumb, a net profit margin of 10% is considered average, a margin of 20% is considered good, and a margin of 5% is considered low. A higher net profit margin demonstrates a company's capacity to manage expenses and sell goods for a profit.
The que is incomplete complete que is given below.
a. 8.46 percent b. 16.03 percent c. 10.34 percent d.18.18 percent
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Performance transparency ensures that the system finds the most cost-effective path to access remote data. a. True b. False.
It is true that performance transparency ensures that the system finds the most cost-effective path to access remote data.
Transparency in performance makes sure the system chooses the most economical way to retrieve remote data. The distributed database management system continues to enable the same level of transparency across all platforms. A distributed data dictionary supports distribution transparency.
Because of this transparency, a DDBMS must operate similarly to a centralized database management system. Additionally, due to the distributed nature of the system, performance shouldn't be affected in any way.
Transparency in DBMS refers to the requirement that a DBMS system provide the user with a transparent distribution. In other words, it shields the user from implementation specifics. Transparency can be divided into four categories: distribution transparency, transaction transparency, performance transparency, and DBMS transparency.
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Your company sells over-the-counter sleep pills and has created the slogan "sleep better than a baby, sleep like a teenager." what element of strategy does this represent?
Answer: Targeting
Explanation:
Strategy refers to the integrated set of choices that managers consider when making decisions. With regards to the question above, the element of strategy that's used is the targeting strategy.
The targeting strategy is when the market is being segmented and the segments of the market tahts appropriate is then chosen aftee which product are then offered.
This morning, you put a European protective put strategy in place when the cost of ABC stock was $29.15 per share and the 1-year $30 ABC put was priced at $1.05 per share. How much profit or loss per share will you earn from this strategy if the stock is worth $28 a share on the put expiration date? A) −$2.2 B) −$1.05 C) −$.20 D) $1.15 E) $4.20
Answer:
C) −$0.20
Explanation:
Stock Price (So) = $29.15, Po = $1.05
Initial outflow = So + Po = $29.15 + $1.05
Initial outflow = $30.20
Strike Price (k) $30
Stock price at maturity (St) = $28
Payoff = max(k-st,0)
Payoff = max(30-28,0)
Payoff = max(2,0)
Payoff = $2
The stock on maturity is sold in the market for $28.
Total inflow = Payoff + Stock price on maturity
Total inflow = $2 + $28
Total inflow = $30
Profit = Total inflow - Initial outflow
Profit = $30 - $30.20
Profit = -$0.20
Given the answers for Citi and SVB on the chart answer the following: What hedging strategies would you suggest to the management of Citi and SVB to protect their net interest margins? In particular, discuss possible financial instruments that might be used to hedge current interest rate risks of the two companies and what position you might take (long or short) for each company given each companies risk exposure.
To be able to protect their net interest margins, both Citi as well as SVB could consider using hedging strategies to lower the interest rate risks. A possible financial instruments they can be able to use are:
Interest rate swapsInterest rate futuresInterest rate optionsWhat is the hedging strategies ?An interest rate swap allows parties to agree to pay fixed or floating interest rates, reducing risks for Citi and SVB. Interest rate futures are agreements to buy or sell financial instruments at a predetermined price in the future.
Citi and SVB use interest rate futures to hedge risks. Interest rate options give the holder the right to buy or sell at a predetermined price.
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See text below
Citigroup
Interest Income 74,408,000.00
interest Expense 202,000.00
Net Interest Income 74,206,000.00
1% 742,060.00
SVB
Interest Income 514,668.00
interest Expense 0.00
Net Interest Income 514,668.00
1% 5,146.68
Your store is running a sale. All dresses are 40% off. One dress sells for $150. How much money will someone buying this dress save? ___Type here_____ What is the new selling price for this dress? ___Type here_____
the poerson save 60 dollars
The new price is 90 dollars
Explanation:
which 2 statements are true about billable expenses
invoicing for a billable expense must always use an income account,
a default markup percentage can be added automatically on the invoice,
the purchase transaction
Explanation:
The two true statements about billable expenses are:
1. Invoicing for a billable expense must always use an income account: When invoicing a client for a billable expense, it is necessary to use an income account to record the revenue generated from that expense. This allows for proper tracking of the income related to the expense.
2. A default markup percentage can be added automatically on the invoice: Some businesses may choose to add a markup percentage to the original cost of a billable expense when invoicing the client. This markup percentage helps cover any additional costs or overhead associated with the expense. The use of a default markup percentage can automate this process, making it easier to calculate and include in the invoice.
Logistics is concerned Multiple Choice with flows of materials, finished products, and information. only with the flow of information, not the flow of materials and products. with the flow of materials to the manufacturer and with the flow of finished products to the consumer, but not with the flow of information. only with the flow of finished goods from the producer to the final consumer.
Answer:
Option A
Explanation:
Logistics is concerned with the flow of goods (raw material and finished products) to the consumer and the producer.
However, the entire process of logistics involve Flow of physical items as well as abstract items inclusive of time, information, particles, and energy
Hence, option A is correct
Match each issue with the best solution
1 An administrator needs to gather information
on patient referrals to determine the source
of each referral and which types of agencies
refer the greatest number of patients.
2 A primary care provider notices an increase
in fracture injuries among patients in the
10-to 13-year-old age range and wonders
if there might be a connection among the
injury type, the age range, and patients'
leisure activities.
3 A nurse values patient-centered care and
wants to encourage her patients to take
an active role in developing their treatment plans.
A. Shared decision making
B. Analytical thinking
C. Abstract thinking
An administrator had a decision making attitude, a primary care provider have analytical thinking and the nurse have abstract thinking.
What is analytical and abstract thinking?In the very first question the administrator have decision making personality as the administrator is gathering information on patient referrals.Decision making is the quality of human personality which depict one's attitude towards making quick decisions.In the second question the primary care provider had analytical thinking towards the patients.Analytical thinking means the thinking of logical concepts and based on one's intelligence.In the third and the last question the nurse had abstract thinking.Abstract thinking means the caring nature towards the patient.To know more about analytical thinking visit:
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mr. and mrs. gasson own 100% of the common stock of able corp. and 90% of the common stock of baker corp. able previously paid $4,000 for the remaining 10% interest in baker. the condensed december 31 balance sheets of able and baker are as follows:
A is correct. A compound financial statement is a term used to describe financial statements prepared for companies owned by the same parent company or individual.
They are prepared by aggregating all financial statements of subsidiaries. Intercompany transactions are eliminated as in the consolidated financial statements. Able's and Baker's shareholders' stock accounts add up to a total of $430,000 ($100,000 + $20,000 + $300,000 + $10,000). Intercompany balances ($4,000 investment in Baker, $4,000 common stock) should be eliminated to reduce total shareholders' equity to $426,000 ($430,000 - $4,000).
B is incorrect. This is because the combined capital is the sum of Able and Baker ($100,000 + $300,000 + $20,000 + $10,000 = $430,000) minus intercompany transactions ($430,000 - $4,000 = $426,000).
C is incorrect. The $4,000 intercompany deal isn't going away.
D is incorrect. Baker is not consolidated without intercompany transactions.
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------ as a performance measure is of particular significance in a ------- supply chain
a) excess inventory, efficient
b) lost sales, responsive
c) lead time, efficient
Answer:
excess inventory, as a performance measure is of particular significance in a efficient - supply chain
5. YYY Company's current stock price is $50.00, its last dividend was $3.20, and
its required rate of return is 12%. If dividends are expected to grow at a constant rate, g, in the future, and if rs is expected to remain at 12%, what is the company’s expected stock price 5 years from now?
If a corporation is profitable, it may pay a dividend to its shareholders. Dividends are not considered business expenses when calculating your corporation tax. Dividend payments by your firm must exceed the available profits from the current and prior fiscal years.
What is dividend?
A dividend is a gift that a business delivers to its shareholders, whether it be cash or anything else. Dividends may be distributed in a number of ways, including stock dividends, cash payments, and other forms. The board of directors of a firm determines its dividend, which requires shareholder approval.
In contrast to cash dividends, stock dividends are payments made to shareholders in the form of new shares. Each existing share gets paid a part of the distributions. For instance, if a business declares a 5% stock dividend, it will issue 0.05 shares for each share that a shareholder owns.
But, given that the firm is giving back so much of its profits to investors, a high dividend yield may not necessarily be a positive indicator (rather than growing the company.) Since that dividends are frequently expected to increase an investment's overall return, the dividend yield in combination with total return can be a key element.
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A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows: Amount per Unit Direct materials $ 10.00 Direct labor $ 6.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 What is the incremental cost incurred if the company increases production from 12,000 to 12,001 units
Answer:
14.002
Explanation:
Which of the following activities is an example of using an intranet to gather
information?
A. A salesperson checks a customer's order status, posted by the
production department.
B. A marketing researcher reads the comments posted by
consumers on a social media website.
C. A marketing manager uses a news feed to get links to articles
about industry-related events each day.
D. A marketing manager looks up information about where a
retailer's stores are located on the retailer's website.
SUBMIT
Answer:
A. A salesperson checks a customer's order status, posted by the production department.
Explanation:
In the A answer it is an order status posted by the production department but does not state any external sources or websites. So you have to assume the action is done within the company network or "Intranet"
In the examples B through D there are references made to external sources like: social media website, news feed, and a retailer's website.
A salesperson checks a customer's order status, posted by the production department is an example of using an intranet to gather information.
What do you mean by salesperson?Simply said, a sales representative promotes a company's brand while selling their goods or services. From the initial lead outreach until the actual purchase, they manage client connections and function as the primary point of contact.
It is the perfect career if you want to be in control of your career because it is mostly performance-driven, meaning how well you sell directly effects how much money you earn.
One of the various careers you might apply for with a business degree is a sales representative position. Everything you need to know about this career path is outlined here.
All stages of the sales process involve a sales representative having direct consumer interactions. They are in charge of determining a customer's needs, making suitable product or service recommendations, and making sure they have a great experience from beginning to end.
Sales representatives occasionally make cold calls to leads they find in company directories or through customer recommendations.
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The current carrying value of Lane's $800,000 face value bonds is $797,000. If the bonds are retired at 103, what would be the amount
Lane would pay its bondholders?
$824,000
$797,000
$800,000
$820,910
If the bonds are retired at 103, the amount Lane would pay its bondholders is: A. $824,000.
How to find the payment to bondholders ?Using this formula to determine the payment to bondholders
Payment to bondholders = Current carrying value × Bond rate
Let plug in the formula
Payment to bondholders = $800,000 × 1.03
Payment to bondholders = $824,000
Therefore the correct option is A.
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what is 4 P's in entrepreneur
Answer:
passion, persistence, perseverance, and preparation
Explanation:
help please!
A firm has costs of $1,000,000 for new investment outlays that are subject to an investment tax credit. The stated government purpose of having this investment tax credit is to stimulate the firm's business investments. Suppose the investment tax credit rate is 30%. How much does this reduce the cost of purchasing the assets? Assume an 8% rate of borrowing and a corporate tax rate of 40%.
ANSWER: The tax credit serves to immediately reduce the costs. The savings is 10% of one million dollars or $100,000r eduction in the purchase.