Spreadsheet functions used to calculate the present value of multiple cash flows assume, by default, that all cash flows occur at the _______ of the period.
Answers
The spreadsheet functions used to calculate the present value of multiple cash flows assume that all cash flows occur at the end of the period.
What is a present value?It refers to the current value of a future sum of money or stream of cash flows given a specified rate of return.
The future cash flows are to be discounted at the discount rate and the higher the discount rate, the lower the present value of the future cash flows.
In conclusion, the spreadsheet functions used to calculate the present value of multiple cash flows assume that all cash flows occur at the end of the period.
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Related Questions
Mrs. day structures a transaction to shift income from her 20y1 tax year to her 20y2 tax year. this tax planning strategy may be taking advantage of the:_________
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Answer:
Mrs. Day's tax planning strategy of shifting income from her 20y1 tax year to her 20y2 tax year may be taking advantage of the concept of deferral.
Deferral refers to postponing the recognition of income or the payment of taxes to a later time period. By structuring the transaction in this way, Mrs. Day can delay the reporting of income and the associated tax liability to the following tax year.
This strategy can be beneficial for several reasons. Firstly, it allows Mrs. Day to have more control over her taxable income, potentially reducing her overall tax liability. By shifting income to a lower tax year, she may be subject to a lower tax rate or be eligible for additional deductions or credits.
Additionally, deferral can provide financial flexibility by allowing Mrs. Day to invest or use the income during the current year, potentially earning additional returns or meeting other financial obligations. This strategy can also help with cash flow management.
It is important to note that tax planning strategies should be implemented within the boundaries of tax laws and regulations to avoid any legal issues or penalties. It is recommended to consult with a tax professional or advisor for personalized guidance and to ensure compliance with applicable tax rules.
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In the Mundell-Fleming model with fixed exchange rates attempts by the central bank to increase the money supply lead to exchange rate to fall, giving arbitrageurs the incentive to ________ the central bank, which causes the money supply to _______.
Answers
Attempts by the central bank to increase the money supply in the Mundell-Fleming model with fixed exchange rates cause the exchange rate to fall. This gives arbitrageurs the incentive to buy the central bank, which in turn leads to a contraction in the money supply.
In the Mundell-Fleming model with fixed exchange rates, when the central bank tries to increase the money supply, it typically does so by purchasing domestic bonds or lowering interest rates. This action leads to an excess supply of domestic currency, causing the exchange rate to fall below the fixed level. This situation creates an opportunity for arbitrageurs, who can now buy the undervalued domestic currency at a lower exchange rate and sell it at a fixed rate. To take advantage of this opportunity, arbitrageurs engage in foreign exchange transactions, which is called "buying" the central bank. As arbitrageurs buy the central bank's domestic currency using foreign currency, the central bank must use its foreign exchange reserves to maintain the fixed exchange rate. This process leads to a decrease in the foreign exchange reserves and effectively contracts the money supply.
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10. National banks must belong to the Federal Reserve System and must carry FDIC insurance.
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National banks are financial institutions that operate across the United States, under the supervision of the Office of the Comptroller of the Currency. In order to operate, they must belong to the Federal Reserve System and carry FDIC insurance.
The Federal Reserve System is a central banking system that oversees monetary policy and regulates the money supply in the United States. National banks are required to belong to this system in order to have access to the Federal Reserve's resources, including the ability to borrow money and process transactions. Additionally, membership in the Federal Reserve System allows national banks to have access to services such as check clearing and electronic funds transfers. FDIC insurance is a type of insurance that protects depositors from the loss of their deposits in the event that a bank fails. All national banks are required to carry FDIC insurance, which provides up to $250,000 in coverage per depositor, per bank. This insurance is important for consumers because it ensures that their money is safe and protected, even in the event of a bank failure. Overall, national banks play an important role in the US financial system, and their membership in the Federal Reserve System and carrying of FDIC insurance are important safeguards that protect both consumers and the financial system as a whole.
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An estate left the decedent's farm to eight grandchildren. Because no form of ownership was specified in the decedent's will, each of the grandchildren receives A) a right of possession to one-eighth of the property. B) a one-eighth interest in the property as a tenant in common. C) a severalty interest in one-eighth of the property. D) a joint interest in the entire property.
Answers
A right of possession to one-eighth of the property is what each of the eight
grandchildren will receive.
In cases where there is no will which specifies ownership then the estate will
have to be shared equally between the parties involved. They can however
do what they want with the share allocated to them.
In cases where there is no will and no relative, then it goes to the state. This
case involves eight grandchildren and it gives them the right to own one-
eighth of the property as a result of equal sharing.
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A Work Breakdown Structure (WBS) is a hierarchical structure of things that the project will make or outcomes that it will deliver"
WBS doesn’t describe any actions. Instead, every item is a noun describing an end product - a bicycle seat, fork, handlebar, etc.
This is one of the fundamental features of a WBS: it describes deliverables, not the activities necessary to get there. If there are any verbs in your WBS, then you’re doing something wrong. For example, if you’re creating a work breakdown structure for manufacturing a car, you’ll include items such as "car body" (a deliverable), not "welding steel" (an activity).
Answers
A Work Breakdown Structure (WBS) is a hierarchical structure that outlines the deliverables or end products of a project. It does not describe the actions or activities required to achieve those deliverables.
Each item in the WBS is a noun representing a specific outcome or component, such as a bicycle seat, fork, or handlebar. The WBS focuses on identifying the tangible results of the project, rather than the processes involved in producing them.
For example, when creating a WBS for manufacturing a car, you would include items like "car body" as a deliverable, rather than "welding steel" as an activity. The WBS helps break down the project into manageable components, providing a clear understanding of what needs to be accomplished. Remember, verbs should not be included in a WBS.
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Genera 5
3
Select the correct answer.
Which relationship is possible when two tables share the same primary key?
O A one-to-one
ОВ.
one-to-many
OC. many-to-one
OD. many-to-many
Reset
Next
Answers
Question:
Which relationship is possible when two tables share the same primary key?
Explanation:
One-to-one relationship.
explain the process of qualitative vs quantitative risk assessment
Answers
Qualitative and quantitative risk assessments are two methods used to identify and analyze potential risks in a given scenario. The main difference between the two is the type of data used in the assessment process.
Quantitative risk assessment involves using numerical data to evaluate the likelihood and impact of a specific risk. This may involve statistical models or simulations to estimate the probability of a risk occurring and the potential cost or impact if it does. This method is useful when dealing with complex systems where a large number of variables are involved, and precise predictions are necessary.
On the other hand, qualitative risk assessment involves using non-numerical data to evaluate the likelihood and impact of a specific risk. This may involve using expert opinions, historical data, or other subjective criteria to evaluate the potential risks involved. This method is useful when dealing with smaller, less complex systems, or when precise numerical data is not available.
Overall, both qualitative and quantitative risk assessments have their strengths and weaknesses, and the choice of method will depend on the specific circumstances of the situation.
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JACK Mchen
Lesson 1 My life goals
Resources
Listen
Question 2 of 10
What best describes the relationship between short and long term goals?
Setting short-term goals now helps reach long-term goals later,
Setting long-term goals now helps reach short-term goals later.
Short and long term goals are the same thing just different sizes.
Short term goals are accomplished when you can't do long term ones
US 8:2
Answers
Answer:
Setting short term goals now helps you reach long term goals later
what is the disadvantages of uber eats in fast food industry
Answers
Answer:
One disadvantage would be the decrease in revenue from normal fast food restaurants, as getting your food delivered would decrease the amount of people who dine in
Explanation:
Answer:
uber eats perks
Explanation:
what is the difference between an 'increase in supply' and an 'increase in quantity supplied'?a. There is no difference between the two terms; they both refer to a movement along a given supply curve. b. There is no difference between the two terms; they both refer to a shift of the supply curve.c. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. d. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.
Answers
Answer:
The correct answer is C. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased.
The difference between an 'increase in supply' and an 'increase in quantity supplied' are is no difference between the two terms; they both refer to a movement along a given supply curve. Thus, option (a) is correct.
What is supply?The term supply refers to the supply chain on the product or commodities. The supply was the manufacturer to vendor to wholesales to retailer to customer. The supply was an important part of the economic. The supply was the increases the price is low, The supply was low, the price was high.
According to the difference between on 'increase in supply' and an 'increase in quantity supplied' the both are the two terms on the supply curve. The supply curve as responsible to change the price.
As a result, the significance of the 'increase in supply' and an 'increase in quantity supplied' are the aforementioned. Therefore, option (a) is correct.
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A. Multiple Choice: Choose the correct 1. Many farmers may forget to check the troubleshooting section, which can cost them even more time out of the field. a. Not reading the Operator's Manual b. Improper Maintenance c. Poor electrical connection d. Overrunning machines capability e. Not replacing wom out when needed
Answers
Answer:
E.Not replacing whom out when Needed
Points, Yum...much yum.
Answers
Answer:
yes yes
Explanation:
yumyumyumyumuum
Answer:
Thank you Yum yum yum yum.
Uber’s expansion on the innovation front requires strategic planning by senior management. Once this planning has been completed, middle management would be responsible for implementing these plans through.
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Once this planning has been completed, middle management would be responsible for implementing these plans through (B) tactical planning.
What is tactical planning?Tactical planning is a method that aids in the creation of short-term and distinct plans that aid in the fulfillment of a business's, organization's, or individual's long-term plans. Strategic planning assists businesses in determining and laying out a long-term plan based on corporate objectives.There are several components to tactical planning. For example, breaking down organizational goals that are longer than two or three years, and establishing a goal-oriented calendar with short-term targets, such as a target for the next three months or six months.Therefore, once this planning has been completed, middle management would be responsible for implementing these plans through (B) tactical planning.
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The complete question is given below:
Uber’s expansion on the innovation front requires strategic planning by senior management. Once this planning has been completed, middle management would be responsible for implementing these plans through
Multiple Choice:
(A) operational planning.
(B) tactical planning.
(C) operating.
(D) strategic control.
(E) action plans.
shareholder primacy is the idea that a business' managers are obliged to focus their efforts on making decisions that benefit the firm's owners and not other stakeholders. question 2 options: true false
Answers
The given statement "according to the principle of "shareholder primacy," managers of a company must prioritize making decisions that will only benefit the company's owners" is FALSE.
What is shareholder primacy?A shareholder-centric form of corporate governance called shareholder primacy prioritizes the interests of shareholders over those of other company stakeholders like society, the community, customers, and employees.
In the current economic period, shareholders' wealth is regarded as the main determinant of the firm.
The priority of shareholders is currently unregulated by law.
In most of the world, there is a belief in the supremacy of shareholders.
The majority of the time, rather than "law," shareholder primacy is referred to as the "norm."
Thus, CSR may lead to disputes between various shareholders. Insiders gain personally from their affiliation with companies that have a high CSR rating in this dispute.
The conflict is lessened if insiders own a sizable portion of the company.
Debt also acts as a method for reducing conflict.
Therefore, the given statement "according to the principle of "shareholder primacy," managers of a company must prioritize making decisions that will only benefit the company's owners" is FALSE.
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Over 50% of Americans have no long-term savings. Why do you think it's so
difficult for so many people to save money? Explain your opinion.
Answers
Answer:
because they cant stop spending money
Explanation:
money is money
the successful implementation for change only happens when people accept the need for change and believe that it will improve factors such as productivity and/or customer satisfaction. a) true b) false
Answers
The statement is true. Successful implementation of change in an organization relies on the acceptance of change by people within the organization.
For change to be effective, individuals need to recognize the need for change and believe that it will lead to improvements, such as increased productivity or enhanced customer satisfaction. When people embrace the need for change and perceive its potential benefits, they are more likely to support and actively participate in the change process. This acceptance creates a positive mindset and a willingness to adapt to new ways of doing things, which is crucial for the successful implementation of change initiatives. On the other hand, if individuals resist or do not see the value in the proposed changes, it can hinder the implementation process and impede the desired outcomes. Therefore, gaining acceptance and belief in the need for change is a fundamental factor in achieving successful organizational change.
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The return for Apple stock is normally distributed with an expected return of 5% and a standard deviation of 10%. The return for Netflix stock is normally distributed with an expected return of 2% and a standard deviation of 4%. The correlation between the two returns is 0.9. What is the probability that the Netflix stock outperforms the Apple stock? A) 0.33 B) 0.39 C) 0.61 D) 0.67
Answers
By using statistical calculations, it is determined that the probability that Netflix stock outperforms Apple stock is approximately 0.61.
What is the probability that Netflix stock outperforms Apple stock, given their expected returns, standard deviations, and correlation?To determine the probability that Netflix stock outperforms Apple stock, we need to compare the respective returns of the two stocks.
Given that the returns for both Apple and Netflix are normally distributed, with expected returns of 5% and 2% respectively, and standard deviations of 10% and 4% respectively, along with a correlation of 0.9 between the two returns, we can calculate the probability using statistical methods.
Using the concept of correlated normal distributions, we can calculate the probability by transforming the returns into a standard normal distribution.
Then, we can calculate the probability that the difference between the returns of Netflix and Apple is greater than zero.
Therefore, the answer is C) 0.61.
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A tornado that destroys a factory would be consided to be an example of a(n)?
Answers
A tornado that destroys a factory would be consided to be an example of an economic loss.
Tornadoes generally result in significant economic losses that are classified as direct losses or indirect losses.
Direct losses are the result of the destruction of assets and the resulting decrease in value of the asset and/or the lost income as a result of destroyed assets.
Indirect losses relate to the wider impact and include all the loss of production and sales, increased commute times, increased transportation costs, as well as decreased tourist activity.
Despite the economic devastation, tornadoes can act as economic stimuli, through rebuilding efforts, the inflow of insurance money and disaster-relief funds, and improvements in the labor market.
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What is risk and what are the risks in social and behavioral sciences research?
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Social and behavioral sciences typically classify risk of harm into three categories: invasion of privacy, breach of confidentiality, and study techniques.
What dangers exist in the study of social and behavioral sciences? Invasion of privacy, confidentiality breach, and study protocols are the three main areas where there is a risk of harm in the social and behavioral sciences.Risks depend on the period, the circumstance, and the culture.The risk of harm from the exposure of information about a specific person is known as informational risk.Informational risk management is a major problem for social and behavioral research in many cases since it is the sole or the main risk.Danger is always a risk.Based on evidence from prior experience, it is a prediction of a likely result.In daily life, risk and harm can take on a variety of forms that are subject to the study's influencing elements.
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hello , What are three common tools for qualitative research in business and marketing?
Answers
Answer:
they would be in-depth interviews, focus group discussions and observation over data
Explanation:
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(b)
Your warehouse manager reports that there were four king-size sheets and three queen-size sheets returned, along with five packages of queen pillow cases. Calculate the revised total due (in $).
$
(c)
The vendor has offered a 8% early payment discount that applies only to the merchandise, not the shipping or insurance. What is the amount of the discount (in $)? (Round your answer to the nearest cent.)
$
(d)
What is the new balance due after the discount (in $)? (Round your answer to the nearest cent.)
$
Answers
The revised overall due is $6,117.60. The early fee bargain amount is $416.88, and the new stability due after the bargain is $5,700.72.
(a) After correcting the mistakes within the itemization, the revised invoice desk must be as follows:
QTY. Ordered QTY. Shipped Description Unit Amount
44 ea. Sheets, king $45.10 $1,984.40
65 ea. Sheets, queen $39.60 $2,574.00
28 pkg. Pillow Cases, queen $17.85 $498.80
55 pkg. Pillow Cases, std. $17.35 $954.25
6 ea. Shams $33.25 $199.50
Invoice Subtotal $5,210.95
Shipping Charges of $131.50
Insurance $23.35
Invoice Total $5,365.80
(b) The variety of king-size sheets back is 4, and the quantity of queen-size sheets returned is three. The total cost of the back sheets may be calculated as follows:
4 * $45.10 (king-length sheet fee) + 3 * $39.60 (queen-length sheet rate) = $180.40 + $118.80 = $299.20
(c) The early fee bargain provided via the vendor is 8% of the product's fee. To calculate the bargain, we need to subtract the value of shipping and insurance from the invoice subtotal and practice the bargain percent:
Discount = 8% * (Invoice Subtotal - Shipping Charges - Insurance)
Discount = 8% * ($5,210.95 - $131.50 - $23.35) = 8% * $5,056.10 = $404.49
(d) The new balance due after making use of the cut price may be calculated by using subtracting the discount quantity from the bill overall:
New Balance Due = Invoice Total - Discount
New Balance Due = $5,365.80 - $404.49 = $4,961.31
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The correct question is:
"INVOICE Hamilton Mills No. 49485 INVOICE DATE July 9, 20xx 115 Rock Creek Road CUSTOMER'S Charlotte, North Carolina 28235 ORDER NO. 49485 SOLD TO: SHIP TO: SAME The Bedding Warehouse 406 Maple Road Franklin, VA 23851 SALESMAN SHIPPED VIA Federal Express TERMS Net 30 Days F.O.B. Charlotte, N.C. QTY. ORDERED QTY. SHIPPED DESCRIPTION UNIT AMOUNT 44 ea. Sheets, king $45.10 $1,984 40 65 ea. Sheets, queen $39.60 $2,57400 28 pkg. Pillow Cases, queen $17.85 $44980 55 pkg. Pillow Cases, std. $17.35 $954 25 6 ea. Shams $33.25 $299 50 $6,261.95 INVOICE SUBTOTAL SHIPPING CHARGES $131.50 Insurance $23.35 INVOICE TOTAL $6,416.80 Invoice Table QTY. Ordered QTY. Shipped Description Unit Amount 44 ea. Sheets, king $45.10 $1,984.40 65 ea. Sheets, queen $39.60 $2,574.00 28 pkg. Pillow Cases, queen $17.85 $449.8 55 pkg. Pillow Cases, std. $17.35 $954.25 6 ea. Shams $33.25 $299.5 Invoice Subtotal $6,261.95 Shipping Charges $131.50 Insurance $23.35 Invoice Total $6,416.80 (a) You notice several errors in the itemization of the invoice. Correct the errors in the itemization ing the fol table $). QTY. Ordered QTY. Shipped Description Unit Amount 44 ea. Sheets, king $45.10 $ 65 ea. Sheets, queen $39.60 $ 28 pkg. Pillow Cases, queen $17.85 $ 55 pkg. Pillow Cases, std. $17.35 $ 6 ea. Shams $33.25 $ $ Invoice Subtotal $ Shipping Charges $131.50 Insurance $23.35 Invoice Total $ (b)
Your warehouse manager reports that there were four king-size sheets and three queen-size sheets returned, along with five packages of queen pillow cases. Calculate the revised total due (in $).
$
(c)
The vendor has offered a 8% early payment discount that applies only to the merchandise, not the shipping or insurance. What is the amount of the discount (in $)? (Round your answer to the nearest cent.)
$
(d)
What is the new balance due after the discount (in $)? (Round your answer to the nearest cent.)
$ "
Vicky has worked for the same company since January 2011. Her starting salary was $52,000 and she has received a $1,000 raise on the first day of each year.
a. How much is her salary today?
Answers
Vicky has worked for the same company since January 2011. her salary is mathematically given as today
X=63000
This is further explained below.
How much is her salary today?Generally, the equation for Vicky's salary today is mathematically given as
X=intial salary+( raise *number of years worked)
Therefore
X=52000+(10*11)
X=63000
In conclusion,
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Disadvantages of choosing a job that is extremely popular or in demand
Answers
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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the height of a demand curve measures the responses a value that a consumer is willing to pay for a good.value that a consumer is willing to pay for a good. b price that a producer wishes to charge for a good.price that a producer wishes to charge for a good. c price that a consumer is willing to pay for a quantity of goods.price that a consumer is willing to pay for a quantity of goods. d minimum value that consumers consider about a good.
Answers
The height of a demand curve measures the price that a consumer is willing to pay for a quantity of goods.
The level of an interest bend estimates the value that a customer will pay for an amount of products. It addresses the greatest worth a customer puts on a decent or administration at a given moment. As the cost of a decent builds, the amount requested regularly diminishes, as well as the other way around.
This converse relationship is caught by the descending slant of the interest bend. The level of the interest bend mirrors the sum that a buyer esteems a decent or administration, and can be impacted by variables like pay, tastes and inclinations, accessibility of substitutes, and market patterns.
Understanding the level of the interest bend is significant for organizations hoping to set ideal costs and amplify benefits.
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The complete question is:
What does the height of a demand curve measure? Is it:
a) the value that a consumer is willing to pay for a good?
b) the price that a producer wishes to charge for a good?
c) the price that a consumer is willing to pay for a quantity of goods?
d) the minimum value that consumers consider about a good? Why is understanding the height of the demand curve important for businesses?
active/passive she is watering the plants
Answers
Answer:
active
Explanation:
she "is" means she is currently watering the plants. if it was passive it would have been like this, "she watered the plants".
A futures contract can best be defined as:
a Hedging an asset with contracts written on a closely related, but not identical, asset.
b Risk that futures prices will not move directly with cash price hedged.
c An agreement by two parties to exchange, or swap, specified cash flows at specified intervals in the future.
d An agreement that gives the owner the right, but not the obligeion, to buy or sell a specific asset at a specific price for a set period of time.
e A forward contract with the feature that gains and losses are realized each day rather than only on the settlement date.
Answers
A futures contract can be best defined as: d) An agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specific price for a set period of time.
A futures contract is a standardized agreement between two parties to buy or sell a specific asset (such as commodities, currencies, or financial instruments) at a predetermined price and date in the future.
It gives the owner, also known as the holder, the right to fulfill the contract but not the obligation. The contract specifies the quantity, quality, and delivery date of the asset. Futures contracts are traded on organized exchanges and are regulated by clearinghouses to ensure the fulfillment of obligations.
Futures contracts serve several purposes in financial markets. They provide a means for hedging against price fluctuations, allowing participants to manage their exposure to risk. For example, a farmer may enter into a futures contract to sell their crop at a predetermined price, protecting themselves from potential price declines.
On the other side, a buyer may enter into a futures contract to purchase the asset at a predetermined price, safeguarding against price increases. Futures contracts also facilitate speculation, as traders can profit from price movements without owning the underlying asset.
It is important to distinguish futures contracts from options contracts. While both involve the right to buy or sell an asset, futures contracts carry an obligation to fulfill the terms of the agreement, whereas options provide the right but not the obligation. Additionally, futures contracts are marked to market daily, meaning gains and losses are realized each day based on price fluctuations, unlike forward contracts where gains and losses are settled only at the contract's expiration.
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prepare a double entry ledger entries January 3 took out of the cash till$50 and put into the business by cheque Jan 4 the proprietor put a further$5000 in to business by cheque .please I need it quick
Answers
Explanation:
In the first entry, $50 is taken out of the cash till and put into the business as drawings. The effect is a decrease in the cash balance and an increase in the drawings account.
In the second entry, the proprietor puts a further $5000 into the business by cheque. The effect is an increase in the capital account and an increase in the bank balance.
It's important to note that "Drawings" and "Capital" are the accounts used to record the personal transactions of the business owner in this case, it is assumed that the business is a proprietorship. Other forms of business may have different accounts to record the personal transactions of the owne
what are at least five steps to follow before buying a good or service?
Answers
Before buying a good or service, five steps to follow include: Determine your needs, Research, Set a budget, Evaluate alternatives, Make an informed decision
Determine your needs: Assess and define your specific needs or requirements for the product or service you are considering purchasing. Consider factors such as functionality, features, quality, and any specific preferences or specifications.
Research and gather information: Conduct thorough research to gather information about the available options, brands, models, or service providers. Look for reviews, comparisons, and recommendations to understand the pros and cons of each option.
Set a budget: Establish a budget or price range that aligns with your financial capabilities and priorities. Consider the overall value and long-term costs associated with the purchase, including maintenance, repairs, or additional expenses.
Evaluate alternatives: Compare different options based on your needs, budget, and research findings. Consider factors such as price, quality, reputation, warranties, customer support, and any additional benefits or drawbacks.
Make an informed decision: Based on the previous steps, make a well-informed decision that takes into account all relevant factors. Consider the trade-offs, potential risks, and benefits associated with each option before finalizing your purchase.
By following these steps, you can enhance your decision-making process and increase the likelihood of making a satisfactory purchase that meets your needs and expectations.
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Bob’s Bee is a small boutique honey manufacturer in Texas. Bob’s neighbor is Jon’s James. The more honey Bob produces, the more jam Jon is able to produce; that is, there is a positive production externality. a. Suppose that the government of Texas imposes a new tax on jam and honey production. Will the deadweight loss of this tax be greater, smaller, or the same as if there were no production externality? Graphically explain your answer.
Answers
Let's analyze the impact of a tax on honey and jam production in the presence of a positive production externality between Bob's Bee and Jon's James.
Step 1: Understand the positive production externality
When Bob's Bee produces more honey, it benefits Jon's James as it allows Jon to produce more jam. This is a positive production externality, as the increased production of honey creates a positive spillover effect on jam production.
Step 2: Analyze the tax impact
When the government of Texas imposes a new tax on honey and jam production, it increases the cost of production for both businesses. This leads to a reduction in the quantity of honey and jam produced.
Step 3: Compare deadweight loss with and without production externality
In the absence of a production externality, the deadweight loss due to the tax would be the result of reduced honey and jam production alone. However, with the positive production externality, the tax not only affects the individual production levels of honey and jam but also their spillover benefits. The reduction in honey production due to the tax results in less jam production, which in turn, further reduces the quantity of both products in the market.
Step 4: Conclusion
In the presence of the positive production externality, the deadweight loss caused by the tax on honey and jam production is greater than it would be without the externality. This is because the tax not only reduces the individual production levels of honey and jam but also their positive spillover benefits. The graph would show a larger area of deadweight loss under the demand and supply curves in the case with the positive production externality compared to the case without it.
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The title of this talk is “Profit’s Not Always the Point.” But do you think profit is an added perk for companies that make the effort to promote positive social change? Explain.
Answers
yes, no matter what company say, they need money for funding for "social change"