a. Value of the stock using the dividend discount model can be calculated using the following formula:
D1 = D0 × (1 + g)
WhereD1 = Dividend for next year
D0 = Dividend for current year
g = Expected growth rate in dividends
P0 = D1 / (r - g)
where, r = Required rate of return
ABC Company has an equity beta of 0.8. The current risk-free rate is 2% and the market risk premium is 3%. Risk-free rate = 2%
Market risk premium = 3%
Required rate of return = Risk-free rate + (Equity beta × Market risk premium)= 2% + (0.8 × 3%)= 2% + 2.4%= 4.4%
ROE = 13%
Expected growth rate in dividends = Retention ratio × ROE= (1 - Dividend payout ratio) × ROE= 0.54 × 13%= 7.02%
Current dividend (D0) = $51.50
Next dividend (D1) = D0 × (1 + g)= $51.50 × (1 + 7.02%)= $55.12P0 = D1 / (r - g)= $55.12 / (4.4% - 7.02%)= -$1,585.52
This is an unreasonable answer. This indicates that something is wrong with the inputs to the model. One possible reason could be the high growth rate which is not sustainable.
b. Present value of the growth opportunity (PVGO) can be calculated using the following formula:
PVGO = P0 - (D1 / r)
where, P0 = $55.12, D1 = $55.12, and r = 4.4%
PVGO = $55.12 - ($55.12 / 4.4%)= $1,150.00
Hence, the value of the stock is -$1,585.52 and the present value of the growth opportunity (PVGO) is $1,150.00.
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why is the subject line of a business email important
Answer:
The subject line often determines whether an email is opened and how the recipient responds. An email with a blank subject line will likely get deleted, lost, or immediately irritate the recipient, who is forced to open the email to figure out what it's about.
A message's opening and response rates are frequently influenced by the subject line. When an email's subject line is blank, it is more likely to be deleted, misplaced, or immediately anger the receiver because they are compelled to open the email in order to find out what it is about.
What is the rate?A number, amount, or degree measured in relation to another object. She typed at a speed of 80 words per minute. : a charge or payment based on another quantity. more specifically: the premium per insurance unit.
A rate in mathematics is the comparison of two related values expressed in different units. The numerator of the ratio expresses the corresponding rate of change in the other (dependent) variable.
The first line of text recipients sees when they open your email is the subject line. Make sure it is optimized for your audience because this one line of content frequently determines whether an email is opened or sent directly to the trash.
Therefore, The subject line frequently has an impact on response rates. When the subject line of an email is empty,
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a. An analysis of WTI's insurance policies shows that $2,674 of coverage has expired.
b. An inventory count shows that teaching supplies costing $2,318 are available at year-end.
c. Annual depreciation on the equipment is $10,698.
d. Annual depreciation on the professional library is $5,349.
e. On September 1, WTI agreed to do five courses for a client for $3,000 each. Two courses will start immediately and
finish before the end of the year. Three courses will not begin until next year. The client paid $15,000 cash in advance
for all five courses on September 1, and WTI credited Unearned Revenue.
f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at
the end of the class. At December 31, $5,653 of the tuition revenue has been earned by WTI.
g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per
day for each employee.
h. The balance in the Prepaid Rent account represents rent for December.
The preparation of WTI Insurance Company's income statement for the year is as follows:
WTI Insurance Company
Income StatementFor the year ended December 31,
Tuition Fees $109,577
Training Fees 48,717
Total Revenue $154,694
Expenses:
Depreciation Expense -Professional Library $5,349
Deprecation Expense - Equipment 10,698
Salaries Expense 49,307
Insurance Expense 2,674
Rent Expense 24,468
Teaching Supplies Expense 7,869
Advertising Expense 7,132
Utility Expense 5,706
Total expenses $113,203
Net income $45,091
How do you prepare Income Statements from Unadjusted Trial Balance?To prepare an income statement from an unadjusted trial balance, you must take into consideration all the necessary end-of-period adjustments.
The adjustments ensure that the financial statements are prepared in accordance with the accrual basis. The accrual concept requires every expense and revenue for the period to be accounted for or recognized, whether received in cash or paid for.
Question Completion with Data from Unadjusted Trial Balance:Tuition Fees $103,924
Training Fees 38,717
Depreciation Expense -Professional Library $0
Deprecation Expense - Equipment $0
Salaries Expense $48,907
Insurance Expense $0
Rent Expense 22,429
Teaching Supplies Expense $0
Advertising Expense $7,132
Utility Expense $5,706
See attachment for more information.
Required: Prepare the income statement to show the net income.
Adjustments:a. Insurance Expense $2,674
b. Teaching Supplies Expense = $7,869 ($10,187 - $2,318)
c. Depreciation Expense - Equipment = $10,698
d. Depreciation Expense - Professional Library = $5,349
e. Training Fees = $48,717 ($38,717 + $10,000)
f. Tuition Fees $109,577 (103,924 + $5,653)
g. Salaries Expense $49,307 ($48,907 + $100 x 4)
h. Rent Expense = $24,468 ($22,429 + $2,039)
Thus, the income statement of WTI's Insurance shows a net income of $45,091.
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Why do manufacturers save money if they produce just enough to meet demand?
Costs to warehouse unsold inventory goes down.
Costs of raw materials increase when purchased in bulk.
Production workers can be unskilled.
Delivery schedules are reduced.
Answer:
Costs to warehouse unsold inventory goes down.
Explanation:
By producing sufficient quantities to meet demand, a business avoids costs associated with storing unsold inventory. In this case, unsold inventory refers to finished products waiting to be sold. If the business does not have a lot of unsold inventory, it will not incur some unnecessary cost, including
Warehousing associated costs such as lighting, refrigeration, cleaning, labor, and sometimes rent to the storage facility.Unsold inventory ties a lot of capital. The costs of production are held up in unsold inventory. The business has to consider the opportunity cost of holding the unsold inventory.Most businesses operate on borrowed capital. Unsold inventory means the interest on loans will increase. There is the risk of damages and pilferage of unsold inventory held at the warehouses.Answer:
A. Costs to warehouse unsold inventory goes down.
Explanation:
Got it right on edge 2022!
nicole receives ______, such as sick-leave days, vacation days, and free parking, from her employer.
Nicole receives incentives, such as sick-leave days, vacation days, and free parking, from her employer.
The Society for Human Resources Management (SHRM) advises employing structured interviews, in which applicants are asked the same set of predetermined questions that concentrate on elements that directly affect job performance. By eliminating subjective variables like aptitude or appearance, this structure reduces bias.
Link-edIn is the most efficient social media platform for social recruiting. The complete web-site makes use of a variety of functions to help highlight your corporate culture and attract prospective candidates because it is designed for job seekers, employers, and professional networking. A human resources plan's objective is to examine and assess each component of the human resources strategy for the upcoming year.
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Which of the following is a reason managers working abroad in multinational firms may behave in a manner that is unethical?
A. psychological and geographical distances of a foreign subsidiary from the home office
B. pressure from an ethical leader
C. confusion between personal ethics and business ethics
D. incorporating ethical issues into strategic and operational decision making
Managers working abroad in multinational firms may behave in an unethical manner because of the psychological and geographical distances of a foreign subsidiary from the home office. The correct option is (A).
This distance can lead to a lack of oversight and a weakened connection to the company's ethical standards, allowing for unethical behavior. When managers are located in a foreign subsidiary, they may feel a psychological and geographical distance from the home office. This physical and psychological separation can create a sense of detachment, leading to a reduced sense of accountability and a greater likelihood of engaging in unethical behavior.
It is important to note that unethical behavior can stem from various factors and circumstances, and a combination of factors can influence the behavior of managers in multinational firms. Other factors such as cultural differences, local business practices, lack of clarity in ethical guidelines, and individual moral values can also contribute to unethical behavior.
Therefore, while psychological and geographical distances can be a contributing factor, it is essential for multinational firms to establish strong ethical frameworks, promote ethical leadership, and provide clear guidance to managers to ensure ethical behavior across their global operations. Therefore, the correct option is (A).
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Which of the following is NOT necessary in a catering contract?
O insurance clause
O cancellation clause
O refunds and all fees
staffing and costs of staff
A Catering Contract is a service agreement between a caterer and a customer that outlines the terms of a catering service occurring over a certain time period for one or more occasions.
What should be included in a catering contract?A Catering Contract is a service agreement between a caterer and a customer that outlines the terms of a catering service occurring over a certain time period for one or more occasions. The catering contract should include normal contract terms and conditions, in addition to the menu and service-related topics, such as:
Contract fundamentalsLast day for any modificationsInsuranceRequirements for health and safetyPolicy on CancellationTo learn more about contracts, click
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5. Which of the following defines a short-term goal? (1 point) Otasks that you set to accomplish specific things in a short period of time Otasks that must be completed for a job performance evaluation Otasks that you must complete that require time and planning that usually take 12 months or more to complete Otasks that you think you need to accomplish in the future but need to start working on now
A short-term goal is defined as: A. tasks that you set to accomplish specific things in a short period of time.
What is a Short-Term Goal?A short-term goal is a specific and achievable task or objective that a person sets out to accomplish within a relatively short period of time, usually less than a year.
These goals are intended to be completed quickly, helping individuals to move closer towards their long-term aspirations and provide a sense of progress and accomplishment. Short-term goals are often the building blocks towards larger, more significant achievements, and can help individuals stay motivated and focused on their overall objectives.
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Business receives $2,000 on January 1 for 10 -month service contract for the period January 1 through October 31. (Assume services are performed evenly each month throughout the term of the contract.) b. Total salaries for all employees is $4,100 per month. Employees are paid on the 1st and 15 th of the month. c. Work performed but not yet billed to customers for the month is $2,000. d. The company pays interest on its $5,000,5% note payable of $21 on the first day of each month. Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of January 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Business receives $2,000 on January 1 for 10 -month service contract tor the period January 1 through October 31. (When the cash was received on January 1 , assume that a liability account was credited. Assume services are performed evenly each month throughout the term of the contract.)
Adjusting entries are journal entries made at the end of an accounting period to ensure that revenues and expenses are recognized in the correct period. To journalize the adjusting entries needed as of January 31, based on the given information, here are the entries:
1. Accrued Revenue for Services Performed:
Debit: Accounts Receivable $200 ([$2,000 / 10 months] * 1 month)
Credit: Service Revenue $200
2. Accrued Salaries Expense:
Debit: Salaries Expense $2,050 ([$4,100 / 2] * 1 month)
Credit: Salaries Payable $2,050
3. Work in Progress (Unbilled Revenue):
Debit: Accounts Receivable $2,000
Credit: Service Revenue $2,000
4. Interest Expense:
Debit: Interest Expense $21
Credit: Interest Payable $21
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Calculating your expenses helps you budget because
smithfield meats produces pork products including hams, bacon, and does so through its own hog farms. this is an example of a business that is ____________. -reducing vertical integration.-vertically integrated.-totally integrated.-horizontally integrated.
This is an example of a vertically integrated business.
Vertical integration is a business strategy where a company owns and operates different stages of the production process or supply chain, from raw materials to finished products. In the case of Smithfield Meats, it owns its own hog farms and produces pork products such as hams and bacon, which involves multiple stages of the production process. By vertically integrating, the company has more control over the quality, availability, and cost of the inputs it needs for production, as well as the ability to capture more of the profits from the sale of its finished products.
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How does knowing you’re in charge of your money change your perspective of your financial future?
It affects how you handle money, how you view and use your debt, how you think about your future, and how you view the financial habits of others.
What is the meaning of Debt?An obligation to pay money or another agreed-upon value to a third party, the creditor, is known as a debt. Debt differs from an immediate purchase in that payments are deferred or made in installments.
Debt can be defined as the sum that the borrower owes the lender. A debt is an amount of money that has been borrowed for a set period and must be repaid, plus interest. The borrower's creditworthiness affects both the debt's size and its acceptance.
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what journal entry should be made to recognize accounts receivable for long-term construction projects?
Debit accounts receivable and credit billings on construction contract are the journal entry should be made to recognize accounts receivable for long-term construction projects. This journal entry is a "billings in excess of costs" or liability account.
Debit accounts receivable and credit billings on construction contract refers to a liability account that the contractor has billed the customer for work not yet done. So, the all contactors would prefer to be-placing the contractor ahead of the customer on a cash flow basis.
If company is constructing a major project such as a assembly line, a building, etc., the amounts spent on the project will be debited to a long-term asset account. The transaction that is debited to the account construction in progress categorized as Construction Work-in-Progress.
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Your older sister is planning on saving money by paying her bills, spending money on fun, and then saving whatever is leftover. Why is this not the best option for saving her money?
Answer:
spend money on bills first then food then save the leftover money for later
Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 21.6% for its portfolio of lending, and the average length on its loans is 6 years. If you were to apply to Blue Angel for a $196,000 loan, what is the annual percentage rate you would have to pay for thisloan?b
If you were to apply for a $196,000 loan from Blue Angel Investors, the annual percentage rate (APR) you would have to pay for this loan would be 216%.
To calculate the annual percentage rate (APR) for the loan from Blue Angel Investors, we need to consider the success ratio of 10%, the required rate of return of 21.6%, and the average loan length of 6 years.
The APR can be determined using the following formula:
APR = Required Rate of Return / Success Ratio
In this case, the success ratio is 10%, which can be expressed as 0.10.
APR = 21.6% / 0.10
APR = 216%
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Determining Liquid Assets and Current Liabilities. Based on these items, what is the total of the (a) liquid assets and (b) current liabilities?
Checking account balance $860
Retirement account balance $57,000
Credit card balance $117
Coin collection $450
Savings account balance $2,675
Current student loan payment due $220
Investment account balance $8,000
Mortgage $178,000
What does the phrase high risk = High reward mean when it comes to investing?
Answer: The phrase “higher risk, higher reward” is used in the general sense to set ratios between riskier stocks and more stable bonds and cash holdings. Investors adjust their risk according to their station in life.
Explanation:
if you pay $1,494.93 for a tv that was on sale for 10% off with 6.75% sales tax, what was the original price of the tv? (sales tax is calculated after the discount is taken.)
If you pay $1,494.93 for a tv that was on sale for 10% off with 6.75% sales tax, the original price of the TV was $1,549.00.
To solve the problem, we need to work backwards from the final price and undo the effects of the sales tax and discount to find the original price of the TV.
First, we need to find the price of the TV before the sales tax was applied. To do this, we can divide the final price by 1 plus the sales tax rate:
Final price before sales tax = Final price / (1 + sales tax rate)
Final price before sales tax = $1,494.93 / (1 + 0.0675)
Final price before sales tax = $1,394.00
This is the price of the TV before the sales tax was applied. Now, we need to undo the 10% discount to find the original price:
Original price = Price before discount / (1 - discount rate)
Original price = $1,394.00 / (1 - 0.10)
Original price = $1,549.00
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document creation is a key business function because
Document creation is a key business function because it is essential for managing, archiving, and sharing important information.
Documents play an important role in business today, from managing customer records and sales invoices to tracking employee activities, to creating contracts and agreements. Documents are used for a variety of purposes, such as providing evidence of compliance with government regulations, facilitating communication between different departments, and forming a basis for decision-making.
The ability to create, edit, and store documents is a key part of any business’s operations. Document creation can help streamline processes, increase efficiency, and improve customer service. It can also help organizations save money by reducing the amount of manual labor required to perform tasks. Additionally, document creation can help ensure accuracy and consistency in the data that an organization stores and processes.
Finally, document creation is an important tool for creating accountability within an organization. By having an accurate record of all the activities and operations of an organization, it is easier to track progress, measure performance, and identify potential areas of improvement. This can help ensure that the organization is operating most efficiently and effectively as possible.
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True or false: the supply chain is a one-way process that runs directly from raw materials to the end customer.
true the supply chain was created to be efficient
A Mercedes-Benz priced the same as a Ford Focus might not sell as well because of:
a. history of performance of similar Mercedes products
b. overall company reputation
c. psychological factors
Which view is used to enter data into an Access table by default?
Datasheet
Grid
Design
Layout
The answer is Datasheet.
What is the datasheet view?A web datasheet view in an Access app displays online data arranged in rows and columns in a web browser. It can allow data edits or not, as you prefer. When you create a web datasheet view in Access, it opens in Design View, where you can set the record source.
Which view is used to display the data of the table?In relational databases, data is structured using various database objects like tables, stored procedures, views, clusters, etc. This article aims to walk you through 'SQL VIEW' – one of the widely-used database objects in SQL Server.
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A popular theory for managing risk to the firm that arises out of its management of working capital (that is, current assets and current liabilities) involves following the principle of self-liquidating debt. How would this principle be applied in each of the following situations? Explain your responses to each alternative.
a. Longleaf Homes owns a chain of senior housing complexes in the Seattle, Washington, area. The firm is presently debating whether it should borrow short or long term to raise $10 million in needed funds. The funds are to be used to expand the firm’s care facilities, which are expected to last 20 years.
b. Arrow Chemicals needs $5 million to purchase inventory to support its growing sales volume. Arrow does not expect the need for additional inventory to diminish in the future.
c. Blocker Building Materials, Inc. is reviewing its plans for the coming year and expects that during the months of November through January it will need an additional $5 million to finance the seasonal expansion in inventories and receivables.
The self-liquidating debt principle is applied by aligning debt maturity with asset life or cash flow timing.
How is the self-liquidating debt principle applied?
The principle of self-liquidating debt suggests that the maturity of a firm's debt should align with the expected life of the assets financed by that debt. Here's how this principle would be applied in each of the given situations:
a. Longleaf Homes: Since the care facilities are expected to last 20 years, it would be appropriate for Longleaf Homes to borrow long-term to raise the $10 million. Long-term debt would match the lifespan of the assets being financed, reducing the risk of needing to refinance or repay the debt before the assets have generated sufficient cash flows.
b. Arrow Chemicals: As Arrow Chemicals expects the need for additional inventory to continue in the future, it would be prudent for them to borrow short-term. Short-term debt would align with the self-liquidating principle as the inventory is expected to be sold relatively quickly, generating cash flows to repay the debt.
c. Blocker Building Materials: Blocker Building Materials should consider using short-term financing to cover the seasonal expansion in inventories and receivables during the months of November through January. This aligns with the self-liquidating principle since the increased sales during the season will generate cash flows to repay the short-term debt.
In summary, the application of the self-liquidating debt principle involves matching the maturity of debt with the expected life or timing of cash flows from the assets being financed.
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Finance and Budgeting: Mastery Test
Drag each label to the correct location on the image.
Carl wants to purchase a local soccer franchise. Classify the sources of finance for this new business.
angel investor
government
issued a $1,000 security that can be
converted to 100 shares after 5 years.
granted tax incentives for stadium
improvements
sanctioned a long-term loan in exchange
for collateral
buy 10% of the company in exchange
for cash
impressed with the business plan,
Mr. Doyle provided $75,000.
secured $100,000 from the sale of
common stock.
Reset
Next
banks equity
convertible bond
venture capitalist
The correct answer Finance and Budgeting statement issued a $1,000 security Granted tax incentives improvements - impressed with business plan, Mr. Doyle provided $75,000 secured $100,000 from sale of stock.
What is convertible bond?An interest-bearing fixed-income corporate debt asset known as a convertible bond has the option of being converted into a certain number of shares of common stock or equity. During the bond's term, the conversion from bond to stock is possible at specific times and is often at the bondholder's option. A convertible bond's price is particularly sensitive to changes in interest rates, the value of the underlying stock, and the issuer's credit rating because it is a hybrid product. For businesses, convertible bonds offer flexible funding options. A convertible bond gives investors access to a hybrid instrument that includes the benefits of both a bond and a stock, including interest payments. The number of shares of stock you may obtain by converting one bond in this bond depends on its conversion ratio. A 5:1 conversion ratio, for instance, indicates that one bond would equal five shares of common stock.
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For the majority of millennials, the cost of paying off their student loans has wound up holding them back from living on their own, making major purchases like buying home and even being able to start a family…
Trade schools cost a fraction of what public and private schools cost. The average cost of vocational school comes out to around $33,000 – for the entire education. This the average cost of a single year of college.
–"The Financial Case for Trade School Over College," Mel Bondar, US News
According to the text, why is trade school more economical for some students? Select two that apply.
a). The cost of attending trade school is cheaper than the cost of a 4 year college.
b). Trade school graduates make more money than college graduates.
c). The cost of attending a 4 year college is offset by higher earnings in the long run.
d). Students who chose trade school over college often make better financial decisions.
e). Students who graduate from trade school have less debt than college graduates.
Answer:
A) The cost of attending trade school is cheaper than the cost of a 4 year college.
E). Students who graduate from trade school have less debt than college graduates.
Explanation: I just took the test on a virtual course and got it right. Hope this helps :)
Trade school more affordable for some students cost, according to the text A trade school is less expensive to attend than a four-year university. Thus option (a, e) is correct.
What is the cost?A cost is the amount of money that has been spent to produce something or provide a service and is thus no longer accessible for use. In business, the cost could be one of acquisition, in which case the money spent to obtain it is recognized as cost. In this situation, money is the input that is used to purchase the item.
If you set a goal of 5 jars of mayonnaise and only have 2 on hand, you know you need to order 3 more. Private expenses are the costs borne by the buyer of a commodity or service. This is also known as the costs associated with the firm's production function. External costs (also known as externalities) are the costs borne by people other than the buyer.
Therefore, Thus option (a, e) is correct.
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Select the correct answer. What is the first step in financial planning? A. maintaining a log of all your expenses B. understanding what you want C. preparing a balance sheet D. attaching a goal cost to every goal E. attaching a time frame to every goal
Answer:B
Explanation:
If you don't know what you want you can't do anything else
Answer:
B
Explanation:
Over the years, the Securities and Exchange Commission (SEC) has delegated its statutory authority to establish accounting standards for publicly traded companies in the United States. This delegated authority impacted which of the following organizations?
A. The Financial Accounting Standards Board (FASB).
B. The Committee on Accounting Procedures of the American Institute of Accountants.
C. The Accounting Principles Board (APB).
D. None of these organizations were ever delegated authority by the SEC to establish accounting standards in the United States.
E. Each of these organizations were at one time or another delegated authority by the SEC to establish accounting standards in the United States.
The correct answer is A. The Financial Accounting Standards Board (FASB).
The Securities and Exchange Commission (SEC) has delegated its statutory authority to establish accounting standards for publicly traded companies in the United States to the Financial Accounting Standards Board (FASB). The FASB is an independent private-sector organization responsible for developing and issuing generally accepted accounting principles (GAAP) in the United States.
Options B, C, and D are incorrect. The Committee on Accounting Procedures of the American Institute of Accountants and the Accounting Principles Board were predecessors of the FASB and are no longer active organizations. The SEC has delegated its authority to the FASB, and not to any of these organizations.
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The SEC delegated its authority to the Financial Accounting Standards Board (FASB) to establish accounting standards for publicly traded companies in the United States.
The correct answer is A. The Financial Accounting Standards Board (FASB).
The SEC delegated its statutory authority to establish accounting standards for publicly traded companies in the United States to the FASB. The FASB is an independent organization that sets accounting standards in the U.S. It was established in 1973 and is responsible for issuing accounting standards known as Generally Accepted Accounting Principles (GAAP).
While the SEC has historically worked with other organizations such as the Committee on Accounting Procedures of the American Institute of Accountants and the Accounting Principles Board, the primary organization impacted by the delegated authority is the FASB.
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In criticizing Booker T. Washington's educational emphasis on manual labor and industrial training, W.E.B. Du Bois emphasized instead that black education should concentrate on a adult education. b an intellectually gifted talented tenth of the black community that should be given full and immediate access to the mainstream of American life. c developing separate black schools and colleges. d developing black entrepreneurs to create black businesses to serve black communities. e education for political action.
Answer:
The answer is "Choice c".
Explanation:
In criticism of the instructional focus of George Washington on handicraft labor and manufacturing schooling, Du Bois emphasized that African American schooling must focus on a talented and cognitively skilled tenth part of the Black community to be able to gain full disclosure access to Usa's mainstream.
Which of the following is NOT true about emergency funds?
a,They can keep you from borrowing money from friends and family.
b,They help remove the worry about expenses not in the budget.
c,They are used for anything listed on the budget.
d,They help you prepare for unexpected expenses.
Answer:
The answer is "They are used for anything listed on the budget."
The option that is NOT true about emergency funds is: c. They are used for anything listed on the budget.
What is emergency funds?Emergency funds are usually not used for things that are planned and included in the budget. Instead, emergency funds are money saved specifically for unexpected expenses that you didn't plan for in your usual budget.
The reason for having an emergency fund is to have money saved for unexpected things that might happen, like when someone gets hurt and needs to go to the hospital or when a car or home needs fixing. It can also help if someone loses their job or if something else happens that they didn't expect.
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Which of the following is the reason for the shrinking of the middle class in the United States?
A. People are replacing robots in many manufacturing jobs.
B. Blue collar wages have been increasing as fast as other kinds of work.
C. People are not saving as much money as they used to.
D. Some jobs are outsourced to other countries.
c.Some jobs are outsourced to other countries
The correct option is D. The reason for the shrinking of the middle class in the United States is some jobs are outsourced to other countries.
Outsourcing has resulted in high unemployment, revenue loss, and loss of competitive edge, leaving individuals unemployed and without a job.
Since 2000, more than 500,000 jobs have been outsourced, Additionally, outsourcing has resulted in the loss of almost 250,000 additional employees. IT firms are the greatest offenders when it comes to outsourcing.
Why outsourcing is bad for the economy?American labor, American manufacturers, American suppliers, and the standard of life for many families have all suffered irreparable harm as a result of outsourcing by American enterprises. The company might make some short-term money off of it, but eventually, its overseas rivals will win the technology and the market.
According to a recent study, globalization has reduced the middle class's share of income. Even the poorer segments of the population observed a fall in their income shares as compared to an increase in high-income shares. Developments in developing and transitional nations are what are responsible for this effect.
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What Economic Issue arises in this graphic due to the Max Price being below Equilibrium?
As u asked in ur question which food we should have before exercise : ANSWER is - Option (B)
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