Under the incomplete market, Select one: • any time-state claim can be replicated with available securities • any time-state claim can be replicated with atomic securities • any time-state claim can be replicated with available bonds • not all time-state claims can be replicated • any time-state claim can be replicated with available stocks

Answers

Answer 1

Under the incomplete market, not all time-state claims can be replicated.

In an incomplete market, the available securities or assets are insufficient to replicate all possible time-state claims. This means that there are certain claims on future states of the world that cannot be perfectly replicated or hedged using the available securities. The concept of incomplete markets arises from the fact that in real-world financial markets, there are often limitations on the types and quantities of securities available for trading.

These limitations could include restrictions on the range of securities, liquidity constraints, or regulatory factors. As a result, it is not always possible to construct a portfolio of existing securities that perfectly replicates the payoffs of all possible future outcomes. Due to this incompleteness, investors and firms face risks that cannot be eliminated through portfolio diversification alone.

This leads to the need for risk management strategies such as hedging with imperfectly correlated securities or using derivatives to partially hedge exposures. In summary, under the incomplete market framework, not all time-state claims can be replicated due to the limitations of available securities. This highlights the importance of understanding and managing the risks associated with incomplete markets and employing appropriate risk management techniques to mitigate exposure to uncertainties.

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Related Questions

I attached a pic of my question, pls help.

I attached a pic of my question, pls help.

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Farmer raising sheep.

Farmer raising sheep

What are 4 reasons why you should print, save, or make a copy of your job application???

Answers

Answer:

Be Prepared. Make sure you know the correct names, dates, places and other information you will need

What mechanisms operate the chain of building relationship equity?

Answers

The mechanisms that operate the chain of building relationship equity include trust, commitment, communication, and customer satisfaction.


1. Trust: Establishing trust is essential in building relationship equity, as it creates a solid foundation for long-term relationships. Trust can be developed through transparency, honesty, and consistently delivering on promises.

2. Commitment: Demonstrating commitment to the relationship is crucial, as it shows that both parties are invested in maintaining and growing the partnership. This can be achieved by being reliable, meeting expectations, and working towards common goals.

3. Communication: Effective communication is key to building relationship equity, as it helps in addressing concerns, sharing information, and resolving conflicts. Regular and open communication ensures that all parties are on the same page and working collaboratively.

4. Customer satisfaction: Ensuring customer satisfaction is important for building relationship equity, as satisfied customers are more likely to remain loyal and recommend the business to others. By offering quality products or services and addressing customer needs, businesses can build strong relationships and enhance their equity.

By focusing on these mechanisms, businesses can successfully build relationship equity, leading to long-lasting and mutually beneficial partnerships.

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A(n) blank______ model is a plan that details how a company creates, delivers, and generates revenues on the internet. multiple choice question. data ebusiness business

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A  blank e-business model is a plan that details how a company creates, delivers, and generates revenues on the internet.

The business strategy that enables customers to buy and sellers to sell goods and services through the internet is known as e-commerce.

It belongs to a larger sector of the economy known as electronic business or e-business.

Online transactions can be made via computers, smartphones, tablets, and other smart devices in the four main market categories of-

business to businessconsumer to consumer, business to consumer, consumer to business.

Nearly all goods and services are now available to customers through e-commerce transactions in today's digital environment. When it comes to sharing data or money to continue executing a transaction, e-commerce involves multiple parties.

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A manager who is reactive and works hard to address problems after they occur is known as a . (a) problem seeker (b) problem avoider (c) problem solver (d) problem manager

Answers

Answer:

(c) problem solver

Explanation:

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

Hence, a manager who is reactive and works hard to address problems after they occur is known as a problem solver.

This ultimately implies that, a problem solver proffer solutions to a problem after it has occurred already. Problem solver are reactive rather than being proactive by preventing or mitigating the possibility of a problem arising.

true or false: increasing the number of stocks in a portfolio reduces firm-specific risk.

Answers

The given statement increasing the number of stocks in a portfolio reduces firm-specific risk is true because it decreases the impact that any one stock will have on the overall performance of the portfolio.

If an investor only holds a few stocks and one of them performs poorly, the entire portfolio may suffer. However, if the investor holds a larger number of stocks, the poor performance of one stock will have less of an impact on the overall performance of the portfolio.

This is because the risk is spread across a larger number of stocks, reducing the impact of any single stock on the overall portfolio. This concept is known as diversification, and it can help to reduce risk in an investment portfolio.

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Which statement(s) most directly apply to capitalism? I. There is heavy government regulation of industry. II. Individuals can start some, but not all, kinds of enterprises. III. The price and availability of goods is determined primarily by the market. A. I and II b. II only c. I and III d. III only.

Answers

Capitalism refers to private ownership of trade and industries and price of good and services determine by the market.

What do you mean by capitalism?

It is the countries economic and political system where trade, industries and capital goods are owned and controlled by private individuals for profit rather than the government.

The statement that the price and goods availability is determined primarily by the market explains the capitalism.

Therefore, option d aptly describes capitalism.

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Question 9 of 10
A group of Congress members is contacted by members
of a committee who would like to submit a bill for a floor
debate. The group reviews the bill as well as the current
schedule of debates. After the review, the group decides
that the bill is not important enough to justify a debate.
The group refuses to schedule a debate, killing the bill.
Which congressional group is most likely described in the passage?
OA. The House Ways and Means Committee
OB. The House Rules Committee
OC. A conference committee
OD. The Committee of the whole

Answers

The House Rules Committee congressional group is most likely described in the passage. Thus, option B is correct.

What is congressional?

Committees keep an eye on ongoing public administration, spot problems that warrant legislative scrutiny, collect and assess data, and suggest steps to take to Congress.

Every member of the Senate of Congress is a part of the body's subcommittee of its entirety. Every time the House decides to establish this committee, a particular issue needs to be discussed. Once the panel has finished its work, it no longer exists. In this case, the group's assignment was to analyze the bill and the argument timetable.

Therefore, option B is correct.

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Electricity costs that were incurred by a company's production processes should be debited to Utility Expenses.a. Trueb. False

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The statement is mostly true. Electricity costs that were incurred by a company's production processes should be debited to Utility Expenses.

Electricity costs incurred by a company's production processes should be recognized as a cost of production and allocated to the products that consumed the electricity. This can be done through the use of cost accounting methods such as activity-based costing or direct allocation. The appropriate account to be debited would be a manufacturing overhead account, not necessarily the Utility Expenses account. However, in some cases, where electricity is solely used for general lighting, air conditioning or other purposes not related to production, it may be appropriate to debit the Utility Expenses account instead. So, the statement "Electricity costs that were incurred by a company's production processes should be debited to Utility Expenses" is generally false, but in certain specific situations, it could be true.

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In preparing a bank reconciliation, the amount of a canceled check omitted from the journal is added to the balance per company's records. false

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In preparing a bank reconciliation, the amount of a canceled check omitted from the journal that is added to the balance per the company's records is false.

In a financial institution reconciliation, the amazing tests are a deduction from the bank stability (or stability in step with the financial institution declaration). If an extraordinary test from the previous month did no longer clear the financial institution account within the present day month, the test will remain on the list of awesome exams.

In getting ready for bank reconciliation, the quantity of wonderful checks is added to the stability according to the financial institution statement. In making ready a financial institution reconciliation, the amount indicated by means of a debit memorandum for financial institution provider expenses is delivered to the stability per depositor's facts.

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If a company receives $11,400 from a client for services provided, the effect on the accounting equation would be:________

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If a company receives $11,400 from a client for services provided, the effect on the accounting equation would be: increase in assets and equity

What is accounting equation?

The accounting equation indicates that all assets of a company are financed from equity and liabilities, in essence, total assets are the same as the sum of equity and liabilities

assets=equity+ liabilities

A receipt of $11,400 for services provided would impact assets, in that cash would increase, which means assets would increase by $11,400 and also on the premise that such services were provided for cash, the sales revenue which flows into equity would also increase.

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Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects these changes will have on the break-even point and the margin of safety. Compute the margin of safety ratio for current operations and after Mary's changes are introduced (Round to nearest full percent)

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Before:

Fixed costs= 270,000

Selling price= $40

Unitary variable cost= $24

Sales in units= 20,000

After:

Fixed costs= 294,000

Selling price= $38

Unitary variable cost= $24

Sales in units= 24,000

First, we need to calculate the break-even point in units:

Break-even point in units= fixed costs/ contribution margin per unit

Before:

Break-even point in units= 270,000/ (40 - 24)

Break-even point in units= 16,875 units

After:

Break-even point in units= 294,000/14

Break-even point in units= 21,000 units

Now, the margin of safety ratio:

Margin of safety ratio= (current sales level - break-even point)/current sales level

Before:

Margin of safety ratio= (20,000 - 16,875)/20,000

Margin of safety ratio= 0.156

After:

Margin of safety ratio= 3,000/24,000

Margin of safety ratio= 0.125

All of the following actions lead to the payment of a credit card fee EXCEPT... a) Using your credit card to get cash from an ATM. b) Using your credit card to purchase items in a foreign country. c) Paying your credit card bill ten days after the Due Date. d) Paying your credit card bill in full and on time every month.

Answers

Answer:

d) Paying your credit card bill in full and on time every month

Explanation:

Credit cards are a convenient manner to pay for shopping and other expenses. However, they have numerous interest charges that may add to huge amounts if one is not careful.

Credit card charges interest on bill paid after their due date. Paying the entire credit card bill at the end of every month is one way of avoiding penalties.

Using a credit card to withdraw cash attracts charges, the same as making foreign transactions.

Answer:

d) Paying your credit card bill in full and on time every month

Explanation:

Joe is developing the marketing mix for his company's new line of power tools. A brand name, price, and distribution system have been decided. Now Joe is concentrating his efforts on developing the best advertising plan for the product line. The advertising plan is part of Joe's __________ strategy.
Promotion

Answers

Joe is focusing his efforts on creating the most effective marketing strategy again for product line. Joe's "Promotion strategy" includes the advertising strategy.

Explain the term Promotion strategy?

The part of decision-making that deals with selecting the best combination of advertising, product promotion, personal selling, and publicity for a company's target market communications.

Companies utilize promotional strategy as a tool to market, promote, and sell their products. A corporation decides on its marketing strategy depending on a variety of variables, including the type of product, marketing budget, target market, etc. It is essential to raise product awareness in order to boost sales.

As the stated question-

For the new brand of power tools from his company, Joe is creating the marketing mix. The pricing, distribution method, and brand name have all been chosen. Joe is currently focusing his efforts on creating the most effective advertising strategy for the product range.

Thus, the advertising strategy is a component of Joe's promotion plan.

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How does a secured credit card benefit someone new to using credit while also reducing the risk taken by the card issuer?.

Answers

The issuer has the right to withdraw funds from your deposit if you fail to pay your bill. These credit cards are therefore accessible to those with poor or no credit histories.

What is a credit card?

A credit card is a form of payment that is issued to users (cardholders) to allow the cardholder to pay a merchant for products and services based on the cardholder's accumulated debt. A revolving account is opened by the card issuer, which is typically a bank or credit union, and a line of credit is given to the cardholder. From this line of credit, the cardholder can borrow money to pay for purchases or to get a cash advance. Consumer and business credit cards fall under one of two credit card categories. The majority of cards are made of plastic, however there are a handful that are made of metal (titanium, gold, palladium, and stainless steel), some of which have gemstones embedded in them.

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#1 You are driving down the highway when one of your tires suddenly blows out. You should

Pump your brakes rapidly, and steer your vehicle to control any skids.

Avoid using your brakes. Slow down gradually and concentrate on steering.

Press hard on your brake pedal and stop as quickly as you can.

Answers

Avoid using your brakes. Slow down gradually and concentrate on steering

skills+check:+what+is+the+pv+of+this+uneven+cash+flow+stream?+cf1+=+100+cf2+=+300+cf3+=+300+cf4+=+-50+assume+r+=+10%.

Answers

The present value (PV) of an uneven cash flow stream is the sum of the present values of each cash flow. The present value of a cash flow is calculated by discounting the cash flow back to the present using a discount rate. In this case, the discount rate is 10%.

The PV of the uneven cash flow stream is $590.49. This is calculated as follows:

PV = CF1 / (1 + r)^1 + CF2 / (1 + r)^2 + CF3 / (1 + r)^3 + CF4 / (1 + r)^4

= 100 / (1 + 0.1)^1 + 300 / (1 + 0.1)^2 + 300 / (1 + 0.1)^3 + (-50) / (1 + 0.1)^4

= 590.49

The present value of an uneven cash flow stream is the sum of the present values of each cash flow. The present value of a cash flow is calculated by discounting the cash flow back to the present using a discount rate.

The present value of a cash flow is calculated using the following formula:

PV = CF / (1 + r)^t

Where:

PV is the present value of the cash flow

CF is the cash flow

r is the discount rate

t is the time period

In this case, the cash flows are:

CF1 = $100

CF2 = $300

CF3 = $300

CF4 = $-50

The discount rate is 10%.

The present value of the cash flow stream is calculated as follows:

PV = CF1 / (1 + r)^1 + CF2 / (1 + r)^2 + CF3 / (1 + r)^3 + CF4 / (1 + r)^4

= 100 / (1 + 0.1)^1 + 300 / (1 + 0.1)^2 + 300 / (1 + 0.1)^3 + (-50) / (1 + 0.1)^4

= 590.49

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ITS BUSINESS!! Someone help I literally dont know how to do it I have tried over a thousand times trying to figure it out (I will give brainiest I need explanation)

ITS BUSINESS!! Someone help I literally dont know how to do it I have tried over a thousand times trying

Answers

When utilizing Last-In, First-Out (LIFO), the inventory cost is $33,500; when using First-In, First-Out, it is $29,500; and the weighted average cost is $2515.15.

The weighted cost method is what?

You may calculate the average cost of your inventory, per unit, using the weighted average cost method. The cost of goods sold (COGS) divided by the total number of items in your inventory will give you the WAC.

What are the FIFO and LIFO accounting techniques used for?

The Last-In, First-Out (LIFO) methodology is based on the notion that the most recent or most recent unit to enter inventory is sold first. According to the First-In, First-Out (FIFO) methodology, the oldest item in inventory should be the first to be sold.

Particulars                               Purchase            amnt     sales     amnt

Inventory                                 5  X $2,400       12,000

Purchases                               18 X $2,500       45,000

Purchases                               10 X $2,600       26,000

Sold                                                                                   5X 2,400  12,000

                                                                                          7X 2,500  17,500

First in and first out= $12,000 + $17,500= $29,500

Particulars                               Purchase         amnt     sales         amnt

Inventory                                 5  X $2,400     12,000

Purchases                               18 X $2,500     45,000

Purchases                               10 X $2,600      26,000

Sold                                                                                 10X 2,600   26,000

                                                                                        3 X 2,500    7,500

Last in, first out= $26,000 + $7,500= $33,500

Weighted average cost method= Cost of goods available for sale / Units available for sale

Weighted average cost method= $83,000 / 33= $2515.15

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According to exodus 31:15 in whose honour we spend the Sunday?

Answers

Answer:

God

Explanation:

On sunday is sabbath of complete rest, it is something holy to God

What is a benefit of investing in mutual funds?

A. Investors' fees are waived because it is an ownership investment.

B. Investors are guaranteed a minimal amount of return.

C. Investors earn interest because it is a lending investment.

D. Investors have access to a fund manager's expertise.

Answers

The benefit of investing in mutual funds is Investors earn interest because it is a lending investment.

What is mutual fund?

This is an investment, whereby investors put their earned money so that they can earn interest. The security in Mutual fund is very high, hence cause less worry investors

Hence, the benefit of investing in mutual funds is Investors earn interest because it is a lending investment.

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If you are applying for two different jobs, which of the these is true about the resumes you will turn
in to them?
you would turn in different resumes with different objective statements that match the different jobs you are
applying for
turn in identical resumes to both jobs
print them with different colored ink to keep from confusing them

Answers

Answer:

the first one ,you would turn in different resumes with different objective statements that match the different jobs you are

applying for

Please help!
Questions below!

Please help!Questions below!

Answers

1. Players in Game B would likely rate their game as more fair than Game A, since the starting wealth and salaries are more evenly distributed.

What is Game?

Game is a form of activity that involves competing for entertainment, often with a set of rules and goals. It is usually thought of as an activity involving physical or mental skill. Games are often used as a form of entertainment, as well as a way to learn or practice skills, often in a competitive environment. Examples of popular games include board games, card games, dice games, outdoor sports, computer and video games, and many more.

2. The middle class players would likely rate the game as most fair since they have the highest salary and the most balanced starting wealth in both games.
3. The upper class players are likely to cheat the most since they have the most wealth and the highest salaries in both games.
4. Game B gives players the most opportunity for success since the starting wealth and salaries are more evenly distributed, giving everyone a better chance at success.

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When a worker at a toilet paper mill uses the machines to turn pulpwood into rolls of paper, the worker is taking part in a:.

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By engaging in the aforementioned activities, the worker is engaged in the Transformation process.

What is the transformation process?Refers to activities that go into converting raw materials into finished goods for customers. It does this by taking those raw material inputs and adding value to them.

By taking the raw materials of pulpwood and then transforming them into the finished goods of toilet rolls, this is known as the transformation process.

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what are some qualities needed by Commercial Artists? Check all that apply.

ability to supervise others
ability to work under deadline pressure
ability to create special effects
ability to teach classes
ability to follow directions
ability to work with others

Answers

Answer:

the answer is b, e, f, hope it helps

Explanation:

Answer:

ability to work under deadline pressure

ability to follow directions

ability to work with others

Safeway and monopolization in New Mexico and Texas: Suppose the Demand and Supply equations for food are:
Demand: Price = 30 - (Quantity/100)
Supply: Price = (Quantity/100)
1) Determine the equilibrium price that consumers pay for food in this market. Show graphically
2) Suppose that Safeway is indeed able to monopolize this market. What price would Safeway now charge for food? Assume the original supply curve is now Safeway's marginal cost curve. Show graphically on the same graph as above.
3) Consumers dislike monopolies. Show how upset they are, and quantify how much worse off they are by the change in their consumer surplus.

Answers

1) The equilibrium price that consumers pay for food in this market is $15 2) if Safeway is able to monopolize the market, it would charge a price of $15 for food, which is the same as the equilibrium price in a competitive market 3) There is no change in consumer surplus between the competitive market and the monopoly situation. Consumers are not worse off in terms of consumer surplus when Safeway monopolizes the market.

1) To determine the equilibrium price that consumers pay for food in this market, we need to find the intersection point of the demand and supply curves. Let's start by setting the demand and supply equations equal to each other:

Demand: Price = 30 - (Quantity/100)

Supply: Price = (Quantity/100)

Equating the two equations, we get:

30 - (Quantity/100) = (Quantity/100)

To solve for Quantity, we can simplify the equation:

30 = (Quantity/100) + (Quantity/100)

30 = (2*Quantity)/100

3000 = 2*Quantity

Quantity = 1500

Now we can substitute the value of Quantity back into either the demand or supply equation to find the equilibrium price. Let's use the demand equation:

Price = 30 - (1500/100)

Price = 30 - 15

Price = 15

Therefore, the equilibrium price that consumers pay for food in this market is $15.

2) If Safeway is able to monopolize the market, it can set the price at a level that maximizes its profits. In this case, Safeway's marginal cost curve will determine the price it charges for food. Let's assume that Safeway's marginal cost curve is given by the original supply curve.

The original supply curve is: Price = (Quantity/100)

To find the price Safeway would charge, we need to determine the quantity at which Safeway's marginal cost intersects the demand curve. Let's equate the marginal cost and demand equations:

(Quantity/100) = 30 - (Quantity/100)

Simplifying the equation:

2*(Quantity/100) = 30

Quantity/50 = 30

Quantity = 1500

Substituting the quantity back into the demand equation to find the price:

Price = 30 - (1500/100)

Price = 30 - 15

Price = 15

Therefore, if Safeway is able to monopolize the market, it would charge a price of $15 for food, which is the same as the equilibrium price in a competitive market and we can plot the demand curve (Price = 30 - (Quantity/100)), the original supply curve (Price = (Quantity/100)), and the monopolistic price of $15.

3) To show how upset consumers are with the monopoly and quantify the change in their consumer surplus, we need to compare the consumer surplus under monopolistic conditions with the consumer surplus in a competitive market.

In a competitive market, the consumer surplus is represented by the area between the demand curve and the market price. However, under a monopoly, the price is higher, resulting in a reduction in consumer surplus.

Let's calculate the consumer surplus in both scenarios and determine the change:

1. Competitive market consumer surplus:

In a competitive market, the equilibrium price is $15. To calculate the consumer surplus, we need to find the area between the demand curve and the price line up to the quantity demanded at that price.

Consumer surplus in a competitive market = 0.5 * (Quantity * Price)

Consumer surplus in a competitive market = 0.5 * (1500 * 15)

Consumer surplus in a competitive market = $11,250

2. Monopoly consumer surplus:

Under the monopoly, the price is still $15, so the consumer surplus will be the same as in the competitive market:

Consumer surplus under monopoly = $11,250

There is no change in consumer surplus between the competitive market and the monopoly situation. Consumers are not worse off in terms of consumer surplus when Safeway monopolizes the market.

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Which situation would most likely cause a currency with a flexible exchange rate to increase in value?

Answers

Answer:

:A currency with a flexible exchange rate is one that is determined by supply and demand in the foreign exchange market. Therefore, the most likely situation that would cause a currency to increase in value is an increase in demand for that currency relative to its supply.

This can happen for a variety of reasons, such as an increase in foreign investment in the country, an increase in exports, or a decrease in the supply of the currency due to government intervention or a decrease in the money supply.

For example, if a country has a strong economy and is seen as a safe place to invest, foreign investors may want to buy more of that country's currency, causing its value to increase. Similarly, if a country's exports become more competitive due to a decrease in the value of its currency relative to other currencies, demand for that currency may increase, causing its value to rise.

In the 1870s, a major system of ______ began appearing across texas.

Answers

In the 1870s, a major system of railroads began appearing across Texas.

This development was important because it allowed for easier transportation of goods and people across the state, which in turn helped to spur economic growth and development. Additionally, the expansion of the railroad system in Texas helped to connect the state to other parts of the country, making it easier for businesses to operate and for people to travel.

In summary, the Texas railroad system was a factor that allowed the region's own development in different contexts, especially in the economic one.

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Question 1
1 pts
Which of the following can help a salesperson distinguish between a buyer's wants and needs?
O lead generation
O prospecting
O a needs assessment
a buyer's wish list

Answers

I would say a needs assessment

A urvey found that 76% of men preferred darker jean. If 500 men were ureveyed, how many anwered that they preferred darker jean

Answers

If 500 men were surveyed and 76% of them preferred darker jean, then the number of men who preferred darker jean was 380.

A percentage is a figure or ratio that reflects a fraction of 100 in mathematics. It is one of the methods for representing a dimensionless connection between two numbers, along with ratios, fractions, and decimals. Percentages are frequently symbolized by the symbol "%" following the number. They can also be expressed as "percent" or "pct" following the number.

Example:

30% = 30/100

A percent, just like a fraction, represent a part of a whole. Example 20% of 300 students is equal to:

20% x 300 = 60 students.

In this problem, the data from the survey said that 76% men preferred darker jeans. If the number of men being surveyed was 500, the the number of men that preferred darker jeans was:

76% x 500 = 76/100 x 500

                  = 76 x (500/100)

                  = 76 x 5 = 380 men

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What is operations management and its role?

Answers

In its broadest sense, operations management is responsible for all aspects of creating goods and services. It manages resources such as materials, machines, technology, and people, and makes products and services that the marketplace wants.

At both large and small organizations, operations managers supervise, hire, and train employees, manage quality assurance programs, strategize process improvements, and more. Operations managers are ultimately responsible for maintaining and increasing the efficiency of a business, agency, or organization.

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