SWOT analysis assesses competition and strategy, impacting decision-making and strategic planning. It helps identify strengths, weaknesses, opportunities, and threats, improving competitiveness.
SWOT analysis is a strategic tool used by organizations to assess their strengths, weaknesses, opportunities, and threats in relation to their competitors and the market. It helps identify internal capabilities, external market factors, and competitive dynamics.
Using SWOT analysis for competition and strategy involves leveraging strengths and opportunities to gain a competitive advantage while addressing weaknesses and mitigating threats. It enables organizations to make informed decisions, allocate resources effectively, and develop strategies that align with their objectives.
The impact of SWOT analysis on the implementing corporation can be significant. It provides insights into the organization's current position, helps identify areas for improvement, and informs strategic planning. By understanding their strengths and opportunities, companies can leverage them to gain a competitive edge. By addressing weaknesses and threats, they can minimize risks and overcome challenges.
For example, if a company identifies a strength in product innovation and an opportunity in a growing market segment, they can develop a strategy to introduce innovative products targeting that segment. This can lead to increased market share and profitability, strengthening the company's competitive position.
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19. Which medium has the advantage of moving images, sound, and portability in business?
*
(1 Point)
Newspapers
Transit Media
Internet
Radio
Answer:
Internet
Explanation:
Newspapers can be online, but they are originally on paper, transit media is on billboards or the sides of cars, and the radio is definitely not it.
Ronda’s cake store earned $3,750 in total revenue last month when it sold 125 cakes. This month it earned $3,600 in total revenue when it sold 90 cakes. The price elasticity of demand for ronda’s cake store is.
The price elasticity of demand for Ronda’s cake store is 0.125.
What is the price elasticity of demand?The price elasticity of demand measures the responsiveness of the quantity demanded by a consumer with respect to a specific change in price of the product, all things being equal (ceteris paribus).
Mathematically, the price elasticity of demand can be calculated by using this formula;
Price elasticity of demand = (Q₂ - Q₁)/[(Q₂ + Q₁)/2]/(P₂ - P₁)/[(P₂ + P₁)/2]
Substituting the given parameters into the formula, we have;
Price elasticity of demand = (3750 - 3600)/[(3750 + 3600)/2]/(125 - 90)/[(125 + 90)/2]
Price elasticity of demand = (150)/[(7350)/2]/(35)/[(215)/2]
Price elasticity of demand = [(150/3675)/(35/107.5)]
Price elasticity of demand = 0.0408/0.3256
Price elasticity of demand = 0.125.
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Using the following prices, calculate the unit price to determine how much it would cost for 7 muffins and 14 juice boxes. $7. 74 for 6 muffins $5. 52 for 8 juice boxes a. $18. 69 b. $19. 89 c. $21. 91 d. $26. 52 Please select the best answer from the choices provided A B C D.
Answer: a
Explanation:
Kitchen Creations is a company that offers low-fat, heart-healthy meals that customers can order ahead of time and have delivered weekly to their homes. Rather than seeing itself a just a producer of food products, Kitchen Creations positions itself as a firm dedicated to helping customers save time and eat healthy. Kitchen Creations has set ________ objectives.
By positioning itself to emphasize and serve the health needs of customers, Kitchen Creations has set its Marketing Objectives. The keywords here are Positioning and Marketing Objectives.
What is a Marketing Objective?This refers to the set goals or targets that a brand or a business has decided to achieve just as we have in the example of Kitchen Creative, that are strategic to its overall objectives.
Positioning is the strategic image that a business has decided to create for itself and or its products in relation to other products and or businesses that are similar to its own.
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Suppose you deposit $1,380.00 into an account today that earns 9.00%. It will take ___ years for the account to be worth $2,536.00.
It will take approximately 5 years for the account to be worth $2,536.00. The calculation is done using the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
plugging in the given values, we can solve for t and find that it is approximately 5 years.
To determine the time it takes for the account to reach $2,536.00, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount ($2,536.00)
P is the initial deposit ($1,380.00)
r is the annual interest rate (9.00% or 0.09)
n is the number of times the interest is compounded per year (not provided)
t is the number of years we need to find
We need to solve for t, so let's rearrange the formula:
(1 + r/n)^(nt) = A/P
Substituting the known values:
(1 + 0.09/n)^(nt) = 2,536/1,380
To simplify the calculation, we can assume the interest is compounded annually (n = 1). Plugging in the values:
(1 + 0.09/1)^(1t) = 2,536/1,380
Simplifying further:
1.09^t = 2,536/1,380
To solve for t, we can take the logarithm of both sides with base 1.09:
\(log(1.09^t) = log(2,536/1,380)t * log(1.09) = log(2,536/1,380)Dividing both sides by log(1.09):t = log(2,536/1,380) / log(1.09)\)
Using a calculator, we find that t is approximately 5 years. Therefore, it will take approximately 5 years for the account to be worth $2,536.00.
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Which of the following products would have its costs accumulated using a process costing system? A. Airplanes B. Luxury yachts C. Dinner at a restaurant D. Fishing supplies
The product that would most likely have its costs accumulated using a process costing system is: A. Airplanes.
Process costing is a cost accumulation method used for products that are produced in large quantities and undergo continuous or repetitive manufacturing processes. Airplanes are typically produced using a series of standardized and sequential steps in a production line, making them suitable for process costing.
In contrast, luxury yachts, dinner at a restaurant, and fishing supplies are not typically produced through continuous, standardized processes. Luxury yachts are often custom-built and involve unique specifications, making them more suitable for job costing. Dinner at a restaurant and fishing supplies are associated with service-based or retail industries, where costs are generally tracked using other costing methods like job costing or activity-based costing, depending on the specific circumstances.
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What is the average number of careers a person
has between the ages of 18 and 42?
Answer:
The average number of careers is 10
All of the following are unique characteristics that distinguish services from goods EXCEPT:
a. intangible.
b. inseparable.
c. searchable.
d. heterogeneous.
e. perishable.
The unique characteristics that distinguish services from goods include intangibility, inseparability, variability, and perishability.
While perishability is indeed a unique characteristic of services, it is not the only one. In addition to being perishable, services are intangible, meaning that they cannot be touched or seen like goods. They are also inseparable, meaning that they are typically produced and consumed at the same time, and variability, meaning that the quality of a service can vary depending on the provider or circumstances. The only characteristic listed in the question that does not apply to services is "searchable." This term is more commonly associated with digital products and refers to the ease with which a consumer can find and access them through search engines.
Overall, while perishability is a key characteristic of services, it is important to remember that services have several other unique traits that distinguish them from goods.
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PB11-3 Comparing, Prioritizing Multiple Projects டி LO 11-1, 11−2,□11−3,□11−6 Harmony Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and time horizon, Harmony's management is finding it difficult to compare them. Project 1: Retooling Manufacturing Facility. This project would require an initial investment of $2,700,000. It would generate $975,000 in additional cash flow each year. The new machinery has a usetul life of seven years and a salvage value of $600,000, Project 2: Purchase Patent foe New Product The patent would cost $8,200,000, which would be fully amortized over 10 years. Production of this product would generate $1,650,000 additional annizal net income for Harmony. Prolect 3: Purchase a New Bies of Deliery Vains Harmony coald parchase 10 new delivery vans at a cost of $25,000cach. The fleet would have a useful life of 10 years, and each van would have a alvige value of $2.500. Purchasing the fleet would allow Harmony to expand its delivery area resulting in $30,000 of additional net income per year. Required: 1. Determine each project's accounting rate of return and compare the projects. 2. Determine each project's paybuck period and compare the projects. 3. Usinga discount rate of 10 percent, calculate the net present value of each project. 4. Determine the profitability index of each project and prioritize the projects for Harmony.
The Priority order:
Project 1 - Retooling Manufacturing Facility
Project 3 - Purchase a New Fleet of Delivery Vans
Project 2 - Purchase Patent for New Product.
The Harmony Company is evaluating multiple potential capital investments, and comparing them is challenging due to their varying nature, initial investments, and time horizons. There are three projects to consider:
1. Project 1: Retooling Manufacturing Facility
- Initial investment: $2,700,000
- Additional annual cash flow: $975,000
- Useful life: 7 years
- Salvage value: $600,000
2. Project 2: Purchase Patent for New Product
- Cost of the patent: $8,200,000 (amortized over 10 years)
- Additional annual net income: $1,650,000
3. Project 3: Purchase a New Fleet of Delivery Vans
- Cost per van: $25,000
- Number of vans: 10
- Useful life: 10 years
- Salvage value per van: $2,500
- Additional annual net income: $30,000
To prioritize the projects, we will calculate their accounting rate of return, payback period, net present value, and profitability index.
1. Accounting Rate of Return (ARR):
- Project 1: ARR = ($975,000 / $2,700,000) * 100 = 36.11%
- Project 2: ARR = ($1,650,000 / $8,200,000) * 100 = 20.12%
- Project 3: ARR = ($30,000 / $25,000) * 100 = 120%
2. Payback Period:
- Project 1: Payback Period = $2,700,000 / $975,000 = 2.77 years
- Project 2: Payback Period = $8,200,000 / $1,650,000 = 4.97 years
- Project 3: Payback Period = $25,000 / $30,000 = 0.83 years
3. Net Present Value (NPV):
- Discount rate: 10%
- Project 1: NPV = [$975,000 * (1 - 1 / (1 + 0.10)^7)] / 0.10 - $2,700,000 = $386,524
- Project 2: NPV = [$1,650,000 * (1 - 1 / (1 + 0.10)^10)] / 0.10 - $8,200,000 = $138,051
- Project 3: NPV = [$30,000 * (1 - 1 / (1 + 0.10)^10)] / 0.10 - $25,000 = $3,812
4. Profitability Index:
- Project 1: Profitability Index = ($386,524 + $2,700,000) / $2,700,000 = 1.14
- Project 2: Profitability Index = ($138,051 + $8,200,000) / $8,200,000 = 1.02
- Project 3: Profitability Index = ($3,812 + $25,000) / $25,000 = 1.15
Based on the calculations, the priority order for the projects is as follows:
1. Project 1 - Retooling Manufacturing Facility
2. Project 3 - Purchase a New Fleet of Delivery Vans
3. Project 2 - Purchase Patent for New Product
Project 1 has the highest accounting rate of return, the shortest payback period, a positive net present value, and a profitability
index greater than 1. Project 3 also shows favorable metrics, while Project 2 lags behind in these measures.
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02:55:5
Candace saved her query for her time cards. After running the query once, she found two more pay slips and
added them to the original data table. Which best describes what will happen?
She will be prompted with an error message saying she cannot modify queries multiple times.
The data will not show up in the new query and will need to be resaved.
She will need to design a new query that includes her new numbers.
When the query is run again, the data that meets the new criteria will be retrieved.
When Candace will need to design a new query that includes her new numbers to get the desired result. Hence, Option D is the correct statement.
What do you mean by query in SQL?A request for facts or statistics from a database desk or a mixture of tables. These facts can be generated as outcomes again via way of means of Structured Query Language (SQL) or as pictorials, graphs or complicated outcomes, for example, fashion analyses from facts-mining tools. This is called as query.
Hence, Option D is the correct statement.
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Dripolator purchases raw coffee beans and then roasts, packages, and sells them. The company is focusing on freshness and quality, as well as on expanding its markets. Which metric would be most appropriate for Dripolator to focus on for the financial perspective of the balanced scorecard
Answer:
Annual percent increase in contribution margin
Explanation:
The financial perspective would use a financial metric such as the annual percent increase in contribution margin. The number of employees being trained in grading coffee beans is a learning and growth perspective, the number of packaging defects is an internal perspective, and increased customers in the southeast region is a customer perspective.
Rayya Co. purchases and installs a machine on January 1, 2015, at a total cost of $176,400. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is disposed of on July 1, 2019, during its fifth year of service.
1. Record the depreciation expense as of July 1, 2019.
2. Record the sale of the machinery for $45,500 cash.
3. Record the total destruction of the machine in a fire with $25,000 cash insurance settlement.
Answer:
1.Journal 2019 Expense:
Depreciation Expense $12,600 (debit)
Accumulated Depreciation $12,600 (credit)
2.Journal : Cash Sale of $45,500
Cash $45,500 (debit)
Accumulated Depreciation $113,400 (debit)
Profit an Loss $17,500 (debit)
Cost : Machine $176,400 (credit)
3.Journal : insurance settlement of $25,000
Cash $25,000 (debit)
Accumulated Depreciation $113,400 (debit)
Profit an Loss $38,000 (debit)
Cost : Machine $176,400 (credit)
Explanation:
Depreciation Expense (Straight line) = (Cost - Salvage Value) ÷ Estimated Useful Life
= $176,400 ÷ 7
= $25,200
2015
Depreciation Expense = $25,200
2016
Depreciation Expense = $25,200
2017
Depreciation Expense = $25,200
2018
Depreciation Expense = $25,200
2019
Depreciation Expense = $25,200 × 6/12
= $12,600
Journal 2019 Expense:
Depreciation Expense $12,600 (debit)
Accumulated Depreciation $12,600 (credit)
Journal : Cash Sale of $45,500
Cash $45,500 (debit)
Accumulated Depreciation $113,400 (debit)
Profit an Loss $17,500 (debit)
Cost : Machine $176,400 (credit)
Journal : insurance settlement of $25,000
Cash $25,000 (debit)
Accumulated Depreciation $113,400 (debit)
Profit an Loss $38,000 (debit)
Cost : Machine $176,400 (credit)
Allen Furniture Company is considering offering an inexpensive line of college dorm and apartment furnishings. If they move forward, they will renovate part of their store to accommodate this new stock. Before spending the money to redesign the store, they first want to find out customer interest. In a short response of approximately 100 words, describe some of the steps they should take as they consider this project.
Answer:
Allen Furniture Company should look into conducting a survey to gauge customer interest to find what they look for, need, and find attractive. They could do so by going to college campuses and conducting random interviews. For their apartment furnishings, they could look online to see what kind of product sell and do an analysis of customer interest that way and they could also conduct a survey for people that live in apartments. They could also look into a consultant that specializes in the field and is experienced with what customers like or want.
total cost (TC). Please provide answers to the next five questions. Q P TC TR MR MC Profit 0 $8 1 $10 2 $12 3 $15 $19 $24 $30 $45 $6 $6 $6 $6 $6 $6 $6 7 $6 Question 1 1 pts Given the data provided in the table, you are given quantity (Q). price (P), and total cost (TC). Please provide answers to the next five questions. What is the firm's profit at Q-3 4 5 6
the firm's profit at Q-3 4 5 6 are $27, $52, $90, and $144, respectively.
The given data for price (P), quantity (Q), total cost (TC), total revenue (TR), marginal revenue (MR), marginal cost (MC), and profit are as follows:
Q P TC TR MR MC Profit 0 $8 - - - - - 1 $10 6 10 10 6 4 2 2 $12 12 24 14 6 6 12 3 $15 18 45 21 6 9 27 4 $19 24 76 31 6 11 52 5 $24 30 120 44 6 14 76 6 $30 36 180 60 6 18 84 7 $45 - - - - -
To find the firm's profit at Q-3 4 5 6, we have to calculate the total revenue and total cost at each quantity (Q).Let's see the calculations for the given problem:
Total revenue (TR) = price (P) × quantity (Q)Total cost (TC) = fixed cost (FC) + variable cost (VC)Profit
= total revenue (TR) - total cost (TC)
For Q=3, TR = $15 × 3 = $45
For Q=3, TC = $18
Profit at Q=3 = TR - TC = $45 - $18 = $27
For Q=4, TR = $19 × 4 = $76
For Q=4, TC = $24
Profit at Q=4 = TR - TC = $76 - $24 = $52
For Q=5, TR = $24 × 5 = $120
For Q=5, TC = $30
Profit at Q=5 = TR - TC = $120 - $30 = $90
For Q=6, TR = $30 × 6 = $180
For Q=6, TC = $36
Profit at Q=6 = TR - TC = $180 - $36 = $144
Therefore, the firm's profit at Q-3 4 5 6 are $27, $52, $90, and $144, respectively.
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Employment agencies, career fairs, and Internet ads can all be sources of
a work permits
b.
school-to-work programs
C. résumés
d. job leads
Answer:
D. Job leads
Explanation:
Employment agencies, career fairs, and Internet ads can all be sources of job leads. Hence, Option D is correct.
What are the Employment agencies?There are various kinds of agencies in the whole world that target providing the required stuff to the person or the ultimate user when it comes to the types of agencies
There are various types of agencies that are present in the whole world according to the type of material that they have available at different agencies.
If it is about employment agencies, these are the agencies that provide employees to the ultimate employers, and with the help of employment agencies, those who belong to the unemployment category will get employment according to their qualifications.
Therefore, Option D is correct.
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The long-term fiscal problems of most industrialized nations are primarily due to
a. the costs of wars in (some combination of) Libya, Iraq and Afghanistan.
b. tax cuts passed with the claim that lower marginal tax rates would increase investment.
c. automatic stabilizers.
d. large stimulus packages passed in the last 18 months.
e. an aging population coupled with rising costs of health care.
The long-term fiscal problems of most industrialized nations are primarily due to an aging population coupled with rising costs of health care.
This demographic shift is putting pressure on social security, healthcare, and pension systems. While tax cuts passed with the claim that lower marginal tax rates would increase investment may have contributed to the problem, it is not the primary cause. Similarly, wars in Libya, Iraq, and Afghanistan, as well as large stimulus packages passed in the last 18 months, may have had short-term effects on fiscal problems but are not the root cause. Automatic stabilizers, which automatically adjust government spending and taxation in response to economic conditions, may help to stabilize the economy during economic downturns but are not the primary cause of long-term fiscal problems. The long-term fiscal problems of most industrialized nations are primarily due to e. an aging population coupled with rising costs of health care.
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"the long-term, expected output capability of a resource or system" is the definition of
the definition of "the long-term, expected output capability of a resource or system" is its capacity. capacity refers to the maximum amount of work or production that a resource or system can handle over a given period of time.
It takes into account various factors such as technology, equipment, personnel, and processes. Capacity planning is a critical aspect of operations management as it enables organizations to optimize their resources and meet the demand for their products or services. understanding the capacity of a resource or system is essential for businesses to plan their operations effectively and make informed decisions about resource allocation and investment.
Capacity refers to the maximum amount of output that can be produced or the level of service that can be provided by a resource or system over a long period of time. This concept is important for understanding the limitations and potential of various resources and systems, such as manufacturing facilities, transportation networks, or even energy sources.
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what did antonie van leeuwenhoek call his discovery
Answer:
Antonie Van Leeuwenhoek called his discovery "wee animalcules"
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Given the 2020 recession, what should be the goal of monetary policy? Should the Fed enact expansionary or contractionary policy? In other words, should the Fed increase the money supply/credit supply or decrease the money/credit supply. Explain what they might do to achieve their goal.
Answer:
Expansionary monetary policies
Explanation:
A recession is characterized by reduced economic activities, a high unemployment rate, and low business incomes. The economy experiences a reduced demand for products and services, leading to low production and a slow economic growth rate.
In a recession like in 2020, the Fed should employ measures that will stimulate economic growth. The appropriate measures are the expansionary monetary policies. These policies seek to increase liquidity in the market, thereby increasing the aggregate demand. Expansionary monetary policies increase the money supply in the economy; they include a reduction in the reserve requirement, reduction in the discount rate, and open market purchases.
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FIX IT PLS
Answer:
What are we suppose to exactly do?
Explanation:
Lena is a salesperson. As part of negotiation with her prospect during the sales process, Lena finds out what other competitors' products or services the prospect is considering. Thus, she gains insight into what the prospect is looking for and willing to pay. In this scenario, Lena is most likely in the _____ phase of negotiation.
Lena is most likely in the Investigative phase of negotiation.
In business, negotiation refers to the strategic discussion that takes place between the potential buyer and sellers who are trying to reach an agreement which favors both party.
The phase of Negotiation includes;
The investigation phase is the phase whereby both party are deciding the best price for themselves.The phase of determining the Best Alternative to a Negotiated Agreement (BANA)The presentation phaseThe bargaining phase is the phase of stating price from both partyThe closure phase.is the phase where conclusion have been reached.Therefore, in this case, Lena is most likely in the Investigative phase of negotiation.
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importance of Technical profession
Answer:
The technical profession has always been important as it has replaced the society from nomadic to the modern era. ... The facilities of medicines, surgical works, communication, computer technology, transportation system, etc are the result of technical professions.
a flexible budget performance report indicates a sales variance of $200 unfavorable. the variance was likely caused by: multiple choice question. selling units for less than the budgeted price selling more units than budgeted selling units for more than the budgeted price
The variance was likely caused by selling units for less than the budgeted price.
How do you calculate a flexible budget's variance?For instance, a flexible budget model is created with the expectation that the cost per unit will be $100. 800 units were sold in the most recent month, with a $102 average selling price per unit. By multiplying 800 units by $2 per unit, the favorable flexible budget variance for revenue equals $1,600.
What is the difference between the actual sales results and the flexible budget?A flexible budget variation is a calculated discrepancy between the budget that was anticipated and the outcomes. In the aforementioned illustration, the corporation has a goal production capacity of 85%. The estimated or anticipated 212,500 unit sales volume results in a $740,625 profit.
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Discuss the professions related to finance.
Answer:
Financial officer, finance clerk, treasurer
Finance officers help to manage the finances of an organisation by keeping track of its income and controlling its spending.
You are given the task of deciding the marketing strategy for a transportation company. How do the marketing mix elements change when the target market is (a) low-income workers without personal transportation, (b) corporate international business travelers, or (c) companies with urgent documents or perishable materials to get to customers?
When the target market for a transportation company is low-income workers without personal transportation, the marketing mix elements must change to reflect the needs of this market segment.
The product that is being offered must be affordable and cater to the needs of low-income workers who are looking for reliable transportation options. In this case, the transportation company may choose to offer shared transportation options or group transportation services to reduce the cost of transportation for low-income workers. The pricing strategy should also reflect the affordability of the product and offer discounts or packages that cater to this market segment. The promotion strategy may focus on reaching out to low-income workers through community outreach programs or targeted advertising campaigns that cater to this market segment.
When the target market for a transportation company is corporate international business travelers, the marketing mix elements must change to reflect the needs of this market segment. The product that is being offered must be of high quality and cater to the needs of business travelers who require comfort, convenience, and reliability. In this case, the transportation company may choose to offer luxury transportation options or business-class travel services to cater to the needs of this market segment. The pricing strategy should reflect the high-quality product and offer premium pricing that caters to this market segment. The promotion strategy may focus on reaching out to business travelers through targeted advertising campaigns or corporate partnerships that cater to this market segment.
When the target market for a transportation company is companies with urgent documents or perishable materials to get to customers, the marketing mix elements must change to reflect the needs of this market segment. The product that is being offered must be reliable and offer time-sensitive transportation options that cater to the needs of companies with urgent documents or perishable materials. In this case, the transportation company may choose to offer express delivery options or same-day delivery services to reduce the risk of delays and meet the needs of this market segment. The pricing strategy should reflect the value of time-sensitive transportation and offer premium pricing that caters to this market segment. The promotion strategy may focus on reaching out to companies through targeted advertising campaigns or corporate partnerships that cater to this market segment.
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After listing a home with a broker, the seller told the broker NOT to disclose a major structural defect in the house. What should the broker do
Answer:
he should not disclose a major structural defect in the house
Mrs. Cook carries limits of liability of $100,00/$300,000/$50,000 on her personal automobile policy. After an accident, Mrs. Cook's insurer paid $80,000 in bodily injury damages and her defense costs were $40,000. What amount did the insurer pay as a result of this accident?
Answer: $120,000
Explanation:
Based on the information given, the amount that the insurer will pay as a result of this accident will be gotten by adding the amount of bodily injury damages and the defense costs. This will be:
= $80000 + $40000
= $120,000
Therefore, the insurer will pay $120,000.
Consider a one-factor economy. Portfolio A has a beta of 1.0 on the factor, and portfolio B has a beta of 2.0 on the factor. The expected returns on portfolios A and B are 11% and 17%, respectively. Assume that the risk-free rate is 6%, and that arbitrage opportunities exist. Suppose you invested $100,000 in the risk-free asset, $100,000 in portfolio B, and sold short $200,000 of portfolio A. What would be your expected profit from this strategy?
Suppose you invested \($100,000\) in the risk-free asset, \($100,000\) in portfolio B, and sold short \($200,000\) of portfolio A.To find the expected profit from this strategy, we need to find the expected return of the portfolio.
Given,Portfolio A has a beta of 1.0 on the factor, and portfolio B has a beta of 2.0 on the factor. The expected returns on portfolios A and B are 11% and 17%, respectively. Assume that the risk-free rate is 6%, and that arbitrage opportunities exist.
To find the expected profit from this strategy, we need to find the expected return of the portfolio. The expected return of the portfolio is given by;
Expected Return on Portfolio = Risk-Free Rate + Portfolio Beta * (Expected Market Return - Risk-Free Rate)
Expected return on Portfolio AExpected Return on Portfolio A = 6 + 1(11 - 6)
Expected Return on Portfolio A = 11% Expected return on Portfolio B Expected Return on Portfolio
B = 6 + 2(17 - 6)
Expected Profit from the strategy
Expected Profit = (Weight of Risk-free Asset * Risk-Free Rate) + (Weight of Portfolio B * Expected Return on Portfolio B) + (Weight of Portfolio A * Expected Return on Portfolio A)
Expected Profit = (100,000/400,000 * 6) + (100,000/400,000 * 0.17) + (-200,000/400,000 * 0.11)
Expected Profit = 0.015 + 0.0425 - 0.055
Expected Profit = 0.0025 or 0.25%
The expected profit from this strategy would be 0.25%. Hence, the correct option is (d) 0.25%.
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A buyer signs an offer and you submit it to the seller. What should the outcome be if the seller signs it and puts it in his desk drawer
The fact that the buyer signs an offer and you submit it to the seller illustrates that the contract is non binding.
What is a contract?A contract simply means an agreement between different parties that has been duly signed.
In this case, fact that the buyer signs an offer and you submit it to the seller illustrates that the contract is non binding.m because he wasn't informed of the sellers acceptance.
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Three years ago, the City of Recker committed to build a park and music venue by the river. It was expected to cost $2.5 million and be paid for from an additional meals tax in the community. The residents pushed back. Local restaurants suffered as people ate out less or patronized restaurants in neighboring communities. The project has stalled, but the town council kept pushing it on. This spring, a flood devastated the venue. The town council appears to have suffered from _______ bias.
Answer: C. escalation of commitment
Explanation:
Escalation of commitment bias refers to a situation where an entity continues to invest resources in an endevor that is not working out which means it is not contributing any value but is still being invested in.
The Town Council can see what has happened to the town and how their restaurants have suffered. The project has also stalled and yet they keep pushing it on. They are committed to an endevor that is not working out so this is an escalation of commitment bias.