describe the major types of risks to financial securities, and give a specific example of each. how do investors measure risk

Answers

Answer 1

Leak of confidential information and change in government regulations are the two major types of risks to the financial securities. Investors measure risk based on the returns that they get in exchange for the risk that they take.

The financial securities may be classified as the class of assets in which an investor invests his or her monies. This monetary engagement is directly proportional to represent the relationship between the desired returns, and the risks that are associated with the same. The risks are higher when the returns expected to it are also high.

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Related Questions

What basic economic goals can be achieved easily in a traditional economy? Which cannot? Explain Answer: Economy equity can be achieved easily in traditional economy as people work for entire community. Goals of economic growth , economic security and economic efficiency are not achieved as there is no variety , and very less innovation

Answers

While achieving equity or meeting fundamental requirements is simple, achieving government freedom, choice, and security can be challenging.

What does equity mean in financial terms?

A property's equity is the sum of money that would remain in the owner's pocket after the asset has been sold and all associated debts have been settled. As an illustration, the equity in a home worth $200,000 with a $50,000 mortgage would be worth $150,000.

How can equity be demonstrated?

The term "equity" can refer to a single asset, such as a piece of real estate, or to a company. It is derived by deducting liabilities from assets. As an illustration, $100,000 in equity would exist if a homeowner had a house worth $400,000 but owed a mortgage of $300,000.

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which midwestern city is known for its automobile production?

Answers

Detroit gained the moniker "Motor City" because it was long regarded as the historical center of the American automobile industry.

What are the American automobile industries?

As of 2021, auto and parts dealers in the United States had earned $1.53 trillion in revenue. America's GDP is 3% accounted for by the automobile industry. In 2021, the US auto industry is expected to sell 15 million cars and light trucks.

The automotive industry in the United States began in the 1890s and quickly grew to become the largest in the world thanks to the size of the domestic market and mass production.

The auto industry has made Detroit, USA, famous. Motor City of America is another nickname for it. The three largest automakers in North America are frequently referred to as the "Big Three." Ford Motor Company, Stellantis (formerly Chrysler), and General Motors The Big Three have lost a significant amount of market share to automakers from Japan, South Korea, and Europe after decades of dominating the U.S. and global markets.

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Apply the four frames of organizations to a possible project that involves the development of a new technology like mobile banking, online retail, or social media. Work with two other class members in a virtual environment on this exercise. Write a short paper or presentation that summarizes your analysis and opinions of how working virtually helped or hindered your results

Answers

Applying the four frames of organizations to the development of new technology was a successful exercise for our virtual team. Working in a virtual environment provided us with the opportunity to collaborate and build on each other's ideas.

We began working on this project by looking at each of the four frames of organizations: Structural, Human Resource, Political, and Symbolic. We discussed how each frame could bring value to the development of the new technology, and how the collaboration of different perspectives could help to create a successful outcome.

We then used the Human Resource frame to discuss how effective communication was essential in the virtual environment. We looked at the different roles and responsibilities within the team, and how we could use the Political frame to ensure that everyone was heard and respected.

We then used the Structural frame to create a plan of action and timeline to ensure that the project was completed on time. Lastly, we used the Symbolic frame to determine the overall message of the project and how the new technology could benefit the public.

By using these four frames of organization, our virtual team was able to successfully create a plan for the development of the new technology.

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how do i know if i have 40 credits for social security

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You can find out if you have 40 credits for Social Security by logging into your Social Security account at ssa.gov.

What is social security?
Social Security
is a social insurance program administered by the United States government. It is designed to provide a measure of economic security for individuals and their families by providing monthly payments to retirees, survivors, and individuals with disabilities. The program is funded through payroll taxes collected from workers, employers, and self-employed individuals. Eligibility for Social Security is based on a worker’s earnings record, and the amount of benefits received is based on the worker’s lifetime earnings.

You will be able to view your Social Security Statement which will tell you how many credits you have. You can also call the Social Security Administration at 1-800-772-1213 to discuss your eligibility.

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which of the following statements is true? question 5 options: focusing on incremental costs is a bad idea for managers. fixed costs are the same as variable costs. costs are calculated the same from all perspectives. incremental costs are the same as marginal costs.

Answers

Incremental costs are the same as marginal costs is true.

Hence, Option D is correct.

The incremental cost is the overall expense incurred as a result of producing an extra unit of a product. By examining the additional costs incurred during the production process, such as raw materials, for one additional unit of production, incremental cost is determined.

The term "marginal cost" can also be used to describe incremental cost. The two ideas do, however, have a few minor distinctions. A unit of additional output results in a change in the total cost known as the marginal cost.

A cost that is incremental is one that arises from additional costs incurred during the production of an additional unit or product. The term "incremental cost" (also known as "marginal cost") describes adjustments made to a company's balance sheet as a result of a unit addition.

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Who are the main role players in the economy?

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The main role players in the economy are consumers (households), producers (businesses), the government, and the foreign sector.

What do players in the economy do?

The actors of the economy are those who make decisions within a market and who carry out some economic activity, such as produce, distribute and consume goods and services. They do the following functions:

Households are the consumers who demand goods and services to satisfy their needs. Businesses are those that produce and distribute goods and services. The The government regulates commercial activity with laws and taxes. Foreign sector which includes multilateral organizations that are financing agents that participate as regulators of the international monetary system.

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seventeenth-century economic theory that held that the prosperity of a nation depended on a large supply of gold and silver.T/F

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Seventeenth-century economic theory that held that the prosperity of a nation depended on a large supply of gold and silver is mercantilism.

Mercantilism is an economic theory that was developed in the seventeenth century, which argued that the wealth and prosperity of a nation was mainly dependent on a large supply of gold and silver.

The theory held that countries should strive for a positive balance of trade, with exports exceeding imports, and should accumulate as much gold and silver as possible.

This focus on precious metals led to the promotion of protectionist policies and the implementation of tariffs and other trade restrictions.

The question will correctly be written as:

Seventeenth-century economic theory that held that the prosperity of a nation depended on a large supply of gold and silver is called ...........

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c. john started a carpool with his coworkers to save money. he and his three passengers split the cost of the toll. if each person pays about $1.75 , which includes their contribution to the toll lane entry fee, how many miles do they travel on the toll lan

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Frank will pay $8.00, Susan travels 10 miles, and John and his coworkers travel 2 miles on the toll lane.

A. To find out how much Frank will have to pay for the trip, we need to look at the table and find the cost for 7 miles of travel on the toll lane. According to the table, the cost for 7 miles is $7.75.

Therefore, Frank will have to pay a total of $0.25 for the toll lane entry fee and $7.75 for the miles traveled, for a total of $8.00.

B. To find out how many miles Susan travels on the toll lane, we can use the information given about the cost of her toll. Since we know that Susan pays $12.25 for her toll, and we have the table of costs for various amounts of miles traveled, we can use that information to find out how many miles she travels.

According to the table, the cost for 10 miles of travel on the toll lane is $7.75. Therefore, Susan travels 10 miles on the toll lane.

C. To find out how many miles John and his coworkers travel on the toll lane, we can use the information given about the cost of the toll they split. Since they pay $2.31 each, including the entry fee, and we know that the entry fee is $0.25, we can subtract the entry fee to find out how much they pay for the miles traveled. $2.31 - $0.25 = $2.06.

Now we can use the table of costs for various amounts of miles traveled to find out how many miles they travel. According to the table, the cost for 2 miles of travel on the toll lane is $1.75.

Therefore, John and his coworkers travel 2 miles on the toll lane.

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The question is -

Drivers can use the optional toll lane on a motorway to speed up their journey. Drivers must pay $0.25 to enter the toll. Then, after clearing the toll, they make a payment based on the distance they covered on the toll lane. Assume that the motorist is permitted to exit the lane after any precise number of miles and is charged that exact amount, without adding or subtracting. Keep in mind that the cost of the toll and the distance a vehicle has gone are correlated linearly.

The numeral of miles traversed on,

toll lane Toll ($)

0 0.25

1 1.00

2 1.75

5 4.00

10 7.75

A. What is the total cost of the journey for Frank if he travels on the toll road for 7 miles before leaving the lane?

B. Susan travels the toll channel to get to school each day and must pay a $12.25 toll. Susan uses the toll lane to commute how far to school?

C. To save money, John formed a carpool with his employees. He paid the toll with the help of his three passengers. How so many kilometers do they go on the toll lane if each passenger pays around $2.31, including include their share of the entrance fee?

indicate which items are included in the cost of property, plant, and equipment and which items are excluded from the cost of property, plant, and equipment. a. idle equipment awaiting sale b. machinery kept on hand and used only when other machinery breaks c. land held for investment d. the right to publish a literary work e. progress payments on building being constructed by a contractor f. fully depreciated assets still being used g. expenditures to improve leased property h. equipment leased to others i. purchase of an asset with an expected life of 9 months j. obligation to remove leasehold improvement at the termination of a lease

Answers

a. Idle equipment awaiting sale – Excluded. This is a current asset that is not part of the cost of property, plant, and equipment.

b. Machinery kept on hand and used only when other machinery breaks – Included. This is a physical asset that is part of the cost of property, plant, and equipment.

c. Land held for investment – Excluded. This is an investment and not part of the cost of property, plant, and equipment.

d. The right to publish a literary work – Excluded. This is an intangible asset and not part of the cost of property, plant, and equipment.

e. Progress payments on building being constructed by a contractor – Included. This is a physical asset that is part of the cost of property, plant, and equipment.

f. Fully depreciated assets still being used – Included. This is a physical asset that is part of the cost of property, plant, and equipment.

g. Expenditures to improve leased property – Excluded. This is a lease expense and not part of the cost of property, plant, and equipment.

h. Equipment leased to others – Excluded.  

i. Purchase of an asset with an expected life of 9 months - Included. Property, plant, and equipment includes tangible assets that are expected to have a useful life of more than one year.
j. Obligation to remove leasehold improvement at the termination of a lease - Excluded. Property, plant, and equipment does not include obligations related to the use of assets, such as lease payments, removal costs, and remediation costs.

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What is Accenture's role in multi party systems What is Accenture's role in multi party systems?

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Accenture is a technology and consulting organization that has emerged as a blockchain technology pioneer.

The company is working on several fronts to assist businesses, governments, and other organizations in implementing multiparty systems based on blockchain technology.

One of the most promising blockchain applications is in the field of digital identity. Accenture is working on a variety of projects that will use blockchain technology to assist enterprises in creating and managing digital identities.

One of the company's most recent projects is with the United Nations World Food Programme, which is developing a digital identity system for refugees utilizing blockchain technology.

Accenture also has a presence in the financial services sector. The firm is working on several projects to assist banks and other financial institutions in using blockchain technology to streamline their operations.

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flexible scheduling a. is more likely to be available to women than men. b. increases stress in dealing with work and family issues. c. is associated with lower turnover. d. is available to the majority of workers in the u.s.

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Lower turnover is correlated with flexible scheduling. With a flexible schedule, you may work when you're most effective and have the freedom to design the work-life balance that best suits your needs.

Flexibility in scheduling is not an option for every business or division. For instance, you might require your employees to have a nine-to-five schedule if they work in the services sector and frequently communicate with consumers on the phone and in person.

Employees who have a flexible work schedule have more freedom to design their own schedules and strike a work-life balance that suits them. A flexible schedule enables employees to alter the times they start and end their workdays in place of the standard 40-hour workweek.

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a new use for a product is identified on social media, or those in a target market would like to shop online. what are these examples of?

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A new use for a product is identified on social media, or those in a target market would like to shop online are examples of Identification of an opportunity.

Social media and online shopping can be a great way to uncover potential new uses for products and services. By targeting a specific market, you can gain invaluable insight into what potential customers are looking for and capitalize on opportunities you may have otherwise overlooked.

Social media can be a great resource to identify new uses for existing products or to provide an online shopping experience tailored to your target market.

With the right strategy, you can make the most of the opportunities available to you. Take advantage of the potential that exists with the right approach and you’ll be well on your way to success.

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How might a business encourage its employees to participate in a retirement investment plan?.

Answers

A retirement investment plan is an important tool for business owners to ensure their employees have a secure financial future. It is important to motivate workers to take initiative and invest in their future.

Here are a few ways businesses can encourage their employees to participate in a retirement investment plan:

• Offer incentives – Offer employees incentives such as bonuses or extra vacation time for investing in the plan.

• Make it easy and accessible – Make the plan easy to understand and provide resources such as financial advisors or brochures to help employees make informed decisions.

• Educate employees – Host seminars or webinars to educate employees on the benefits and importance of investing in the plan.

• Provide matching contributions – Offer employees matching contributions for their investments in the plan.

• Create a culture of investing – Encourage employees to talk about investing and to share their successes and challenges with the plan.

By taking these steps, businesses can create a culture of investing and ensure their employees have the financial security they need for their future.

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when a project team needs to construct a wbs, it needs to include in its planning team a subject matter expert (sme) who understands how each segment of the work will be accomplished. a. true b. false

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The statement is True: When creating a WBS, a project team must include a subject matter expert (SME) who is knowledgeable about how each task will be completed in the planning team.

Which approach for constructing a WBS uses?

When creating a WBS, a project team must include a subject matter expert (SME) who is knowledgeable about how each task will be completed in the planning team. When a project is distinct and different from past projects, a "top-down" method to building a WBS is often adopted.

A project management method called a breakdown structure (WBS) uses a step-by-step process to finish big projects with many of moving parts. A WBS can combine scope, cost, and deliverables into one tool by segmenting the project into smaller parts.

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All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $85,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $71,100.


The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours.


What is the overhead cost per unit for Rings?


$33. 60


$51. 01


$59. 96


$4. 25

Answers

Option A is the correct option

The per-unit overhead for Rings is $33.60

As per the data given in the question are as bellow,

The details provided are,

Fabrication is the process of making metal structures by cutting, bending, and joining operations. It is a process that adds value by turning diverse raw materials into machines, components, and buildings.

Total DLH equals [5*1040] + [2020*7] = 19340

Total machine hours are equal to 22340 ([1040*4] + [2020*9]).

Cost of overhead for the fabrication department: 85000/22340 = $3.81 per MH

The assembly department's overhead rate is 71100/19340, or $3.68 per DLH.

Rings' overhead per unit is equal to [5*3.68] + [4*3.81]

= 18.4+ 15.24

Now adding we get

= 33.64

Correct choice is "A," which is around 33.60.

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Note: The missing table of question is added below.

when preparing financial statements, what is the correct order they should be prepared in?
a. Income statement, statement of stockholders' equity, balance sheet, statement of cash flows
b. Statement of stockholders' equity, statement of cash flows, income statement, balance sheet
c. Balance sheet, income statement, statement of stockholders' equity, statement of cash flows
d. Statement of cash flows, income statement, balance sheet, statement of stockholders' equity

Answers

The proper order for preparing financial statements is income statement, statement of stockholders' equity, balance sheet, and statement of cash flows.

Which order should financial statements be prepared in?

Because information from one statement is used in the next, financial statements are put together in a certain order. The trial balance, the corrected trial balance, the income statement, the balance sheet, and the statement of owner's equity are the next steps in the procedure.

Which of the following best describes the method that should be used to prepare the financial statements?

The income statement, retained earnings statement, balance sheet, and statement of cash flows must all be prepared before the other financial statements.

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why is it better to have a high credit score than a low one?

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A borrower who has a higher credit score is considered to be less risky and more responsible.

Credit ratings are frequently used to estimate a person's chances of paying back debts including loans, mortgages, credit cards, rent, and utility bills.

If your credit is in good standing, you might be able to get an auto loan at a cheaper interest rate. Similar to the last example, if you want to buy a house, having a high credit score will increase your chances of getting a mortgage with a lower interest rate.

It should be remembered that a credit report is a record of a borrower's history of payments.

In this situation, your credit score may have an impact on you because it may result in higher interest rates and fewer loan possibilities.

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the classical perspective of management assumed a contingency view. group of answer choices false true

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The two branches of the traditional management viewpoint:

ScientificAdministrativeWhat do mean by management?

Management may be defined as the process of performing the work or activity required to meet the goals of an organization in an efficient and effective manner. The process implies management functions. Organizing, planning, staffing, leading, and regulating are all part of the job. Effective, on the other hand, refers to successfully doing the defined job and work, whilst efficient refers to successfully completing the task at the lowest possible cost. Thus, management may be defined as the process of planning, organizing, staffing, directing, and regulating in order to achieve the organization's goals with the least amount of money and resources.

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Trade agreements can cause jobs to go to countries that provide those jobs:_____.

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Efficiently, Trade agreements can cause jobs to go to countries that provide those jobs efficiently because all business entities or firms want to have a competitive advantage over their rivals.

Thus, business owners signed a treaty with other countries will tend to remove or recruit workers from service efficient countries.

Because all businesses aim to have a competitive edge over their rivals, trade agreements may result in jobs moving to nations that can produce them effectively.

As a result, business owners that have a treaty with another nation choose to hire or outsource people from nations that can efficiently deliver their services.

A free trade agreement can help countries to access the markets of others. Through this economic growth takes place and dynamism in markets can be seen.

But reducing tariffs on imports allows more imports and it becomes difficult for native producers to remove their workforce to save capital.

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Trade agreements can cause jobs to go to countries that provide those jobs:

O efficiently.

O expensively.

O freely.

O gradually.

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What are the types of economic systems and give examples?

Answers

The main types of economic systems are market economies, command economies, and mixed economies.

A market economy is a system in which resources and goods are exchanged in a free market. This system is based on supply and demand and is driven by private individuals and companies. In this system, prices are determined by the interaction of buyers and sellers. An example of a market economy is the United States.

A command economy, also known as a planned economy, is an economic system in which a central government makes decisions about production and distribution.

This system relies heavily on government planning and regulation, and decisions are made based on centrally determined goals. An example of a command economy is the former Soviet Union.

A mixed economy is a combination of both market and commands economic systems. This system combines elements of both systems, allowing for free market activity and government regulation.

This type of economy has both private and public ownership of resources. An example of a mixed economy is China.

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What is the purpose of government regulation in a mixed market economy?

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While most business activity is guided by the free market, governments may use regulations to protect the public from dangerous products, pollution, or monopolistic business practices.

Making a livelihood or making money via the creation, acquisition, and selling of things is what business is all about. It also encompasses "any profit-seeking endeavor or action."

The fact that a corporation operates under a different name does not absolve the owner of the company of responsibility for the company's obligations. If a company goes into debt, creditors may pursue the owner's personal assets. In a corporate structure, company tax rates are not permitted. Any business income taxes are immediately owed by the owners.

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The price elasticity of demand coefficient measures:a) buyer responsiveness to price changes.b) the extent to which demand curve shifts as incomes change.c) the slope of the demand curve.d) how far business executives can stretch their fixed costs.

Answers

The price elasticity of demand coefficient measures buyer responsiveness to price changes. Hence, option (a) can be considered correct.

Write a note on factors affecting price elasticity of demand.

Enlisted below are factors affecting price elasticity of demand :

Availability of substitutes : The price will decrease in direct proportion to how simple it is for a consumer to switch from one product to another. For instance, if everyone enjoyed coffee and tea equally, the price of coffee would not prevent people from switching to tea, which would result in a decrease in the demand for coffee. This is due to the fact that coffee and tea are both regarded as excellent alternatives.Urgency : The quantity of demand for a product will decrease in response to price rises the more discretionary the purchase is. The demand for the goods is therefore more elastic. A product's quantity demand will decrease less the less discretionary it is.Duration of Price Change : It also matters how long the price shift persists. A one-day sale has a different impact on consumer demand than a price change that lasts a season or a year. To comprehend the price elasticity of demand and to compare it with various items, it is essential to have a clear understanding of temporal sensitivity. Instead of altering their behaviour, consumers can tolerate a seasonal price variation.

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trade group of answer choices allows specialization, which increases costs. reduces specialization, which increases costs. reduces specialization, which reduces costs. allows specialization, which reduces costs.

Answers

Trade allows specialization, which reduces costs.

What is a trade?

Trade is the exchange of goods and services, frequently for cash, between one individual or company to another. A network or structure that facilitates trading is referred to as a market by economists. Bartering, or exchanging products and services directly for other commodities and services, was an early type of trade that took place before the invention of money.

What is an International Trade?

International trade is the term for cross-border economic activity. Consumer products, like televisions and apparel, and capital goods, including machinery, raw resources, and food are some of the things that are frequently traded.

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How does the price system answer the question of for whom to produce in a free market enterprise?

Answers

The price system answers the question by determining factors of demand and supply.

The price system is employed in a free market firm to respond to the query "for whom to produce." The forces of supply and demand determine the prices of products and services. The items and services that consumers are most willing to pay for will be produced by producers.

As a result, customers will buy the products and services they value the most. As a result, resources are allocated to the production of the commodities and services that consumers are most in need of. In this way, the price system effectively aligns the wants and needs of consumers with the capabilities and motivations of producers.

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When government remove restrictions on economy What is it called?

Answers

Liberalization: Trade liberalization is the process of reducing or eliminating obstacles that prevent countries from freely exchanging products. These include tariffs like levies, surcharges, quotas and licensing requirements.

Commerce liberalization encourages free trade, which enables nations to exchange goods without financial or regulatory restrictions.

As a result of trade liberalization, there is more competition from overseas, which encourages domestic businesses to produce goods more efficiently and at a lower cost.

Due to increased competition from foreign producers and the potential loss of local support, trade liberalization may have a detrimental impact on some domestic enterprises.

Because they must compete in the same market as bigger economies or nations, developing nations or economies may be threatened.

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HOSA and SkillsUSA-VICA are examples of what type of organization?
answer choices
O professional organizations
O Student organizations
O community organizations
O civic organizations

Answers

HOSA and SkillsUSA-VICA are examples of student organizations. Here option B is the correct answer.

HOSA (Health Occupation Students of America) and SkillsUSA-VICA (formerly known as Vocational Industrial Clubs of America) are student organizations that provide career and technical education students with opportunities to develop leadership, technical, and employability skills.

They are both student-led organizations that focus on preparing students for careers in the health sciences, technical and professional fields, and other areas of the workforce.

They organize competitions, and conferences, and provide professional development opportunities for students. These organizations are often found in high schools, vocational schools, and colleges. Professional organizations are groups of professionals in a specific field who come together to share knowledge, and resources and advocate for their profession.

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governmental financial reporting should provide information to assist users in which situation(s)? making social and political decisions. assessing whether current-year citizens received services but shifted part of the payment burden to future-year citizens.

Answers

Governmental financial reporting should provide information to assist users in making social and political decisions and assessing if current-year citizens received services

Information from governmental financial reporting needs to be helpful to a variety of users, such as citizens, decision-makers, and other stakeholders. Users should be able to grasp the government's financial situation, performance, and adherence to rules, and policies. Intergenerational equality, which refers to the premise that current-year people should not disproportionately burden future-year citizens with the costs of government services, is one of the main areas of attention for governmental financial reporting.

In order to help users determine whether current-year citizens are paying for the services they receive and whether those services are being provided in a sustainable way that does not place an undue financial burden on future generations, financial reporting should provide information on these two topics.

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if you are at a trade show and you are collecting leads, the most important piece of information that you can collect is the name of the individual. group of answer choices true false

Answers

The two most significant groups at your trade fairs are exhibitors and attendees. They are also essential to making your events profitable and fostering connections.

What do you mean by trade shows?

A trade fair, also referred to as a trade show, trade exhibition, or trade exposition, is an event held so that businesses in a particular sector can present and demonstrate their most recent goods and services, network with business associates and clients, track the movements of competitors, and assess current market trends.

An exhibition where businesses showcase their goods and services is known as a trade show, trade fair, or exposition. Most trade exhibitions concentrate on a certain industry, such as aviation, computers, tourism, cellphones, vehicles, etc.

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the productivity ratio of the supplier is 4. the productivity ratio of the manufacturer is 7/4. for every $5 of input, what is the final output value of this interconnected process from supplier to manufacturer? (enter your response rounded to whole number.)

Answers

The final output value of this interconnected process from supplier to manufacturer is $20.

The productivity ratio of the supplier is 4, meaning for every $5 of input, the supplier produces a total output of $20 ($5 x 4 = $20). Step 2: The productivity ratio of the manufacturer is 7/4, meaning for every $20 of input, the manufacturer will produce a total output of $35 ($20 x 7/4 = $35).

Therefore, the total output from both the supplier and manufacturer is $35 ($20 from the supplier and $15 from the manufacturer). This means that, for every $5 of input, the final output value of this interconnected process from supplier to manufacturer is $20 ($5 x 4 = $20 from supplier and $20 x 7/4 = $35 from manufacturer).

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Surplus drive price down, and shortages drive them up". True or False?

Answers

Answer: True

Explanation: The statement stands true as according to the law of  demand  the price and demand are inversely proportional to each other.

Here it goes in a very simple way that suppose you do have 100 buyers and you have only 80 items to sell then yes they will be ready to pay higher price for them and on same context if seller has 120 products to sell so that the one can buy more then their requirement.

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