Jeff Bezos has invested in many companies. But the one with he is most associated is Amazondotcom.
The main services of Amason are:
Jeff Bezos started out with online book sales from his rented home in Bellevue, Washington. Then the business expanded. He became the dominant player in online book sales on the internet.
One of the major challenges he faced is Antitrust Issues. Earlier on, however, he was being required by some companies to do at least 10 units of their books to qualify under their retail dealership.
Unfortunately, Amazondotcom was not yet doing that. They solved this problem by exploring a loophole in the system that required them to order 10 books not buy them. So they continued to order books that they didn't have or that were not on sale.
Who is Jeff Bezos?Jeffrey Preston Bezos is a businessman, media owner, investor, computer engineer, and commercial astronaut from the United States. He is Amazon's founder, executive chairman, and former president and CEO.
The majority of Jeff Bezos' wealth stems from his Amazon stock. According to Forbes, he still holds 11% of Amazon's stock and has sold an estimated $27 billion in stock since 1997. He is well-known for his philanthropic contributions to areas such as cancer research and climate warming.
From 1998 until 2021, Bezos' basic salary of $81,840 remained constant. He will also receive an extra $1.6 million in various forms of remuneration. As a result, Bezos' annual salary is around $1,681,840.
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the treasurer of a large corporation wants to invest $34 million in excess short-term cash in a particular money market investment. the prospectus quotes the instrument at a true yield of 4.30 percent; that is, the ear for this investment is 4.30 percent. however, the treasurer wants to know the money market yield on this instrument to make it comparable to the t-bills and cds she has already bought. if the term of the instrument is 107 days, what are the bond equivalent and discount yields on this investment?
Bond equivalent = 3.9%
Discount yield = 3.9%
Define discount yield.When a bond is sold below its face value, the return is calculated as a percentage and is known as the discount yield. The yield on municipal notes, commercial paper, and treasury bills offered at a discount is frequently calculated using discount yield.
Given the following :
Current price = $34 million
Effective annual rate (EAR) = 4.30% = 0.0400
TERM of instrument = 107 days
Bond equivalent yield formula:
[(face value - Current price) /current price] × 365/term
Face value= current price × (1 + EAR)^term/365
= $34,000,000×(1+0.0400)^(107/365)
= $34,000,000 × (1.0400)^0.293150
= $34,000,000 × 1.01156390296
= $34393172.7
Bond equivalent yield :
[(34393172.7 - 34,000,000)/34,000,000]×(365/107)
=[$393172.7 / $34,000,000] × 3.41121495
= 0.0394469586
= 3.9%
Discount yield :
Discount yield uses 30-days a month which equals 360-days a year.
Discount yield formula:
[(face value - Current price) /current price] × 360/term
Discount yield :
[(34393172.7- 34,000,000)/34,000,000]×(360/107)
=[$393172.7/ $34,000,000] × 3.41121495
= 0.0394469586
= 3.9%
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a project risk is anything that may impact the project team's ability to achieve the general project success measures and the specific project stakeholder's priorities. a negative impact is known as a(n) , while a positive impact is known as a(n) . a. issue, benefit b. issue, opportunity c. threat, opportunity
The process of identifying, evaluating, and controlling risks to your company's financial stability is referred to as risk management.
What is Risk management ?That description is based on the core idea that a company will consider all potential problem areas, consider the best remedies for a difficult situation, and then put measures in place to help keep that risk as as minimal as possible. It also entails resolving a challenging circumstance when it occurs. In order to help entrepreneurs and company executives succeed, this guide will go into the instances and clarify the risk management approaches employed.
For each firm and circumstance, the risk management process can take on a varied appearance. For every new product and strategy, some firms have entire teams devoted to enterprise risk management, with a concentrate on strategic risk, risk assessment, risk profiles, financial planning, and risk planning.
Risk management in the corporate sector is crucial. It's crucial for your success whether you run a huge corporation with a comprehensive risk management procedure and strategic risk management division or a small business with only you and your own internal risk analysis. Your overarching goal should be to make your business as secure as you can, ready for the possibility of a technological, physical, or financial issue.
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which of the following is not a determinant of the long-run level of real gdp? a. available technology b. the price level c. available stock of human capital d. the amount of capital used by firms
The option that is not a determinant of the long-run level of real GDP is option b. the price level.
How does real GDP work?
Real GDP is a metric that takes inflation into account and examines the rate at which all goods and services produced in a nation for a specific year. It is referred to as a fixed cost price and is indicated in foundation year prices.
Hence, the elements that influence real GDP are:
Household wealth and income.fiscal management.Exchange rate, monetary policy.Global economic expansionBusiness self-assurance.confidence among consumersLearn more about real GDP from
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assume that markets are semi-strong form efficient. suppose that during a trading day important new information is released by a firm indicating that one of the firm's oil fields, previously thought to be very promising, just came up dry. how would you expect the price of a share of stock to react to this information?
The company's shareholders begin selling their shares as soon as the new information is deemed unfavorable.
c. The value of a share will fall below what is considered appropriate due to decreased demand for the shares, but the price will eventually rise to the appropriate level among the available options.
What takes place when the value of shares drops?The value of the company simply decreases when the price of a share falls. This value change is not redistributed among any parties. The forces of supply and demand determine the direction of the stock market.
When the price of a share drops, what does that imply?If more individuals have any desire to purchase a stock (request) than sell it (supply), then, at that point, the cost climbs. On the other hand, the price would fall if more people wanted to sell a stock than buy it because there would be more supply than demand.
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a bond of face amount 100 is purchased at a premium of 36 to yield 7%. the amount for amortization of premium in the 5th coupon is 1. what is the term of the bond?
Bond premiums are equally amortized over each period using the straight-line technique. Over the course of the bond's existence, it evenly reduces the premium amount. The straight-line method's formula for calculating periodic amortization is as follows: Bond Premium Amortized = Bond Premium / No. of Years.
Each payment on an amortized bond is applied to the principal and interest. Using the chart of bond amortization,
(r=0.035)*(7-92 20-4)
Solving 14 = 100 (-0.035) gives us 8=0.056 31442228, which we now substitute into the equation to get the result, which is n=26.
A company will issue bonds payable to raise money. In the business's bookkeeping records, a premium or discount on bonds payable account is created when they are issued at a price other than their par value. The amortization of bonds payable is calculated using the effective interest method.
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both net present value and internal rate of return techniques provide concrete financial estimates that facilitate strategic planning and trade-off decisions. true false
The statement is false. both net present value and internal rate of return techniques provide concrete financial estimates that facilitate strategic planning.
Due to the various reinvestment rate assumptions used by the two approaches, it is occasionally feasible that the project that the NPV (Net Present Value) method favors will receive a poor grade from the IRR (Internal Rate of Return) method and vice versa.
While the IRR assumes that cash flows are reinvested at the IRR (Internal Rate of Return), the NPV (Net Present Value) assumes that cash flows are reinvested at the cost of capital.
When the NPV (Net Present Value) and the IRR (Internal Rate of Return) disagree, the NPV takes precedence in trade-off decisions.
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banks that need additional funds to meet the reserve requirements of the federal reserve . a. borrow from the state government of the state where their headquarters are located b. decrease the coupon interest rate on the bonds issued to raise funds c. issue treasury bills to investors d. borrow from banks with excess reserves e. exercise the call option on the loans extended to small businesses
In order to support a robust economy for U.S. households, communities, and businesses, the Federal Reserve keeps an eye on the risks to the financial system and participates both domestically and internationally.
Do higher powers have any influence over the Federal Reserve bank?
The Fed is independent in the sense that it makes decisions about monetary policy and other matters on its own and does not need approval from the federal government. In any case, its lead representatives are selected by the President and should be affirmed by Congress.
The Federal Reserve System was created by what law?
The Senate passed and President Woodrow Wilson signed the Federal Reserve Act on December 23, 1913, after a lengthy process that was almost entirely based on party lines.
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johnson tire distributors has debt with both a face and a market value of $12,000. this debt has a coupon rate of 6 percent and pays interest annually. the expected earnings before interest and taxes are $2,100, the tax rate is 30 percent, and the unlevered cost of capital is 11.7 percent. what is the firm's cost of equity?
The firm's cost of equity is 23.19%
VL = {[2100 × (1 - .30)] / .117} + (.30 × 12000) = $16164.10
VE = 16164.10 - 12000 = $4164.10
Rs = .117 + [(12000 / 4164.10) × (1 - .30) × (.117 - .06)] = 0.2319 or 23.19%
What is cost of equity?Cost of equity is the return that a business needs for a project or investment, or the return that a person needs for an equity investment. Either the dividend capitalization model or the CAPM is the formula used to determine the cost of equity.
Take, for instance, a business that currently trades at $30 and distributes a dividend of $0.30 per share every quarter ($1.20 per share annually). If this business anticipates raising its dividend by 5% annually, its cost of equity is 9% ($1.20 / $30) + 5% = 9%.
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a bond with a face value of $100,000 is retired at 96. there is still a balance in discount on bonds payable of $1,200. what is the gain or loss on the retirement of the bond?
The bond's retirement will result in a gain of $2,800 if the $100,000 face value of the bond is retired at 96.
The company will pay out cash equal to 96% of the bond's $100,000 face value if it is retired at age 96, thus,
= face value x pay out cash
= $100,000 x 96%
= $100,000 x 96/100
= $1000 x 96
= $96,000.
Face value of the bonds = $100,000
Discount on bonds payable = $1,200
The bonds' book value equals their face value of $100,000 less the $1,200 discount. So,
Book value of the bonds = Bond with face value - Discount
= $100,000 - $1,200
= $98,800
Since the bonds were retired at less than their book value, the gain on the retirement is as follows:
The gain on the retirement = Book value of the bonds - Face value of retired at 96
= $98,800 - $96,000
= $2,800
As a result, there is a gain of $2,800 gain from retiring the bond.
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i sell shoes that cost $15 to make. i sell them for $100. what is my margin on price? group of answer choices 567% 85% 75% none of the above
The margin price percentage of the shoe is 567% when the selling price is $100 and the making price is $15.
Margin price:
Margin refers the the difference between the cost of an item and the price at which it is sold.
Given,
i sell shoes that cost $15 to make. i sell them for $100.
Here we need to find the margin price of the shoe.
The making cost = $15
Selling price = $100.
So, the profit = making cost - selling cost,
Then we apply the value then we get,
=> profit = 100 - 15
=> profit = 85.
When we convert this into percent then we get,
=> 85/15 x 100
=> 567%
Therefore, the margin price percentage is 567%.
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assume dell computer company operates in a perfectly competitive market producing 5,000 computers per day. at this output level, price exceeds this firm's marginal cost. to maximize profits, dell should .
The Dell should increase their outputs. An organization or company is a market producer if most or all of its output is sold. The creation of goods for one's own final consumption or gross fixed capital formation is a fully acceptable kind of non-market output for market producers.
Including small unincorporated company and huge corporations. Prices for commodities and other services are set by the market. Supply and demand dictate these rates. Demand is produced by buyers When supply and demand are balanced, market producer attempt to achieve some level of price equilibrium. The idea behind production. According to this theory, buyers like readily available and reasonably priced goods.
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who are the individuals and organizations actively involved in the project or whose interests might be affected as a result of project execution or project completion?
Project stakeholders are the people and groups actively worried withinside the mission or whose hobbies are probably affected due by mission execution or mission completion.
Who're the project stakeholders?A mission stakeholder is an organization, group, or character that is probably impacted or affected, or that perceives an effect through the mission's activity, outcome, or decision. The outcomes can be advantageous or negative. Project stakeholders are worried about all mission processes, from the theory of the concept to its completion.
Examples of stakeholders in a mission consist of an organization's departments, clients, managers, buyers, and suppliers. For instance, buyers gain immensely from elevated earnings if a mission is successful.
However, the buyers also can endure massive economic losses if it's miles unsuccessful. If mission sports grow to be greater expensive, the buyers might be impacted for the reason that they may be required to feature greater finances.
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this year, santhosh, a single taxpayer, estimates that his tax liability will be $91,000. last year, his total tax liability was $12,000. he estimates that his tax withholding from his employer will be $32,000. required: is santhosh required to increase his withholding or make estimated tax payments this year to avoid the underpayment penalty? by how much, if any, must santhosh increase his withholding and/or estimated tax payments for the year to avoid underpayment penalties?
NO, is Santhosh required to increase his withholding or make estimated tax payments this year to avoid the underpayment penalty .
Penalties for underpaying estimated taxes by individuals apply to individuals, estates, and trusts who fail to pay or pay late estimated taxes on their income. Penalties may apply even if a refund is obligated. Learn how to calculate your estimated tax and how to pay it.
Estimated tax underpayments occur when you do not pay enough tax during these quarterly estimated tax payments. Failure to pay an accurate tax estimate throughout the year may result in an underpayment tax penalty.
In general, most taxpayers qualify for this tax if their tax after deducting withholdings and deductions is less than $1,000 or if they have paid at least 90% of their tax for the current year or 100% of their reported tax. avoid penalties. The previous year's yield, whichever is lower.
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unable to reach agreement at the bargaining table, the national basketball association and its players union met with a third party who listened to both sides and tried to help them reach common ground but not create an official resolution. what type of alternative dispute resolution does this best describe?
Arbitration is the type of alternative dispute resolution does this best describe.
What is alternative dispute resolution?Alternative dispute resolution (ADR) refers to a variety of ways that people might settle problems amicably. Mediation, arbitration, and neutral evaluation are examples of common ADR procedures. Contrary to traditional court proceedings, these procedures are typically more private, informal, and stress-free.Additionally, if one party has a large power edge over the other, mediation may not be successful. As a result, if either party has a history of victimization or abuse, it might not be a wise decision.The ADR procedures most frequently used in civil proceedings are arbitration, conciliation, mediation, judicial settlement, and Lok Adalat.To learn more about alternative dispute resolution refer to:
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true or false: the firm's senior executives need to understand the financial implications of the it initiative so they can decide whether to allocate resources to it. true false question. true false
Senior executives of a company must be aware of the financial effects of their projects before deciding whether to dedicate resources to them. This assertion is true.
The future wealth of people should be anticipated to rise. Managing the company's finances is part of finance. The financial manager is responsible for determining how much money is needed and when, how to spend the cash most effectively, and how to secure the necessary finance. Financial planning, investment, and financing are the duties of the financial manager.
Senior executives are often in charge of overseeing certain divisions or departments within their organization and making sure that they are in line with corporate growth strategy. They could also be in charge of directing the work of department heads who supervise smaller teams of workers.
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on may 1, a two-year insurance policy was purchased for $50,400 with coverage to begin immediately. what is the amount of insurance expense that would appear on the company's income statement for the first year ended december 31?
Amount of insurance expense that would appear on the company's income statement for the first year ended December 31 = 50,400 x 8/24 = $16,800.
Insurance is a form of financial loss protection in which, in exchange for a fee, one party undertakes to compensate another party in the case of a certain loss, damage, or injury. It is a type of risk management that is generally used to protect against the risk of a contingent or uncertain loss. An insurer, insurance business, insurance carrier, or underwriter is a company that sells insurance. A policyholder is a person or entity who purchases insurance, while an insured is a person or entity who is covered by the policy.
Policyholder and insured are frequently used interchangeably, although they are not synonymous, as coverage can sometimes extend to extra insureds who did not purchase the insurance.
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10. the existence of external economies of scale a) may be associated with a perfectly competitive industry. b) cannot be associated with a perfectly competitive industry. c tends to result in one huge monopoly. d) tends to result in large profits for each firm. e) focuses more on individual firms than the industry as a whole.
The existence of external economies of scale may be associated with a perfectly competitive industry.
Companies benefit from economies of scale when their production becomes more efficient. In order to achieve economies of scale, businesses must increase output while lowering costs. Costs are distributed across a larger number of goods, which is why this happens.
Economies of scale occur when a company's production increases in such a way that per-unit costs are reduced. Internal economies of scale can arise as a result of technological advancements, managerial efficiency, financial capability, monopoly power, or access to large networks.
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an operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement is known as:
It is known as Lean Manufacturing.
How would you define manufacturing?
The process of transforming a raw material into a finished, physical product is known as manufacturing.
Making a process more effective while it transforms certain resources into other resources, frequently with the intention of being sold to a client, is what manufacturing includes.
In other word, The process of producing items using labor, equipment, instruments, biological or chemical processing, or formulation, is known as manufacturing.
The manufacturing process involves:
Casting and molding.Machining.Joining.Shearing and forming.To learn more about manufacturing from the given link
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who at the closing table examines all documents for buyers or sellers and represents their best interests?
A realtor examines all documents for buyers or sellers and represents their best interests
One of the advantages of hiring a realtor when looking to buy a home is that he or she will attend the closing to ensure that both the buyers and sellers are satisfied with the results, as well as to collect the commission for a couple of months of hard work
It is obvious that the primary goal of Realtors is to sell properties. A good realtor, on the other hand, is not only concerned with selling the property at hand but also with educating the client in order to familiarize him or her with the entire buying or selling process. This is significant because the client can make an informed decision based on the available information.
If you are a buyer, on the other hand, hiring a realtor will help you answer a lot of questions before you begin the buying process. Because he or she is experienced and knowledgeable about the market, a realtor can advise you on what you want. A realtor will also guide you through the entire process of filling out forms and other details that may be required to get you a new home.
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a brokerage firm places u.s. treasury notes and bonds in a trust at a bank and then issues securities collateralized by either the principal or interest payments those notes and bonds represent. these new securities the broker-dealer is offering are
The principal or interest payments those notes and bonds represent. these new securities the broker-dealer is offering are treasury receipts.
There are four different types of bonds that can be categorized: corporate, municipal, government, and agency bonds. Bond prices and coupon rates have an inverse relationship. Payment is the voluntary presentation of money or its equivalent or of things of value by one party to another in exchange for goods or services provided by them or to satisfy a legal obligation. When the rate of interest increases, the bond prices decrease and when the rate of interest decreases, the bond price increases. Payer refers to the party sending the payment, whereas payee denotes the recipient of the payment.
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which of the following are true of mortgages?a.a mortgage is a long-term loan secured by real estate.b.over 90 percent of mortgage loans finance residential home purchases.c.a borrower pays off the principal of mortgage on maturity.d.all of the above are true of mortgages.
A mortgage is a long-term loan secured by real estate, Over 90 percent of mortgage loans finance residential home purchases, and a borrower pays off the principal of the mortgage on maturity. So, the correct option is (d).
What's a mortgage?A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the plutocrat you've espoused plus interest. Mortgage loans are used to buy a home or to adopt plutocrats against the value of a home you formerly enjoyed.
The effects to look for in a mortgage
The size of the loan The interest rate and any associated points The ending costs of the loan, including the lender's, freights The Annual Chance Rate( APR) The type of interest rate and whether it can changeThe loan term, or how long you have to repay the loanTo know more about mortgages, visit:
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a july sales forecast projects that 7,500 units are going to be sold at a price of $12.00 per unit. management forecasts 15% growth in sales each month. total july sales are anticipated to be:
The total anticipated sales for the month of august is 8625 units with sales revenue of $1,03,500
Management uses a sales budget as a planning budget to project future sales in both units and dollars. Management can estimate profits, set divisional goals, and determine the amount of production needed to meet demand by creating a sales budget.
An indication of anticipated sales revenue is a sales forecast. A sales forecast predicts how much your business expects to sell over a specific time period
July August
Unit Sales 7,500 x 1.15 8,625
Sales Price per Unit x $12.00 x $12.00
Sales $90,000 $1,03,500
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brianne, a senior engineer, prefers to work in a job that provides her the opportunity to interact with people and make new friends on the job. brianne has a need for .
Brianne, a senior engineer, prefers to work in a job that provides her the opportunity to interact with people and make new friends on the job. brianne has a need for affiliation.
The word engineer (Latin ingeniator[3]) is derived from the Latin words ingeniare ("to contrive, devise") and ingenium ("cleverness"). Engineers, as practitioners of engineering, are professionals who create, design, analyze, build, and test machines, complex systems, structures, gadgets, and materials to fulfill functional objectives and requirements. A verb in the to-infinitive form is most frequently used after opportunity,More often than you might think, chances to fulfill your life goals present themselves to you. It often has to do with whether or not you are prepared for those opportunity, which is why they don't always result in the experiences you hoped for.
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home security experts, inc., a manufacturer and seller of home security systems, employs jennifer to be a sales representative for the company. the term of her employment contract will begin on may 1, 2019, and end on april 30, 2022. must this contract be in writing to be enforceable?
Yes a contract of employment exceeding 1 year has to be in the written format.
High-level CEOs and other highly trained workers are typically engaged under signed employment contracts. These contracts outline the fundamental terms and circumstances of employment, including title, duties, pay, benefits, stock options, and incentive pay. Additionally, they outline the behaviors that constitute grounds for termination and stipulate severance pay in the event of termination without cause.
As long as none of the provisions violate any federal, state, or local laws, rules, or regulations governing the employment relationship (for example, the pay practices established in the Fair Labour Standards Act), parties are free to negotiate and set the terms and conditions of their relationship.
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a good regression model has the fewest number of explanatory variables providing an adequate interpretation of the dependent variable.
The smallest number of explanatory variables that adequately interpret the dependent variable True can be found in a good regression model.
What is the name of the regression model where just one independent variable is present?Simple in this situation refers to the fact that there is only one independent variable, and linear in this case refers to the type of regression analysis.
What accomplishes regression analysis?Finding the factors that have an impact on a particular issue can be done with reliability using regression analysis. Regression analysis enables you to accurately identify the factors that are most important, those that can be ignored, and the relationships between these components.
What is multiple regression used for?A single dependent variable and several independent variables can be analyzed using the statistical technique known as multiple regression. In order to forecast the value of the single dependent value, multiple regression analysis uses independent variables whose values are known.
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An economy is experiencing a high rate of inflation. The government wants to reduce consumption by $36 billion to reduce inflationary pressure. The mpc is 0. 75. By how much should the government raise taxes to achieve its objective?.
GDP reduced by $ 36 billion
MPC=.75
so tax should be increased by 36000/.75=$48billion
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when employees are fully engaged with their job to the point that it becomes a sense of who they are, they have achieved what is known as .
When employees are fully engaged with their job to the point that it becomes a sense of who they are, they have achieved employee engagement.
What is employee engagement and when employees are fully engaged with their job to the point that it becomes a sense of who they are?Employee engagement is the practice in which the employees are so much busy their profession and they enjoy the time spending with their jobs.Here the question is asked of the employees who are fully engaged with their job to the point that it becomes a sense of who they are , they have achieved.In such phenomena employees are so connected to their team members and team members and love the profession they are in.They are so favorable of their opinions of place of work and also love spending time for their jobs and profession.Hence the employees fully engaged with their job to the point that it becomes a sense of who they are have achieved employee engagement.To know more about jobs visit:
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Monopolies have been declared legal once again. Analyze why this development may not be in your best interest as a consumer.
50 Points/Please give a real answer only else will have to report the account.
Thank you.
Answer:
BLE OF CONTENTS
ECONOMY GOVERNMENT & POLICY
What Is a Monopoly? Types, Regulations, and Impact on Markets
By ADAM HAYES Updated August 02, 2022
Reviewed by CAITLIN CLARKE
Fact checked by SUZANNE KVILHAUG
Monopoly
Investopedia / Jessica Olah
What Is a Monopoly?
A monopoly is a market structure where a single seller or producer assumes a dominant position in an industry or a sector. Monopolies are discouraged in free-market economies as they stifle competition and limit substitutes for consumers.
In the United States, antitrust legislation is in place to restrict monopolies, ensuring that one business cannot control a market and use that control to exploit its customers.
KEY TAKEAWAYS
A monopoly is a market structure that consists of only one seller or producer.
A monopoly limits available substitutes for its product and creates barriers for competitors to enter the marketplace.
Monopolies can lead to unfair consumer practices.
Some monopolies such as those in the utility sector are government regulated.
assume that the u.s. can produce apples at a cost of $5 a bushel and canada can produce apples at a cost of $6 per bushel . which nation has to comparative advantage?
U.S has comparative advantage in the present scenario. So Canada has to down the rate for the advantage.
how does comparative advantage come into play?The ability of a producer to manufacture one good more effectively than another is known as comparative advantage. For instance, it is possible to generate good A more effectively than good B. Instead of using just manufacturing costs, this comparison takes into account the potential costs associated with each good.
What justifies comparative advantage?According to the comparative advantage theory, which was made famous by David Ricardo, free commerce can still occur even when one of the parties to a transaction has an absolute competitive advantage over the other in all areas of production.
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Many consumers associate Mercedes automobiles with status, luxury, quality engineering, and high price. This is an example of Mercedes' _____.
a) Brand equity
b) Brand image
c) Brand leverage
d) Brand position
e) Brand identity
Many consumers associate Mercedes automobiles with status, luxury, quality engineering and high price. This is an example of Mercedes' brand image. The correct answer would be option B.
The way a customer perceives a brand is known as its brand image. It is the culmination of a customer's perceptions, thoughts and impressions of the brand. Building a company's brand identity takes up the majority of their attention, resources and time. They choose the brand's visual identity, the customer experience it should provide, the positioning of the brand in consumers' minds as well as other connotations. When all of these factors are considered, a brand personality is created, which when the customer interacts with the business or learns about it, creates a brand image.
The following are the benefits of having a good brand image:
More earnings as more people get familiar with the brandNew items under the same brand are simple to introduceIncreases the trust of current clients and aids in keeping themImproved customer-business relationshipsTo know about brand equity see:
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