We get into a 20-year contract with just one employee for each restaurant.
A McDonald's franchise deal lasts for how long?We get into a 20-year contract with just one employee for each restaurant. One individual completes the course, signs the contract, and is thereafter designated as the Franchisee. You will have the opportunity to benefit from owning such a firm as a franchisee. information on trademarks. McDonald's or its licensors are the owners of all trademarks, service marks, and all graphic components, including the look and feel, that appear on the online services. These items are distinctive and protected trade dress. Legally speaking, a franchise agreement is a legally enforceable contract between the franchisor and the franchisee. A franchise agreement's purpose is to grant the franchisee permission to run a franchised business using the franchisor's system and property marks.
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mesa homes just paid a per share annual dividend of $1.50. the company is planning on paying $1.62, $1.68, $1.75, and $1.80 per share over the next four years, respectively. after that, the dividend will be a constant $2.00 per share per year. what is the market price of this stock if the market rate of return is 15 percent?
A simple fee of return is calculated by subtracting the preliminary cost of the investment from its present day value, and then dividing it by using the initial value.
To file it as a %, the result is improved by using 100.
How do you calculate price of return example?It's generally expressed as a proportion of the investment's initial cost. For example, if the modern price of an investment you sold six months in the past is $50,000, and its preliminary cost was $40,000, then the fee of return on the asset would be $10,000 (net profit) over $40,000 or 25%
Can you invest 20% return?A 20% return is possible, but it's a distinctly good sized return, so you both want to take dangers on volatile investments or spend greater time invested in safer investments.
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https://brainly.com/question/1789817#SPJ4the timing of the kickoff meeting is critical for which of the following reasons? team members must know what they are expected to complete before beginning project work. the project cannot begin unless the scoping phase is complete. the project manager needs to ensure governance processes are in place before beginning. the project manager needs time to select the best team members once the scope is done.
The timing of the kickoff meeting is critical for the project manager needs time to select the best team members once the scope is done.
What is manager ?A business manager is a supervisor who manages and oversees the team members and operations of a company or division. They make an effort to maintain the business's productivity, efficiency, and organization at all times by establishing operating plans, carrying out performance evaluations, and monitoring all daily activities.A manager is a person who oversees the distribution of resources or the coordination of personnel efforts within an organization. A manager is therefore someone who engages in management operations.Maintaining the essential quality standards for the firm is one of management's fundamental goals.To establish, implement, and sustain quality, the team members in conjunction with other departments, managers, and team members.To learn more about manager from the given link :
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Assume you only wanted to purchase a single fund, but you wanted your portfolio to include stocks of companies from all over the world, including U.S. stocks. Which type of fund would you want?
An investment best practice is to diversify your stock market portfolio to reduce non-systemic, or company-specific, risk by ensuring that no one company has an excessive influence on the value of your holdings.
Why is it better to invest in a portfolio rather than a single security?Benefits of a Diversified Portfolio Diversification lowers an investor's overall risk and volatility. Other portfolio investments can make up for losses caused by poor performance in one area. When investors hold assets with a negative correlation, this is especially true.
Is it typically preferable to invest in a single stock as opposed to a portfolio?Advantages of Holding Single Stocks When you buy a stock, you pay a fee, and when you sell it, you pay a fee. There are no additional costs the remainder of the time. Your cost of ownership will decrease the longer you keep the stock. Owning individual stocks is a good idea simply because fees have a big impact on your return.
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what is the annual real estate tax bill if the assessed value of a property is $80,000, the tax rate is $5.25 per $100 of assessed value, and the equalization factor is 1.45?
Annual real estate tax bill if the assessed value of a property is $80,000, the property tax rate is $5.25 per $100 of assessed value, and the equalization factor is 1.45 is $6,090.
80,000 X 1.45 = 116,000 X 0.0525 = 6,090 $
A property tax is an ad valorem tax based on a property's value. The tax is imposed by the administrative body of the region where the property is situated. The entity in question may be the federal government, a federated state, a county, a region of land, or a municipality. A decent rule of thumb for California real estate looking to calculate their anticipated property tax bill is to multiply the price of their new home by 1.25%. This includes both the 1% base rate and any additional local taxes, which are typically around 0.25 percent. Consequently, you must pay real property tax on any real property that you possess as an individual or real estate business. You must still pay even if the real estate was given to you through an estate or if it is a rental property.
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a share of common stock just paid a dividend of $1.00. if the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 9.5%, then what is the stock price? a. $27.74 b. $25.71 c. $33.84 d. $25.52 e. $22.74
The market forces of demand and supply determine the stock's price. The fundamentals of a particular company, such as growth prospects, are also linked to stock valuation.
The cost of the stock is $12.4.
What is the current value of the stock?
The most recent price at which a security was sold on an exchange is the current price. Buyers and sellers can use the current price as a baseline.
Are stock prices lowered?
This indicates that supply and demand influence share prices.The price rises when there is more demand for a stock than there is supply (more people want to buy it).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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is a callable bond more valuable to the issuer or the bondholder than a comparable straight bond and why?
Because the call option increases the value to the issuer, the price of a callable bond is always less than the price of a straight bond.
Better Callable bonds?Bonds with a call option are riskier for investors than bonds without one since the investor who had their bond called frequently needs to reinvest their money at a lower, less desirable rate. Callable bonds frequently yield higher yearly returns as a result, offsetting the possibility that the bonds may be called early.They offer a higher rate of return than usual, at least until the bonds are called away, which is why investors enjoy them. Callable bonds, on the other hand, are desirable to issuers because they enable businesses to cut interest costs down the road if rates drop.Because the call option increases the value to the issuer, the price of a callable bond is always less than the price of a straight bond. A callable bond has a greater yield than a straight bond.To learn more about Callable bonds refer to:
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after much searching, mort located an old banking friend of his father's. the banker offered mort up to $25,000 in unsecured funds, which mort's firm could borrow any time within a year, as long as the bank has the money available. mort was offered a(n) multiple choice line of credit. pledging agreement. revolving credit agreement. asset guarantee pledge.
In this case, Mort was offered a line of credit. Hence, option A is the right choice.
What is a line of credit?A line of credit is a type of flexible loan offered by financial institutions. In this loan, a defined amount of money is available to you as you need it, and which can be repaid either immediately or over time as desired. Whenever you borrow money, you are charged interest.
Most commonly, lines of credit are used to finance projects whose costs cannot be predicted ahead of time or to cover gaps in irregular monthly income.
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A project has an initial cost of $27,400 and a market value of $32,600. What is the difference between these two values called?.
According to given question net present value is the difference between these two values.
What is market explain?The entire number of sellers and buyers in the region or area under consideration is referred to as the market. Earth, as well as several nations, regions, states, and cities, may be the subject. The worth, expense, and cost of the goods traded depend on the forces of demand and supply with in market.
How do markets work?By buying and selling stock, the stock market assists the company in raising money to support business operations and builds and maintains income for individual investors. To raise money on the stock market, companies offered ownership stakes to investors. These financial assets are known as shares of stock. To raise money on the stock market, businesses give ownership stakes to investors. These financial assets are known as shares of stock.
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every great group has a great leader that does the following: group of answer choices reduces barriers for the group. sets mutual challenging goals. owns the work performed. all of these are correct. reduces barriers for the group and sets mutual challenging goals.
Every great group has a great leader that does the following: reduces barriers for the group and sets mutually challenging goals, owns the work performed.
What are the Barriers to Goal Setting?6 Organizational Barriers to Goal Setting There are six obstacles to goal setting in the company from both internal and external variables that prevent efficient goal setting and plan formulation.
Goals are essential to organizational efficiency because they give employees something to aim toward and motivate them to do so.
They need to be swiftly detected and dealt with, whatever the cause may be.
Both internal and external variables may function as obstacles to goal setting and planning.
Internal BarriersGoals that are inappropriate.Inadequate Reward SystemDynamic and complex environment.reluctance to set goals.Resistance to Change.External BarriersLearn more about Organizational Barriers here:-
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Lower-level public agency employees who take actions outlined in law are known as ______.
Answer: Street-Level Bureaucrats
Explanation:
why the current supply chain is so vulnerable? the move to offshore manufacturing and sourcing insourcing domestic consolidation of suppliers decentralized production and distribution
The move to offshore is the current supply chain is so vulnerable. Strategic, tactical, and operational levels of supply chain management Strategic, tactical, and operational supply chain management levels exist.
A supply chain covers all of the steps involved in delivering a finished product or service to a customer. The procedures may include acquiring raw materials, transporting them to production, and finally conveying the finished management to a distribution centre or retail store for delivery to the consumer. Driver shortages, capacity challenges with logistics providers, inflation, shipment delays, increasing freight costs, depleted inventory levels, labour constraints, and demand peaks are driving conversations and necessitate action.
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creativeworkswhat is guardbanding? group of answer choices capturing mutual agreements on the work activity deliverables. when engineers set product specifications tighter than they need to be. keeping the workplace clean and neat by making cleaning a daily activity. a practice that uses point-of-sale scanner data to manage payment, promotion and replenishment.
When engineers set product specifications tighter than they need to be is known as Guardbanding.
Guardbanding is a technique used to stop interference of any type. When designed engineers make their standards higher than necessary, it happens.
The engineers demonstrate a type of guardbanding known as behaviour guardbanding. The core idea behind guardbanding is to limit the Pass/Fail thresholds applied to a calibration test based on a predetermined standard. Guardbanding is used to reduce the chance that someone will accept an out-of-tolerance unit or reject an in-tolerance unit.
Guardbanding has an impact on a calibration test's outcome. Guard banding is a method for lowering the possibility of running into a bad conformity choice, like: False acceptance is the assertion that a result is acceptable when it is not. False Rejection: Declaring that a result is unacceptable when it is not.
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kimura company starts the year with net property of $120,000 (including $20,000 of accumulated depreciation) and finishes the year with net property of $140,000 (including $30,000 of accumulated depreciation) in state a. in addition, kimura has $400,000 of goodwill and rents a building in state a for $10,000 per year. assuming total average property everywhere for kimura is $1,000,000, calculate the state a property factor.
If kimura has $400,000 of goodwill and rents a building in state a for $10,000 per year. assuming total average property everywhere for kimura is $1,000,000, the state a property factor is: .235.
How to find the property factor?Using this formula to find the property factor
Property factor ={[(Net property + (Net property +accumulated depreciation)/2] + Rental)} / Average property
Let plug in the formula
Property factor = {[($140,000 + $170,000)/2] +($10,000 x 8)} /$1,000,000
Property factor = ($310,000/2) +$80,000] /$1,000,000
Property factor = ($155,000 + $80,000) /$1,000,000
Property factor = $235,000/$1,000,000
Property factor =.235
Therefore the Property factor is .235.
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martha has a net capital loss of $17,000 and other ordinary taxable income of $45,000 for the current year. what is the amount of martha's capital loss carryforward?
Individual taxpayers can deduct up to $3,000 per year in net capital losses from their ordinary income. As a result, the answer is 17000$-3000$=14000$.
Can net capital losses be deducted by taxpayers?You can deduct up to $3,000 of your annual net capital loss against other types of income, such as your salary and interest income, if you have one.
How much of a net capital loss can a taxpayer deduct in a single year?What to Take Away In any given tax year, ordinary taxable income up to $3,000 can be offset by capital losses that exceed capital gains.Any net capital losses that are greater than $3,000 can be carried over indefinitely until the amount is exhausted.
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the market system directs resources to the production of goods and services that are the most desired by society. which market system virtue does this reflect?
The enhanced productivity, innovation, and efficiency of a market economy are notable advantages.
A market economy is a form of economic system in which supply and demand, rather than government intervention, control the economy. An economy with a fully free market is one in which every resource is privately owned.
Which four market systems are there?
The four types of economic market structures are oligopoly, monopoly, perfect competition, and monopolistic competition. The following characteristics explain why the categories are different: In oligopoly, there are few producers, many in perfect and monopolistic competition, and one in monopoly. The organisational layout and other features of a market serve as the best definition of the market structure. We concentrate on factors that influence price and the nature of competition, but it's crucial to avoid putting too much emphasis on the market share of already-existing companies in an industry. The word "market" typically refers to a specific location where goods are bought and sold, but in the field of economics, it has a much broader definition.
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chuck hires danielle, a real estate broker, to act as his agent to sell his land for $150,000. oil is discovered beneath the land, causing its market value to increase considerably. the agency agreement is likely
Huck hires Danielle, a real estate broker, to act as his agent in order to sell his land for $150,000. When oil is discovered beneath the land, its market value skyrockets. By operation of law, the argument is over.
A skyrocket is a form of firework that employs a solid-fuel rocket to rise fast into the sky; a bottle rocket is a miniature skyrocket. It is common for a variety of effects (stars, bangs, crackles, etc.) to be emitted at the peak of its climb. Skyrockets utilize a variety of stabilisation techniques to guarantee the flight follows a predictable path, most commonly a long stick attached to the side of the motor, but also spin-stabilisation and fins.
These skyrocket have been manufactured in several nations, including Japan, China, and Macao, from at least the early decades of the twentieth century.
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what is the process of determining which persons in the applicant pool possess the qualifications necessary to be successful on the job.
The selection process is the process of determining which persons in the applicant pool possess the qualifications necessary to be successful on the job.
The selection process refers to the stairs worried in selecting a person who has the right qualifications to fill a modern-day or future job starting.
Recruitment is the general method of identifying, sourcing, screening, shortlisting, and interviewing candidates for jobs inside an business enterprise. Recruitment is also the tactics worried in choosing people for unpaid roles.
Selection is deciding on the maximum suitable candidates from folks that apply for the task. it is a procedure of supplying jobs to favored applicants. as soon as the potential applicants are diagnosed, the subsequent step is to assess their qualifications, traits, enjoy, abilities, and so forth. & make the choice.
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when new firms are encouraged to enter a monopolistically competitive market group of answer choices they do so because there is insufficient product differentiation. the marginal cost curve facing an existing firm shifts downwards. the demand curve facing an existing firm shifts to the right. some existing firms must be earning economic profits.
When new firms are encouraged to enter a monopolistically competitive market some existing firms might be earning economic profits.
So, the correct option is D.
Long-term, perfectly competitive as any new company will only enter a monopolistically competitive market if it believes there will be a net economic gain for the sector. The fact that the price paid by the business is more than its average total cost of production draws new businesses because of this profit. As new businesses enter the market, the demand for the goods of the established business becomes more elastic, and the demand curve moves to the left, lowering the price.
All gains that are above average fade with time. Since entry is simple and profits are favorable, new businesses enter the market. Due to the increased competition brought on by this, incumbent businesses are seeing a decline in demand. Prices fall, as a result, resulting in a loss of all earnings.
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question content area compute conversion costs given the following data: direct materials, $376,900; direct labor, $190,600; factory overhead, $217,300 and selling expenses, $48,500. a.$407,900 b.$784,800 c.$168,800 d.$594,200
The question content area compute conversion costs and the correct option is a) $407,900
Conversion Cost = Direct labor costs + Manufacturing overheads
= $190,600 + $217,300
= $407,900
Conversion costs are productions cost incurred to convert raw materials to finished goods or products capable of being sold in the market. Its represents the combination of Direct Labor Costs and Manufacturing
Overhead Costs as it is the laborer's and overhead who convert the raw materials to finished goods. It is their way of work for the labors. It is often calculated by manufacturing units who make their own goods or products to sell in the market.
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ohnstone company is facing several decisions regarding investing and financing activities. address each decision independently. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) 1. on june 30, 2021, the johnstone company purchased equipment from genovese corp. johnstone agreed to pay genovese $22,000 on the purchase date and the balance in five annual installments of $5,000 on each june 30 beginning june 30, 2022. assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should johnstone value the equipment? 2. johnstone needs to accumulate sufficient funds to pay a $520,000 debt that comes due on december 31, 2026. the company will accumulate the funds by making five equal annual deposits to an account paying 7% interest compounded annually. determine the required annual deposit if the first deposit is made on december 31, 2021. 3. on january 1, 2021, johnstone leased an office building. terms of the lease require johnstone to make 10 annual lease payments of $132,000 beginning on january 1, 2021. an 11% interest rate is implicit in the lease agreement. at what amount should johnstone record the lease liability on january 1, 2021, before any lease payments are made?
$55,233 is the amount should Johnstone value the equipment.
$94,698 is the required annual deposit if the first deposit is made on December 31, 2021.
$1,171,209 is the amount should Johnstone record the lease liability on January 1, 2021, before any lease payments are made.
Table values are based on
n= 5
i= 12%
Cash Flow Amount PV Factor Present Value
Installments $7,000.00 3.60478 $25,233
Down Payment $30,000.00 1 $30,000
Value of Equipment $55,233
Solution 2:
PV Factor based on
Table or Calculator function FVAD of $1
Future value $600,000
n= 5
i= 8.00%
FV factor 6.33593
Annual Deposit of $94,698
Solution 3:
PV Factor based on
Table or Calculator function PVAD of $1
Payment: $140,000
n= 20
i= 12.00%
PV factor 8.36578
Liability: $1,171,209
Liabilities are the legal debts an agent owes to 0.33-birthday celebration creditors. they could consist of accounts payable, notes payable, and bank debt. All businesses should tackle liabilities in order to operate and grow. Right stability of liabilities and fairness gives a stable foundation for a corporation.
Liabilities are any money owed to your agency, whether it is bank loans, mortgages, unpaid payments, IOUs, or every other amount of money that you owe someone else. if you've promised to pay someone an amount of cash within the destiny and haven't paid them, that is a legal responsibility.
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communication is often easier in flat rather than tall organizations. group of answer choices true false
True, communication is often easier in flat rather than tall organizations . It means deciding how to best group resources of the organization.
Information transmission is the typical definition of communication. The phrase can also refer to the transmission itself or to the area of study that examines such transmissions. Speaking, writing, listening, and reading are all forms of communication. communication is the act of giving, receiving, and sharing information. Clear speakers and writers who respect different points of view are good communicators. An entity, such as a business, institution, or association, that consists of one or more people and has a specific goal is known as an organization.
A group of people who cooperate, such as in a union, corporation, charity, or neighborhood association, constitutes an organization.
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Feature detectors pass information to other cortical areas where complex patterns are processed by.
Feature detectors transmit data to supercell clusters, which process complex patterns in other cortical regions. The best example of parallel processing is the capacity to consider the pitch, loudness, melody, and meaning of a song at the same time.
The cochlear implant is a high-tech active implantable medical device consisting of a transducer that transforms acoustic signals into electrical signals that stimulate the auditory nerve.1 These signals are processed by the different parts that make up the cochlear implant, some of the which are placed inside the skull and others outside. It helps people to listen and can be used for people who are deaf or hard of hearing. It is not the same as a hearing aid, as it is surgically implanted and works differently.
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a stock has an expected return of 13.2 percent and a beta of 1.40, and the expected return on the market is 10.10 percent. what must the risk-free rate be?
The risk-free rate be
Beta =
(13.2%-8.5%)/10%
=0.46
What is the risk free rate calculated?
The theoretical rate of return for an investment with no risk is known as the risk-free rate of return. The risk-free rate is the interest a potential investor may get over a certain time period from a completely risk-free investment.
By deducting the current inflation rate from the yield of the Treasury bond that corresponds to your investment length, you may determine the so-called "real" risk-free rate.
Theoretically, an investor expects the risk-free rate to be the minimal return on any investment since they won't take on extra risk unless the possible rate of return is higher. The investor's home market must be taken into account when determining a proxy for the risk-free rate of return in a particular circumstance, and negative interest rates might make things more difficult.
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perhaps the most striking fact about natural disasters in relation to ais controls is that group of answer choices many companies in one location can be seriously affected at one time by a disaster. losses are absolutely unpreventable. there are a large number of major disasters every year. disaster planning has largely been ignored in the literature.
Perhaps the most striking fact about natural disasters in relation to AIS controls is that many companies in one location can be seriously affected at one time by a disaster.
We know that AIS stands for Automatic Identification System. In the coastal area, this device is used for studying disaster management. Also in navigational safety AIS control is quite important as it continuously transmits information to all the vessels. Although it doesn't indicate commodity specification which means the quality of essential goods that each ship is containing as many coastal communities depend on these commodities for their survival and their betterment.
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ivy cosmetics company consists of two departments, blending and filling. the filling department received 66,200 ounces from the blending department. during the period, the filling department completed 74,000 ounces, including 12,400 ounces of work in process at the beginning of the period. the ending work in process inventory was 4,600 ounces. how many ounces were started and completed by the filling department during the period? fill in the blank 1 ounces
The number of ounces started and completed by Filling Department during the period is 53,800 ounces.
The number of ounces started and completed during the period can be computed by simply deducting the Beginning work in process from the Number of ounces completed.
Since we have the following from the question:
Number of ounces completed by Filling = 66,200 ounces
Beginning Work in process = 12,400 ounces
Therefore, we have:
Number of ounces started and completed = Number of ounces completed by Filling - Beginning work in process = 66,200 ounces - 12,400 ounces = 53,800 ounces
Therefore, the number of ounces started and completed during the period is 53,800 ounces.
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Gemini group ordered motor tune ups and oil changes on their entire fleet of company vehicles in the third quarter. How should this expense be recorded?.
Gemini Group organised oil changes and motor tune-ups.Modifications to their entire fleet of business vehicles when the third quarter began. Make sure to include this as a revenue expenditure, spending.
The concept of “revenue expenditure”expenses incurred by a business on a regular basis operations from which a profit will be realised during the same period. Utilities, rent, salary, and commissions, manufacturing, legal, insurance and other expenses like printing and mailing examples of these costs there are basically two types, the first of which is pertaining to the sales cost.The other is associated with Opex. Price of a sale the cost of purchasing products or receiving services that must be made accessible for purchase while running cost is the cost incurred to maintain a business.Any commercial transaction involves costs, which are common. The cost of changing the oil In the company’s truck fleet is deducted from the repairs and maintenance charge.
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consumers have the right to: group of answer choices receive refunds without sales receipts or other documentation complain if you have a problem with a product obtain free samples of products and services have unlimited warranties on all products
"The right to have information about the quality, potency, quantity, purity, price, and standard of goods or services," as it may be, is the definition of a consumer right.
However, the consumer must be protected from unfair trade practices. Customers need to be aware of these rights very much.
What makes savvy consumers?Avoid buying things that are only good for a short time. Choose items with minimal packaging. Concentrated products are the best option. Only buy what you really need.
What consumer rights exist?The right to choose, the right to be heard, the right to be informed, the right to safety, the right to satisfy one's fundamental needs, the right to redress or remedy, the right to consumer education, and the right to health in the environment.
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britney is a baseball fan and attends several games per season. her expenses per season are listed in the table below: year 1 year 2 5 baseball tickets $500 $560 jersey $120 $150 food $150 $160 transport $60 $70 assuming that year 1 is the base year, calculate the price index for year 1 and for year 2. group of answer choices
The Consumer Price Index (CPI) in year 1 was 120 and in 12 months 2 was one hundred fifty Inflation is the upward jostle in the fee level.
The inflation between year 1 and yr two is calculated below. Hence, the inflation fee between 12 months 1 and 12 months 2 is 25%.
What do you mean by means of charge index?price index, measure of relative charge changes, consisting of a series of numbers arranged so that a contrast between the values for any two intervals or places will show the average trade in prices between intervals or the average distinction in expenditures between places.
What is some other title for fee index?The Consumer Price Index (CPI) measures the monthly trade in expenses paid by U.S. consumers.
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https://brainly.com/question/1889164#SPJ4monetary policy is a means of popping a bubble because monetary policy push down the price of specific commodities.
Monetary policy is a crude means of popping a bubble, because monetary policy can't push down the price of specific commodities.
Quiz: How does monetary policy impact the market?By altering interest rates, monetary policy indirectly affects aggregate demand by affecting consumer and investor behavior.
What factors influence asset prices when a bubble forms?Asset values are influenced by changes in market psychology and subsequent waves of irrational exuberance when a "bubble" develops.
Why can't monetary policy completely counteract a negative supply shock?The Fed lacks any instruments to boost an economy following a bad supply shock. In response to a bad supply shock, Fed action will result in deflation. Action by the Fed to counter a supply shock will result in higher unemployment.
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your current $115,000 mortgage calls for monthly payments over 30 years at an annual interest rate of 7 percent. if you pay an additional $50 each month beginning with the first payment, how much interest expense do you save by prepaying?
$32,764 interest expense can be saved by prepaying
Mortgage amount = $115,000
Annual Interest rate = 7%
Term of mortgage = 30 years
Additional monthly payment = $50
Initial monthly payment = $765
New monthly payment = 765 + 50 = $815
New term (months) = 298
Total of payments (original) = $275,435
Total of payments (new) = $242,671
An interest expense is a cost incurred by a business for borrowing money. On the income statement, interest expense is a non-operating expense. It denotes the interest payable on all borrowings, including bonds, loans, convertible debt, and lines of credit. It is calculated by multiplying the interest rate by the outstanding principal amount of the debt. On the income statement, interest expense represents interest accrued during the period covered by the financial statements, not interest paid during that period.
Mortgage interest is the single-largest category of interest expense for most people over their lifetimes, as it can total tens of thousands of dollars over the course of a mortgage, as illustrated by online calculators.
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