The free cash flow to the equity holders:
FCFE =
FCFF + Interest x ( 1- Rate of tax ) + Net Increase in the debt of the firm
$375 million + $60 million ( 1- 35%) + $33 million
$375 million + $39 million + $33 million
$447 million.
What is free cash flow?
Free cash flow is the cash flow to the firm or equity after all the debt and other obligations are paid off.
There are basically two types of Free Cash Flow
1. Free Cash to the Firm
2.Free Cash to Equity.
It can provide important insights value of a company, efficiency and market value of company.
Hence, The free cash flow to the equity holders would be $447 million.
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reorganizing may occur to group of answer choices overcome existing deficiencies. recentralize authority. implement changes while at the same time providing a period of adjustment. all answer choices are correct address technological changes that impact current workflow.
Introduction of technology in the workplace results in saving time, smoothing and easy running of complex projects, and getting real-time feedback from customers with no time.
Technology and networking have impacted the current workflow in both ways; positively and negatively. After post covid period, most companies started giving flexibility for employees to work from home, and transform entire business processes end to end, most of the work is done paperlessly (adjusted well), from recruitment to marketing, and digital and technology have transformed/ changed their way of conducting and increase the productivity of each department.
However, this also invited hidden hackers and the vulnerability of losing any confidential information in the technological world. Nevertheless, technology has increased the effectiveness of workflow.
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In developing a marketing strategy, the most important thing for a retailer to consider is.
In developing a marketing strategy, the most important thing for a retailer to consider is target market.
There are a number of things that a retailer should consider when developing a marketing strategy. The most important thing for a retailer to consider is the target market. The target market is the group of consumers that the retailer wants to reach with its marketing efforts. Once the target market is identified, the retailer can then develop a marketing mix that is tailored to that group. The marketing mix is the combination of elements that the retailer uses to reach the target market. The elements of the marketing mix include product, price, promotion, and place.
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gunnar company gathered the following reconciling information in preparing its september bank reconciliation: cash balance per books, 9/30 $2,750 deposits in transit 200 notes receivable and interest collected by bank 630 bank charge for check printing 50 outstanding checks 1,250 nsf check 290 calculate the adjusted cash balance per books on september 30. a.$1,590. b.$3,690. c.$5,130. d.$3,040.
The September 30 adjusted cash balance according to the books is 3040. The sum of money that a business has on hand at the moment is called its cash balance.
Cash balance per books, 9/30
Add: Notes receivable and interest collected by bank
Less: Bank charge for check printing Less: NSF check
= 2,750 +630-(50)-(290)
= 3040
This cash is held in reserve to cover any unforeseen cash outflows. Without this financial safety net, companies might find themselves unable to cover their expenses.
Normally, cash balances are put toward debt repayment or given as dividends to investors. A cash balance is especially important for businesses where there is a big variance in the timing and volume of cash inflows and withdrawals.
Businesses that have a large cash balance suffer from a financial drag and frequently miss out on investment possibilities.
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there is a cost function such that marginal cost is always less than average cost. what must be true about average cost?
The average variable cost is falling when marginal cost is lower than average variable cost. It is untrue to say that "the average cost can never be equal to the marginal cost."
When the average cost is constant and at its lowest level, the average cost and marginal cost are identical. The marginal cost is lower than the average cost as the average cost drops. The marginal cost is higher than the average cost when the average cost rises. The marginal cost is equal to the average cost when the average cost remains the constant (at a minimum or maximum).
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which sections of the uniform commercial code (ucc) address the effect of destroyed goods on contract performance?
Section 28:1-103 of the uniform commercial code (ucc) addresses the effect of destroyed goods on contract performance.
All business transactions in the United States are governed by the Uniform Commercial Code (UCC), a comprehensive body of legislation. It is a uniformly enacted state law rather than a federal one. For interstate business transactions, uniformity of law is crucial in this field.
Businesses can enter into contracts knowing that the terms will be upheld consistently by courts in every American jurisdiction thanks to the UCC's widespread adoption. Because commercial connections are more secure as a result, businesses may expand and the American economy does well. The UCC has been referred to as "the backbone of American commerce" for this reason.
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first link services granted 8 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. the common shares have a market price of $6 per share on the grant date of the restricted stock award. 1. ignoring taxes, what is the total compensation cost pertaining to the restricted shares? 2. ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?
Total compensation cost = 8 million * 6 = 48,000,000, Effect on earnings would be that it will be considered as an expense thus the income statement would be (48,000,000/3 years)16,000,000.
The term "income" generally refers to the total sum of cash, assets, and other value transfers received over a predetermined period of time in exchange for goods or services. Taxation categories
earnings from a job.
earnings from residential property.
income from a business's or profession's gains.
capital gain earnings.
supplemental sources of income.
Typically, the term "compensation" refers to a monetary payment made to a person in return for their services. Employees work to earn their compensation at the office. It includes the employee's salary or wages, commission, and any additional benefits or incentives associated with the job.
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true or false because the diversification from adding assets declines as the total number of assets in the portfolio
This statement is untrue because increasing the number of assets in a portfolio reduces diversification.
An asset is a resource with economic value that a person, organization, or assets nation owns or manages with the hope that it will someday be useful.
A company's balance sheet lists its assets. They are divided into current, assets fixed, financial, and intangible categories. They are acquired or produced to raise a company's value or enhance its operations. This diversification statement is untrue because increasing the number of assets in a portfolio reduces diversification.
Whether it's a piece of manufacturing equipment or a patent, an asset can be thought of as something that will, in the future, increase sales, diversification lower costs, or generate cash flow.
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basic hot closed sandwiches are generally those in which the principal filling is served cold between two pieces of bread and grilled.
Panini Grill: A panini grill, also known as a sandwich grill, uses its own heat source to press and cook food. The versatility of this kind of sandwich maker makes it ideal for many applications, especially for regular sandwich manufacture.
What type of sandwich has hot filling sandwiched between two slices of bread?Two pieces of bread with grilled contents are subsequently presented. These sandwiches are hot.
Which sandwiches have warm fillings?The most widely consumed hot sandwiches are varieties of hot dogs and hamburgers. A serving plate with buttered or unbuttered bread, hot meat or other filling, and a sauce, gravy, cheese, or other topping is used to make open-faced hot sandwiches.
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In the long run, prices are _______, wages are ______, and the relationship between inflation and unemployment is _____
Prices and wages can fluctuate over time, and there is no correlation between inflation and unemployment.
In the long run, wages and prices are adaptable and there is no correlation between inflation and unemployment because the economy is at full employment.
Is there a link between unemployment and inflation?
In the past, unemployment has been inversely correlated with inflation.This indicates that unemployment decreases when inflation rises.Conversely, lower inflation corresponds to higher unemployment.There will be more demand for goods and services when more people are employed.
How do wages and inflation relate to one another?
Real wages are lowered as a result of inflation's effects on the capital stock and relative prices in this context.The two impacts are added substance and cause the decrease in genuine wages to surpass the decrease in per-capita Gross domestic product.During times of high inflation, this mechanism may increase poverty.
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Jane invests $5,757 in an account that earns an annual interest rate of 2%. what will be the balance of the account in 16 years if the interest is compounded continuously?
With annual interest rate of 2% and compounded continuously, his balance in 16 years is $7,928.12
By compounding continuously, it means the number of periods is theoretically infinite.
The formula for the future value with continuous compounding is:
FV = PV . e^(r. t)
Where:
PV = present value
r = annual interest rate
t = number of years
Parameters given from the problem:
r = 2%
PV = $5,757
t = 16 years
Plug these parameters into the formula:
FV = 5,757 . e^(0.02 . 16)
FV = 7,928.12
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in 2012, nominal gdp per capita in the u.s was $49,922. in brazil, nominal gdp per capita was $12,079 the same year. calculate the ppp-adjusted gdp for brazil if the purchasing power of a given amount of dollars was 24% lower in the u.s. ppp-adjusted gdpbrazil
In 2012, nominal gdp per capita in the u.s was $49,922. The ppp - adjusted GDP for Brazil is 15893 approx.
Calculating the problem:
Purchasing power parity formula = cost of goods X in currency 1 ÷ cost of goods X in currency 2
Let currency one be in US dollars and currency two be in brazil currency.
[tex]\frac{cost of good in US}{cost of good in Brazil}[/tex] = [tex]\frac{P}{P(1 - 0.24)}[/tex]
Since , purchasing power is 24% less in US.
Let M be the arbitrary sum of US dollars and P be the cost of X in US and P" be the cost of X in Brazil quoted in same currency.
Amount of X purchase in US = [tex]\frac{M}{P}[/tex]
Amount of X purchase in brazil = [tex]\frac{M}{P'}[/tex]
According to the question :
[tex]\frac{M}{P} = ( 1- 0.24) \frac{M}{P'}[/tex]
P' = ( 1- 0.24 ) P
P' = 0.76 P
[tex]\frac{P'}{P}[/tex] = 0.76
Relative price level of Brazil = 0.76
ppp adjusted GDP brazil = [tex]\frac{12,079}{0.76}[/tex] = 15893 approx.
Why nominal GDP is consequential?Nominal GDP accounts for current request prices without factoring in deflation or affectation, meaning it tracks general changes in an frugality value over time. Real GDP factors in affectation and accounts for the overall rise in price situations, so it's more accurate for calculating a country's profitable health.
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the relationship between the mpc and the multiplier selected answer will be automatically saved. for keyboard navigation, press up/down arrow keys to select an answer. a depends on whether the economy is in recession or inflation. b depends on whether you change taxes or government spending. c is always positive. d all of the above.
The relationship between the MPC and multiplier is always positive
The multiplier is always between one and infinity, and MPC is always greater than zero and less than one. Fiscal multipliers are generally understood by economists to be the ratio of changes in output to changes in tax receipts or government spending. Fiscal multipliers are crucial because they can direct a government's actions during a financial crisis and pave the way for a subsequent economic recovery. To partially raise the amount of money flowing into the system, a government may reduce taxes or boost spending. Such budgetary management has an additive effect. In other words, it is reasonable to anticipate that every dollar spent will result in an increase in the GDP of more than one dollar.
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judith purchased a nice home, whose value depreciated as a result of the housing crash. she was able to have the majority of her remaining mortgage payments forgiven, which eased a huge financial burden for her. she reasoned that the debt she was forgiven would not negatively impact the overall debt of the country. judith's reasoning is an example of:
Judith's reasoning is an example of a social trap.
Those intended to help people come under prosocial relation. They are usually voluntary actions that are directed toward helping other people or groups of individuals. They usually involve understanding other people's problems and helping them solve those problems. One's ability to determine the problem and get the motivation to help those people. They are usually related to agentic goals or communal goals. Studies show that people's moral judgment guides a person's moral emotion and thus leads to prosocial behavior.
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you average one client from every 10 leads, and each client represents 85% of a closed transaction. each transaction you close has an average dollar value of $6,000. using the funnel, how much can you expect to earn from every 10 leads?
An average of one client from every 10 leads, and each client represents 85% of a closed transaction. each transaction we close has an average dollar value of $6,000. using the funnel, The expect to earn from every 10 leads is $5,100
$6,000 x .85 = $5,100
What funnel means?
A tube consists a wide opening at the top, the sides that slope inward, and narrow opening at the bottom, used for either pouring liquids or powders into containers that have small openings.
What is a funnel used for in cooking?
Funnels can be used for liquids, or fine-particled items such as flour, peppercorns, spices and dried herbs, Wide-mouthed ones are good for transferring dry goods and chunky goods; narrow-mouthed ones are good for liquids. Some bowls may, instead of being cone-shaped, be like a flat-bottomed bowl.
What shape is a funnel?
cone-like
Funnel is made of glass and plastic. It is used for filtering liquids and pouring liquids from one vessel to another. Its shape is cone-like.
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ballard company uses the perpetual inventory system. the company purchased $8,600 of merchandise from andes company under the terms 2/10, net/30. ballard paid for the merchandise within 10 days and also paid $310 freight to obtain the goods under terms fob shipping point. all of the merchandise purchased was sold for $16,200 cash. what is the amount of gross margin that resulted from these business events?
The volume of gross margin generated by various business activities $13,820
The gross margin calculation is displayed below;
As we are aware of
Sales revenue minus the cost of goods sold is the gross margin.
where,
$30k in sales were made.
The price of products sold is also
= Purchase - Discount on Purchase + Freight Cost
where,
expenditure is $16,000.
Discount on purchase is $16,000 x 2%, or $320.
And the freight costs come to $500.
The cost of products sold is therefore
= $16,000 - $320 + $500
= $16,180
the gross profit is therefore
= $30,000 - $16,180
= $13,820
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describe several sources of uncertainty in estimating the cost of a project as well as strategies you can employ to address uncertainty.
Several sources of uncertainty in estimating the cost of a project are Changes in prices over time. Inflation, government policy, market factors.
Methods to handle uncertainty in economy have gained much attention. Not only does uncertainty permeate every aspect of strategy, it also serves as the precise justification for its necessity. Without ambiguity, getting from point A to point B would just require a strategy.
There are many aspects of running a business that you simply have no control over, including the state of the economy, current political affairs, and the behavior of your rivals. However, in the strategy room, uncertainty is rarely taken into obvious and substantial account.
Various strategies to address uncertainty are-
Invest in solutions for agile operationsLook for where there are gaps or opportunitiesBe transparent with your workforceCreate predictability in small dosesTo know more about uncertainty refer:
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karen has saved $30,000 of her $40,000 goal for a down payment on a house. why is it unwise to keep all of that money in a traditional savings account?
An interest-bearing deposit account kept at a bank or other financial institution is referred to as a savings account.
Why you should not keep your money in a savings account?Adverse effects of savings accounts : Your money is pleasant and safe in a savings account. But if you keep your money in saves for several years, it won't grow very much. That's because savings accounts simply don't pay that much return, even during times of higher interest rates.Minimum balance requirements, lower interest rates than other accounts/investments, and federal withdrawal restrictions are three drawbacks of savings accounts. First of all, congratulate yourself if you're fortunate enough to have extra money for long-term ambitions.Saving is ultimately the first step to investing because, without it, you're not ready to take on the risk of putting your money in the market. karen has saved $30,000 of her $40,000 goal for a down payment on a house.Time to grow(required) 6 in moths.Traditional savings account end balance is $270,595.63To Learn more About savings account refer to :
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the aggregate demand curve is: group of answer choices downward sloping because of the interest-rate, real-balances, and foreign purchases effects. horizontal when there is considerable unemployment in the economy. downward sloping because production costs decrease as real output rises. vertical under conditions of full employment.
The aggregate demand curve is Downward sloping because of the interest-rate, wealth, and foreign trade effects.
The demand from domestic and international consumers for all services and goods produced in an economy is known as the aggregate demand. Because it demonstrates the relationship between the price level and real GDP, aggregate demand and GDP are closely related.
The slope of the aggregate demand curve is explained by three main factors. Please take note that the x-axis in the aggregate demand graph represents national income or real GDP and the y-axis the price level. The relationship between interest rates and investment in a nation is the cause of the first factor. Accordingly, higher investment levels result from lower interest rates, which in turn affect real GDP. The connection between price levels and wealth is the second justification. The population's consumption and wealth rise as prices fall in that nation. The growth in international trade as a result of lower prices is the third factor. That is to say, when a nation's prices are lower, it is more competitive on the global market, which increases exports and real GDP.Contrarily, horizontal aggregate demand would imply that demand is perfectly elastic, implying that any increase in price would trigger a sensitive response from consumers. Consumers wouldn't react to any price increases if there was vertical aggregate demand, and supply is determined by production costs.Learn more about Aggregate demand, here
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using the following information, what is the amount of net income? purchases $30,320 selling expenses $917 merchandise inventory, september 1 6,155 merchandise inventory, september 30 11,073 administrative expenses 696 sales 45,506 rent revenue 695 interest expense 1,124 a.$20,310 b.$18,062 c.$29,135 d.$11,907
The amount of net income IS $ 28980.
What is net income?
Net income, also known as total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales, in the context of business and accounting refers to an entity's income less cost of goods sold, expenses, depreciation and amortization, interest, and taxes for a given accounting period.
Calculation of net income
We will categorize the transaction into income and expenses, and then compute the difference between their totals to determine the net income;
Income;
Inventory of goods as of September 1 was $6155.
Inventory of goods as of September 30: $11,073
Sales = $ 45,506
Total = $ 62, 734
Expenses;
$ 30,320 is the total amount spent on purchases.
Selling costs come to 917 dollars.
Administrative costs are equal to $696
Rent Revenue = $695
Interest expenses come to $1,124.
Total = $ 33752
Total revenue minus all costs equals net income.
= 62734 - 33752
= $ 28980
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the size, distribution, and impact of taxes on society is referred to as the . multiple choice question. apportionment budget deficit budget constraint tax burden
The size, distribution, and impact of taxes on society is referred to as the tax burden. Hence, the correct choice OF answer for this question is option (d).
Give a brief account on tax burden.The impact of a certain tax on how economic welfare is distributed is known as tax incidence or tax burden in economics. Economists make a distinction between the entities that end up paying the taxes and those who are initially subject to them. The tax burden, which accounts for how the tax affects prices, determines the underlying economic weight of the tax by comparing real earnings or utility costs before and after the tax is imposed.
The French Physiocrats, in especially François Quesnay, are credited with first popularizing the idea of tax incidence. They claimed that all taxes ultimately affect landowners and reduce property rent. The group that finally pays the tax or loses money as a result of it is said to "fall" under its impact. The main idea behind tax incidence is that it depends on price elasticity of supply and demand rather than the size of the tax imposed (i.e., where the money is collected has no bearing on where the money is collected).
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the owners of a firm find that for each worker they hire, the additional output increases by the same amount. what is the shape of the firm's marginal cost curve?
The shape of the firm's marginal cost curve is increasing with a constant slope.
Marginal cost is the additional cost that must be incurred by the company to be able to make each additional unit of business product that can be produced by the company. For how to calculate marginal costs can be obtained from fixed production costs and variable costs. Variable production costs will always be included in the calculation of marginal costs. Meanwhile, fixed costs will be included in the calculation if needed to make additional products.
The main purpose of doing a marginal cost analysis is to determine at what point a company is able to achieve economies of scale, which is the value of the benefits obtained when products become more efficient. This is done in order to maximize the overall operational system. To calculate this, determine your fixed costs as well as your variable costs.
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an analysis and aging of the accounts receivable of sheridan company at december 31 reveal these data: accounts receivable 3150000. allowance for doubtful accounts per books before adjustment (credit) 250000. amounts expected to become uncollectible 305000. what is the cash realizable value of the accounts receivable at december 31 after adjustment?
2845000 is the cash realizable value of the accounts receivable at December 31 after adjustment.
Considering the values given in the question,
Accounts receivable = 3150000
Allowance for doubtful accounts per books before adjustment (credit) = 250000
Amounts expected to become uncollectible = 305000
Cash realizable value of the accounts receivable = Accounts receivable - Amounts expected to become uncollectible
= 3150000 - 305000
= 2845000
Therefore, The accounts receivable's cash realizable value as of December 31 after adjustment is 2845000.
The amount of cash left over after deducting the uncollectible amount from an account receivable is known as the cash realizable value. The balance of accounts receivable and the provision for doubtful accounts on a company's balance sheet are combined to get this net sum.
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applying the cobit framework, governance is the responsibility of group of answer choices internal audit. external audit. management. the board of directors.
According to the COBIT framework, the board of directors is in charge of governance.
ISACA developed the COBIT framework to close a critical gap between technological concerns, business risks, and control needs. In order to guarantee the quality, control, and dependability of information systems, COBIT may be applied in any business from any sector.
A few real-world issues with COBIT are noted, including its complex principles and organizational structure, a lack of implementation assistance and benefits, and its overlap with other IT standards. A COBIT-BSC model is suggested to illustrate a straightforward method of structuring COBIT control objectives in order to address these issues.
Businesses can manage risk, reduce the cost of IT services, gain better insight into IT operations, and eliminate silos between IT and other business units by using COBIT effectively.
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Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as ______ approaches.
Pricing approaches that consider the production and marketing costs and add enough to cover direct expenses, overhead and profit are known as cost-orientated approaches.
Value is about watching the assembly and promoting values, then adding enough to hide direct expenses, overhead, and profit. Competition-oriented ----- value setter stresses what "the market" is doing is determinant a value.
The undetermined methodology typically referred to as ratio rating, is a value that will manufacture enough revenue to hide all prices at a given production level. Differential cost rating could be an additional competitive methodology for rating a product for market entry.
This methodology considers the direct due expenses of manufacturing. This combined method is named the market-related value approach and is primarily used when valuing residential property.
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Parsons Company is planning to produce 2,800 units of product in 2017. Each unit requires 1. 20 pounds of materials at $5. 60 per pound and a half-hour of labor at $12. 00 per hour. The overhead rate is 70% of direct labor. (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor $ Overhead $ (b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e. G. 2. 75. ) Standard cost $ Click if you would like to Show Work for this question: Open Show Work
The budgeted amounts for indirect costs in 2017 for the direct materials to be used is $18,816.
What are indirect costs?Costs that cannot be traced back to a specific cost object are known as indirect costs. Indirect costs are similar to direct costs in that they can be either fixed or variable. Expenses for administration, personnel, and security are examples of indirect costs. These are expenses that have nothing to do with manufacturing. While some overhead expenses may be considered indirect costs, other overhead expenses can be linked directly to a project and are thus considered direct costs. Indirect costs can be divided into two categories. The first are the indirect fixed costs, which are constant for a given project or business, such as labor transportation to the job site and construction of makeshift roads. The second category is made up of indirect costs that are repeated for a specific business, such as paying salaries or keeping records up to date.
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the case describes approaches tek follows to minimize its international tax liability. based on your reading of the chapter, how would you advise tek management to reduce its taxes around the world further?
The taxes can be reduced by General Strategies, Foreign Affiliates, Transfer Pricing, and Repatriating Profits.
What are the different ways to minimize international tax?A business in a high-tax nation can lower its overall tax burden by keeping operations at home while operating highly profitable activities outside countries with lower taxes. The mother firm must be sure to establish a totally independent corporation that will be taxed as a local company when establishing a foreign company in a low-tax jurisdiction. At the same time, the mother business must maintain control over the new corporation and guarantee its funding without transferring any funds that may have been subject to taxation in the past or may be subject to taxation in the future.Allowing a foreign operation in a low-tax jurisdiction to make goods that are then sold back to the mother company for sale in the domestic market is one of the finest methods for a business to lower its global tax responsibilities.To learn more about international tax refer to:
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Which of the following personal property items has the HIGHEST specific limitation on coverage?
The personal property items has the HIGHEST specific limitation on coverage is the "Jewelry, watches, and precious stones or metals".
What Is a Special Limit of Liability in Insurance?In an insurance policy, a special limit of liability refers to the limitation that states the maximum payout for certain items. We should not confused it with the contents and personal property limit on your insurance policy declaration page or the insured value of the dwelling, which is always much higher.
This special limits applies to all kinds of insurance. Whether we have a renters insurance, home insurance, or condo insurance policy, you can expect to find limits hidden within the policy wording that will affect how much money you get paid in a claim. Therefore, the Option B is correct.
Missing options "a. A prized coin collection b. Jewelry, watches, and precious stones or metals c. A canoe you’re storing at the rental property d. An antique rug"
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the values, norms, and expectations of behavior that control how workers interact with one another within an organization represent the organization's:
Correct organizational culture is the collection of beliefs, standards, and guidelines for conduct that governs how employees interact with one another within an organization.
The culture of a corporation affects how employees should behave. This culture is comprised of shared values and beliefs that have been developed by leaders, communicated through a range of mediums, and reinforced in order to affect employee perceptions, behavior, and comprehension. A fantastic corporate culture is defined by what the business stands for and what it believes in.. Employers must provide employees strong feedback on their efforts and give them a feeling of being a part of something better and bigger. An employee who works in a healthy workplace may become an advocate
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effects that arise from a new product or service that decrease sales of the firm's existing products or services are referred to as
Effects that arise from a new product or service that decrease sales of the firm's existing products or services are referred to as substitutionary effects.
What do u mean by sales?A sale is an agreement between a buyer and a selling in which the seller exchanges money for both the sale of tangible or intangible products, assets, or services. There are two other people concerned in a sale.
Why are sales important?The development of consumer loyalty and trust in businesses is greatly affected by sales. The primary factors that influence a customer's decision to refer your business to a family member or friend or to leave a positive online review of your services or products are trust and loyalty.
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in the context of the changes affecting leadership in an organization, ronald heifetz argues that a new mode of leadership is needed because .
in the context of the changes affecting leadership in an organization, Ronald Heifetz argues that a new mode of leadership is needed because . we are in a permanent state of crisis.
What is Heifetz perspective?Today's perception of leadership is considerably different from what it was in the past. It is seen as obsolete to believe that a hero can enforce his resolve to achieve objectives on his own. Today, leadership is viewed as a team sport.
Managers of businesses and other individuals in leadership roles now collaborate with their staff members to achieve goals and bring about change.
Heifetz contends that effective leadership requires the use of power to assist followers in resolving the conflicts of values that arise in social and professional contexts that are undergoing fast change. It takes an ethical stance because it considers workers' values. "Adaptive leadership is the art of inspiring others to take on difficult situations and succeed". However, given how unpredictable and chaotic the business environment can be, executives frequently discover
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