two people are given the choice to participate in a retirement program in which the firm matches contributions. person a is given a form in which she must check a box to opt into the retirement program. person b is given a form in which she must check a box to opt out of the retirement program. according to studies, which person is more likely to participate? or are they equally likely to participate?

Answers

Answer 1

People are more likely to select the default option, according to studies, so Person B is more likely to participate.

What does the term "default choice" mean?

The option that a customer "selects" if they do nothing is known as the default choice or default option. Consumers rarely alter the default settings, according to studies. Therefore, the nature of the default choice has a significant impact on consumer behavior.

Which bias is the default?

People's preference to stick with previously made decisions and their tendency to choose inaction over action are both examples of this tendency to stay in the default choice, which is known as default bias (or status quo bias).

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Related Questions

demand and revenues for a monopoly price (dollars) quantity (units) total revenue (dollars) marginal revenue (dollars) $40 0 $35 5 $30 10 $25 15 $20 20 $15 25 using the demand schedule, what is the marginal revenue (mr) for the 10th unit?

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Marginal revenue is the difference between the total revenue for a particular unit of output and the total revenue for the unit of output that came before it. Total revenue is equal to Price minus the quantity demanded.

Marginal profit is the difference between marginal cost (MC) and marginal revenue (MR).At some level of output, if marginal revenue is greater than marginal cost, marginal profit is positive, implying that more should be produced. On the other hand, if marginal revenue is lower than marginal cost, marginal profit is negative, implying that less should be produced.Profit is maximized at the output level where marginal revenue equals marginal cost, where marginal profit is zero.

At an output level of two units, the Marginal Revenue and Marginal Cost equalize if the Marginal Cost is set at $30.

As a result, the output that maximizes profits is two units.

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the next dividend payment by im, incorporated, will be $1.87 per share. the dividends are anticipated to maintain a growth rate of 4.3 percent forever. the stock currently sells for $37 per share. a. what is the dividend yield? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. what is the expected capital gains yield? (enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

Answers

Dividend Yield = Dividend for Next Period/Current Price

Dividend Yield = $1.87/$37

Dividend Yield = 5.05%

Capital Gains Yield = Growth Rate

Capital Gains Yield = 4.3%

What is Dividend Yield?

The relationship between a stock's annual dividend payment and stock price is defined as the dividend yield. Know that when you use the term "dividend yield," you are only referring to the dividend yield for the specific stock price at that time because dividend yield clearly fluctuates as stock prices do on the stock market. The dividend yield would fluctuate if a stock's price changed significantly during a trading day.

Dividend Yield = Annual Dividends Per Share ÷ Current Share Price

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the law of diminishing marginal returns is caused by part 2 a. poor quality fixed inputs. b. insufficient amounts of the variable input. c. some workers performing poorly on the job. d. the existence of a fixed input that must be combined with increasing amounts of the variable input.

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the law of diminishing marginal returns is caused by part the existence of a fixed input that must be combined with increasing amounts of the variable input.

An economic theory known as the law of diminishing marginal returns states that once an optimal level of capacity is reached, adding more factors of production will really only lead to smaller improvements in output.

For instance, a factory hires workers to produce its goods, and eventually the business performs at its best. If you increase the number of employees beyond this point, operations will become less efficient even if all other production factors remain constant.

The idea of declining marginal utility is connected to the law of diminishing returns. Economies of scale can be used to contrast it.

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municipal bonds: generally have higher coupon rates than corporate bonds. are totally risk free. are rarely callable. pay interest that is federally tax free. are free of default risk.

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Municipal bonds pay interest that is federally tax-free.

What do you understand by Municipal bonds?

Municipal bonds are those that local governments issue to pay for infrastructure projects including roads, hospital networks, and educational facilities. Both general obligation and revenue municipal bonds are available. The financing of non-profit endeavors like parks and playgrounds is done via general obligation bonds. As a result of the issuer's ability to do whatever it takes, including levying more taxes, to satisfy bond payments, they are fully backed by the issuing municipality. The precise income that revenue bonds are intended to generate serves as their security. For instance, a city may issue revenue bonds to finance the construction of a new bridge and then pay investors with the toll revenue.

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the earliest approach to the study of leadership was group of answer choices transformational leadership. behavioral approach. trait approach. transactional leadership.

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the earliest approach to the study of leadership is Trait Approach

What is Leadership?

Leadership is both a topic of study and a practical aptitude that refers to the capacity of an individual, group, or organization to "lead," influence, or guide other individuals, groups, or entire organizations. It's common to view "leadership" as a divisive concept.

What makes leadership so crucial?

A key management duty is to direct an organization's resources toward enhanced efficiency and goal achievement. Effective leaders set clear objectives and inspire and encourage their staff to achieve the objectives of the organization.

Lewin categorized leadership into three categories

autocratic democratic, laissez-faire.What is Trait Approach?

According to the trait theory of leadership, leaders are defined by a set of innate or inborn traits. These characteristics could be psychological, physiological, intellectual, or other traits.

The concept makes an effort to link physical characteristics like height and weight to successful leadership. The majority of these elements are situational in nature. For instance, a certain weight and height may be required to effectively carry out the duties of a military command position.What is trait theory's primary objective?

Trait theorists look for our constant traits and behavioural patterns in an effort to explain our personality. They have recognized crucial aspects of personality.

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a company's mission statement typically addresses who are we and what do we do? what objectives and level of performance do we want to achieve? where are we going and what should our strategy be? what approach should we take to achieve sustainable competitive advantage? what business model should we employ to achieve our objectives and our vision?

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A company's mission statement typically addresses the question of Who are we and what do we do.

A company's mission statement is its reason for existing. It is the guiding force behind all of the company's decisions and actions. The mission statement should be a clear and concise statement of the company's purpose.

The statement should be easy for everyone in the company to understand and remember. The mission statement should be aspirational, yet achievable. It should inspire employees and customers alike.

Hence, the correct option is (A).

The question is incomplete, the complete question is:

A company's mission statement typically addresses which of the following questions?

A. Who are we and what do we do?

B. What objectives and level of performance do we want to achieve?

C. Where are we going and what should our strategy be?

D. What approach should we take to achieve sustainable competitive advantage?

E. What business model should we employ to achieve our objectives and our vision?

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questioning and answering while business presentation you have worked with the research department to implement the research plan. the team has gathered the data, checked it for accuracy, and coded it for analysis. how should you present your findings so that the vp of marketing can best utilize them? select an option from the choices below and click submit.

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Present only those important insights and findings that you think will be useful in the major decisions made by management. By this, you present your findings so that the VP of marketing can best utilize them.

Advertising and marketing is a term that covers a whole gamut of sports aiming to make humans aware of your services and products and convince them to buy the equal. even as marketing is the maximum commonplace manner of advertising, it also entails client research, and product design, in addition to different elements.

The cause of marketing is to attain your audience and speak the blessings of your services or products — so that you can correctly accumulate, hold, and grow customers. So, your advertising and marketing goals need to relate to the particular commercial enterprise objectives your enterprise desires to gain.

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taxable equivalent yield what's the taxable equivalent yield on a municipal bond with a yield to maturity of 7.00 percent for an investor in the 33 percent marginal tax bracket? (round your answer to 2 decimal places.)

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The taxable equivalent yield of 10.45% is the taxable equivalent yield on a municipal bond with a yield to maturity of 7.00 percent for an investor in the 33 percent marginal tax bracket.

Taxable equivalent yield = yield to maturity / 1- marginal tax bracket = 0.07/1-0.33=7/67=10.45%.

Municipal bonds ( or “ munis ” for short) are debt securities issued by countries, metropolises, counties, and other governmental realities to fund day-to-day scores and to finance capital systems similar as erecting seminaries, roadways or seamstersystems.On the else side, largely-rated external bonds are generally veritably safe investments compared to nearly any other investment. The dereliction rate is bitsy. As with any bond, there's an interest rate risk. However, you will be stuck with a poor pantomime, If your plutocrat is tied up for 10 or 20 times and interest rates rise. Governments use muni bonds to raise finances for systems that will profit the public.

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a(n) is a summary of a firm's revenues and expenses during a specified accounting period, such as a yea

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An income Statement is a summary of a firm's revenues and expenses during a specified accounting period, such as a year.

What is the significance of an income statement?

The purpose of an income statement is to inform investors, creditors, and readers about the company's profitability during the fiscal year. The income statement is the documentation of the company's profit and loss for the fiscal year in the context of corporate finance.

An income statement summarizes a company's revenues, expenses, and cash flow over time. It is also referred to as a profit-and-loss (P&L) or earnings statement.

Therefore, It displays your revenue from the sale of products or services. expenses to generate revenue and manage your company

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given the difficulty overturning an arbitration award, some scholars are concerned that the arbitration process can lead to:

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Given the difficulty of overturning an arbitration award, some scholars are concerned that the arbitration process can lead to injustice.

Arbitration is a method through which a dispute is submitted by agreement of the parties to one or more arbitrators who make a binding decision on the dispute. When choosing arbitration, the parties choose a private dispute resolution process instead of going to court. In simple words, arbitration is an out-of-court procedure for resolving a dispute between an employer and a worker. Arbitration takes place before a neutral decision-maker called an 'arbitrator' (or in some scenarios, a group or 'panel' of arbitrators) who will listen to each side and make a decision about the prevailing case. In some scenerios, arbitration can lead to injustice.

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abba, inc. has developed the following standards for one of its products: direct materials - 1/2 pound at $6.00 per pound; direct labor - 1/4 hour at $20.00 per hour; variable overhead - 20% of direct labor cost. total fixed overhead is expected to be $15,000 and the company expects to produce 7,500 units. the standard cost card for this product will show a cost per unit of

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If  the company expects to produce 7,500 units. the standard cost card for this product will show a cost per unit of  $11.00 per unit.

How to find the cost per unit?

Using this formula to find the Cost per unit

Cost per unit  = Direct materials + Direct labor + Variable overhead + (Fixed cost / Units produced)

Let plug in the formula

Cost per units = (1/2 x $6.00) + (1/4 x $20.00) + ($5.00 x 20%) + ($15,000/7,500)

Cost per unit = $3 + $5 +  $1+ $2

Cost per unit = $11.00 per unit

Therefore the cost per units is $11.

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residential construction company agrees with its employees' union not to buy any nonunion-produced goods from other firms for use on residential construction job sites. this is

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Residential Construction Company agrees with its employees' union not to buy any nonunion-produced goods from other firms for use on Residential Construction job sites. This is a prohibited secondary boycott.

What is Residential Construction?

Construction on single-family or two-family homes that are used, or planned to be used, largely for residential purposes is referred to as residential construction. A project is a set of activities carried out by a construction business for a buyer in residential construction. These projects often involve remodels, additions, renovations, design-builds, or brand-new homes that include all the financial information, project schedules, documentation, tasks, and communications needed to complete the work from beginning to end.

Any form of construction must follow specified rules and can only begin when a permit has been secured from the state's granting agency. This is necessary to ensure that the project moves forward securely and without putting anyone's life in danger before, during, or after the building's construction.

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how much will you accumulate if you deposit $100 each month for 10 years into an account earning 3.6% apr?

Answers

You will accumulate $12432 after 10 years into a account earning 3.6% APR.

What is APR?

The term annual percentage rate of charge refers to the interest rate for an entire year rather than just a monthly fee or rate as applied on a loan, home loan, credit card, etc. It can also be referred to as a nominal APR or an effective APR. It is an annual rate of a finance charge. The cost of borrowing money each year, including fees, is stated as an annual percentage rate (APR). The best credit card APR is one that is around 10%, but you might need to visit your neighbourhood bank or credit union to discover one. An APR that is lower than the average would also be regarded  

Hence, You will accumulate $12432 after 10 years into a account earning 3.6% APR.

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a list of specific goods and services in fixed quantities that economists use to evaluate the cost of living across time and place is called a(n) . multiple choice question. efficient market perfectly competitive market product offer market basket

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a list of specific goods and services in fixed quantities that economists use to evaluate the cost of living across time and place is called a market basket

A market basket is a carefully selected group of products or assets designed to track the overall performance of a particular market segment. A basket of goods is another name for this.

Market basket economics focuses on the Consumer Price Index (CPI), which tracks the prices of various consumer goods and uses them to estimate inflation. However, for investors, a market basket refers to financial securities and is the underlying concept of index funds.

Baskets can also be found in the securities markets, where program traders can take a series of positions in multiple stocks or currencies at the same time.

A market basket is a carefully chosen mix of goods and services that tracks the performance of a particular market or segment.

The Consumer Price Index (CPI) is a popular market basket that provides an estimate of inflation based on the average change in price paid for a specific basket of goods and services over time.

As an economic measure, the CPI employs over 200 categories, including education, housing, transportation, and recreation.

Retail stores use market basket analysis to predict and increase impulse purchases based on groups of items purchased by customers.

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five years ago you took out a 30-year mortgage with an apr of 4.15% for $350,000. if you were to refinance the mortgage today for 15 years at an apr of 3.45%, how much would your monthly payment change by? group of answer choices

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Five years ago you took out a 30-year mortgage with an apr of 4.15% for $350,000. if you were to refinance the mortgage today for 15 years at an apr of 3.45%, The monthly payment will decrease by $104.79.

Refinancing occurs when the conditions of an existing loan are met, such as: B. Interest Rates, Payment Schedules, or Other Terms. Borrowers tend to refinance when interest rates fall. Refinancing involves reassessing a person's or business' credit and repayment status.

Refinancing is when a homeowner gets a new mortgage to replace their current mortgage. A new loan is meant to save you money or achieve another financial goal. For example, most people refinance to lower interest rates and pay less on their mortgage, often saving thousands of dollars in interest on their mortgage.

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in fighting ambushing marketing, who should be responsible, the host venue or organizer or the sponsoring brands?

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During the most recent soccer tournament made headlines. This note defines ambush marketing, details how businesses can breaking ambush marketing regulations developing marketing strategies.

Ambush advertising occurs when an organization that isn't a political tournament candidate sponsors an event (like a sporting competition or music ambush marketing festival) and engages in promotional activities in an effort to establish an association with the event or to take advantage of the event's profile without the owner's consent.

For instance, if a retailer of consumer goods on the high street published an advertisement for "World Cup WAG handbags" or "Olympic Special ambush marketing Offer: two for one sports gear," readers might assume that the company has some connection to the world Cup or the Olympics.

Because they must protect the value of their own commercial rights in tournament the event and because they may have chosen official sponsors (possibly direct competitors of the advertiser) who have paid significant sums for the exclusive rights to be formally associated with the event, event owners frequently respond angrily to ambush advertising.

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as chief financial officer, you want to send the fourth quarter profit/loss spreadsheets to the president of the company. you know that his administrative assistant often checks his email and there is confidential information in the report that his assistant should not be able to access. how could you send the report without worrying about someone else accessing it?

Answers

Using encryption, he sent the report without being concerned that someone else would read its contents.

What do security and encryption entail?Data is converted from a readable format into an encoded format by encryption in the context of cyber security. Only after it has been decrypted can encrypted data be read or processed. The fundamental cornerstone of data security is encryption.Data can be encrypted in order to make it unintelligible to anybody but the intended recipients. In technical words, it is the process of transforming plaintext that can be read by humans into ciphertext, or unintelligible text.Symmetric and asymmetric encryption are the two forms of encryption that are currently in use. The name is based on whether the same key is employed during encryption and decryption.    

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economic profit is the difference between a. total revenue and the opportunity cost of all of the resources used in production. b. total revenue and the implicit costs of using owner-supplied resources. c. accounting profit and the opportunity cost of the market-supplied resources used by the firm. d. accounting profit and explicit costs.

Answers

An economic profit or loss is the difference between the revenue received from the sale of an output and the costs of all inputs used, as well as any opportunity costs.

The difference between the revenue generated by the sale of a product and the prices of all inputs used, as well as any opportunity costs, is known as an economic profit or loss. Opportunity expenses and explicit costs are subtracted from earned revenues to determine economic profit. Opportunity costs are a type of hidden expenses that are decided by management and change depending on various events and viewpoints.

Accounting profit and economic profit are frequently examined together in analyses. The profit a corporation displays on its income statement is known as accounting profit. Accounting profit is a component of the necessary financial transparency for a corporation and measures actual inflows versus outflows. Contrarily, economic profit is not disclosed on a company's financial statements.

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the fact that research shows that 25% of workers are burned out, and 44% more are burned out occasionally suggests that workers are neglecting what? multiple choice question.

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The fact that research shows that 25% of workers are burned out, and 44% more are burned out occasionally suggests that workers are neglecting: C. Recharging each day.

What is physical fitness?

Physical fitness can be defined as a measure of both the physical and mental soundness (wellness) or ability of an individual to engage in physical exercises, sports, work and other day-to-day activities.

The five components of physical fitness.

Generally, there are five (5) main components of physical fitness and these include the following:

Body fat compositionFlexibilityMuscular enduranceCardiovascular enduranceMuscular strength

Since research has shown that 25 percent of workers are burned out while 44 percent more are burned out occasionally, we can reasonably infer and logically deduce that these workers have neglected the need to recharge daily.

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Complete Question:

The fact that research shows that 25% of workers are burned out, and 44% more are burned out occasionally suggests that workers are neglecting what?

Multiple choice question.

Practicing self-direction

Maintaining consistent focus

Recharging each day

Meeting goals each day

the horizontal revolution is characterized by the fact that . a. only companies can communicate with huge numbers of people. b. only governments can communicate with huge numbers of people. c. information flows from big companies down to the people. d. information flows from governments down to big companies. e. information flows across people.

Answers

The horizontal revolution is characterized by the fact that information flows across people. Option (e) is correct.

Social media, in its most basic sense, is a group of computer-mediated technologies that make it simple for individuals to access, send, and exchange information of all kinds. According to Tuten and Solomon (2014), social media refers to "the means of communication, conveyance, collaboration and nurturing among interconnected and interdependent networks of individuals and communities using the new technology."

They refer to this information transfer from major corporations or governments to a sizable population as a horizontal revolution. This transfer occurs with the click of a keypad.

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arbitration is an agreement to bring in an impartial third party called an arbitrator to render a binding decision in a labor or other dispute. group of answer choices true false

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The statement is true since to bring in an impartial third party called an arbitrator to render a binding decision in labor or other dispute in an agreement called arbitration.

A judge who is impartial and in charge of arbitrating disputes acts as the judge in arbitration. The arbitrator hears each side's argument and relevant evidence, then makes a binding decision. A dispute may be submitted to one or more arbitrators through the process of arbitration with the consent of the parties, who then render a legally binding decision. The parties decide against going to court by choosing arbitration as their method of private dispute resolution.

A worker and employer's disagreement can be settled outside of court through arbitration. A neutral arbitrator, who hears arguments from both sides and renders a decision on the merits of the case, presides over arbitration proceedings.

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in the 1980s, both the u.s. government budget and u.s. trade deficits increased. a. true b. false

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In the 1980s, both the us' government budget and us' trade deficits increased False.

Why did the US accumulate significant deficits in the 1980s?

The 1980s had significant budget deficits as a result of Ronald Reagan's increased expenditure and related tax cuts.

Why did commerce in the 1980s become unbalanced?

America's trade deficit progressively worsened throughout the 1980s, establishing record imbalances year after year. Part of the blame for this can be attributed to the massive federal budget deficits, which boosted demand in the economy.

Has there been a rise or fall in the trade deficit?

According to the U.S. Census Bureau, the United States' monthly trade deficit grew in September 2022. Due to an increase in imports and a decline in exports, the deficit rose from $65.7.

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janet saves $3,000 a year at an interest rate of 4.2 percent. what will her savings be worth at the end of 35 years?

Answers

Future cost is a value of an investment or asset on a specific date in the future.

To put it every other way, the future cost is the quantity of money a given funding will be really worth after a certain period, assuming a unique price of return (interest rate).

How do I calculate future value?

You can calculate future fee with compound interest the usage of this formula: future fee = existing fee x (1 + hobby rate)n. To calculate future value with simple interest, use this formula: future fee = present fee x [1 + (interest fee x time)].

How a whole lot will I have if I make investments 100 a month for 30 years?

Long-term investor: Let's say that you are investing $100 per month with retirement in mind. You graph to make investments $100 per month for 30 years and anticipate a 6% return. In this case, you would make a contribution $36,000 over your funding timeline.

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true or false: sending emails is an outdated and relatively unused practice when it comes to launching a product.

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False, sending emails is not an old and little-used strategy for introducing a product.

The thing being sold is called a "product." An item or service can be considered a product. Physical, virtual, or cyberspace forms are all product possible. Every good has a price because it costs money to strategy produce it. The market, quality, marketing, and targeted market segment all affect the price that can be charged. Every product has a shelf life after which it needs to be replaced and a life cycle after which it needs to be redesigned. To make a brand more applicable to the market and the times, in FMCG parlance, it can be extended, relaunched, or revamped.

A product must be applicable; users must find immediate use for it. A product must have the functionality and quality to carry out its intended function.

It's important to communicate a product's benefits to users and potential users so they understand why they should use it and how it will improve strategy their lives. This is best achieved through marketing and "brand building."

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suppose lewis lives in a community with no price controls. what would he expect will happen if his town borders a community where there is a binding price floor on most products?

Answers

Option a.) Legal market prices will rise in the community with a binding price and the prices and quantities sold in communities without non-binding price caps will increase to the prices in communities with non-binding prices. and sales volume.

With binding price caps and the prices and quantities sold in communities without non-binding price caps will increase to the prices in communities with non-binding prices. and sales volume. cap.

"Statutory Market Price" means the current price obtained in the ordinary course of business obtained through open bargaining between a buyer and a seller, and may be verified by sources independent of competition or suppliers. Slightly lower demand going out.

Fair market price means a price based on reasonable costs under normal competitive conditions, not the lowest possible cost

Here is the full question -

Suppose Lewis lives in a community with no price control. What would he expect if his town abuts a municipality that mandates lowest prices on most products?

A) Prices increase in legal markets in communities where minimum prices are mandated.

B) Prices will fall in the legal market of the community where minimum prices are mandated. C) A binding minimum price creates a community surplus.

D) More consumers buy products at the lowest prices within the community.

E) His community's black market will be larger than the community's black market with the required minimum price.

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microloans are small short-term loans given to people living in poverty that enables them to engage in entrepreneurship. True or False

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The statement that microloans are small short - term loans given to people living in poverty to allow them to be entrepreneurial is True.

What are microloans?

Microloans are a type of short - term financing where smaller amounts are loaned out to people who would otherwise be unable to get these loans from mainstream financial institutions.

The reason for this is that these people are often living in poverty which means that they will not be able to pay back the loans easily. The microloans help such people to engage in entrepreneurship when other financial institutions won't help.

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denise has asked you to recommend the addition of a benefit that could help minimize employee turnover. which type of benefit do you suggest? check all that apply.

Answers

We can  suggest, first  Motivates them, Providing compensation to employee. High compensation  makes workers feel satisfied with their work and motivates them to work more.

How can compensation motivate employees?Employees receive a wage as payment for completing all duties and as a reliable source of income. They are encouraged to accomplish and surpass their goals by the incentive, which can be a bonus for some people and commission for salespeople, and it also gives them the chance to earn more money.Motivated workers increase the value of a position. Greater job satisfaction, or workers who are pleased in their positions and are less likely to change occupations, can be the result of fair salary and benefits.Benefits and compensation are crucial components of human resource management because they support employee retention.

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what, according to the memo, are some of the negative effects of air pollution? decreased cognitive performance slow economic growth increased mortality an increase in premature births

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According to the memo, are some of the negative effects of air pollutions decreased cognitive.

Air pollution is contamination of the indoor or outdoor surroundings with the aid of any chemical, physical or biological agent that modifies the herbal characteristics of the surroundings.

Family combustion gadgets, motor vehicles, commercial facilities and woodland fires are commonplace sources of air pollutants.

Air pollution is the contamination of air due to the presence of substances in the ecosystem that are dangerous to the health of humans and other living beings, or purpose harm to the weather or to materials. there are numerous unique sorts of air pollutants, including gases, particulates, and organic molecules.

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in year 1, shell company understated their ending inventory. what is the effect of this error in year 2? (check all that apply).

Answers

The effect of this error will be that the Beginning inventory will be understated and the Cost of goods sold will be understated.

Inventory may be defined as the storehouse within the organization or business manufacturing company where all the goods manufactured and ready to be delivered or shipped are kept. It is necessary to keep tract of the inventory as the value of the goods in the inventory may change at any time. If the ending inventory is understated then their will be discrepancies within the beginning inventory for the coming year. This will happen because the calculations of the new year depends on the calculations of the previous year. Also the cost of the goods will be understated because the cost of goods change with time and in determining the new cost, the previous cost plays an important role.

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byron owned stock in blossom corporation that he donated to a museum (a qualified charitable organization) on june 8, 2018. what is the amount of byron's deduction assuming that he had purchased the stock for $10,500 last year on august 7, 2017 and the stock had a fair market value of $13,800 when he made the donation?

Answers

b. $10,000 in long-term securities The fair market value of the securities on the date of the gift is generally the amount that an individual can claim as a charitable gift for federal income tax.

Purposes if they donate securities held for a long time to a "public" charity, such as a church, educational institution, health care organization, or other cause. See section 170(b)(1)(A) of the Internal Revenue Code.

At least one year and one day is considered "long-term. "See section 1222(3) of the IRC. The holding period for appreciated property gifts at full market value that qualify as long-term property remains twelve months and one day.

Short-term securities: In contrast, the donor's cost basis in the securities, if it is less than the securities' fair market value, is the amount that can be claimed as a charitable gift in the case of donated securities held for a short period of time. See IRC area 170(e)(1)(A).

Securities whose value has decreased in a manner

Donating shares that have lost value since being purchased is generally not advised because, for federal income tax purposes, a gift of such an investment does not result in the realization of the potential capital loss. Instead, the donor ought to give the proceeds from the sale of the shares after realizing the loss by selling the shares.

As a result, securities are held for a brief period of time because the holding period from August 7 (last year) to June 8 (this year) is less than 12 months. The investment's cost of $10,000 is less than its fair market value, which is $13,800.Therefore, a deduction of $10,000 will be made.

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