Answer:
7.14%
Explanation:
Investment in CSH= $ 100*20 = $ 2000
Investment in EJH=$ 50*30 =$ 1500
Total Investment=$ 2000+$ 1500=$3500
fraction of your portfolio in CSH= $ 2000/$3500 = 0.5714
fraction of your portfolio in EJH= $ 1500/$3500 = 0.4286
If CSH increases to $23 and EJH decreases to $29,
new value of portfolio
= $23*100+$29*50
=$2300+$1450
= $3750
return in portfolio=(new value of portfolio/Total Investment)-1
return in portfolio=($3750/$3500)-1
return in portfolio=1.0714 - 1
return in portfolio=.0714=7.14%
The fraction in CSH is 0.5714.
The fraction of EJH is 0.4286.
The return on the portfolio is 7.14%.
The calculation is as follows:Investment made in CSH= $ 100 × $20 = $2,000
Investment in EJH = $50 × 30 = $1,500
So,
Total Investment is
= $2,000 + $1,500
= $3,500
Now
Fraction of the portfolio in CSH is
= $2,000 ÷ $3,500
= 0.5714
Fraction of the portfolio in EJH is
= $1,500 ÷ $3,500
= 0.4286
Now
If CSH increases to $23 and EJH decreases to $29.
So,
The new value of the portfolio is
= $23 × 100 + $29 × 50
= $2,300 + $1,450
= $3,750
Now
Return in portfolio is
= (New value of portfolio ÷ Total Investment) - 1
= ($3,750 ÷ $3,500) - 1
= 1.0714 - 1
=.0714
=7.14%
Therefore we can conclude that
The fraction in CSH is 0.5714.
The fraction of EJH is 0.4286.
The return on the portfolio is 7.14%.
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An investment will pay $15,000 at the end of each year for eight years and a one-time payment of $150,000 at the end of the eighth year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Determine the present value of this investment using a 7% annual interest rate. (Round your answer to the nearest whole dollar.)
Answer:
Total investment PV = $176,865
Explanation:
a) Data and Calculations:
PV (Present Value) $89,565
N (Number of Periods) 8.000
I/Y (Interest Rate) 7.000%
PMT (Periodic Receipts) $15,000.00
b) Calculation of Present value of $15,000 with the annuity factor of 5.971 (7% interest for 8 years):
Present value of $15,000 * 5.971
= $89,565
c) Calculation of Present value of $150,000 at the end of 8 years at 7% interest:
Present value of $150,000 * 0.582 = $87,300
d) Total present value of the investment:
Annuity Present value = $89,565
Present value of lump sum = $87,300
Total investment PV = $176,865
Investment is referred to as the process in which the person invests in any of the assets with the intention or the goal of generating income from the invested assets. It is the appreciation of the value of assets over a period of time.
The Present Value of the investment is = $176,865
a) Data and Calculations:
PV (Present Value) $89,565
N (Number of Periods) 8.000
I/Y (Interest Rate) 7.000%
PMT (Periodic Receipts) $15,000.00
b) Calculation of Present Value of $15,000 with the annuity factor of 5.971 (7% interest for 8 years):
Present value of \(\$15,000 \times 5.971\)
= $89,565
c) Calculation of Present Value of $150,000 at the end of 8 years at 7% interest:
Present value of \(\$150,000 \times0.582 = \$87,300\)
d) Total present value of the investment:
Annuity Present value = $89,565
Present value of lump sum = $87,300
Total investment PV = $176,865
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a plan and a well-prepared assessment can bring out areas for self-growth. knowledge, skill and a positive attitude are the driving forces for a holistic development that would direct the realization of an individuals career achievement. base on the activity above consolidate your answer by listing down the skills in each column
A prepared examination may identify opportunities for self-growth, common knowledge skills, and a positive attitude that can drive holistic development and job success.
Skills like mine are:Speaking, leading, selling, bargaining, calculating, checking, mending, inspecting, assembling, controlling, suppressing, building, and organizing.
I lack communication, data, analysis, researching, tabulating, thinking, operating, augmenting, and other talents.
What occupation suits these skills?These qualities suggest a career in business or commerce. Entrepreneurship matches my leadership, selling, assisting, bargaining, persuading, organizing, etc.
How can you improve your job skills?Analyzing, investigating, and tabulating are also useful talents for commercial companies. This occupation also requires social skills.
How do you get your desired job?A degree in advanced specialization or an MBA may help accomplish a dream career in business and commerce.
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CQ
The complete Question is attached below
Freida bought an arcade gaming system with a sticker price of $2500. She received an installment loan and will pay $150 per month for 2 years. When the loan has been paid in full, how much will Freida have paid for the arcade system?
Answer:3600
Explanation:
When the loan has been paid in full, $3600 will Freida have paid for the arcade system.
To figure out how much Freida spent for the arcade system, multiply the amount she paid each month by the number of days in two years, which is 24.
number of months in 2 years = 12 + 12
number of months in 2 years = 24
will pay $150 per month
$150 × 24 = $3600.
When the loan is paid in full, the arcade equipment will cost $3600.
As a result, the significance of the Freida have paid for the arcade system are the aforementioned.
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Type the correct answer in the box. Spell all words correctly.
How is it possible to understand the flow of data in an organization?
Conducting (blank)
with each team member makes it possible to understand the flow of data in an organization.
Answer:
A data flow diagram shows the way information flows through a process or system. It includes data inputs and outputs, data stores, and the various subprocesses the data moves through. DFDs are built using standardized symbols and notation to describe various entities and their relationships.
Explanation:
Taisha operates equipment to transfer oil from one container to another. Her job title is best described as
Spencer manages the flow of electricity through substations and distribution lines. His job title is best described as
Mariko maintains cables and supporting structures for transmitting electricity. Her job title is best described as
Fred operates equipment to transfer hydrogen through pipelines. His job title is best described as
Answer:
she would be the pump opperater
Explanation:
Answer:pump operator
Power dispatcher
Electrical power-line repairer
Gas pumping station operator
Explanation:
Question:
The owner of Tastee Cookies needs to decide whether to lease a small, medium, or large new retail outlet. She estimates that monthly profits will vary with demand for her cookies as follows:
If she feels there is a 30 percent chance that demand will be high, what is her expected payoff under certainty?
a. $1,100
b. $1,000
c. $500
d. $900
e. $1,600
If she feels there is a 30 percent chance that demand will be high, her expected payoff under is: c. $500.
How to find the expected payoff under certainty?Chance demand is Low= 100% - 30%
Chance demand is low = 70%
EMV Small = 0.7($1,000) + 0.3($1,000)
EMV Small= $1,000
EMV Medium = 0.7($500) + 0.3($2,500)
EMV Medium = $1,100
EMV Large = 0.7($0) + 0.3($3,000)
EMV large= $900
Expected monthly profit = 0.7($1,000) + 0.3($3,000)
Expected monthly profit = $1,600
Expected payoff under certainty=$1,600 - $1,100
Expected payoff under certainty= $500
Therefore the correct option is C.
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Identify and explain five contemporary approaches to the management.
A framework of management techniques based on more modern trends, such as globalization, theory Z principles, McKinsey's 7-S approach, productivity and quality challenges, is provided by Contemporary Approaches to Management.
Modern methods of managing a company include planning, making decisions, and monitoring. This is known as contemporary management. This method makes an effort to set objectives that are in line with the desires of all relevant parties, including customers, employees, and traditional investors.
Managers must decide how to organize teams of employees to complete their tasks. Managers can choose from five popular ways to departmental groupings, including functional, divisional, matrix, team, and networking.
Thus, A framework of management techniques based on more modern trends.
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Which of the following statement is TRUE?
(1 Point)
Developmental programs improve conceptual skills of managers for the future job.
Training programs improve conceptual skills of nonmanagers for the future job.
Developmental programs improve technical skills of nonmanagers for the current job.
Training programs improve technical skills of mangers for the current job.
'Developmental programs improve conceptual skills of managers for the future job' is true. The right answer is a.
The goals and content of training and development are different from one another. While "development" refers to a long-term method through which managerial personnel understand conceptual and theoretical knowledge for broad reasons, "training" is a short-term process through which non-managerial personnel acquire technical knowledge and skills for a specific purpose.
Development covers the process through which managers and executives build capacity for both future managing roles as well as skills and competence for their current ones.
The correct answer is option a.
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WBS for the knowledge area of Human/Resource Management for a low-cost housing project
Here's an example of a WBS for the knowledge area of Human/Resource Management for a low-cost housing project:
The wbs for a knowledge area of Human/Resource Management for a low-cost housing projectHuman/Resource Management
1.1 Staffing Plan
1.1.1 Define project roles and responsibilities
1.1.2 Identify required staffing resources
1.1.3 Determine the project team structure
1.1.4 Develop a staffing plan and budget
1.2 Recruitment and Selection
1.2.1 Create job descriptions and specifications
1.2.2 Advertise and promote job openings
1.2.3 Review resumes and conduct initial screenings
1.2.4 Conduct interviews and select candidates
1.2.5 Perform background checks and reference checks
1.2.6 Extend job offers and negotiate terms
1.3 Training and Development
1.3.1 Assess training needs for project team members
1.3.2 Develop a training plan and schedule
1.3.3 Conduct training sessions and workshops
1.3.4 Provide on-the-job training and mentoring
1.3.5 Evaluate training effectiveness and adjust as needed
1.4 Performance Management
1.4.1 Set performance expectations and goals
1.4.2 Monitor and assess individual and team performance
1.4.3 Provide feedback and coaching to improve performance
1.4.4 Conduct performance appraisals and evaluations
1.4.5 Identify and address performance issues or conflicts
1.5 Resource Allocation
1.5.1 Identify project resource requirements
1.5.2 Allocate resources based on project needs
1.5.3 Monitor resource utilization and availability
1.5.4 Optimize resource allocation to meet project objectives
1.6 Stakeholder Management
1.6.1 Identify project stakeholders and their interests
1.6.2 Develop a stakeholder engagement plan
1.6.3 Communicate and manage stakeholder expectations
1.6.4 Address stakeholder concerns and resolve conflicts
1.6.5 Maintain positive relationships with stakeholders
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Design Thinking is the discipline of developing solutions to create significant
value for clients by keeping end user experience at its core.
True or False?
Ming is visiting her company's headquarters in Germany, which has a highly assertive culture. She is likely to observe her coworkers
Answer:
D: using competitive language when evaluating ideas
Explanation:
Choices seem to be ...
A: using subtle, indirect language in meetings.
B: allowing silence to linger in meetings.
C: expressing respect for others but letting issues go unresolved.
D: using competitive language when evaluating ideas.
E: expressing themselves in controlled, measured ways.
__
"Assertive" meaning "showing a confident or forceful personality", we don't expect subtle, or controlled language; nor do we expect lingering silence or unresolved issues. We expect choice D to be most likely.
why do you think isd process is a useful model. give reasons for your answer
Answer:
IDrk...
Explanation:
ISD can be thought of as a roadmap that helps to ensure the learners and their organization achieve their learning and performance goals through formal, nonformal, and informal environments.
Farris Company reported the following information for its two products:
Product X Product Y
Selling price per unit
$ 25 $35
Variable cost per unit
15 20
Due to labor constraints, demand for each of the products is greater than its supply. Product X requires one hour of labor to produce and product Y requires three hours of labor to produce. Which of the following statements is true?
Answer: To determine which statement is true, we need to compare the contribution margin per unit of each product. The contribution margin is the amount by which the selling price exceeds the variable cost per unit, and it represents the amount of revenue available to cover fixed costs and contribute to profit.
Explanation: The contribution margin per unit for each product is calculated as follows:Product X: $25 selling price - $15 variable cost = $10 contribution margin per unitProduct Y: $35 selling price - $20 variable cost = $15 contribution margin per unitHowever, since Product Y requires three times as much labor as Product X, we need to consider the contribution margin per hour of labor:Product X: $10 contribution margin / 1 hour of labor = $10 contribution margin per hour of laborProduct Y: $15 contribution margin / 3 hours of labor = $5 contribution margin per hour of laborTherefore, the true statement is that Product X has a higher contribution margin per hour of labor than Product Y. Even though Product Y has a higher total contribution margin per unit, it requires more labor to produce, which reduces its contribution margin per hour of labor. As a result, if there is a labor constraint, it may be more profitable to produce more units of Product X rather than Product Y.
Im Doing A resume and they Need A real legit credit Card Number and Cvc ANd when it expires For My resume It's worth 100% of my grade Plz helps
Answer:
alex do u realize ur question is litterally against the law
Explanation:
quit being a j erk, and lets talk this out
Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,700, what dollar amount of sales must be made to produce the target income
Answer: 189400
Explanation:
The dollar amount of sales that must be made to produce the target income would be:
= (Fixed costs + Target profit) / Contribution margin ratio
= (80000 + 14700) / 50%
= 94700 / 50%
= 94700 / 0.5
= 189,400
On January 1, 2018, the Chaucer’s Restaurant decides to invest in Lake Turner bonds. The bonds mature on December 31, 2023, and pay interest on June 30 and December 31 at 4% annually. The market rate of interest was 4% on January 1, 2018, so the $90,000 maturity value bonds sold for face value. Chaucer’s intends to hold the bonds until December 31, 2023.
Required:
a. Journalize the transactions related to Chaucer’s investment in Lake Turner bonds during 2018.
b. In what category would Chaucer’s report the investment on the December 31, 2018, balance sheet?
Answer:
a)
January 1, 2018
Dr Investment in bonds 90,000
Cr Cash 90,000
June 30, 2018
Dr Cash 1,800
Cr interest revenue 1,800
December 31, 2018
Dr Cash 1,800
Cr interest revenue 1,800
b) This investment must be reported under long term assets since they are classified as Held to Maturity.
How does an understanding of management and organizational behavior lead to organizational effectiveness and efficiency
Answer: Understanding the organizational behavior and management can lead to effectiveness and efficiency.
Explanation:
Each and every organization have a proper set of rules and regulations that helps in running the organization effectively.
The goals can be achieved only when the organizational behavior and management is made clear to the employees.Understanding the work make the work done in a effective manner.
The efficiency of the organization is increased by doing the work with the better understanding of the management and organizational behavior.
_____ refers to how people act when they're purchasing products to use either directly or indirectly to produce other products.
Prepare the journal entries to record the following transactions of Wildhorse Company's books under a perpetual inventory system. Clarify which are debit and which are credit.
(a) On March 2nd, Windsor Company sold $854,200 of merchandise to Wildhorse Company on account, terms 2/10, n/30. The cost of merchandise sold was $517800.
(b) On March 6th, Wildhorse Company returned $109800 of the merchandise purchased on March 2nd. The cost of the merchandise returned was $66800.
(c) On March 12th, Windsor Company received the balance due from Wildhorse Company.
a) Credit Inventory for $517,800
b) Debit Inventory for $66,800
c) Credit Accounts Receivable (or Trade Receivables) for the same amount
(a) The journal entry to record the sale of merchandise from Windsor Company to Wildhorse Company on March 2nd would be:
Debit Accounts Receivable (or Trade Receivables) for $854,200
Credit Sales Revenue for $854,200
Debit Cost of Goods Sold for $517,800
Credit Inventory for $517,800
The debit to Accounts Receivable represents the amount owed by Wildhorse Company for the merchandise purchased on account. The credit to Sales Revenue recognizes the revenue generated from the sale. The debit to Cost of Goods Sold recognizes the cost of the merchandise sold, and the credit to Inventory reduces the inventory balance as the goods are no longer in stock.
(b) The journal entry to record the return of merchandise by Wildhorse Company on March 6th would be:
Debit Sales Returns and Allowances for $109,800
Credit Accounts Receivable (or Trade Receivables) for $109,800
Debit Inventory for $66,800
Credit Cost of Goods Sold for $66,800
The debit to Sales Returns and Allowances reduces the revenue from the original sale. The credit to Accounts Receivable reduces the amount owed by Wildhorse Company for the returned merchandise. The debit to Inventory increases the inventory balance as the goods are returned to stock, and the credit to Cost of Goods Sold reduces the cost of the merchandise originally sold.
(c) The journal entry to record the payment received by Windsor Company on March 12th would be:
Debit Cash (or Bank) for the amount received from Wildhorse Company
Credit Accounts Receivable (or Trade Receivables) for the same amount
The debit to Cash represents the inflow of funds from the customer's payment. The credit to Accounts Receivable reduces the amount owed by Wildhorse Company, reflecting the settlement of the outstanding balance.
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Unethical practices can take place during recruitment. Explain
Explanation:
1. Rusing :
rusing occurs when a recruiter assumes an alias during a phone call to a potential clients or candidate, Most often to convince a gatekeeper that deer call to a sincere cooperate leader is personal confident and / or urgent .
2. Double Rusing :
as with other business discipline there is a such of things as conflict of interest. for example as a recruiter at an agency, you don't recruit candidates from clients who are you to feel other jobs it's just common courtesy and common sense .
Juan is responsible for writing a contract between his company and a vendor. Arrange the tiles in the order in which Juan will complete the contract
Choose the key things to include in the contract and establish its structure by drafting an outline that arranges the clauses and provisions in the right sequence. Make a rough draft of the contract and put down all the facts. fine-tune the material, make sure it's clear, and look it over for grammar and spelling mistakes.
A sentence is a component of language that consists of a semantic predictand (expressed or not) and a semantic predicate. A typical clause comprises of a subject and a syntactic predicate, the latter of which is usually a verb phrase made up of a verb and any associated objects and modifiers. Even in languages with null subjects, other languages, and even English in the imperative mood, the subject is occasionally unvoiced if it can be retrieved from context. A simple sentence is complete when it has only one clause and one finite verb. Complex sentences have several clauses, including at least one independent clause (a clause that can stand alone as a simple sentence) coordinated either with at least one dependent clause (also known as an embedded clause) or with one or more independent clauses.
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Answer: see the picture
Explanation:
purchase goods worth rs 20000 from Shyam on credit and paid 50% in cash
Answer:
Purchases a/c dr 20000
To cash a/c 15000
To Ram's a/c 5000
what are some ways the financial crisis in 2008 could've been avoided
The financial crisis in 2008 could've been avoided in some ways by Regulating the housing market, Proper regulation banks and financial institutions, Introduction of better accounting standards, Encouraging greater transparency, and Regulating credit rating agencies.
The global financial crisis of 2008 was a significant economic event that had a far-reaching impact on the worldwide economy. The crisis resulted in the collapse of numerous leading financial institutions, which led to unprecedented losses in the stock market, a decline in economic growth, and high levels of unemployment. It is commonly believed that the crisis could have been avoided if appropriate measures had been taken at the right time.
Here are some ways the financial crisis in 2008 could have been avoided:
1. Regulating the housing market: The financial crisis of 2008 originated from the housing market collapse. Banks and financial institutions had given loans to people who could not afford them, and when the housing bubble burst, a massive number of mortgages went into default. If the government had regulated the housing market more effectively, the financial institutions would not have been able to give out loans to risky borrowers, and the housing market would not have collapsed.
2. Proper regulation of banks and financial institutions: If banks and financial institutions were regulated more effectively, they would not have been able to engage in risky financial practices that led to the crisis. Regulators would have spotted the risky activities early on and would have been able to take corrective action before it was too late.
3. Introduction of better accounting standards: During the financial crisis of 2008, banks and financial institutions engaged in creative accounting practices to hide their losses. This deception made it difficult to ascertain the real situation of the banks and financial institutions, leading to a lack of confidence in the market. If better accounting standards had been introduced, this could have been avoided.
4. Encouraging greater transparency: The financial crisis of 2008 was partly caused by a lack of transparency in the market. If regulators had encouraged greater transparency, there would have been more information available to investors, which could have led to greater confidence in the market.
5. Regulating credit rating agencies: Credit rating agencies played a significant role in the financial crisis of 2008. They gave high ratings to toxic financial products, which misled investors and led to the collapse of the market. If credit rating agencies were regulated more effectively, they would not have been able to give high ratings to risky products, and the market would have been more stable.
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The current carrying value of Lane's $800,000 face value bonds is $797,000. If the bonds are retired at 103, what would be the amount
Lane would pay its bondholders?
$824,000
$797,000
$800,000
$820,910
If the bonds are retired at 103, the amount Lane would pay its bondholders is: A. $824,000.
How to find the payment to bondholders ?Using this formula to determine the payment to bondholders
Payment to bondholders = Current carrying value × Bond rate
Let plug in the formula
Payment to bondholders = $800,000 × 1.03
Payment to bondholders = $824,000
Therefore the correct option is A.
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What is the meaning of 50k in 2018?
Answer:
50,000
Explanation:
i hope it helped ya <3
Even after Edward's listing was under contract, the seller called and asked him to present any additional offers that came in. A week before closing, an offer arrives in Edward's inbox. What should he do?
Even after Edward's listing was under contract, the seller called and asked him to present any additional offers that came in. A week before closing, an offer arrives in Edward's inbox. Present the offer to the seller.
A settlement is a legally enforceable settlement that establishes, defines, and controls the mutual rights and duties among parties. Contracts commonly consist of the switch of items, services, money, or guarantees to switch at a destiny date. A settlement, in its best definition, is a legally enforceable promise.
A promise may be to do something or now no longer to do something. A settlement calls for the mutual consent of or greater people, generally, one making the provide and the alternative accepting the alternative. For example, whilst we purchase items in a shop or pass shopping, we input right into an income settlement for something we purchase.
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Davis Manufacturing Company had the following data:
January 1 December 31
Accounts receivable $27,000 $33,000
Materials inventory 22,500 6,000
Work in process inventory 70,200 48,000
Finished goods inventory 3,000 15,000
Collections on account were $625,000.
Cost of goods sold was 68% of sales.
Direct materials purchased amounted to $90,000.
Factory overhead was 300% of the cost of direct labor.
a. Compute sales revenue (all sales were on account).
$ ___________________
b. Compute cost of goods sold.
$ ______________
c. Compute cost of goods manufactured.
$ _______________
d. Compute direct materials used.
$ ________________
e. Compute direct labor incurred.
$ ________________
f. Compute factory overhead incurred.
$ __________________
a) The computation of the sales revenue is $631,000.
b) The computation of the cost of goods sold is $429,080.
c) The computation of the cost of goods manufactured is $441,080.
d) The computation of the direct materials used is $106,500.
e) The computation of the direct labor incurred is $78,095.
f) the Computation of the factory overhead incurred is $234,285.
How are the figures above computed?The ledger accounts of the inventory accounts can help in the computation of the above figures as shown below.
Data and Calculations:January 1 December 31
Accounts receivable $27,000 $33,000
Materials inventory 22,500 6,000
Work in process inventory 70,200 48,000
Finished goods inventory 3,000 15,000
Collections on account were $625,000
Cost of goods sold was 68% of sales.
Direct materials purchased amounted to $90,000
T-Accounts:
Accounts receivable:Beginning balance $27,000
Sales (missing) 631,000
Cash collection $625,000
Ending balance $33,000
Cost of goods sold is $429,080 ($631,000 x 68%).
Materials inventoryBeginning balance $22,500
Purchases 90,000
Work in process 106,500
Ending balance $6,000
Work in process inventoryBeginning balance $70,200
Materials inventory 106,500
Direct labor 78,095
Factory overhead 234,285
Finished goods inventory $441,080
Ending balance $48,000
Finished goods inventoryBeginning balance $3,000
Work in process $441,080
Cost of goods sold $429,080
Ending balance 15,000
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brad works for a consumer products company. his job is to use information to identify and define marketing opportunities, evaluate marketing actions, and monitor marketing performance. brad's work involves
Brad works for a retailer of consumer goods. His role is to review marketing actions and track marketing results while also identifying and defining marketing prospects. Marketing research is part of Brad's work.
How does marketing research help businesses?Marketing research offers data that is important for making decisions, which helps marketing management. Both the route of action and success are not determined by marketing research. Instead, by helping to reduce the amount of uncertainty surrounding the options, market research helps.
Marketing research is the methodical gathering, logging, and analysis of qualitative and quantitative information about issues pertaining to the marketing of goods and services. Finding and analyzing how shifting elements of the marketing mix influence consumer behavior is the goal.
Market research is an organized effort to discover as much as possible about target markets and consumers, beginning with who they are. It is an important component of company strategy and a significant factor in maintaining competitiveness.
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making sound judgment is an example of practicing
Making sound judgment is an example of practicing is a false statement about sound judgement
What is sound decision-making and judgment?
One's ability to objectively assess situations or circumstances using all relevant information and applying past experience in order to reach a conclusion or make a decision is known as sound judgment and decision-making.
Why is sound decision-making important?Better and deeper decisions are made by thoroughly examining the options and potential outcomes of decisions, including discussions and reflections from others.
Why is judgment important in leadership?Making wise, well-informed decisions that result in the desired outcomes is a leader's most important role in any organization. Nothing else matters when a leader consistently acts with good judgment. Everything else has no bearing on their poor judgment.
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5 eBook Preparing a consolidated income statement For the year ended December 31, 20Y2, the operating results of Paley Corporation and its wholly owned subsidiary, Sims Enterprises, are as follows: Paley Sims Corporation Enterprises Sales Cost of goods sold Gross profit Operating expenses Operating income Interest revenue Interest expense Net income Sales 3,200,000 (1,900,000) 1,300,000 (750,000) 550,000 20,000 Cost of goods sold Gross profit Operating expenses Operating income During 20Y2, Sims Enterprises sold and received payment of $80,000 for merchandise that was purchased by Paley Corporation. The merchandise sold to Paley cost Sims Enterprises $45,000. Paley Corporatio (nonaffiliated) company for $110,000. 570,000 a. Prepare a consolidated income statement for Paley Corporation and Subsidiary. Hint: Eliminate the effect of the intercompany sale. Paley Corporation and Subsidiary Consolidated Income Statement For the Year Ended December 31, 20Y2 Other revenue and expense: Interest revenue Interest expense Net income Print Item Check My Work 900,000 (550,000) 350,000 (125,000) 225,000 (15,000) 210,000 X All work saved. Email Instructor Sav
The cost of goods sold ($1,900,000 + $45,000) is adjusted by the intercompany sale. the effect of the intercompany sale is eliminated in preparing the consolidated income statement.
Consolidated income statement is used to combine the financial statements of two or more parent company and their subsidiaries into a single financial statement. Therefore, the consolidated income statement for Paley Corporation and its wholly owned subsidiary, Sims Enterprises can be prepared as follows; Paley Corporation and Subsidiary Consolidated Income Statement For the Year Ended
December 31, 20Y2Sales $3,200,000Cost of goods sold ($1,900,000 + $45,000) 1,945,000 Gross profit $1,255,000
Operating expenses ($750,000 - $125,000) 625,000
Operating income $630,000Other revenue and expense:
Interest revenue $20,000Interest expense ($15,000 + $20,000) (35,000)Net income $615,000Note: The cost of goods sold ($1,900,000 + $45,000) is adjusted by the intercompany sale.
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