Answer:
D) They had a unilateral, express agreement.
Explanation:
In a unilateral contract, the offeror makes an express promise without a reciprocal agreement from another party. The offeror's express promise of payment requires that the other party performs.
In this case, professor Debby made an express promise to pay $50 to anyone that mowed her yard, and Max performed the yard mowing, therefore he is entitled to payment.
Debby and Max had a unilateral, express agreement, as Debby made a public offer that Max accepted by performing the requested service—mowing her yard. Unilateral contracts are bound by the completion of the task, unlike bilateral contracts, which are based on reciprocal promises.
Explanation:The appropriate characterization of the agreement between Debby and Max is D. They had a unilateral, express agreement. In the scenario described, Professor Debby made a public offer to her class stating that she would pay $50 to the first person who mowed her yard. This offer creates a unilateral contract, where performance is the only method required to accept the offer and form the agreement. Max accepted this offer through performance by mowing Debby's yard. Unlike bilateral contracts where a reciprocal promise is made, unilateral contracts involve an act in response to an offer. Despite Debby's refusal to pay, she is legally obligated to fulfill the contractual rights she created with the offer since Max completed the task. Brenda's situation is distinct and involves an express bilateral contract where she and Debby reciprocally agreed upon the services and payment before any performance.
Sweet Treats common stock is currently priced at $17.15 a share. The company just paid $1.22 per share as its annual dividend. The dividends have been increasing by 2.4% annually and are expected to continue doing the same. What is this firm's cost of equity?a. 9.41%b. 9.51%c. 8.47%d. 9.68%e. 9.82%
Answer:
cost of equity = 9.68%
so correct option is d. 9.68%
Explanation:
given data
currently priced = $17.15
paid annual dividend = $1.22
dividends increasing = 2.4% annually
to find out
firm's cost of equity
solution
we get here cost of equity by apply price equation that is express as
Price = recent dividend × ( 1 + growth rate ) ÷ ( cost of equity - growth rate) .....................1
put here value we get
$17.15 = [tex]\frac{1.22*(1+0.024)}{cost\ of\ equity - 0.024}[/tex]
solve it we get
cost of equity = 9.68%
so correct option is d. 9.68%
This type of transaction is one that a business encounters on a regular, recurring basis. The volume of the transactions is so large that transactions and the related accounting activities become second nature to the employees responsible for handling them. Specific authorization for each of these transactions is not necessary. The type of transaction referred to is:
Answer:
Routine transaction
Explanation:
Firms and organisations generally consist of various transactions on a daily basis. Some of them require specific authorisations and some do not. Those transactions which do not require specific laws or approval before the transaction is called a routine transaction. Similarly, routine transactions are payroll transactions, sales, purchases and receipts. They are done on the normal course of business, and certain specific applications are made once to account for these transactions.
Income is generated through the (1) of goods and services. In the United States, (2) of all income takes the form of wages and salaries. The remaining (3) goes to those who own the other factors of production, namely (4) and capital.
1. production
2. two-thirds
3. one-third
4. land
Answer:
Income is generated through the production of goods and services. In the United States, two-thirds of all income takes the form of wages and salaries. The remaining one-third goes to those who own the other factors of production, namely land and capital.
Explanation:
Production is the process of making goods and services available for sale. It involves the creation of products that seek to address the needs and wants of consumers. Businesses make money by providing the solutions at a fee called the price.
In the US, three out of ten jobs are held by self-employed people. The other seven out of ten are, or two-thirds are employed. Employees usually receive salaries or wages as compensation for their labor. The self-employed own the factor of production and will earn profits and dividends as rewards for their entrepreneurship.
Land is one of the four a factor of productions. Land as a factor comprises of fertile farmland used for agriculture, naturally occurring resources, mineral, oil and gas and land where commercial buildings and business are set-up.
the effort to inform, persuade, or remind potential customers about a business's products or services is known as
Promotion
Selling
Marketing
Marketing Information Management
Answer:
The right answer is Promotion.
Explanation:
Following term can be described as
Promotion: Promotion is a term which comes under marketing, and states the concept of giving information about any new product or service to the potential customers.
Selling: The concept to sell any product or service is known as selling.
Marketing: The concept of promotion and selling of products and services by different means i.e advertisement, door to door, etc. is known as marketing.
Marketing Information Management: The concept of reviewing and managing the data comes from marketing to make further strategies is known as Marketing Information Management.
Hence according to the scenario, the most appropriate answer is Promotion because it gives only information about the company's product or service.
According to Federal Regulations, the SEC would have to issue an exemptive order before a mutual fund may
[A] Adopt a 12b-1 plan.
[B] Change its investment objectives
[C] Employ as an investment adviser a person who has been convicted within the past 10 years of a crime involving the securities business.
[D] Do any of the above
Answer: The correct answer is "[C] Employ as an investment adviser a person who has been convicted within the past 10 years of a crime involving the securities business.".
Explanation: According to Federal Regulations, the SEC would have to issue an exemptive order before a mutual fund may employ as an investment adviser a person who has been convicted within the past 10 years of a crime involving the securities business.
Valerie is in the business of selling toys. She has noticed that the sale of toys increases on long holiday weekends. She has instructed her staff to work for extra hours on these days to manage the demand. What strategy is Valerie using to adjust her capacity to the demand?
Valerie is using the _____ strategy to adjust the capacity to the demand.
There are not any multiple choice
Answer:
match strategy
Explanation:
The match strategy in capacity planning refers to the fluctuating capacity that is altered at times in order to meet a particular demand. Since Valerie increases the staff work hours (labor capacity) during the time of increased demand (weekend), she is using the match strategy, which is sometimes called adjustment strategy.
Answer: control strategy
Business Cycles can be divided between the ________, the maximum points of economic activity, and the troughs, the lowest points of business activity.
Answer:
Peaks
Explanation:
In a business cycle, which comprises of a series of high economic activity periods and low economic activity periods, the maximum points of economic activities are called peaks while the lowest points are called troughs.
At peak economic activity, GDP growth is usually the highest in the business cycle and is accompanied by very high employment rate.
Which of the following are employer requirements for safety training and education?
Answer:
The secretary shall pursuant to section 107 (f) of the act, establish and supervise programs for the education and training of employees in the recognition, avoidance and prevention of unsafe conditions in employments covered by the act
Explanation:
The secretary shall pursuant to section 107 (f) of the act, establish and supervise programs for the education and training of employees in the recognition, avoidance, and prevention of unsafe conditions in employments covered by the act.
Prime Contractor: Has overall responsibility for compliance with OSHA regulations.
Subcontractor: Assumes responsibility for his or her portion of work
Both prime and subcontractor: have responsibility for complying with OSHA regulations
Either prime or subcontractor: can enter into an agreement to fulfill specific OSHA obligations on a job site basis.
Who is required by OSHA to conduct employee training?The employer shall provide a training program for each employee who might be exposed to fall hazards. The program shall enable each employee to recognize the hazards of falling and shall train each employee in the procedures to be followed in order to minimize these hazards.
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Paul, who runs a retail jewelry store, went with Jane, to whom he was engaged to be married, to a wholesale jewelry store. Paul had no express, written agreement with Jane by which she was his agent. The wholesaler jeweler, Pam, asked Paul if Jane was buying for him. Paul did not want to embarrass Jane so he nodded in agreement. A few minutes later Paul whispered to Jane, outside the hearing of the wholesaler, that she should not make any purchases. Paul and Jane had a big disagreement over money that evening, and Jane broke off their engagement. The next day Jane went back to the wholesale jeweler and purchased a string of pearls for $2,000. Jane also purchased a fur jacket for $3,000 from a store, owned by Harry, that was next door to the jewelry store. She told Harry that Paul wanted a fur for a model in his store and that Paul would be glad to pay Harry for the jacket.Which of the following is the most likely result if Pam, the wholesaler jeweler, sues Paul for the price of the pearls?A. Pam will lose because it was her responsibility to ask Paul for written documentation that Jane was his agent.B. Pam will win only if she can show that through reasonable investigative efforts on her part Jane cannot be located.C. Pam will win assuming that she can prove that she reasonably believed, based on Paul's conduct, that Jane was acting as his agent.D. Pam will win only if she can show that Jane has no assets with which to pay for the necklace.E. Pam will lose unless it can be established that Jane at some time in the past had actual authority to act as Paul's agent.
Answer:
C) Pam will win assuming that she can prove that she reasonably believed, based on Paul's conduct, that Jane was acting as his agent.
Explanation:
A principal-agent relationship can be created through expressed agency, implied authority, apparent agency, and ratification.
When the principal leads a third party to believe that someone is acting as his/her agent, it is called apparent agency. Apparent agency is valid even if the principal has made no agreement with the "agent".
Therefore if Pam can prove that Paul lead her to believe that Jane was in fact working for him, then Pam will win the lawsuit.
Which method of entering international markets generally involves the least risk?
Answer:
Exports: Exporting your products directly to the international market is the least riskiest methods for the organisations in going global and reaching international customers.
Explanation:
Why organisation goes in the international markets
An organisation enters in the international market to expand its operations, increase its sales, consequently, increase profits.
Possible available methods to enter international markets
There are many possible methods available by which an organisation can enter in the international Markets, which are manifested below:
1: Exporting your own products to international market
In this method, an organisation produce their own products locally in their own premises and factories and start sending and selling them to the other markets worldwide.
2: Hiring agents in the international market or having contracts with them
In this method, an organisation tries going international by contacting some foreign agents. Afterwards, it depends whether to hire them temporarily or permanently, or to have some mutual contract with them for selling their products in that market. Moreover, it also depends if they want to get their product manufactured in that country or not.
3: Going global by Franchising/Licencing, Strategic Alliance, Joint Venture or opening Foreign Subsidiary directly.
Here, organisation goes global by giving the exclusive rights of producing its products, using its brand name and selling them in the foreign market, by franchising/licencing. (Franchising is purely a term used for the companies who deal with the products which also needs to be manufactured, whereas, Licencing is used for the service organisation)
In strategic alliance, an organisation joins hands with other foreign organisation(s) and become business partners to achieve some agreed upon results while remaining independent entities.
In Joint venture organisations create a totally new company by pooling their resources, capabilities and expertise sharing all the profits and risks.
In Foreign subsidiary, an organisation from the local country, set up its an entirely new unit, premises and operational facilities there in the foreign country by utilizing its own resources.
Which Method is the least Riskiest and why?
As it has been manifested above that what each method entails, and what is required in each method. Exporting your goods directly from your country to the international market by having them manufactured locally is the last riskiest because you have control of your own operations, products, manufacturing facilities, quality, furthermore, no additional investment is needed to look after your foreign operations at all, therefore, much less risk is involved here in exporting as compared to the all other available methods.
Nancy bought her home last year for $425,000. Her property taxes would be assessed at:_____.A) $425B) $1,500C) $2,250D) $4,250
Answer:
$4,250
Explanation:
Property tax is 1%
$425,000 x .01 = $4,250
Without the property tax rate, we cannot accurately determine Nancy's property taxes on her home valued at $425,000. Real-world property tax calculations require the tax assessment value multiplied by the local property tax rate.
Explanation:The question asks about the property tax assessment for Nancy's home, which she bought for $425,000. However, to give an accurate answer, we would need to know the property tax rate. Without that rate, we cannot calculate the actual taxes owed. Such tax rates are usually expressed in terms of mills (one mill is equal to $1 in tax per $1,000 of assessment), and they can vary widely from one location to another.
Given the options provided (A, B, C, and D) and no tax rate specified, we cannot determine what her property taxes would be. In real-world scenarios, it's necessary to multiply the assessment value by the property tax rate to get the annual tax amount. If the student can provide a tax rate, we can apply it to the home value of $425,000 to determine the correct answer.
_________ refers to an increase in some quantity over time.
Answer:
Growth
Explanation:
Growth is an increase in quantity and complexity of an organism over time.
In cells, growth occurs by a process known as mitosis. Mitosis is when a cell reproduces identical daughter cells.
I hope my answer helps you.
Nutrimax Corp., a breakfast cereal company, has designed extensive and elaborate advertising campaigns for its existing products. The campaigns mainly focus on the features and benefits of the products that differentiate the cereals from the competition. Nutrimax Corp. is most likely to be using which of the following strategies?
a. Market penetrationb. Product developmentc. Product proliferationd. Market developmente. Capacity control
Answer:
a. Market penetration
Explanation:
Market penetration strategy is a product promotion approach through which a company seeks to gain a greater share in markets it already operates. The strategy is used to increase sales volumes in existing markets.
Market penetration applies where similar goods and services exist. A company uses the low-price technique or present its products as superior as compared to those of its rivals. The objective is to draw customers' attention to the company's products. Advertising using special features and benefits presents the products as unique and superior, thereby attracting customers' attention.
Which of the following statements is true when it comes to taking a business online?
A Stick to what you are doing and don’t make changes
B The same content works across online and offline platforms
C Use analytics to make informed decisions
D Use analytics to track your customers across the internet
Answer: Use analytics to make informed decisions.
Explanation:
Analytics are accurate records taken by organizations which are carefully analysed and used for decision making.
When taking a business online, consumer purchase behavior can be taken record of, properly analysed and then used to make decisions on improvement in the business.
The correct statement is to use analytics to make informed decisions. Analytics are vital for understanding customer behavior and refining online strategy, unlike offline content which may not translate effectively online.
Explanation:The statement that is true when it comes to taking a business online is C: Use analytics to make informed decisions. In the context of business, it's crucial to analyze data to understand customer behavior and market trends. Leveraging analytics allows businesses to gain insights into their operations and make decisions that are informed by actual data rather than guesswork. The use of analytics is not limited to tracking customers but enables a company to refine its strategies, operations, and content for online platforms. This is important as it's a misconception that the same content or approach that works offline will be effective online.
In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of the ____ in Porter's model.
a. related and supporting industries
b. demand conditions
c. strategy, structure, and rivalry among firms
d. factors of production
Answer:
A. related and supporting industries
Explanation:
In France, industries related to high fashion have been established since the 18th century. This creates a positive feedback loop in which the participants compete amongst themselves, but also support each other, for example, forming econmies of scale and supply chains.
In 2021, it was discovered that Hines 55 had debited expense for the full cost of an asset purchased on January 1, 2018. The cost was $24 million with no expected residual value. Its useful life was 5 years and straight-line depreciation is used by the company. The correcting entry assuming the error was discovered in 2021 before the adjusting and closing entries includes:a.A credit to accumulated depreciation of $14.4 millionb.A debit to accumulated depreciation of $9.6 millionc.A debit to retained earnings of $9.6 milliond.A credit to an asset of $24 million
Answer:
A) A credit to accumulated depreciation of $14.4 Million
Explanation:
The complete journal entry should be:
Dr Asset XXX account 24,000,000Cr Accumulated Depreciation account 14,400,000Cr Retained Earnings account 9,600,000
First of all the asset must be recorded at full value.
Accumulated depreciation would be credited for 3 years = ($24 / 5) x 3 = $4.8 x = $14.4
Since the depreciation expense lowered the net profits during 2018, the retained earnings must be adjusted for the remaining value = $24 - $14.4 = $9.8
In each of the following cases, determine how much GDP and each of its components is affected (if at all).
A. Debbie spends $300 to buy her husband dinner at the finest restaurant in Boston.
B. Sarah spends $1200 on a new laptop to use in her publishing business. The laptop was built in China.
C. Jane spends $800 on a computer to use in her editing business. She got last year’s model on sale for a great price from a local manufacturer.
D. General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.
Debbie's expenditure, Jane's computer purchase, and General Motors' unsold cars contribute to the GDP. Sarah's laptop does not contribute because it's an import.
Explanation:In Gross Domestic Product (GDP) calculations, consumer expenditure on goods and services, and business investment, all produced within the nation's borders are counted. Imports are excluded, and unsold inventory is treated as business investment.
Debbie spending $300: This is a consumer expenditure and contributes directly to GDP.Sarah spends $1200 on a laptop: Since the laptop was built in China, this is counted as an import and not included in GDP.Jane spending $800 on a local computer: This is both a consumer expenditure and a business investment since it's used in her business. Hence, it directly contributes to GDP.General Motors building more cars than consumers purchase: The unsold cars will count as inventory investment and add to GDP.Learn more about Gross Domestic Product here:https://brainly.com/question/14768180
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A. $300 increase in consumption expenditure.
B. $1200 increase in investment expenditure.
C. $800 increase in investment expenditure.
D. $30 million decrease in GDP due to unsold inventory.
Let's analyze each case:
A. Debbie spending $300 on dinner at a restaurant represents consumption expenditure, a component of GDP. It increases GDP by $300.
B. Sarah's purchase of a laptop for her business is investment expenditure, another component of GDP. It increases GDP by $1200, even though the laptop was built in China, as it contributes to domestic economic activity.
C. Jane's purchase of a computer is also investment expenditure, increasing GDP by $800. Even though it was on sale and from a local manufacturer, it still contributes to domestic economic activity.
D. General Motors' production of cars adds to GDP as part of investment expenditure, but when consumers only buy $470 million worth of them, this results in unsold inventory, impacting GDP negatively by the difference of $30 million.
All of the following factors will affect the market rent on an office building except:
a. Median income of families in the property's location
b. Demographic makeup of the area's population
c. How likely it is that shopping will locate to the area
d. Availability of homes or condominiums to purchase in the local area
Answer:
c. How likely it is that shopping will locate to the area
Explanation:
Market rent refers to the potential amount in which a property can be rented in a specific area. This value is affected by different factors like the earnings of people living in the area, the properties available, the characteristics of people living there, all of which will motivate people to be interested in living there or not which can increase or decrease the price that someone will be willing to pay. According to this, the factor that won't affect the market rent on an office building is how likely it is that shopping will locate to the area .
Describing a topic, idea, or concept you find so engaging that it makes you lose all track of time. Why does it captivate you? What or who do you turn to when you want to learn more?
Answer:
Strategic Warfare
Explanation:
The objective behind strategic warfare is to utilize infantry, artillery, naval forces and air defense to give a massive blow to the enemy. It’s about using all these military divisions to complement each other, advance across terrains, weaken enemy defense and surge into their territory.
Its mesmerizing as it is a lethal combination of art and skill. The complexity and resilience of warfare coupled with the use of technology to surprise the enemy, is what amaze me. I turn to documentaries, books, news and even conversations with war veterans.
Recently I am watching a documentary comprising major events of World War 2, on Netflix. I often visit museums to study memoirs and the history behind them. I often talk to my grandparents and their friends who were directly or indirectly involved with war or any other combat.
Which NIMS Management Characteristic includes developing and issuing assignments, plans, procedures, and protocols to accomplish tasks?
A. Manageable Span of Control
B. Comprehensive Resource Management
C. Modular Organization
D. Management by Objectives
Management by objectives includes developing and issuing assignments, plans, procedures and the protocols to accomplish the tasks.
Answer: Option D
Explanation:
NIMS stands for National Incident Management System. NIMS is responsible for providing nation wide frame work and the approach to enable the government at all the levels which are the Federal, state and the local level of Government.
Among the Management characteristic of the NIMS, Management by objectives is responsible for developing the assignments. Along with this it also issues the assignments which are made to achieve certain important tasks. It makes plans and the protocols which are the rules and regulations required to accomplish the tasks. These are done with the help of proper procedures and it has to be followed.
NIMS Management Characteristic includes developing and issuing assignments, plans, procedures helps management by Objectives.
What is National Incident Management System?This is a body put together by American government to help management incident such as disaster including natural.
There are several characteristic that helps to ensure efficient running of the system to accomplish the necessary objective and goal.
Therefore, NIMS Management characteristic includes developing and issuing assignments, plans, procedures helps management by Objectives.
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U.S. cola companies entered the global market because of:
a. an increase in the return on investment from their U.S. bottling plants.
b. lower labor costs in the emerging markets.
c. limited growth opportunities in their domestic market.
d. economies of scale that offset research and development costs.
Answer:
C. limited growth opportunities in their domestic market.
Explanation:
U.S. cola companies entered the global market because of limited growth opportunities in their domestic market.
You are considering purchasing an office building for $1,800,000. You expect the potential gross income (PGI) in the first year of operations to be $350,000; vacancy and collection losses to be 7 percent of PGI; and operating expenses and capital expenditures to be 35 percent of effective gross income (EGI). What is the implied first year overall capitalization rate
a) 9.50%
b) 10.26%
c) 10.49%
d) 11.75%
e) 13.20%
Answer:
D) 11.75%
Explanation:
The overall capitalization rate is calculated by dividing net income by the fair market value of the asset.
net income = effective gross income - operating expenses
effective gross income = potential gross income - vacancy and collection losses = $350,000 - ($350,000 x 7%) = $325,500
net income = $325,500 - ($325,500 x 35%) = $211,575
capitalization rate = $211,575 / $180,000 = 11.75%
Assume that Jimmy Cash has $2,300 in his checking account at Folsom Bank and uses his checking account card to withdraw $230 of cash from the bank’s ATM machine. Instructions: Enter your answer as a whole number. By what dollar amount did the M1 money supply change as a result of this single, isolated transaction?
Answer:
net change is 0
Explanation:
M1 type of money include cash and checking amounts. Jimmy withdraw $290 amount of money from account card by using bank ATM. Hence check able deposited is 2300 - 230 = $2070. This will decrease in M1 but the cash amount is also increases by some amount of $2300 therefore M1 again increase to same amount i.e. $2300. overall there is no change in M1 i.e net change is 0
Final answer:
The M1 money supply remained unchanged when Jimmy Cash withdrew $230 from his checking account, as the funds simply moved from one component of M1 to another without affecting the total.
Explanation:
When Jimmy Cash withdraws $230 from his checking account using an ATM, the M1 money supply does not change because the transaction involves shifting funds from one form of M1 (checkable deposits) to another form of M1 (currency in circulation). The definition of M1 includes both checkable deposits and physical currency; thus, when funds are transferred from a checking account to cash, there is no net change in the total M1 money supply.
A music store charges $18.50 for a CD plus a 0.5% city tax and a separate 4% state tax. a. How much will you pay for the CD
Answer:
we pay for the CD is $19.33
Explanation:
given data
CD charge = $18.50
city tax = 0.5%
state tax = 4%
solution
we pay for the CD with combine of all charge as
Price of CD = charges + city tax + state tax .......................1
put here value we get, Price of CD that is
Price of CD = $18.5 + ( 0.5% ×$18.50 ) + ( 4% ×$18.50 )
Price of CD = $18.5 + $0.0925 + $0.74
Price of CD = $19.3325
so we pay for the CD is $19.33
How much cash MUST a buyer furnish in addition to a $2,500 deposit if the lending institution grants a 90% loan on an $80,000 property?
Answer:
$5,500
Explanation:
The computation of the cash required is shown below:
= Loan amount on property × remaining percentage - additional deposit
= $80,000 × 10% - $2,500
= $8,000 - $2,500
= $5,500
The remaining percentage would be
= Percentage - given percentage
= 100% - 90%
= 10%
The difference which comes is the cash requirement after considering the loan amount and the additional deposit
Green business parks can be an effective tactic of reducing waste by encouraging occupants toward a cycle of waste from one organization serving as input for another.
Answer:
True
Explanation:
Green business parks is the new manner to eradicate waste completely.It will make the earth green and less polluted. As nowadays we are facing with lot many diseases that are mainly the reason of waste that are not able to disposed safely leaving behind many harmful effects on human health.
These parks should be there in the areas that are full of greenery so that the waste disposed can be easily eradicated and no harm should be there on the life of any species on earth. This will be useful for both the human and the earth. These kind of innovations should be made as we don't know how our future will be so As to make our future healthy and safe we should encourage the occupants towards a cycle of eradicating waste.
Chad incurred capital gains and losses during the current year. He has a $7,000 net short-term capital gain; a $14,000 long-term capital loss in the 15% category; and a $10,000 long-term capital gain taxed at 28%. How will these transactions be taxed after the gains and losses are combined?
Answer:
$3,000 of net short-term capital gain will be taxed at marginal rates
Explanation:
The $14,000 long-term capital loss will offset the $10,000 long-term capital gain. The remaining $4,000 long-term capital loss can offset some of the net short term capital gain: $7,000 - $4,000 = $3,000
Which sentence correctly describes the GDP of a country? Ava is an assistant to a bureaucrat. She is preparing a report on the GDP of the country.
(She finds that the GDP is low this year.)
(She concludes that the country’s output of goods and services is very high.)
(She uses the income-based approach to calculate the GDP.)
(According to the approach, she considers the expenses incurred annually as the GDP.)
(She classifies the earnings of partnership firms as mixed income.)
(She categorizes employee wages as operating surplus.)
Final answer:
The GDP of a country measures the total economic activity and includes the monetary value of all goods and services produced within a given year. The GDP can be calculated using the Expenditure Approach by totaling spending on goods and services, or the National Income Approach by adding up all the income earned. A low GDP indicates a lower economic performance, not a high one.
Explanation:
The Gross Domestic Product (GDP) of a country is a comprehensive measure of its economic activity. It represents the total monetary value of all goods and services produced within a country's borders in a given year. There are several ways to calculate GDP, with two primary approaches: the Expenditure Approach and the National Income Approach.
The Expenditure Approach sums up total spending on final goods and services in the economy. On the other hand, the National Income Approach adds up all the income earned by factors of production, which includes wages and salaries for labor, interest and dividends for capital, rent for land, and profit to entrepreneurs.
Accordingly, it is incorrect to conclude that the country's output of goods and services is very high if the GDP is found to be low. Instead, a low GDP suggests that the country's economic production and performance are not at their full potential. Moreover, classifying the earnings of partnership firms as mixed income is correct, but employee wages should not be categorized as operating surplus—they are part of the compensation of employees.
Final answer:
The GDP of a country is a measure of its economic activity within its borders and can be calculated using either the income or expenditure approach, where a low GDP suggests a lower output of goods and services. GDP can be calculated by summing up total incomes of the factors of production or by adding consumption, investment, government spending, and net exports (GDP = C + I + G + (X - M)). Expenses incurred are not considered part of GDP.
Explanation:
The Gross Domestic Product (GDP) of a country can be described in many ways, but fundamentally, it is a measure of the economic activity within a country's borders. Ava, as an assistant to a bureaucrat working on a report regarding GDP, might conclude that if the GDP is low, it suggests that the country's output of goods and services is relatively low, not high. To calculate GDP, Ava could use different methods, including the income-based approach or the expenditure approach. The former totals up all incomes earned by factors of production (labor, capital, etc.) within a country during a year, and may classify the earnings of partnership firms as mixed income, whereas employee wages are usually categorized as compensation of employees, not operating surplus.
Using the expenditure formula GDP = C + I + G + (X - M) helps in understanding the contribution of consumption (C), investment (I), government spending (G), and net exports (X - M) to the GDP. It is important for Ava to know that the GDP measures the value of goods and services produced and does not directly include expenses as they are not a measure of output.
Lisa Smith decided to start her CPA practice as a professional corporation, Smith CPA, PC. The corporation purchased an office building for $35,000. The real estate agent said the building was worth $50,000 in the current market. The corporation recorded the building as a $50,000 asset because Lisa believes that is the real value of the building. Which of the following concepts or principles of accounting is being violated? A) cost principle
B) economic entity assumption
C) monetary unit assumption
D) going concern assumption
Answer:
A) cost principle
Explanation:
Cost Principle is a fundamental guideline in accounting. It states that assets should be recorded in it's cash amount or it's equivalent at the time of purchase. In this scenario, the corporation(Smith CPA, PC) ignored this fundamental principle and decided on a figure which didn't reflect the value paid for.
$35,000 is the cash value and should be recorded as the vlue of the building.
Of the seven different personality dimensions (Big Five, locus of control, self-monitoring) which is most important to organizational leadership? How might they depend on position, for example, an accounting manager versus a director of graphic arts within the same organization?
Answer:
The Big Five
Explanation:
The Big Five personality dimension can explain the personality traits needed for specific job positions. The five traits are: neuroticism, agreeableness, extraversion, conscientiousness, and Openness.
An accounting manager should score high on conscientiousness because accounting requires a great degree of attention to detail and putting long hours working on difficult activities.
A director of graphic arts should score high on openness because this trait is related to creativity, and a graphic art director should be above all a creative person able to develop his own artistic expression that at the same time benefits the company.