Answer: Make sure consumers understand the theme behind its repositioning.
Explanation:
When a company undergoes repositioning, the company is trying to change the way it's been viewed by members of the public.This changes in public perception of the company, would also affect the internal structure of the repositioned company.
An example of a company undergoing repositioning is when a company opens up more branches across different locations for their firm.
Advertising makes it possible for the public to be aware of the repositioning activities a company is carrying out.
Solutions to the moral hazard problem include:
a. monitoring and enforcement of restrictive covenants
b. greater reliance on debt contracts than financial intermediatries
c. greater reliance on.
d. equity contracts and less on debt cotracts
e. low net worth
Answer: Option a
Explanation: In economics, when someone raises their risk exposure when covered, moral hazard happens, particularly when an individual takes unnecessary risks because someone else bears the burden of all those losses.
Thus, the insuring party should enforce and monitors some restrictive covenants. Restrictive covenants refers to the agreement specifying some acts that the insured party must not do or else the potential benefits he or she is willing to get will be revoked.
Hence from the above we can conclude that the correct option is A.
Whenever Claudia helps Dr. Stevens with his records, he manages to brush against her chest. She has spoken to her manager about this, requesting help to stop this behavior, but nothing is being done. For Claudia, this may constitute an example of what type of sexual harassment?
Answer:
This is an example of a Hostile Work Environment.
Explanation:
Sexual harassment is commonly defined as advances of a sexual nature that are unwanted. They may include remarks of a sexual nature, sexual demands etc. It is also a form of discrimination that breaches Title VII of The Civil Rights Act of 1964.
The Equal Employment Opportunity Commission (EEOC) classifies harassment of a sexual nature into two(2) namely;
i) Quid Pro Quo
ii) Hostile Work Environment.
Quid Pro Quo; Is Latin for something for something. This involves out-rightly expressed or suggestive demands for sexual favors in exchange for some sort of benefit.
Hostile Work Environment; This occurs when a co-worker makes repeated sexual comments or advances which in turn creates a toxic work environment.
For Claudia, this is a perfect example of a Hostile Work Environment.
Increasing the federal tax on gasoline would cause shipping costs in the United States to increase:________
Answer:
Positively
Explanation:
In the e-commerce sector, consumers would often feel the effects of an increase in Federal gas tax since the shipping cost of products they purchase would be based on the prices of gasoline.
In effect, retailers of these products would transfer the increased shipping cost of this products resulting from higher gas tax to the consumers.
"Forcing insureds to sue the insurer to collect on a claim by offering substantially less than the amount eventually recovered is a violation of the:"_________.
Answer:
Unfair Claims Settlement Practices Act
Explanation:
Here fundamentally, the act which will be acted on the given sentence is generally known as Unfair Claims Settlement Practices Act. Unfair claims practice is the inappropriate restraint of a request by an insurer or an endeavor to diminish the intensity of the claim. By interlacing in unfair claims practices, an insurer strives to diminish its values. Nevertheless, this is unlawful in various jurisdictions. Additionally, most maximum states possess formulated a version of this type of rule. Denominated essentially the Unfair Claims Settlement Practices Act, it defends safeguard consumers from the unfair manner by insurers in the appeals settlement method.
a _____ savings account pays interest and allows for a regular deposits and withdrawals
Answer:
Regular savings account
Explanation:
One requires to commit small amounts of income each month on a regular savings account.
In exchange for providing your savings provider a fixed level of income every month, they normally pay you a higher rate of return than, for instance, if you invest a lump sum in a cash ISA or easy access account.
However, the best regular savings rates also exceed the prices on the longer fixed-rate offers offered.
This type of account has rigorous terms of service that may cause you to lose your competitive rate if you fail to adhere to them.
The biggest and most important differences among the competitive strategies of different companies boil down to:_______A. How they go about building a brand name image that buyers trust and whether they are a risk-taker or risk-avoiderB. The different ways that companies try to cope with the five competitive forcesC. Whether a company's market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation
Answer:
C) Whether a company's market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation.
Explanation:
A company's competitive strategy is how they plan to gain competitive advantage. In order to elaborate and carry on a competitive strategy the company must decide whether it will:
target a broad or narrow market (e.g. mass markets or niche markets)offer low cost products or differentiated products (e.g. branded or generic medicines)The biggest differences in competitive strategies among companies are their approaches to the five competitive forces, their market target (broad or narrow), and whether they focus on cost leadership or differentiation. Also, their risk-taking tendencies play a role in shaping their strategies.
Explanation:The largest and most significant distinctions among the competitive strategies of various firms can be boiled down to their techniques for dealing with the five competitive forces, the kind of market target they have (broad or narrow), and whether their strategy focuses on cost leadership or differentiation.
A company can be a cost leader by offering products or services at a lower cost than competitors, or by differentiating itself by offering unique and superior value. Also, whether a firm is a risk-taker also plays a significant role. Risk-seekers often take bold steps to gain a competitive edge over their rivals, while risk-avoiders prefer less risky strategies.
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Equipment purchased for $85,000 on January 1, 2010, was sold on July 1, 2013 for $30,000. The company uses the straight-line method of computing depreciation, assuming a five year useful life and no salvage value. When recording the sale, the company should record a debit to Accumulated Depreciation for:
A) $51,000
B) $59,500
C) $68,000
D) Nothing; Accumulated Depreciation is not debited.
E) None of the above
Answer:
B) $59,500
Explanation:
The equipment was purchased for 85,000 and has no salvage value which means that all 85,000 will be depreciated over it lifetime. It has a life of 5 years and because it uses straight line method it means that it will depreciate equally each year. The equipment is bought on JAN 1 2010 and sold on July 1 2013 which means that the equipment is used for 3.5 years and in order to find its depreciation we will divide 3.5 by 5 and multiply it by 85,000.
3.5/5*85,000=59,500
The reasoning behind increasing tax revenues from __________ tax rates is that people work harder and more effectively when they can keep more of their income.
Answer:
The reasoning behind increasing tax revenues from decreasing tax rates is that people work harder and more effectively when they can keep more of their income.
Explanation:
A corporate tax cut gives businesses more money to hire workers, invest in capital equipment, and produce more goods and services.
An income tax cut increases the dollars per hour worked. It boosts workers' incentive to remain employed and creates more labor. That is one of the four factors of production that drive supply. Adding to supply will allow the economy to grow. The growth in economy results in more taxes to government in total.
The general ledger shows a balance of $ 66 comma 200 in the Merchandise Inventory account at the end of the period. The physical inventory count shows inventory of $ 63 comma 000. (Assume a perpetual inventory system.) The adjusting entry includes a ________.
Answer:
The adjusting entry includes a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200
Explanation:
Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately
The adjusting entry is calculated by subtracting the physical inventory account from the merchandise inventory account
Given
Physical Inventory Account= $63,000
Merchandise Inventory Account= $66200
Adjusting Entry = Merchandise Inventory Account - Physical Inventory Account
Adjusting Entry = $66,200 - $63,000
Adjusting Entry = $3200
Frank and Lillian Gilbreth developed the principle of ___________, which said that every job could be broken down into a series of elementary motions.
A. motion economy
B. marginal productivity
C. division of labor
D. micro-motion analysis
Answer: (A) Motion economy
Explanation:
The motion economy is the term which refers to the economical movement that improve the various types of methods in an organization. It is also known as the set of rules which improve the work manually and also reduce the fatigue related to the work.
According to the given question, Frank and the Lillian Gilbert is developing the motion economy principle for breaking the job into the different elementary motions.
Therefore, Option (A) is correct.
Frank and Lillian Gilbreth developed the principle of micro-motion analysis, which breaks down every job into elementary motions for improved efficiency and productivity.
Explanation:The principle that Frank and Lillian Gilbreth developed is known as micro-motion analysis. This principle suggests that every job can be broken down into its most basic, elemental motions. These motions, when optimized and streamlined, can greatly increase efficiency and productivity in the workplace. The concept was an important contribution to modern industrial engineering and management practices. It was largely based on their time and motion studies.
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Suppose there are only two firms in an economy: Cowhide, Inc. produces leather and sells it to Couches, Inc., which produces and sells leather furniture. With each $1,000 worth of leather that it buys from Cowhide, Inc., Couches, Inc. produces a couch and sells it for $2,600. Neither firm had any inventory at the beginning of 2015. During that year, Cowhide produced enough leather for 25 couches. Couches, Inc. bought 80% of that leather for $20,000 and promised to buy the remaining 20% for $5,000 in 2016. Couches, Inc. produced 20 couches during 2015 and sold each one during that year for $2,600. What was the economy's GDP for 2015?
a. $25,000
b. $52,000
c. $57,000
d. $65,000
Answer:
C) $57,000
Explanation:
The gross domestic product is the total production of final and legal goods and services in an economy.
total production of final goods = (20 couches x $2,600 per couch) + (5 leather sets x $1,000 per set) = $52,000 + $5,000 = $57,000
the leather sets are considered final products since they are part of the ending inventory of Cowhide, Inc.
In assigning missions, the commander must consider that national honor and prestige may be as important to a contributing nation as combat capability. All partners must be included in the _____ and their opinions must be sought in mission assignment.
Answer:
planning process
Explanation:
Partners must be included in the planning process and their opinions must be sought in mission assignment. It is improper for the opinions of other contributing nations to be neglected during the planning process of a mission. As stated in the question, the commander must consider that national honor and prestige may be as important to a contributing nation as combat capability.
Anna Jonas owns a manufacturing firm in Indonesia and strongly believes that it is important that workers' rights be respected. However, because of the recent economic meltdown, she makes the management pay workers a wage which is below ethical standards. In addition, the working conditions are below standards because of low investment in safety equipment. She knows her actions are unethical but continues to do so to avoid major losses. Jonas is most likely to be experiencing ________.A) cognitive dissonance
B) emotional contagion
C) ethical evasion
D) self-concordance
E) positivity offset
Answer: cognitive dissonance
Explanation: Cognitive dissonance takes place in the fields of psychology when an individual holds two or more irrational beliefs, concepts, or principles, or takes part in a motion that runs counter to any of these three and thereby perspectives mental stress.
Inconvenience is caused by an individual's belief that conflicts with new interpreted proof (statistics) in which they attempt to take steps to address the inconsistency in order to minimize their distress.
In simple words, The concept behind cognitive dissonance shows that people find psychological continuity regarding their life span and the earth's objective reality.
The budget for the City of Goodville for the year ending December 31 was adopted and recorded on January 2 of the same year. After recording the budget, the accounting records showed a debit balance of $50,000 in the Budgetary Fund Balance account. What does this indicate?
Answer:
See below
Explanation:
A budgetary fund is an income account and thus a debit balance suggests a deficit on the fund account. This means that governing bodies of City of Goodville have spent more money in their expenditures than they have brought in as income from the fund. This will be recorded as a liability in the balance sheet. Where as a credit balance would be a surplus and recorded as an asset.
Constance Hairston obtains a 20-year, $128,500 mortgage at 7% on a house selling for $128,500. Her monthly payment, including principal and interest, is $996.26. How much of the total cost will be interest?
Answer:
The total interest cost is 110, 602 dolars.
Explanation:
The total interest cost has been calculated below. The total interest cost is calculated by multiplying interest rate per month with outstanding loan balance.
Key
M means month there are 240 months in 20 years = 20 *12 =240
Os outstanding loan amount
P payment means monthly installment (principal + interest)
I mean interest per month (7%/12)
PP means payment towards principal
Bal outstanding loan balance = loan amount -principal paid
M OS P I pp Bal
1 128,500 996 749.58 246.68 128,253.32
2 128,253 996 748.144 248.12 128,005.21
3 128,005 996 746.697 249.56 127,755.64
4 127,756 996 745.241 251.02 127,504.63
5 127,505 996 743.777 252.48 127,252.14
6 127,252 996 742.304 253.96 126,998.19
7 126,998 996 740.823 255.44 126,742.75
8 126,743 996 739.333 256.93 126,485.82
9 126,486 996 737.834 258.43 126,227.40
10 126,227 996 736.326 259.93 125,967.46
11 125,967 996 734.810 261.45 125,706.01
12 125,706 996 733.285 262.97 125,443.04
13 125,443 996 731.751 264.51 125,178.53
14 125,179 996 730.208 266.05 124,912.48
15 124,912 996 728.656 267.60 124,644.87
16 124,645 996 727.095 269.16 124,375.71
17 124,376 996 725.525 270.74 124,104.97
18 124,105 996 723.946 272.31 123,832.66
32 120,145 996 700.843 295.42 119,849.18
180 51,011 996 297.567 698.69 50,312.80
181 50,313 996 293.491 702.77 49,610.03
182 49,610 996 289.392 706.87 48,903.16
183 48,903 996 285.268 710.99 48,192.17
184 48,192 996 281.121 715.14 47,477.03
185 47,477 996 276.949 719.31 46,757.72
186 46,758 996 272.753 723.51 46,034.21
187 46,034 996 268.533 727.73 45,306.49
188 45,306 996 264.288 731.97 44,574.51
189 44,575 996 260.018 736.24 43,838.27
190 43,838 996 255.723 740.54 43,097.73
191 43,098 996 251.403 744.86 42,352.88
192 42,353 996 247.058 749.20 41,603.68
193 41,604 996 242.688 753.57 40,850.10
194 40,850 996 238.292 757.97 40,092.14
195 40,092 996 233.871 762.39 39,329.75
196 39,330 996 229.424 766.84 38,562.91
197 38,563 996 224.950 771.31 37,791.60
198 37,792 996 220.451 775.81 37,015.79
199 37,016 996 215.925 780.33 36,235.46
200 36,235 996 211.374 784.89 35,450.57
201 35,451 996 206.795 789.47 34,661.11
202 34,661 996 202.190 794.07 33,867.04
203 33,867 996 197.558 798.70 33,068.33
204 33,068 996 192.899 803.36 32,264.97
205 32,265 996 188.212 808.05 31,456.92
206 31,457 996 183.499 812.76 30,644.16
207 30,644 996 178.758 817.50 29,826.66
208 29,827 996 173.989 822.27 29,004.39
209 29,004 996 169.192 827.07 28,177.32
210 28,177 996 164.368 831.89 27,345.43
211 27,345 996 159.515 836.74 26,508.68
212 26,509 996 154.634 841.63 25,667.06
213 25,667 996 149.725 846.54 24,820.52
214 24,821 996 144.786 851.47 23,969.05
215 23,969 996 139.819 856.44 23,112.61
216 23,113 996 134.824 861.44 22,251.17
217 22,251 996 129.799 866.46 21,384.71
218 21,385 996 124.744 871.52 20,513.20
219 20,513 996 119.660 876.60 19,636.60
220 19,637 996 114.547 881.71 18,754.88
221 18,755 996 109.403 886.86 17,868.03
222 17,868 996 104.230 892.03 16,976.00
223 16,976 996 99.027 897.23 16,078.76
224 16,079 996 93.793 902.47 15,176.30
225 15,176 996 88.528 907.73 14,268.56
226 14,269 996 83.233 913.03 13,355.54
227 13,356 996 77.907 918.35 12,437.18
228 12,437 996 72.550 923.71 11,513.47
229 11,513 996 67.162 929.10 10,584.38
230 10,584 996 61.742 934.52 9,649.86
231 9,650 996 56.291 939.97 8,709.89
232 8,710 996 50.808 945.45 7,764.44
233 7,764 996 45.293 950.97 6,813.47
234 6,813 996 39.745 956.51 5,856.96
235 5,857 996 34.166 962.09 4,894.86
236 4,895 996 28.553 967.71 3,927.15
237 3,927 996 22.908 973.35 2,953.80
238 2,954 996 17.231 979.03 1,974.77
239 1,975 996 11.520 984.74 990.03
240 990 996 5.775 990.48 -0.45
Suppose the rate of return on a 10-year T-bond is 6.90%, the expected average rate of inflation over the next 10 years is 2.0%, the MRP on a 10-year T-bond is 0.9%, no MRP is required on a TIPS, and no liquidity premium is required on any Treasury security. Given this information, what should the yield be on a 10-year TIPS? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.
Answer:
4%
Explanation:
We start with the nominal rate of return and then we adjust it to inflation.
real rate of return = nominal rate of return - inflation rate = 6.9% - 2% = 4.9%
finally we must subtract the maturity risk premium (MRP) of the bonds:
bond yield = real rate of return - MRP = 4.9% - 0.9% = 4%
Fiona installed a new pool for $9940 using a 12 month deferred payment plan with an interest rate of 22.53%. What is the balance after the deferment period A payment of $397 are each month?
A. $7,761.84B. $9,940.00C. $5,176.00D. $12,425.84
Answer:
A. $7,761.84
Explanation:
Balance after deferment period before any payment made.
A = P(1 + r)^t
A = $9940*(1 + 0.2253)^(12/12)
A = $12179.5
Final balance after monthly payment.
A_f = $12179.5 - (12*397)
A_f = $7415.5
Therefore, The balance after the deferment period A payment of $397 are each month is $7,761.84.
Paul sues Dan for "aesthetic pollution." The basis for his suit is Dan's habit of wearing clothes Paul considers ugly. Paul's complaint offers details of Dan's "ugly" clothing in many separate, numbered paragraphs. However, no law requires one to pay damages for wearing clothes that another considers ugly and for causing aesthetic dissatisfaction to some other party. Thus, Dan wants to defeat Paul's claim as fast as possible. The best procedural device for doing so is the:________ A. Motion to dismiss. B. Motion for summary judgment. C. Motion for judgment notwithstanding the verdict. D. Motion for a directed verdict.
Answer:
A. Motion to dismiss
Explanation:
A motion is a way of asking some decision from the court. For an order or other event, the group must "pass" the court. Practice of motion is a significant part of the proceedings.
A party may seek to dismiss the case for a variety of reasons, including failure of jurisdiction in the subject matter, lack of personal jurisdiction, inadequate location, insufficient proceedings, failure to state a claim for which relief may be granted, and failure to join the party concerned.
In this case it is for failure to state a claim upon which relief can be granted (or demurrer).
Olivia found herself in over $10,000 worth of credit card debt after she graduated from college. Most of her purchases on her credit cards came from purchases at the mall which included clothing, shoes, and purses. She also used her credit cards to finance her vacation to Mexico during spring break. Overwhelmed by her high credit card balances, Olivia has decided she wants to start digging herself out of credit card debt. What is the first step she should take?
Answer:
stop using her credit card
Explanation:
Based on the information provided within the question it can be said that the first step that Olivia should take is to stop using her credit card. People have adopted a consumer culture, and that has skyrocketed since the invention of the credit card, as it makes it easy for individuals to impulse buy something even if they do not have the money for it. By switching from credit card to cash only it will allow you to not overspend and make hasty impulse buys, thus allowing you to save money and hopefully get out of credit card debt.
In applying fiscal policy Conservatives will normally seek to limit government and will be inclined to ________ taxes (T) during a recession to stimulate the economy..
Answer:
Decrease
Explanation:
Fiscal policy is an important policy tool which is used by the government to account for revenue and expenses. During a boom stage, when the economy is improving the government implements more taxes. Similarly, in a recession period, where economic growth is negative an expansionary discretionary fiscal policy is applied. In this type of fiscal policy, taxes and government expenses both are concentrated to remove the pressure.
With the lower interest rates in this example, Businesses invested an additional $________ billion in new productive projects such as nano-engineering and advanced internet equipment and training.
Answer: I found the example chart and the correct answer is " $ 100".
Explanation: With the lower interest rates in this example, Businesses invested an additional $100 billion in new productive projects such as nano-engineering and advanced internet equipment and training.
Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market.
When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?
A) problem recognition
B) general need description
C) product specification
D) product value analysis
E) performance review
Answer:
Answer to this question is Option A i.e. problem recognition.
Explanation:
Here, Jane Harper, the owner of Harper farms come across a problem related to the damaged coops. This problem acts as a trigger for his decision of buying new coops. Jane has identified a problem here and brought in his notice that he has to buy new coops for his business. Therefore, Jane is at the very first stage of buying decision process i.e. problem recognition.
XYZ Company produces a significant daily amount of electronic waste. The company disposes the waste into the ocean despite strict government regulations regarding waste disposal. This scenario illustrates that XYZ Company has failed to fulfill its _____.
Answer:
Legal responsibility
Explanation:
Since there have been regulations put in place by the government, it is thereforre a legally binding agreement between XYZ company and any other companies that does same as XYZ company.
The failure of XYZ company to honour the set regulations is a breach in its legal responsibilty alongside its corporate social responsibilty as well and it can be taken up by the government by either charging the XYZ company to court or revoking their operating license.
Cheers.
Assume that the market for base-balls is in equilibrium. There is a sudden decrease in income throughout the economy. If all else is held constant, we would expect that if base-balls are a(n) ________ good, then the demand curve will shift to the ________, causing the equilibrium price and quantity to ________.a) normal; left; rise b) normal; right; rise c) inferior; right; fall d) normal; left; fall e) inferior: left; fall
Answer:
d) normal; left; fall
Explanation:
A normal good is a good whose demand increases when income increases and whose demand falls when income falls.
An inferior good is a good whose demand increases when income falls.
If baseball is a normal good and income falls, quantity demanded falls. The demand curve would shift to the left. This leads to a fall in price.
If baseball were an inferior good, if income falls, quantity demanded rises and the demand curve shifts to the right and the equilibrium price and quantity rises.
I hope my answer helps you
What taxes apply to the benefits under an individual Disability Income Policy on which the insured has paid the premiums?
Answer:
The correct answer is (A)
Explanation:
Taxes are used to increase government revenue, and to improve government budget. No tax is applied to the benefits under an individual disability income policy. There are various reasons why no tax is applied, but the major reason is that premiums are not deductible. Overall, governments usually don't apply taxes on individual disability income and generally give subsidies.
"Which of the following would be classified as investment in the national income accounts? A) An increase in corporate stock volumes during the year. B) The purchase of medical supplies by the National Guard. C) An increase in government spending. D) An increase in business inventories.
Answer:
D) An increase in business inventories.
Explanation:
The words investment can mean different thing to different people, but to an economist, the word investment mean the acquisition of resources by any economic agent which will increase the productive capacity of the economy.
The correct answer here is (D) An increase in business inventories. this is because the factor of production that produced the inventories received factor income and if ignored in the measurement will create disequilibrium in the three methods of measuring GDP (i.e. output method, expenditure method and output method).
A) An increase in corporate stock volumes during the year is not correct because it is transfer of ownership not addition to production.
C) An increase in government spending is not because they are expenditure on goods and services that is not part of capital formation.
Because of a recent job promotion, Jo-Anne needed to find a place to live in the city quickly. She agreed to purchase via phone a 2,000 sq. ft. apartment located a few blocks from her new office. Jo-Anne wired the owner a payment of $500,000 against the $3.7 million negotiated price of the apartment. Without waiting for further word from the owner, Jo-Anne moved into the apartment and redecorated the entire interior, at a cost of $350,000. After living in the apartment for two months, Jo-Anne wired another $500,000 payment to the owner, who called immediately after receiving the payment and said the deal was off. Can Jo-Anne keep the apartment?
Answer:
Of course Jo-Anne Roberts can keep the apartment.
Explanation:
Jo-Anne and the previous owner of the apartment had a valid contract by which Jo-Anne was to pay $3.7 million for the apartment. She has already partially completed her performance on the contract, so the seller must perform his part of the contract.
In the context of the customer-focused dimension of a global matrix, the _____ structure supplies customers in a coordinated and consistent way across various countries.
Answer:
The correct answer is (C)
Explanation:
A global account helps to save and spend money in foreign currency. In a global matrix, the global account structure helps to coordinate in a consistent way across various countries. It is a foreign account which is accessible to the customer globally. It helps t make and receive international payments. Many banks offer this service to their customers.
Qualified Retirement plans must provide a written Investment Policy Statement. Under ERISA interpretations, all of the following items must be included in the Investment Policy Statement EXCEPT:
[A] the client/participants investment goals and objectives
[B] risk tolerance and liquidity requirements of the client/participant
[C] time horizon
[D] a list of the actual securities in the portfolio
Answer:
D: a list of the actual securities in the portfolio
Explanation:
Under Employee Retirement Income Security Act of 1974 (ERISA) interpretations, the details of risk, time horizon, target asset mix, investment goals and objectives, and guidelines for review are among the items which must be disclosed in the statement. A list of the specific investments in the plan is not a required disclosure.
A ____________ gap between GDP and NDP indicates an increasing obsolescence/depreciation of capital goods..
A. growing C
B. shrinking
C. constant
D. all the above
Answer:
Explanation:
GDP is gross domestic product and NDP is net domestic product.
GDP measures market value of total goods and services produced in a particular period of time.
NDP is net domestic product . In its calculation, we deduct the value of depreciation of capital goods produced from the value of GDP.
So
NDP = GDP - depreciation .
So growing gap between GDP and NDP reflects the increasing obsolescence of capital goods , which warrants replacement of capital goods .
OPTION A is correct.