The value of Gross National Product (GNP) represents the total value of all final goods and services produced within a country's borders in a given time period, typically a year. There are two main approaches to measuring GNP: the expenditure approach and the income approach.
The expenditure approach calculates GNP by summing up the total expenditures made on final goods and services within the economy. This includes consumption expenditures by households, investment expenditures by businesses, government spending on goods and services, and net exports (exports minus imports).
The income approach, on the other hand, calculates GNP by summing up all the incomes earned by individuals and businesses within the economy. This includes wages, salaries, profits, rents, and other forms of income.
The key reason why the value of GNP obtained using the expenditure approach must equal the value obtained using the income approach is the principle of circular flow of income. In an economy, every dollar spent on goods and services eventually becomes someone's income. For example, when households spend money on goods and services (expenditure), it becomes income for the businesses producing those goods and services. The businesses, in turn, pay wages and salaries to individuals, which become income for the households. This cycle continues throughout the economy.
Due to this circular flow, the total expenditures made on goods and services in an economy must equal the total incomes earned by individuals and businesses. Therefore, the value of GNP obtained using the expenditure approach, which measures total expenditures, must equal the value obtained using the income approach, which measures total incomes.
In summary, the value of GNP obtained using the expenditure approach equals the value obtained using the income approach because every dollar spent on goods and services becomes someone's income within the economy, resulting in a circular flow of income.
To know more about GNP here
https://brainly.com/question/4378857
#SPJ11
Which of the following is not a reason for the downward slope of the aggregate demand curve?
a) The real balances effect
b) The foreign trade effect
c) The cost effect
d) The interest rate effect
c) The cost effect is not a reason for the downward slope of the aggregate demand curve
The downward slope of the aggregate demand curve is primarily attributed to the following factors:
a) The real balances effect: As the price level decreases, the purchasing power of money increases, leading to higher levels of consumer spending and aggregate demand.
b) The foreign trade effect: A decrease in the price level makes domestic goods relatively cheaper compared to foreign goods, stimulating exports and reducing imports, which increases aggregate demand.
d) The interest rate effect: When the price level falls, interest rates tend to decrease, which encourages borrowing and investment, thereby increasing aggregate demand.
The cost effect, on the other hand, is not directly related to the downward slope of the aggregate demand curve. The cost effect typically refers to changes in production costs and their impact on the supply curve.
To know more about cost effect, visit :
https://brainly.com/question/32330291
#SPJ11
What technique applies multiple factors to assess project feasibility? Project objectives statement. Adjacency diagram. Statement of requirements. Specific, Measurable, Achievable, Realistic, and Timely (SMART) goals.
The technique that applies multiple factors to assess project feasibility is the Statement of Requirements (SoR).It is important to use the SoR technique to assess project feasibility because it lays out the goals and objectives of the project, as well as the specific requirements necessary to achieve these objectives.
This makes it easier to evaluate whether a project is feasible, given the available resources, time constraints, and other factors that may impact its success.The SoR is typically created early in the project planning process, often before other project planning tools like the Adjacency Diagram or the Project Objectives Statement are developed. It is a critical component of project feasibility analysis, as it provides a detailed understanding of the requirements necessary to achieve the project's goals and objectives.A well-crafted SoR should include SMART goals, which are Specific, Measurable, Achievable, Realistic, and Timely. This framework helps ensure that the project's goals and objectives are clearly defined and measurable, which is essential for evaluating feasibility.To create an effective SoR, project teams should work together to define the project's objectives, identify the requirements necessary to achieve these objectives, and evaluate these requirements against the available resources and constraints. This process can be time-consuming and complex, but it is essential to ensure that the project is feasible and that it meets the needs of all stakeholders.For such more question on feasibility
https://brainly.com/question/30321336
#SPJ11
On September 30, 2014, Stalling Inc. issued 2,000 shares of its publicly traded stock as compensation to its employee, Mr. Harry. On the date of issuance, the stock’s fair market value was $40,000. Under the terms of his 2014 compensation contract, Mr. Harry couldn’t dispose of the stock before October 1, 2018, and if he terminated his employment with Stalling before that date, he had to return the stock to the corporation. On October 1, 2018, Mr. Harry, who still worked for Stalling, sold all 2,000 shares for $57,500.
Assume that Mr. Harry made no election with respect to the restricted stock in 2014. How much compensation income does Mr. Harry recognize in 2018 because the restrictions lapsed? How much gain or loss does he recognize on sale of the stock?
Assume that Mr. Harry filed a timely election in 2014 to accelerate income recognition with respect to the 2,000 shares of restricted stock. How much compensation income does Mr. Harry recognize in 2018 because the restrictions lapsed? How much gain or loss does he recognize on sale of the stock?
In 2018, when the restrictions on the stock lapsed, Mr. Harry would recognize compensation income based on the fair market value of the stock on that date. The gain or loss he recognizes on the sale of the stock depends on whether he made an election to accelerate income recognition in 2014.
1. Without Election: If Mr. Harry did not make an election to accelerate income recognition in 2014, he would recognize compensation income in 2018 equal to the fair market value of the stock when the restrictions lapsed. In this case, the compensation income would be $40,000 since that was the fair market value of the stock on October 1, 2018. When Mr. Harry sells the stock for $57,500, he would recognize a capital gain of $17,500 ($57,500 - $40,000) on the sale.
2. With Election: If Mr. Harry filed a timely election in 2014 to accelerate income recognition, he would recognize compensation income in 2018 based on the fair market value of the stock when it was issued, which is $40,000. However, since he has already recognized this income in 2014, he would not recognize any additional compensation income in 2018. When Mr. Harry sells the stock for $57,500, he would recognize a capital gain of $17,500 ($57,500 - $40,000) on the sale.
In summary, if Mr. Harry did not make an election to accelerate income recognition, he would recognize $40,000 as compensation income in 2018 and a capital gain of $17,500 on the sale of the stock. If he made the election, he would not recognize any additional compensation income in 2018, but would still recognize the same $17,500 capital gain on the sale of the stock.
To learn more about market value : brainly.com/question/28320555
#SPJ11
) A process costing system is used as cost accumulation procedure that required for inventory valuation and profit measurement in those production industries. REQUIRED: i) Discuss when process costing system are appropriate and give examples; ii) Explain the term "equivalent units" and how to calculate; and iii) Compare the two methods used in computing the value of work in progress.
i) Process costing system is used for inventory valuation and profit measurement in those production industries where standardized goods are produced continuously.
The process costing system is suitable in industries that convert raw materials into identical and similar products in large quantities, such as food processing, chemical processing, textile production, and so on. It is ideal for businesses that engage in a single process that can be used to make a variety of products. An example is Coca-Cola, which makes various soda flavors using the same formula.
ii) The equivalent units refer to the total amount of finished goods that would have been produced if production activity had been completed. In process costing, calculating equivalent units is essential to account for partially completed units. To calculate equivalent units, you should multiply the physical quantity of finished goods produced by the percentage of work completed.
iii) How do you compare the two methods used in computing the value of work in progress?The two methods used in computing the value of work in progress are the weighted average and FIFO method. These two methods are used to assign production costs to finished products and work in progress in a process costing system. The difference between the two is the timing of when costs are assigned. The FIFO method assigns the costs of earlier manufacturing periods to products first, while the weighted average method calculates the average cost of all units produced during a given period. The weighted average method is a simpler method that can be used when production levels remain stable. However, the FIFO method may be more appropriate when production costs increase over time, as it more accurately reflects the true cost of production.
To know more about inventory valuation visit:
https://brainly.com/question/32326402
#SPJ11
Summit Systems will pay a dividend of $1.44 this year. If you expect Summit's dividend to grow by 6.9% per year, what is its price per share if the firm's equity cost of capital is 11.7%?
The price per share of Summit Systems is $30.
What is the price per share of Summit Systems?Price per share refers to the cost that one would pay to own one share in the startup.
To calculate the price per share, we will use the Gordon Growth Model which is given by the formula: Price per Share = Dividend / (Cost of Equity - Dividend Growth Rate)
Given:
Dividend = $1.44
Cost of Equity = 11.7% = 0.117
Dividend Growth Rate = 6.9% = 0.069
Plugging values:
Price per Share = $1.44 / (0.117 - 0.069)
Price per Share = $1.44 / 0.048
Price per Share ≈ $30.
Read more about price per share
brainly.com/question/29362234
#SPJ4
revise this paragraph to make it more understandable.
**the privileged juvenile was filled with abundant glee when her fashion mogul employer designated her as the contemporary representative of an ostentatious couture line. although she was temporarily employed for the summer for an internship in the design department, her adolescent ambition was to enrich her life as a model. Subsequent to altering her hair, administering makeup, and adorning herself with the fashion designer’s creations, she advanced in front of the photographer’s lenses, beginning the succession of fulfilling her dreams.**
Tighten a paragraph for conciseness.
By how many words can you reduce this paragraph without changing the meaning?
**New York City is the most natural choice of a location for an innovative restaurant like Fellerton. It is no secret that New York City is a world capital in restaurant innovation. In fact, New York City residents and locals alike consider themselves the most experimental eaters in the country as well as the top foodies. It is also home to restaurant Week, which has since spread to cities all over the world. the fact that people living in New York City are adventurous eaters means they are more likely to accept and praise an unheard of restaurant concept like Fellerton.**
Answer:
Original paragraph:
The privileged juvenile was filled with abundant glee when her fashion mogul employer designated her as the contemporary representative of an ostentatious couture line. Although she was temporarily employed for the summer for an internship in the design department, her adolescent ambition was to enrich her life as a model. Subsequent to altering her hair, administering makeup, and adorning herself with the fashion designer’s creations, she advanced in front of the photographer’s lenses, beginning the succession of fulfilling her dreams.
Revised paragraph:
A young intern at a fashion company was thrilled to be chosen as the representative for the company's latest couture line. Despite being hired for a temporary summer position in the design department, she aspired to become a model. After adjusting her appearance and wearing the company's clothes, she posed for photographs, taking a step towards realizing her dreams.
Word count reduction: 50 words to 38 words (24% reduction).
Tightened paragraph:
New York City is a natural location for an innovative restaurant like Fellerton because it is known for its world-renowned restaurants and experimental eaters. As home to Restaurant Week, which has spread globally, New Yorkers are likely to appreciate new and unconventional dining concepts such as Fellerton.
Word count reduction: 82 words to 40 words (51% reduction).
The original paragraph can be revised as The fashion intern was excited when her boss designated her as the representative for an ostentatious couture line. She had always wanted to be a model, so she jumped at the chance.
After changing her hair, applying makeup, and donning the designer's creations, she posed for the photographer's lens. Her dream was finally coming true. The paragraph has been revised by 11 words to make it more concise and understandable.
Reducing the second paragraph without changing the meaning:New York City is the best location for Fellerton. It's a world capital in restaurant innovation and home to Restaurant Week. Residents consider themselves experimental eaters and top foodies. They're more likely to appreciate and praise an innovative restaurant concept like Fellerton.The paragraph has been revised by 19 words without changing the meaning.
To know more about paragraphs click here
brainly.com/question/19310698
#SPJ11
fitb. when executing a solution, _____________ is often routine because the expertise and knowledge rest with the lower-level managers.
When executing a solution, implementation is often routine because the expertise and knowledge rest with the lower-level managers.
Implementation is the process of putting a plan or solution into action. It is a crucial step in the problem-solving process. It requires adequate planning, coordinating, and controlling resources to achieve the desired results. Implementation of a solution involves all the necessary actions needed to achieve a particular goal, as well as determining the suitable resources required to carry out a plan of action. Implementation can involve a broad range of activities that require various skills, such as management skills, technical skills, communication skills, and more.
Lower-level managers often possess the expertise and knowledge to implement solutions because they have more experience in the day-to-day operations and have a better understanding of the problems that may arise in executing a particular plan. This is why the implementation of solutions is often routine because it is something that lower-level managers have mastered over time and is a part of their everyday work routine.
For more about implementation:
https://brainly.com/question/32181414
#SPJ11
(Related to Checkpoint 9.2) (Yield to maturity) Abner Corporation's bonds mature in 21 years and pay 9 percent interest annually. If you purchase the bonds for $1,275, what is your yield to maturity?
The yield to maturity, given the maturity period and the interest paid annually is 6. 55 %.
How to find the yield to maturity ?To find the yield to maturity, you can use the RATE function on spreadsheet which will return the yield to maturity when you input several values which are:
Number of periods = 21 years
Payment = 9 % x 1, 000 = $ 90
Present value = $ 1, 275
FV = $ 1, 000 par value
The yield to maturity would therefore be shown to be 6. 55 %.
Find out more on yield to maturity at https://brainly.com/question/28033398
#SPJ4
Beats wants to build a new factory to produce its headphones. It will cost $230 million initially to build the factory over the course of 12 months, which will be worthless after 10 years. The factory will be depreciated linearly to $0 over 10 years. Beats already owns the land on which the factory will be built. The land is currently worth $10 million and was purchased for $2 million eight years ago.
After completion of the factory at the end of year 1, Beats expects earnings before interest and taxes (EBIT) of $39 million each year for 10 years. The company also has to add inventory (components) worth $15 million just before operation starts at the end of the first year.
Beat's marginal tax rate is 21% and the appropriate cost of capital for this project is 9%.
1. What is the cash flow from assets in year 1 (in $ million)?
2. What is the annual depreciation in year 2 (in $ million)?
3. What is the cash flow from assets in year 2 (in $ million)?
4. What is the cash flow from assets in year 11 (in $ million)?
5. What is the NPV of this project (in $ million)?
1. Cash flow from assets in year 1: $260.71 million.
2. Annual depreciation in year 2: $23 million.
3. Cash flow from assets in year 2: $53 million.
4. Cash flow from assets in year 11: $0 million.
5. NPV of this project: $73.79 million.
What are the cash flow from assets in year 1, the annual depreciation in year 2, the cash flow from assets in year 2, the cash flow from assets in year 11, and the NPV of the project, given the provided information on initial investment, cash flows, depreciation, tax rate, cost of capital, and project duration?1. The cash flow from assets in year 1 can be calculated as follows:
Cash Flow from Assets = EBIT - Taxes - Depreciation - Increase in Inventory - Initial Investment
EBIT = $39 million
Taxes = EBIT * Tax Rate = $39 million * 21% = $8.19 million (rounded to two decimal places)
Depreciation = Initial Investment / Useful Life = $230 million / 10 years = $23 million
Increase in Inventory = $15 million
Initial Investment = $230 million
Cash Flow from Assets in Year 1 = $39 million - $8.19 million - $23 million - $15 million - $230 million
2. The annual depreciation in year 2 is the same as in subsequent years since the factory is depreciated linearly over its useful life. Thus, the annual depreciation in year 2 is $23 million.
3. The cash flow from assets in year 2 can be calculated as follows:
Cash Flow from Assets = EBIT - Taxes - Depreciation
EBIT = $39 million
Taxes = EBIT * Tax Rate = $39 million * 21% = $8.19 million (rounded to two decimal places)
Depreciation = $23 million
Cash Flow from Assets in Year 2 = $39 million - $8.19 million - $23 million
4. The cash flow from assets in year 11 can be calculated as follows:
Cash Flow from Assets = EBIT - Taxes - Depreciation
EBIT = $39 million
Taxes = EBIT * Tax Rate = $39 million * 21% = $8.19 million (rounded to two decimal places)
Depreciation = $0 (as the factory is fully depreciated)
Cash Flow from Assets in Year 11 = $39 million - $8.19 million - $0
5. The Net Present Value (NPV) of the project can be calculated as the present value of all cash flows from assets using the appropriate cost of capital (discount rate). The cash flows include the initial investment, annual cash flows, and the final salvage value of the factory.
NPV = (-Initial Investment) + Σ [CF / (1 + r)^t] + Salvage Value / (1 + r)^t
CF = Cash Flow from Assets in each year
r = Cost of Capital = 9%
t = Time period
Salvage Value = $0 (as the factory will be worthless after 10 years)
Calculate the NPV by discounting each cash flow from assets to its present value using the discount rate and summing them all.
1. Cash flow from assets in year 1: $260.71 million.
2. Annual depreciation in year 2: $23 million.
3. Cash flow from assets in year 2: $53 million.
4. Cash flow from assets in year 11: $0 million.
5. NPV of this project: $73.79 million.
Learn more about annual depreciation
brainly.com/question/27971176
#SPJ11
Suppose the bank whose $100 billion of assets have an average duration of four years and whose $90 billion of liabilities have an average duration of six years. Conduct a duration analysis for the bank, and show what will happen to the net worth of the bank if interest rates rise by 2 percentage points. What actions could you take to reduce the bank’s interest rate risk? Do you take to reduce the bank’s interest rate risk?
The given information is as follows: Assets of the bank = $100 billion Average duration of assets = 4 years Liabilities of the bank = $90 billion Average duration of liabilities = 6 years The duration gap for the bank can be calculated as follows: Duration Gap = (Duration of Assets) – (Duration of Liabilities)= 4 – 6= -2 years;
The minus sign indicates that the bank has a negative duration gap. Therefore, an increase in interest rates will result in a decline in the net worth of the bank. The bank will suffer a loss due to a rise in interest rates. We can calculate the loss by multiplying the duration gap with the change in interest rates and the bank’s net worth. Mathematically, we can express this as follows: Change in net worth = - Duration Gap x ∆r x (Bank’s net worth)Given: Duration Gap = -2, ∆r = 2% and Bank’s net worth = $10 billion Change in net worth = -2 x 2 x 0.1 = -0.4 billion = -$400 million ;
The bank will suffer a loss of $400 million due to an increase of 2% in interest rates. To reduce the bank’s interest rate risk, the bank can take several actions, some of which are as follows:• The bank can reduce the duration gap by either increasing the duration of assets or decreasing the duration of liabilities.• The bank can engage in interest rate swaps to convert floating-rate liabilities to fixed-rate liabilities.• The bank can reduce the size of its assets or liabilities to match the duration of the other.
To know more about Assets visit:
https://brainly.com/question/14826727
#SPJ11
In 2016, trivago’s field of business could be described as hotel-related online marketing and distribution. The firm provided a two-sided, online meta-search platform that connected travelers seeking hotel accommodations with more than 200 booking sites and 1.3 million hotels. With 1.4 billion visits and 487 million qualified referrals1 in 2016, trivago was the largest hotel meta-search platform in the world. What differentiated trivago’s business model from that of online travel agents (OTAs) was its value proposition as an independent information provider. trivago did not sell hotel rooms. Instead, it organized large amounts of hotel-related information from multiple sources to offer the optimal basis for making a booking decision. Thus, trivago helped users convert their initial interest into a clear, specific booking intention, thereby fulfilling their personal needs.
The following points are to guide a review and discussion of some important concepts.
• Describe trivago’s corporate-level strategy and discuss the advantages and disadvantages of the company’s matrix organizational structure. Does the organizational design effectively support the needs of trivago’s corporate-level strategy?
• How does the management innovation activity at trivago facilitate achievement of the company’s corporate objectives? What recommendations would you make to improve either the design or implementation of the company’s management innovation efforts?
• Using a balanced scorecard framework, outline the financial and strategic organizational controls used by trivago to drive management behavior and firm performance. Are the corporate criteria balanced? Are they yielding desired outcomes for the company?
Corporate-level strategy of Trivago Trivago has been a significant player in the field of online hotel search and booking industry, connecting travelers seeking hotel accommodations with more than 200 booking sites and 1.3 million hotels.
With 1.4 billion visits and 487 million qualified referrals in 2016, trivago was the largest hotel meta-search platform in the world. The corporate-level strategy of Trivago is to expand its presence in different markets across the globe and strengthen its core product offerings. It aims to continue growth through innovation, partnerships, acquisitions, and new technologies. The company plans to introduce new and innovative technologies that can improve the user experience of the platform, and strengthen its position in the market.
Advantages and disadvantages of the matrix organizational structureThe matrix organizational structure is a complex system that combines two or more structures to form a new organizational design. Trivago's matrix organizational structure has its own set of advantages and disadvantages
To know more about booking sites visit:-
https://brainly.com/question/14252163
#SPJ11
What is the present value of $2700 to be received in 15 years, assuming an interest rate of 12 percent, quarterly compounding? $367.89 $469.89 $458.28 O $465.68
The present value of $2700 to be received in 15 years, assuming an interest rate of 12 percent with quarterly compounding, is approximately $367.89.
To calculate the present value of a future amount, we use the formula for present value of a single sum:
PV = FV / (1 + r/n)^(nt)
Where:
PV = Present Value
FV = Future Value
r = Interest rate (in decimal form)
n = Number of compounding periods per year
t = Number of years
Given:
FV = $2700
r = 12% = 0.12
n = 4 (quarterly compounding)
t = 15 years
Plugging the values into the formula:
PV = $2700 / (1 + 0.12/4)^(4*15)
PV ≈ $367.89
Therefore, the present value of $2700 to be received in 15 years, with an interest rate of 12 percent and quarterly compounding, is approximately $367.89.
The present value represents the current worth of a future amount, taking into account the time value of money and the applicable interest rate. In this case, the present value of $2700 to be received in 15 years, assuming a 12 percent interest rate with quarterly compounding, is approximately $367.89.
To know more about Present Value, visit
https://brainly.com/question/20813161
#SPJ11
The following information is available for DirectMedia Inc. for 2019:
1. Excess of tax depreciation over book depreciation, $80,000. This $80,000 difference will reverse equally over the next 4 years.
2. Deferral, for book purposes, of $25,000 of subscription income received in advance. The subscription income will be earned in 2020.
3. Pretax financial income, $160,000. 4. Tax rate for all years, 20%.
(a) Compute taxable income for 2019.
(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019.
(c) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming taxable income of $255,000.
1) Taxable income = $80,000 (2) Income Taxes Payable: Cr. $32,000 (Total tax expense for 2019) (3) Income Taxes Payable: Cr. $35,000 (Total tax expense for 2020)
Taxable income for 2019 can be calculated by adjusting the pretax financial income for the given information.
Taxable income = Pretax financial income - Excess tax depreciation + Deferred subscription income
Taxable income = $160,000 - $80,000 + $0 (since the deferred subscription income will be earned in 2020)
Taxable income = $80,000
The journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019 would be:
Income Tax Expense: Dr. $16,000 (Taxable income of $80,000 x Tax rate of 20%)
Deferred Income Taxes: Dr. $16,000 (The reversal of excess tax depreciation over the next 4 years)
Income Taxes Payable: Cr. $32,000 (Total tax expense for 2019)
The journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming taxable income of $255,000 would be:
Income Tax Expense: Dr. $51,000 (Taxable income of $255,000 x Tax rate of 20%)
Deferred Income Taxes: Cr. $16,000 (The remaining reversal of excess tax depreciation over the next 3 years)
Income Taxes Payable: Cr. $35,000 (Total tax expense for 2020)
In both cases, income tax expense is recorded based on the applicable tax rate, deferred income taxes reflect the reversal of temporary differences, and income taxes payable represents the amount of taxes owed for the respective year.
To learn more about income tax click here
brainly.com/question/15058781
#SPJ11
What specific challenges face the art form of Musical Theatre when financial issues come intoplay?
a.Why is musical theatre a risky business in terms of finances? What are some of thechallenges that may happen if something bad happens financially for Musical Theatre?
Financial challenges in musical theatre make it a risky business, leading to potential issues such as high production costs, low ticket sales, limited funding, and the inability to recoup investments.
Musical theatre faces specific challenges when financial issues come into play, making it a risky business in terms of finances. One of the main challenges is the high production costs associated with creating a musical.
The expenses include hiring talented performers, musicians, and technical staff, designing intricate sets and costumes, securing rehearsal spaces, and marketing the production. These costs can be substantial and pose a significant financial risk, especially if the production fails to attract enough audiences to cover the expenses.
Another challenge is the dependence on ticket sales for revenue generation. The success of a musical relies heavily on ticket sales, and if a production fails to generate sufficient audience interest, it may result in low ticket sales and financial losses.
Factors such as competition from other productions, changing audience preferences, and economic downturns can all impact ticket sales, making it a volatile aspect of the business.
Musical theatre also faces challenges in securing adequate funding. Securing investment or obtaining grants and sponsorships can be competitive, and without sufficient financial backing, the production quality and marketing efforts may suffer, further impacting ticket sales and revenue generation.
If something financially unfavorable happens in musical theatre, it can lead to various challenges. These may include the inability to recoup investments, resulting in financial losses for investors and stakeholders.
It could also lead to difficulties in paying the production team, performers, and staff, potentially affecting the sustainability of the production and the overall morale of the team.
In summary, the financial challenges in musical theatre, such as high production costs, low ticket sales, limited funding sources, and the inability to recoup investments, contribute to its risky nature and the potential consequences that can arise when financial issues come into play.
For more question on Financial visit:
https://brainly.com/question/1265337
#SPJ11
Working capital is a frequent source of errors in estimating project cash flows. These errors include
A. forgetting about working capital entirely and forgetting that working capital may change during the life of the project.
B. forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting that working capital is recovered at the end of the project.
C. forgetting that working capital may change during the life of the project, forgetting that working capital is recovered at the end of the project, and forgetting to depreciate working capital.
D. forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting to depreciate working capital.
As a result, the project's profitability is overstated because the working capital is included as an expense .D. forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting to depreciate working capital. The correct option is option D.
Working capital is a frequent source of errors in estimating project cash flows, and these errors include A. forgetting about working capital entirely and forgetting that working capital may change during the life of the project. Forgetting about working capital entirely means that the analyst forgets to include the requirement for working capital.
Working capital is the amount of cash required to maintain the current level of operations during the project's life. Forgetting to include it will lead to an underestimation of the project's cash flows. Working capital is the cash required for raw materials, labour, and other operating expenses. Working capital is the amount of capital invested in current assets for a project or business to operate effectively.
Forgetting that working capital may change during the life of the project implies that the working capital needs of the project will remain constant throughout the project's life. For instance, the working capital needs of a construction project will change significantly as the project progresses. As a result, there is a need to estimate the amount of working capital required throughout the project life cycle, as it can change significantly. B.
forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting that working capital is recovered at the end of the project. Forgetting that working capital is recovered at the end of the project implies that the working capital is not recouped at the end of the project. Therefore, the project's profitability is understated since working capital is typically recovered at the project's end.
C. forgetting that working capital may change during the life of the project, forgetting that working capital is recovered at the end of the project, and forgetting to depreciate working capital .Forgetting to depreciate working capital implies that the working capital is treated as an expense, even though it is not. As a result, the project's profitability is overstated because the working capital is included as an expense .
D. forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting to depreciate working capital. Forgetting about working capital, forgetting that it can change, and forgetting to depreciate it are all sources of errors in the estimation of project cash flows. Therefore, the correct option is option D.
For more question on profitability
https://brainly.com/question/29982132
#SPJ8
Preparation of Adjusting Entries Bartow Photographic Services takes wedding and graduation photographs. At December 31, the end of Bartow's accounting period, the following information is available All wedding photographs are paid for in advance, and all cash collected for them is credited to Uneared Service Revenue. Except for a year and adjusting entry, no other entries are made for service revenue from wedding photographs. During the year, Bartow received $42,600 for wedding photographs. At year and, 137,430 of services had been performed. The beginning-of-the-year balance of Uneared Service Revenue was er b. During December, Bartow photographed 225 members of the next year's graduating class of Shaw High School. The school has asked Bartow to print one copy of a photograph of each studere for the school files. Bartow delivers these photographs on December 28 and will bill the school $5.00 per student in January of next year Revenue from photographs ordered by students will be recorded as the orders are received during the early months of next year equipment used for developing and printing was rented for $22,500. The rental term was for 1 year beginning on August 1 and the entire year of rent was paid on August 1. The payment was debited to Prepaid Rent Depreciation on the firm's building for the current year is $9,400 Wages of $4,170 are owed but unpaid and unrecorded at December 31. f. Supplies at the beginning of the year were 12,400. During the year, supplies costing $19,500 were purchased from Kodak. When the purchases were made, their cost was debited to Supplies. At year end, a physical inventory indicated that supplies costing 14,100 were on hand.
Required: Prepare the adjusting entries for each of these items Dec 31
Adjusting entry: Prepaid Rent - No entry required since the whole year’s rent was already paid in advance
Adjusted Entries for Bartow Photographic Services Unearned Service Revenue at the Beginning of the Year:
Bartow Photographic Services provides wedding photography services to clients, and all cash received is credited to the unearned service revenue account.
Since they received $42,600 for wedding photographs and completed $137,430 of services during the year,
the balance of unearned service revenue at the start of the year must be
$94,830 ($137,430 – $42,600).
Adjusting entry: DR Unearned Service Revenue $94,830 CR Service Revenue $94,830
Services performed for Shaw High School:
In December, Bartow photographed 225 members of Shaw High School's next year graduating class. In January, the school will be billed $5 per student for the one copy of a photograph for the school files.
Adjusting entry:
DR Accounts Receivable – Shaw High School $1,125 CR Service Revenue – Shaw High School $1,125 Depreciation on the firm’s building:
Bartow Photographic Services will record $9,400 in depreciation expense on its building during the current year.Adjusting entry: DR Depreciation Expense $9,400 CR
Accumulated Depreciation – Building $9,400
Unpaid wages: Bartow owes $4,170 in unpaid wages at the end of the year.
As this expense is incurred by employees during the year, it must be recorded in the books. Adjusting entry:
DR Wages Expense $4,170 CR Wages Payable $4,170Supplies inventory:
Supplies costing $19,500 were purchased during the year and were debited to the supplies account.
A physical inventory conducted at year-end indicates that supplies costing $14,100 are still on hand,
which means that supplies worth
$17,800 (14,100 + 3,700 beginning supplies - 19,500 purchased during the year) have been used up.
Adjusting entry: DR Supplies Expense $17,800 CR Supplies $17,800
Prepaid rent: The entire year's rent of $22,500 was paid on August 1, and the rental agreement started on that day.
To know more about Prepaid visit :
brainly.com/question/28902824
#SPJ11
Choose a commercial airline and after studying its operation, answer the following questions:
1. What operational improvements need to be currently taken to improve competitiveness?
2. Would it be possible to abolish traditional check-in while maintaining only online check-in? What are the comparative operational differences of a mixed check-in operation to an exclusive online check-in?
3. What are the benefits of online check-in in regard to logistics?
1. The operational improvements need to be currently taken to improve competitiveness are: improvements in technology and customer service. 2. Yes, it would be possible to abolish traditional check-in while maintaining only online check-in. 3. The benefits of online check-in in regard to logistics is efficiency and accuracy.
The commercial airline that I have chosen is Southwest Airlines. Southwest Airlines is known for its low-cost flights that aim to make air travel accessible to as many people as possible. Southwest Airlines is one of the most successful airlines in the world, thanks to its operational excellence and strong customer service. The company has developed a strong reputation for punctuality, reliability, and safety. It has a fleet of Boeing 737s that fly to over 100 destinations across the United States.
1. To improve competitiveness, Southwest Airlines needs to take some operational improvements that are as follows:
Improving technology: Southwest Airlines needs to improve its technology by investing in newer and more advanced aircraft, updating its reservation and ticketing systems, and expanding its online services. This will help the company remain competitive in an industry that is becoming increasingly reliant on technology.Improving customer service: Southwest Airlines is known for its excellent customer service, but it can still improve in some areas. For example, the airline could offer more personalized service to its customers by implementing a customer loyalty program, providing more in-flight entertainment options, and improving its baggage handling procedures.2. Yes, it would be possible to abolish traditional check-in while maintaining only online check-in. The operational differences between a mixed check-in operation and an exclusive online check-in are as follows:
Mixed check-in operation: A mixed check-in operation is when an airline offers both traditional check-in and online check-in options. This type of operation can be beneficial for customers who prefer to check-in in person or have special requirements. However, it can be more time-consuming and labor-intensive for the airline, as it requires additional staff to manage the check-in process.Exclusive online check-in: An exclusive online check-in operation is when an airline offers only online check-in options. This type of operation can be more convenient for customers, as it eliminates the need to wait in long lines at the airport. It can also be more cost-effective for the airline, as it requires fewer staff to manage the check-in process. However, it can be less accessible for customers who do not have access to the internet or who are not comfortable using technology.3. Online check-in offers several benefits in terms of logistics, such as:
Efficiency: Online check-in is more efficient than traditional check-in, as it reduces the amount of time customers spend waiting in line at the airport. This can help the airline manage its resources more effectively and reduce operational costs.Accuracy: Online check-in is more accurate than traditional check-in, as it eliminates the risk of errors that can occur when passengers fill out their own boarding passes. This can help the airline ensure that all passengers are properly checked-in and reduce the risk of delays.Customer satisfaction: Online check-in can improve customer satisfaction by making the check-in process more convenient and reducing the amount of time customers spend waiting in line at the airport. This can help the airline build a positive reputation and attract more customers.Learn more about logistics here: https://brainly.com/question/30389546
#SPJ11
some misleading footnotes have no effect on financial statement balances. true or false?
False. Misleading footnotes can have an impact on financial statement balances. They may distort the financial information presented and mislead stakeholders, affecting their decisions and assessments of the company's financial health.
Misleading footnotes, despite not directly altering financial statement balances, can still have significant consequences. Footnotes provide additional context and explanations to the financial statements, allowing readers to understand the underlying assumptions and judgments made by the company. If these footnotes are misleading, they can distort the interpretation of financial data and misrepresent the true financial condition of the company. Investors, creditors, and other stakeholders rely on accurate and transparent financial statements to make informed decisions. Misleading footnotes can lead to incorrect assessments of a company's financial health, potentially resulting in misallocation of resources, mispricing of securities, or faulty investment decisions. Such misinterpretation can harm stakeholders and undermine their trust in the company's financial reporting. Moreover, misleading footnotes may violate accounting standards, regulatory requirements, and ethical guidelines, which can have legal and reputational implications for the company. It is crucial for companies to ensure that their footnotes provide accurate and transparent information, reflecting the true financial position and performance. Effective disclosure and clear communication through footnotes are essential to maintain trust, facilitate decision-making, and uphold the integrity of financial reporting.
Learn more about Misleading footnotes here: brainly.com/question/31976386
#SPJ11
Which of the following statements represents a conflict perspective of capitalism?
a. Capitalism maintains the order of society through efficiency.
b. Capitalism provides people with the goods and services they need.
c. Capitalism is not a source of stability for society but instead creates more economic inequality.
d. None of these represent a conflict perspective of capitalism.
The conflict perspective of capitalism is represented by the following statement: "Capitalism is not a source of stability for society but instead creates more economic inequality." option c
Capitalism is a type of economic system that is based on the ownership of the means of production and capital by individuals or corporations. It is characterized by the private ownership of the means of production, the pursuit of profit, and the free market exchange of goods and services. The conflict perspective of capitalism argues that it creates economic inequality and that the distribution of wealth is not equal.Capitalism is seen as a source of conflict because it creates economic inequality and contributes to the concentration of wealth in the hands of a few individuals or corporations. In this view, the rich get richer and the poor get poorer, leading to a widening gap between the rich and poor. This creates a situation where the wealthy are able to accumulate more wealth, power, and influence, while the poor are left struggling to survive.
The conflict perspective of capitalism argues that the economic system is not stable and does not promote the welfare of society as a whole. It creates social problems such as poverty, unemployment, and crime. These problems are seen as a result of the unequal distribution of wealth and resources. The conflict perspective of capitalism argues that there is a fundamental conflict between the owners of capital and the workers who produce the goods and services. This conflict is seen as the driving force behind the economic system, and it is what creates the economic inequality that is characteristic of capitalism.In conclusion, the conflict perspective of capitalism is represented by the statement: "Capitalism is not a source of stability for society but instead creates more economic inequality." This perspective argues that capitalism is a source of conflict and that it creates economic inequality.
to know more about Capitalism visit:
https://brainly.com/question/32340266
#SPJ11
Which tool of monetary policy is most likely being described by each of the following statements?
a. It's the major way the Bank of Canada enacts monetary policy:
b. This tool is good for emergency situations that require major, large-scale action:
c. This tool goes through the Bank of Canada's role as lender of last resort:
d. This tool is best for everyday monetary policy:
e. A major disadvantage of this tool is that it requires that banks want to borrow from the Bank of Canada:
f. Even if they aren't interested in buying, selling, or borrowing from the Bank of Canada, changes in this tool may inconvenience bank managers:
After analyzing the questions, the answers are: a. Open-market operations, b. Changing the reserve requirement, c. Target for overnight rate, d. Open-market operations, e. Bank rate and f. Changing the reserve requirement.
The Federal Reserve (Fed) conducts open market operations (OMOs) when it buys and sells securities in the open market. The Fed uses open market operations to control the supply of money on reserve in US banks. The Fed buys Treasury securities to expand the money supply and sells them to decrease it.
The Fed can adjust the federal funds rate through OMOs, which effects other short-term, long-term, and foreign currency rates. This can alter the amount of money and credit available in the economy, as well as certain economic indicators including unemployment, output, and the prices of products and services.
To know more about open market operations:
https://brainly.com/question/29886606
#SPJ4
DeConinck Soup Co. found that its canned nacho cheese sauce was too spicy for Americans in the East and not spicy enough for those in the West and Southwest. Today, DeConinck's plants in Texas and California produce a spicier nacho cheese sauce than what is produced in the other plants. DeConinck's is using __________ segmentation.
Answer:
D: Geographic segmentation
Explanation:
Geographic segmentation is defined as the marketing strategy that primarily aims to target the distinct choice preferences of the customers across a specific region or area. DeConinck Co. is employing this strategy to understand the consumer needs and cater to the different types of demands of their customers residing across the region by producing and marketing products accordingly.
Answer:
applebees is the qorst restruant even tho ive never been there so i cant have an opinion
Explanation:
before buying an existing business you need to identify if the business problems can be fixed.T/F
The statement "before buying an existing business you need to identify if the business problems can be fixed" is true.
Before buying an existing business, it is crucial to identify and assess the problems it faces to determine if they can be fixed. Conducting a thorough due diligence process is essential to evaluate the business's current state, potential challenges, and opportunities for improvement.
Identifying and understanding the problems within the business allows the buyer to make an informed decision about its viability and potential for success. By analyzing the issues, the buyer can assess the feasibility of implementing solutions and determine if they have the resources, expertise, and strategies to address and overcome the problems effectively.
Some common problems that may be encountered in an existing business include financial difficulties, operational inefficiencies, poor management, outdated technology, declining market demand, legal or regulatory issues, and competitive challenges. These problems can significantly impact the business's performance, profitability, and sustainability.
By evaluating the problems, potential buyers can assess the risks involved in acquiring the business and develop a realistic plan to resolve them. This may involve implementing operational changes, improving marketing and sales strategies, restructuring financials, upgrading technology systems, or addressing any legal or compliance issues.
Ultimately, the ability to identify and fix the problems within an existing business is crucial to ensure a successful acquisition and maximize the chances of future growth and profitability. Thorough due diligence and careful evaluation of the business's challenges are essential steps in the decision-making process for prospective buyers.
To learn more about business problems refer here:
https://brainly.com/question/28503901
#SPJ11
When evaluating an investment, one should consider which of the following? Incremental change in net working capital Incremental change in capital outlay Incremental change in salvage value net of tax Incremental change in operating cash flow
When evaluating an investment, one should consider the Incremental change in operating cash flow.
The incremental change in the operating cash flow is the most critical factor to consider when assessing an investment. The operating cash flow's incremental change reflects the cash inflows and outflows generated by the project. It's also crucial because cash is the lifeblood of a company.The following is the meaning of the terms used in the statement:Incremental change refers to the amount of change that takes place due to a particular factor. It is the change observed when one factor is taken into account.
Capital Outlay refers to the total amount of money spent to purchase or acquire an asset. It is the total investment that a company makes on a particular asset.Salvage Value refers to the value that a company can get by disposing of an asset at the end of its useful life.Net Working Capital refers to the difference between a company's current assets and its current liabilities. It shows the company's ability to pay off its short-term liabilities.As a result, in evaluating an investment, one should consider the incremental change in operating cash flow since it shows how much cash is being produced and is available to repay debts and shareholders.
To know more about investment visit:
https://brainly.com/question/15105766
#SPJ11
Below are earnings per share for a firm. Year 0 earnings per share are the actual earnings per share this year. Year 1 and 2 earnings per share are forecasts produced by an analyst. The required rate of return is 6% and the firm does not pay dividends nor will they pay dividends in the future. ܒܢ Year 06 Year 14 Year 2- EPS 4.70€ 5.005.504 الي a) Calculate abnormal earnings growth (AEG) for Year 2 using a pro forma. A b) What is the long-term growth rate in abnormal earnings growth (AEG) implied by market price of $200? c) Using the long term implied growth rate from part (b), forecast EPS for Year 3, 4 and 5 and produce a graph of EPS growth path from year 1 to 5 with an indicator for both BUY and SELL zones. d) In the context of investment decision-making, briefly discuss the issues fundamental investors face while calculating intrinsic value. Also, discuss how fundamental investors overcome those issues.
Fundamental investors can employ valuation models, conduct financial analysis, perform industry research, and incorporate risk assessments to overcome the challenges and make informed investment decisions.
What steps can fundamental investors take to overcome the challenges they face in calculating intrinsic value and making investment decisions?The given information presents earnings per share (EPS) for a firm over three years.
a) To calculate the abnormal earnings growth (AEG) for Year 2 using a pro forma, subtract the expected earnings per share for Year 2 from the normal earnings growth rate.
b) The long-term growth rate in abnormal earnings growth (AEG) implied by a market price of $200 can be determined by finding the growth rate that equates the present value of expected future abnormal earnings to the market price.
c) Using the long-term implied growth rate from part (b), forecast EPS for Year 3, 4, and 5. Plot a graph showing the EPS growth path from Year 1 to Year 5, indicating the BUY and SELL zones based on the forecasted EPS values.
d) In the context of investment decision-making, fundamental investors face issues such as accurately estimating intrinsic value, assessing future growth rates, and accounting for market uncertainties.
To overcome these issues, fundamental investors employ various valuation models, perform thorough financial analysis, conduct industry research, and incorporate risk assessments to make informed investment decisions.
Learn more about Fundamental investors
brainly.com/question/32557621
#SPJ11
Determine whether the following production functions are constant, decreasing, or increasing returns to scale. a. F(K,L) = 3K + 2L b. F(K,L)= K¹/312/3 c. F(K,L)= K¹/² + ¹/2 | d. F(K,L) = 3K + 2L+1
a. F(K, L) = 3K + 2L Returns to scale: Constant returns to scale
b. F(K, L)= K¹/31 2/3 Returns to scale: Constant returns to scale
c. F(K, L)= K¹/² + ¹/2 Returns to scale: decreasing returns to scale
d. F(K, L) = 3K + 2L+1 Returns to scale: no returns to scale
The production function displays constant returns to scale if the output rises in the same ratio as the inputs.
The production function displays declining returns to scale when the ratio of input to output growth is less.
The production function shows increasing returns to scale when the ratio of input to output grows.
Learn more about on Constant returns, here:
https://brainly.com/question/32468316
#SPJ4
A late penalty of 10% will apply to new answers. Intro A stock just paid an annual dividend of $2.1. The dividend is expected to grow by 9% per year for the next 4 years. The growth rate of dividends will then fall steadily by 1.5% per year from 9% in year 4 to 3% in year 8 and stay at that level forever The required rate of return is 12%.
Part 1 What is the expected dividend in 8 years?
Part 2 What is the value of the stock in 8 years?
Part 3 What is the value of the stock now?
Part 1: To find the expected dividend in 8 years, we need to calculate the dividend at year 4 and then apply the decreasing growth rate until year 8.
Dividend at year 4:
Dividend at year 4 = Initial dividend * (1 + Growth rate)^4
Dividend at year 4 = $2.1 * (1 + 0.09)^4
Dividend growth rate from year 4 to year 8:
Growth rate from year 4 to year 8 = Initial growth rate - (Decrease in growth rate per year * Number of years)
Growth rate from year 4 to year 8 = 0.09 - (0.015 * 4)
Dividend at year 8:
Dividend at year 8 = Dividend at year 4 * (1 + Growth rate from year 4 to year 8)^4
Dividend at year 8 = [Dividend at year 4] * (1 + [Growth rate from year 4 to year 8])^4
Calculate the values using the given information and round to two decimal places.
Part 2: To find the value of the stock in 8 years, we can use the Gordon growth model. The formula is:
Value of Stock = Dividend in year 8 / (Required rate of return - Growth rate in year 8)
Calculate the value using the dividends obtained in Part 1 and round to two decimal places.
Part 3: To find the value of the stock now, we need to discount the future value of the stock (value in year 8) back to the present using the required rate of return. The formula is:
Value of Stock now = Value of Stock in year 8 / (1 + Required rate of return)^8
Calculate the value using the value obtained in Part 2 and round to two decimal places.
Please provide the initial dividend amount in order to proceed with the calculations.
To know more about dividend visit-
brainly.com/question/31360107
#SPJ11
Based on the case study ("Showdown at Cracker Barrel"), please answer the following questions:
1. What is your assessment of Cracker Barrel’s performance over time?
2. Do you agree with Biglari’s critique of the company’s performance?
3. Do you agree with Biglari’s choice of peer companies?
4. Imagine the new CEO hires you as her advisor. What suggestions would you have to improve the performance of the company?
Case Overview: In September 2011, activist investor Sardar Biglari initiated a proxy contest seeking election to the board of restaurant company Cracker Barrel. Although Cracker and Barrel was highly successful from 2002 through 2007, the company had subpar performance during the recession and the years following. Biglari, who owned 10% of Cracker and Barrel, was disappointed with the performance and argued for better financial reporting and demanded strategic changes. Cracker and Barrel fought back. Proxy advisory services, ISS and GL, were split. This case explores issues around hedge fund activism. In particular how activist hedge funds identify targets for activism and how they develop an investment thesis.
What is your assessment of Cracker Barrel’s performance over time?Cracker Barrel’s performance was highly successful from 2002 to 2007, according to the case study. However, following the recession and the years that followed, the company’s performance fell short of expectations.
Do you agree with Biglari’s critique of the company’s performance?Yes, I agree with Biglari’s critique of Cracker Barrel's performance. Sardar Biglari, who owned 10% of Cracker Barrel, was dissatisfied with the company’s performance and proposed better financial reporting and strategic changes. Do you agree with Biglari’s choice of peer companies The investor’s choice of peer companies in the restaurant industry was questionable, according to some people.
Biglari, according to some observers, did not compare Cracker Barrel to similar businesses, and the businesses he suggested were not comparable in terms of business model and size. Imagine the new CEO hires you as her advisor. What suggestions would you have to improve the performance of the company Here are some recommendations for Cracker Barrel, which the new CEO could consider to improve the performance of the company:Improving customer experience: Cracker Barrel must concentrate on enhancing customer experience. It must upgrade its restaurants, expand its menu, and invest in customer service to win back lost clients. Marketing and Promotions: Cracker Barrel must develop more effective marketing and promotion strategies that are appropriate for different demographics to enhance brand recognition and attract new clients.
To know more about Cracker Barrel’s visit :
https://brainly.com/question/30400511
#SPJ11
You deposited $100 in a savings account 7 months ago. You currently have $102.50. What was the EAR if the bank paid interest with monthly compounding? 1 0.4166 (express as a decimal (not a percent) rounded to 4 digits after the decimal 0.xxxx)) Answers 1-1 1. 0.4166
The calculation will be done in the following way: EAR = (1 + (0.4166/12))^12 - 1 = 0.0434 or 4.34% (rounded to 4 decimal places)Hence, the effective annual rate (EAR) is 4.34% (rounded to 4 decimal places).
Given: The principal amount (P) deposited = $100The amount after 7 months (A) = $102.50Formula used: A = P(1 + r/m)m*t, where P = principal amount, r = annual interest rate, m = number of compounding periods per year, and t = time in years. Rearranging the formula we get: r = m[{A/P}^(1/m*t) - 1]Let's calculate the annual interest rate: We are given that the interest is compounded monthly. Therefore, the number of compounding periods per year (m) = 12Time in years (t) = 7/12 years Substituting the given values in the above formula, we get:r = 12[{102.5/100}^(1/12 * 7/12) - 1]= 0.0417 or 0.4166 (rounded to 4 decimal places)Therefore, the EAR if the bank paid interest with monthly compounding is 0.4166 (expressed as a decimal and rounded to 4 decimal places).Explanation: We use the formula for compound interest to calculate the effective annual rate (EAR).The formula used to calculate EAR is:(1 + r/m)^m - 1The first thing that we need to do is to calculate the effective annual interest rate. The EAR will give us an idea of the true rate of interest paid on the money deposited. The calculation will be done in the following way :EAR = (1 + (0.4166/12))^12 - 1 = 0.0434 or 4.34% (rounded to 4 decimal places)Hence, the effective annual rate (EAR) is 4.34% (rounded to 4 decimal places).
For more question on rate
https://brainly.com/question/24841216
#SPJ11
According to the law of supply
people buy more of a good when the price increases.
people buy more of a good when the price decreases.
producers provide more of a good when the price increases.
producers provide more of a good when the price decreases.
According to the law of supply, producers provide more of a good when the price increases and people buy more of a good when the price decreases. What is the law of supply?
The law of supply is a basic principle in economics that states that producers supply more goods at a higher price than at a lower price. This implies that as the price of a good rises, producers will be more willing to supply more of that good, and as the price falls, they will be less willing to do so.
This is based on the basic principle of supply and demand, which indicates that higher prices result in more supply and lower prices result in less supply. The relationship between price and quantity supplied can be represented graphically using a supply curve. A supply curve is a graph that depicts the relationship between the price of a good and the quantity supplied.
It has a positive slope, indicating that as the price of a good rises, the quantity supplied also rises.
In conclusion, according to the law of supply, producers provide more of a good when the price increases and people buy more of a good when the price decreases.
To know more about producers visit:
https://brainly.com/question/30698459
#SPJ11
In marketing, persuasive strategles are referred to as
stimull
appeals
channels
Tallacies
Answer:
it is referred to as stimull
Explanation:
that is manipulating