Financial accounting provides information primarily for investors and creditors to make informed decisions about a company's financial position and performance.
Explanation:The purpose of financial accounting is to provide information primarily for investors and creditors. Financial accounting helps these groups make informed decisions about investing in a company or extending credit to it. By providing information about a company's financial position, performance, and cash flows, financial accounting helps investors and creditors assess the company's profitability, stability, and ability to repay debts.
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Financial accounting primarily provides information for investors and creditors. This information, which includes details about the company's products, revenue, costs, and profits, aids in decision-making about the company's financial health.
Explanation:The main purpose of financial accounting is to provide comprehensive, reliable, and timely information primarily for investors and creditors. This information is vital as it helps these groups make informed decisions about the company's financial health. The board of directors, shareholders, and auditing firms represent key institutions of corporate governance, and their roles involve ensuring transparency and accuracy in the company's financial reporting. However, accurate information is also essential for outsiders, especially large shareholders, bondholders, and other investors who do not know the company managers personally or extensively.
Investors and creditors rely upon the information from financial accounting when providing financial capital to a firm. The information such includes the company's products, revenues, costs, and profits. Therefore, it is important to ensure that this information is accurate and up-to-date to aid in decision making.
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farmer sells $50,000 of apples to individuals who take them home to eat and $75,000 of apples to a company that uses them all to produce cider. How much of the farmers sales will be included as apples in GDP?
Answer:
$50,000
Explanation:
The gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
The $50,000 worth of Apples sold to individuals represent final goods. They are included as part of consumption in the calculation of GDP.
The $75,000 sold to firms which are used to produce Apple ciders are intermediate goods. Intermediate goods aren't included in the calculation of GDP.
I hope my answer helps you
Only the farmer's direct sales to individuals, amounting to $50,000, will be counted in GDP, as the apples sold to the company for cider production are considered intermediate goods and will not be counted to prevent double counting.
When calculating Gross Domestic Product (GDP), we only include the final goods and services produced within a country in a given year. This means we exclude intermediate goods to prevent double counting. In the case of the farmer's sales, the $50,000 worth of apples sold directly to consumers for consumption will be included in the GDP. However, the $75,000 worth of apples sold to the company for cider production will not be included as apples in the GDP calculation because they are intermediate goods that will be transformed into a different final good - the cider.
Only the value of the finished cider, as a final good, will be included in the GDP figures once it's sold to the final consumers or businesses. Therefore, for the reported sales of apples, only the initial $50,000 will count towards GDP as part of consumption.
The Allegheny Valley Power Company common stock has a beta of 0.80. Assume the current risk-free rate is 6.5% and the expected return on the stock market as a whole is 16%, determine the cost of equity capital for the firm (using the CAPM).
a. 14.1%b. 7.6%c. 6.5%d. 13.0%
Answer:
correct option is a. 14.1%
Explanation:
given data
beta = 0.80
current risk-free rate = 6.5%
expected return = 16%
solution
we get here cost of equity capital that is express as
cost of equity capital = current risk-free rate + beta ( expected return - current risk-free rate ) ...........................1
put here value ans we will get cost of equity capital
cost of equity capital = 6.5% + 0.8 (16% - 6.5% )
solve it we get
cost of equity capital = 14.1%
so correct option is a. 14.1%
Delta Company purchased an equipment by signing a note with the bank for $20,000. Which of the following statements correctly show the effect of this transaction on the accounting equation?
a. Assets will increase by $20,000, liabilities will decrease by $20,000, and stockholders equity will remain unchanged.
b. Assets will increase by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged.
c. Assets will decrease by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged.
d. Liabilities will increase by $20,000, stockholders' equity will decrease by $20,000, and assets will remain unchanged.
Answer:
(B) Assets will increase by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged
Explanation:
Signing a note of $20,000 with a bank to purchase an equipment will have the following double entry in the books of the borrower.
Debit Equipment (asset) account $20,000 (an increase in assets)
Credit Bank Notes (liability) account $20,000 (an increase in liabilities).
U.S. businesses and those of other countries are seeking to expand around the world for many reasons. Which of the following is not one of those reasons?
a. Passage of favorable trade agreements
b. Development of new transportation and information technology
c. An increase in underdeveloped countries
d. Maturing domestic markets
Answer:
C
Explanation:
An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky
_____ _____ includes employee behaviors that are directly involved in the transformation
of organizational resources into the goods or services that the organization produces.
Examples include_____ task performance, _____ task performance,
and ______task performance.
Answer:
Task performance
routine
adaptive
creative task
Explanation:
Task performance
This is a performance assessment system that measures the way and manner a specific task was carried out. This can cover observable work-related behavioral pattern or time and accuracy of task
Routine Task performance
This is a performance assessment technique that involves popular attitude to normal demands or routine.
Adaptive Task performance
This deals with employees behavior towards certain, predictable and unusual job.
Creative Task Performance
This is the development of a useful ideas that can be deployed in both routine and adaptive task.
Theo believes that everyone must develop his or her own ethical rules. So whereas he believes that gay marriage should be legal, he understands that other people might feel differently. Theo would be considered to be a(n) _______ relativist.
Answer:
Individual
Explanation:
In the new global environment, relativism has been given equal consideration. Everyone has their own beliefs and thought procedure and they must be respected. Theo is an individual relativist that means that he believes everyone must make their own ethical rules and they should follow those rules. If he feels that gay marriages should be legal at the same time he knows that other people might feel different this is individual relativism.
Talbot purchased a laptop for $1,500 and a television for $1,300. The laptop is used solely for business and the television solely for personal entertainment. During the same year, Talbot experienced serious financial difficulty and sold the television for $300 and the laptop for $1,000. What amount, if any, is Talbot entitled to deduct as a loss relating to the sale of the television and laptop?
Answer:
B) $500
Explanation:
Individual taxpayers can only deduct certain losses regarding their property, specially those that are related to their business activity (Talbot used the laptop solely for business purposes). The only other case when an individual can deduct some property loss is when they suffer a theft or an incident like a fire, tornado, flood, etc.
In this case, Talbot paid $1,500 for the laptop and sold it at $1,000, therefore he can deduct a loss of $500 from his gross income.
Final answer:
Talbot can deduct a $500 loss for the business-use laptop, but cannot claim any loss for the personally-used television.
Explanation:
The question posed relates to the deduction of losses on the sale of a laptop and television for personal entertainment. Generally, the Internal Revenue Service (IRS) allows individuals to deduct losses related to business assets, but personal losses are non-deductible. Here, Talbot can claim a loss on the laptop, which is used solely for business purposes. The laptop was purchased for $1,500 and sold for $1,000, resulting in a deductible business loss of $500. However, the television, which is a personal use asset, was purchased for $1,300 and sold for $300. This personal loss of $1,000 is not deductible. Therefore, Talbot is entitled to deduct a loss of $500 for the laptop, but cannot claim any loss for the television.
On June 1 of the current year, Jack and Angie purchased a rental beach house for $900,000 and rented it right away. Of that amount, $600,000 was for the land value. How much depreciation deduction can Jack and Angie take in the current year? (You may need to refer to the depreciation tables.) a. $5,910 b. $10,909 c. $11,820 d. $17,730
Answer:
a. $5,910
Explanation:
The computation of the deduction amount for depreciation is shown below:
= (Rental beach house - the amount of the land value) × depreciation rate
= ($900,000 - $600,000) × 1.97%
= $300,000 × 1.97%
= $5,910
Refer to the depreciation table and we assume the year would be 1 and the recovery period is 19 years is 1.97%
On January 1, Year 5, customers owed Eagle $40,000. On December 31, Year 5, customers owed Eagle $30,000. Eagle uses the direct write‐off method for bad debts. No bad debts were recorded in Year 5. Under the cash basis of accounting, what amount of net revenue should Eagle report for Year 5?
Answer:
$200,000
Explanation:
The computation of the net revenue is shown below:
= Cash sales gross - Returns and allowances + credit sales gross - discounts + beginning balance of account receivable - ending balance of account receivable
= $80,000 - $4,000 + $120,000 - $6,000 + $40,000 - $30,000
= $200,000
We simply first compute the net cash sales after considering the returns and allowances, and net credit sales after considering the discounts, and deduct the ending balance of account receivable
The accumulation of several contiguous properties under one ownership, thus creating a large parcel of proportionate greater value, involves:
depreciation
plottage
corner influence
zoning value
plottage
Answer:
Plottage
Explanation:
Plottage is a value increase achieved by the amalgamation of conterminous or contiguous land into one piece under one ownership. The effect of such combination is that it produces a value that will be much greater than the sum of the value of the individual land.
The very process involved in the combination is referred to as assemblage. sometimes the word assemblage is used loosely to mean plottage.
Martha signs a listing agreement with Broker Patrick. Which of the following would probably not be found in the agreement they signed?
a. Patrick's commission
b. Martha's price
c. Expiration date of the contract
d. Martha's average utilities
Answer:
. Martha's average utilities
Explanation:
As it is mentioned in the information Martha has signed the listing agreement, a listing agreement is an agreement which is signed between the broker and owner.
The significance of listing contract is that the owner allowing the broker to work for the owner as an agent to sell the property. so it must include broker commission, Martha's property price and duration of the contract
Project managers need to recognize the risk of __________, which is the piling up of small changes that by themselves are manageable, but collectively can cause significant project growth. Select one:
a. over allocation
b. critical path
c. triple constraints
d. scope creep
Answer:
The answer to this question is D- Scope creep
Explanation:
Scope creep refers changes in the requirements of a project over a project life cycle. scope creep are uncontrolled growths in projects scope after the projects has begun
scope in project is the part of planning project that involves determining or identifying the specific goals, deliverable, features, functions, deadline and cost. in other words, it refers to the overview of the project and what must be done for the project to be term successful.
Causes of scope creep
poorly defined initial requirements starting the project with cost benefit analysis that are not up-to-date
Emma and Anna went to the market to buy 25 fruits. Emma bought a few apples which cost $2 each, and Anna bought some oranges which cost $3 each. If their combined total is $60, how many oranges did Anna get? 5 10 15 20 25
Answer:
Emma and Anna went to the market to buy 25 fruits. Emma bought a few apples which cost $2 each, and Anna bought some oranges which cost $3 each. If their combined total is $60, how many oranges did Anna get?
10
Explanation:
if Emma bought 15 apples at 2$ each= 15 X 2= $30
then Anna bought 10 oranges at 3$ each= 10 X 3= $30
$30+$30= $60
The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise, But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than is waiting on customers. Marielle's is suffering from is ______ gap. A) communications B) delivery C) knowledge D) social expectations E) standards
Answer:
B) delivery
Explanation:
If Marielle's service was usually bad and slow as that specific date, then the coffee shop would be suffering from a communication gap since it offers more than it can deliver. But since that day was an exception, then we can assume that the coffee shop suffered from a delivery gap that day.
A delivery gap happens when a service or product does not match the standards.
Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run a coffee shop. They will share any profits or losses that the business generates and will be personally responsible for making good on any debt that their business undertakes.
Answer:
A) Partnership
Explanation:
A partnership is a type of business where two or more people (called partners) come together and form one single company. The main advantages of forming a partnership are:
partnerships are easy to set upsince more than one person is involved, a partnership can gather more capitalthe talents of the partners are sharedthe partnership is not taxed directly, it is a pass through entity where the partners are taxed directlyThe main disadvantage of forming a partnerships is that the partners are personally liable for all the partnership's debts and obligations.
In the context of Frederick W. Taylor's four principles of scientific management, what is a difference between the first principle and the third principle?
The first principle of scientific management emphasizes redesigning the workplace for productivity and wages. The third principle focuses on time and motion studies to improve work efficiency and standardize work.
Explanation:The first principle of Frederick W. Taylor's scientific management is about managing the workplace to increase productivity and wages. It emphasizes redesigning the workplace to achieve the best outcome for both the employer and the employee through training and development. On the other hand, the third principle focuses on time and motion studies to improve work efficiency and standardize work. It aims to reduce wasteful movements and increase productivity through careful study and measurement of different types of operations.
Paradigm Media is a company run by a group of new media professionals. The owners of the company do not have any personal liability and file taxes only on their individual tax returns.
Answer:
Limited liability partnership (LLP) / limited liability company (LLC)
Explanation:
Limited liability partnership and limited liability companies work very similarly and their main characteristics are:
they are separate legal entities, this means that their owners are separate from them.since they are separate legal entities, the owners have limited liabilitythey are not taxed directly, they act as pass through entities and their owner's pay income taxesthey both need to be incorporated by the state government as distinct legal entitiesIt is usually easier to detect inadequate disclosure fraud that involves______ disclosures than it is to detect disclosure fraud that involves _______ disclosures.
A. fraudulent, irrelevant
B. unintentional; intentional
C. misleading; missing
D. missing; fraudulent
Explanation:
Go with D
The detection of disclosure fraud involving fraudulent disclosures is typically more difficult than that of inadequate disclosure fraud involving missing disclosures. Option D is correct.
What is the significance of fraud disclosures?False statements about the facts are a component of fraud, whether they are made to another party with the intent to deceive or purposefully withheld for the goal of obtaining something that might not have been given otherwise.
Fraud detection stops dishonest people from conducting fictitious financial or other transactions. It is a crucial component of monitoring fraud. Any company's financial stability, as well as its reputation and brand, can be harmed by fraud.
Companies that distort financial information or omit crucial information from public statements commit financial statement and disclosure fraud. Publicly traded businesses notify the general public of significant occurrences through press releases and SEC filings (SEC).
Therefore, option D is correct.
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Suppose most economists agree that the target rate of unemployment is between 4 and 7 percent. If the actual unemployment rate is 11 percent, then most economists would agree that:______________.
Answer:
Both expansionary monetary and fiscal policies can be used
Explanation:
When unemployment rate is higher than the tolerated level, the government must stimulate aggregate demand by increasing the purchasing power of the citizens. The disposable income can be increased by using any of either expansionary fiscal policy which include massive government expenditure or the reduction in income tax, or monetary policy tools, the monetary authority can use expansionary monetary policy by reducing the cost of money (i.e. interest rate), increasing money supply, e.t.c.
The tendency to search for information consistent with our preconceptions is called: A. functional fixedness B. the representativeness heuristic C. the availability heuristic D. confirmation bias
Answer:
D, confirmation bias
Explanation:
Confirmation bias is a form of cognitive bias that is defined as the tendency to interpret ,search, recall an information that confirms one's previous personal belief.
For example, if you suspect that a friend of yours is a thief after some things went missing a few times after he left you place and then someone else tells you he is also suspecting that same friend of being a thief, your confidence bias immediately connects both situations and then you believe your friend is a thief.
I hope this helps.
Confirmation bias is the tendency to seek or favor information that validates our pre-existing beliefs, leading to a skewed interpretation and recall of information.
Explanation:The tendency to search for information consistent with our preconceptions is called confirmation bias. This cognitive bias refers to our inclination to favor, interpret, and recall information that supports our existing beliefs. For example, if you believe that cats are not friendly, you may more likely recall instances where a cat behaved unfriendly than those where a cat was friendly, even if these instances were equal in number. This happens because the information supporting your belief that 'cats are unfriendly' gets more priority and is more easily remembered.
In comparison, functional fixedness refers to viewing objects as only working in a particular way, the representativeness heuristic involves stereotyping based on a perceived category, and the availability heuristic involves making conclusions based on easily remembered or readily available instances.
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Blaine bought 4 pairs of pants and 2 shirts at a department store in California. Each pair of pants cost $25.85 and each shirt cost $15.70. Blaine was also charged an additional 6% state sales tax on the total purchase amount. How much change did Blaine receive from $200?
Answer:
$57.11
Explanation:
$25.85 × 4 = $103.40
$15.70 × 2 = $31.40
Total cost of purchase = $134.80
6% tax = 0.06 × $134.80 = $8.09
Total cost of purchase including tax = $142.89
Change received by Blaine = $200 - $142.89 = $57.11
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Fifty people were asked to respond to a survey question regarding how frequently they used their credit card. The categories they were asked to choose from are given below: 1) Infrequently 2) Sometimes 3) Frequently. qualitative neither
Complete Question: Classify the following data. Indicate whether the data is quantitative or quantitative, Gender is an example of which type of data here, discrete, continuous, or neither and indicate the level of measurement for the data. Fifty people were asked to respond to a survey question regarding how frequently they used their credit card. The categories they were asked to choose from are given below: Infrequently Sometimes Frequently. 1). Are these data quantitative or quantitative? 2). Are these data discrete or continuous or Neither ?3). What is the highest level of measurement the data possesses? Nominal, Ordinal, Interval, or Ratio
Answer: is the data is Qualitative, the data is neither (data not shown) discrete nor continuous, and finally the the level of measurement of data is ordinal. Lastly
1). What is Quantitative and Qualitative data: Quantitative data includes large groups of people usually in hundreds or thousands, collecting data by structured questionnaire technique that consists of forced choice and closed ended questions. While on the other hand, Qualitative data includes small group and conduct the research in the form of in-person or focus groups, phone interviews and detailed surveys. Qualitative technique is more precise and in depth kind of technique.
2). The option is neither, which means gender (male or female) is not specified. Insufficient information is given of the people's gender.
Continuous data ( data that can be divided and reduced to more precise level for example measurements)Discrete data ( this form of data includes integers, which means the count cannot be made more accurate for example counts)3). Level of measurement of data: There are four types of data levels of measurements namely;
NominalOrdinalIntervalRatioOrdinal level of measurement: In an ordinal level of measurement, data is specified in order form which means the ordinal level of measurement shows an ordering of the measurements. For example, In a class of 20 students, the student who got the highest marks in the exam stood 1st rank in the class then the student who got second highest marks stood 2nd rank in the class and so on. The students got their ranks order wise according to the marks they obtained.
The question involves a survey where participants reported their credit card usage frequency. It exemplifies the collection and classification of ordinal data, a type of qualitative data, in statistics.
Explanation:The question is about data collection and classification in statistics, a branch of mathematics. Fifty people responded to a survey. Specifically, they answered a question about how often they use their credit cards.
The possible responses - 'Infrequently', 'Sometimes', and 'Frequently' - illustrate an example of ordinal data, which is a type of qualitative data. In ordinal data, categories can be ranked or have a particular order. In this instance, 'Infrequently' can be considered as least frequent while 'Frequently' as most frequent.
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In a free-market economic system, if consumers perceive the price for a state-of-the-art smartphone as too high for the value received, they are likely to avoid buying it. In the same light, if the:________
In a free-market economic system, consumers have the power to decide whether or not to purchase a product based on their perceived value of it. If they deem the price to be too high for the value received, they are likely to avoid buying it.
In a free-market economic system, if consumers perceive the price for a state-of-the-art smartphone as too high for the value received, they are likely to avoid buying it. This is because in a free-market system, consumers have the freedom to make purchasing decisions based on their own perceived value of a product. If they feel that the price is too high, they may choose to wait for a price drop or consider purchasing a different, more affordable option.
For example, if a consumer sees a state-of-the-art smartphone priced at $1,500 but feels that the features and benefits of the phone do not justify the high price, they may choose not to buy it. Instead, they might opt for a smartphone with similar features but at a lower price point, or wait for the price to decrease.
In summary, in a free-market economic system, consumers have the power to decide whether or not to purchase a product based on their perceived value of it. If they deem the price to be too high for the value received, they are likely to avoid buying it.
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Final answer:
In a free-market economic system, prices influenced by supply and demand can be misinterpreted by consumers when using price as an indicator of quality, especially in markets with imperfect information. This can lead to unexpected market behavior that deviates from the standard demand and supply model. Over time, the market adjusts as information spreads and consumers become more informed about the true value of products.
Explanation:
In a free-market economic system, the interaction of supply and demand determines the prices of products and services. However, when consumers perceive the price of a product as a signal of its quality, this can disrupt the typical market behavior. For instance, a used car dealer who lowers prices to increase sales may inadvertently signal to consumers that the cars are of low quality, deterring rather than attracting buyers. Conversely, increasing prices might create an impression of higher quality, potentially increasing demand. This phenomenon, which contradicts the basic demand and supply model, illustrates the complexities of a market with imperfect information.
Consumers' buying habits are influenced by their subjective valuations, and they are likely to adjust their purchasing decisions as better and more cost-effective options become available or as their personal circumstances change. Ultimately, the natural limits of price perception come into play, and excessively high prices will reduce demand, while very low prices may increase it, once consumers recognize the actual value of the products. Over time, information asymmetry diminishes as information spreads, helping to correct market distortions caused by misinterpretations of price signals.
Which process includes measuring progress toward project objectives and taking corrective action to match progress with the plan?a. Planning
b. Montioring and controlling
c. Executing
d. Initiating
Answer:
b. Montioring and controlling
Explanation:
Monitoring and controlling is done throughout the life of a project and involves 9 of the 10 project management areas. It is the process that involves measuring progress toward project objectives and taking corrective action to match progress with the plan.
Answer:
b. Monitoring and controlling
Explanation:
Project monitoring and controlling is one of the project implementation stage that has to do with quality control, it deals with monitoring progress to ensure the project is going according to the project plan, identifying deviation from budget as well as standards and ensuring quick corrective action on any significant negative deviation from standard.
This exercise in project management ensures project implementation is in line with the estimated cost schedule and time, the quality of work must be measured to ensure quality control.
After one year of payments, how much has been paid to interest? a. $1,100.42 b. $1,010.16 c. $1,188.34 d. $1,241.18
Answer:
Correct answer is A. $1,100.42
Explanation:
The interest paid in one year using the assumed values are: $500 in simple interest and $508.4 in compound interest
How to calculate interestSimple interest is calculated using:
[tex]I = PRT[/tex]
Where:
P represents the Principal R represents the rateT represents the timeAssume the above parameters are:
P= = $10000, R = 5%, T = 1
The equation becomes
[tex]I = 10000 * 5\% * 1[/tex]
[tex]I = 500[/tex]
So the interest after 1 year of payments is $500
If the interest is a compound interest, then we have:
[tex]I = P(1 + r/n)^{nt} - P[/tex]
Where:
n represents the number of times the interest is compounded.
Assume n is 3.
So, we have:
[tex]I = 10000(1 + 5\%/3)^{3 * 1}- 10000[/tex]
[tex]I = 508.4[/tex]
Hence, the interest paid in one year using the assumed values are: $500 in simple interest and $508.4 in compound interest
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controls ensure that valuable business data files on either disk or tape are not subject to unauthorized access, change, or destruction while they are in use or in storage.
Answer:
The answer to the following statement is "Data security".
Explanation:
Data security guarantees that sensitive business information files on a disk or record are not prone to unauthorized persons, deletion or degradation during use or storage.
Data security describes the process of securing knowledge over its entire lifecycle from identity theft and data manipulation. Data security requires encryption technology, tokenization, and other techniques that secure data across all networks and applications.Therefore, "Data Security" is the correct answer.
If they produce only hamburgers, in a single day Sarah can produce 10 hamburgers, and Abe can produce 5 hamburgers. If they make milkshakes only, in a single day Sarah can produce 10 milkshakes, and Abe can produce 4 milkshakes. Therefore, _____ has an absolute advantage and a comparative advantage in making _____.
Answer:
Sarah
Milkshakes
Explanation:
A person has comparative advantage in production if it produces at a lower opportunity cost when compared with other people.
A person has an absolute advantage in the production of a good or service If she produces more quantity of a product when compared with other people.
Sarah produces more hamburgers and milkshakes when compared to Abe. Therefore she has absolute advantage in the production of both milkshakes and hamburgers.
The opportunity cost of Sarah in producing hamburgers and milkshakes are both 10/10 = 1
The opportunity cost of Abe producing hamburgers is 4 / 5 = 0.8 and for milkshakes it is 5/4 = 1.25.
Therefore, Sarah has a comparative advantage in the production of milkshakes because she has a lower opportunity cost (1) when compared with Abe (1.25)
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What do critics say is an important problem related to the north american free trade agreement in mexico?
Answer:
Actually there are 5 problems related to NAFTA according to critics.
1) Mexico's farmers were put out of business, with free trade US exported agricultural products to mexico at low price. which in turns put local farmers out of business.
2) US jobs were lost, labour in mexico is cheap, so many companies moved their operations and factories to mexico for cheap labour. Which makes the US labour unemployed.
3) At US wages were suppressed, as many companies moved to Mexico other companies used this treat to pay labour low wages.
4) Mexico environment was highly affected, because of high competition local farmer used more fertilizers, fungicides and pesticides which affected their environment a lot.
5) Free US access to Mexican trucks, this was highly opposed by US local trucking companies as they will lose their business if mexican trucks were given free access to US. So, this point was rejected in 2008.
An issuer decides to call in an outstanding bond issue under the terms detailed in the bond resolution because interest rates have dropped substantially after issuance. This type of call is a(n):________.
Answer:
An optional Call
Explanation:
Callable Bond
Callable bond represents an instrument of debt where the issuer issues the instrument reserving the right to make a return of the principal of investors including the stoppage of interest payments before the date of maturity of the bond.
Organisations would usually issue bonds as callable when either to meet unexpected obligations like pay off other debts, fund expansions or when they sense that opportunities may arise in the future for them to get other forms of financing at lower interest rates.
For bonds to be callable the terms must be clearly stated in the bond's offering.
Optional Call
In optional call, the issuer reserves the right to call the bonds to take advantage of present circumstances such as significant drop in interest rates (as stated in the question). However, the terms detailed in the bond resolution will allow the bondholders to receive a premium to par as compensation for their loss of interest payments on the called bond.
Furthermore, a period of time must usually pass before the issuer can use the optional call.
A technological innovation in the production of golf balls increases ______, causing the price to ______ and the ______.
a) supply; fall; quantity demanded to increase.
b) quantity supplied; fall; quantity demanded to increase.
c) supply; rise; demand to decrease.
d) supply; fall; demand to increase.
Answer:
a) supply; fall; quantity demanded to increase.
Explanation:
Technological innovation typically makes production easier and faster so the supply of golf balls would increase. This would lead to an excess of supply over demand and as a result prices would fall. The fall in price would attract consumers and the quantity demanded would rise.
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Final answer:
A technological innovation that reduces production costs increases supply, leading to a lower price and higher quantity demanded for golf balls.
Explanation:
A technological innovation in the production of golf balls would likely lead to an increase in supply. According to economic principles, when there is an improvement in technology that reduces the cost of production, the supply curve shifts to the right, indicating a greater quantity supplied at every price level. This increase in supply, assuming demand remains constant, will cause the equilibrium price to fall, and as a result, the quantity demanded will increase since the goods have become cheaper.
The correct answer to the student's question is therefore:
a) supply; fall; quantity demanded to increase.