Answer:
Invoro will have a resource that is valuable but no longer rare.
Explanation:
Invoro's competitive edge has been duplicated by Finolo and Ethics through their customer knowledge base and products that appeal to customers.
The resource that Invoro has is still valuable and can give the company a good market share, but it is no more rare.
In its 1996 income statement, Kilm Co. reported cost of goods sold of $450,000. Changes occurred in several balance sheet accounts as follows:Inventory $160,000 decreaseAccounts payable-suppliers 40,000 decreaseWhat amount should Kilm report as cash paid to suppliers in its 1996 cash flow statement, prepared under the direct method?a. $250,000b. $330,000c. $570,000d. $650,000
Answer:
b. $330,000
Explanation:
Provided that
Reported cost of good sold = $450,000
Decrease in inventory = $160,000
Decrease in account payable = $40,000
So, The computation of the cash paid to supplier is shown below:
= Cost of goods sold + decrease in account payable - decrease in inventory
= $450,000 + $40,000 - $160,000
= $330,000
The decrease in supplies is added while the decrease in inventory is deducted to the cost of goods sold.
Martin Corporation purchased land in 2007 for $290,000. In 2015, it purchased a nearly identical parcel of land for $460,000. In its 2015 balance sheet, Martin valued these two parcels of land at a combined value of $920,000. By reporting the land in this manner, Martin Corp. has violated the
a. historical cost principle
b. convergence
c. economic entity assumption
d. monetary unit assumption
Answer:
a. Historical Cost Principle
Explanation:
The principle of historical cost notes that firms must report and account for most assets and liabilities at their acquisition or purchase price.
In certain terms, the companies need to report an asset for the amount paid for the asset on their balance sheet.
The cost or price of the product is then never adjusted for business or economy fluctuations and adjustments due to inflation.
Martin Corp. however combined both properties and adjusted them for inflation. They should have recorded them separately and never adjusted for business or economy fluctuations
Answer:
A) historical cost principle
Explanation:
The historical cost principle states that a company should record its assets, liabilities and equity investments at their original purchase costs.
So Martin Corporation should record its parcels of land at $290,000 + $460,000 = $740,000
This is done because the purchase price of the land is the land basis, and the basis is used to calculate taxes. If Martin Corporation reported the land at $460,000, it would have made a $160,000 capital gain and it should pay taxes for it, and no one would make such a mistake.
Dan owns a small grocery store. When an item doesn't sell well, he'll typically stop carrying it in favor of something that sells better. What type of efficiency does this help him achieve?
Answer:
allocative efficiency
Explanation:
allocative efficiency refers to an effiency that is achieved by focusing your resources on something that give you the most value.
This is reflected on Dan's action above.
the items that he sell on his grocery store is considered his resource. He need to spend money in order to buy it before he can sell it with higher price.
But, when a particular item is not selling well, he replace that item with another item. This mean that he allocated his resources into the new items because he believe that it will give him the most value.
A large beer company previously had a yearly budget of $50 million per year for advertising but increased the budget to $60 million in order to run a commercial during the Super Bowl. That year revenues increased by 1%. Should the beer company continue with the increased advertising budget?
Answer:
Yes they can continue advert but only if the 1% is equivalent or greater than the 10$ spent on advert.
Explanation:
There is an increase in revenue by 1%, this indicates that a number of people were attracted to the product because of the advert. With this the company might do better with consistent advert in subsequent year. They can change the channel of advert, improve on the quality of advert or change the time and location of the advert. Infarct, the 1% increment in revenue can be up to 20$ since we are not sure of the exact company's revenue. But if the 1% is far lower than the amount spent, the company can seek advice from professionals.
Derek has liquid assets of $4,450 and he saves $615 a month. His current liabilities are equal to $1,750 and monthly credit payments of $425. Derek’s gross income is $5,900 each month and a take-home pay of $4,775. What is Derek’s debt-payments ratio?
Final answer:
Derek's debt-payments ratio is calculated by dividing his monthly credit payments ($425) by his take-home pay ($4,775). This results in a ratio of 0.089 or 8.9%, indicating a healthy financial state as it is below the recommended maximum of 20%.
Explanation:
Derek’s debt-payments ratio is a tool used to assess his financial health by comparing the amount of money he owes each month to his take-home pay. To calculate this ratio, we would take Derek's monthly credit payments and divide them by his take-home pay. Thus, the calculation for Derek’s debt-payments ratio is:
Monthly Credit Payments / Take-Home Pay = $425 / $4,775 = 0.089 or 8.9%
This means that 8.9% of Derek's monthly take-home pay goes towards credit payments, which is under the recommended maximum of 20%. Having a debt-payments ratio under this threshold generally indicates good financial health and that Derek is managing his credit responsibly.
On January 2, Boulder Co. assigned its patent to Castle Co. for royalties of 10% of patent-related sales. The assignment is for the remaining 4 years of the patent’s life. Castle guaranteed Boulder a minimum royalty of $100,000 over the life of the patent and paid Boulder $50,000 against future royalties during the year. Patent-related sales for the year were $300,000. In its income statement for the year, what amount should Boulder report as royalty revenue?
Answer:
$30,000
Explanation:
The computation of the royalty revenue reported is shown below:
= Patent-related sales for the year × given percentage
= $300,000 × 10%
= $30,000
The revenue is recognized when it is earned or realized so only $30,000 is to be reported as the royalty revenue
The remaining amount i.e $20,000 would be treated as an unearned royalty revenue
Fifteen-year-old Hermione is able to write a much more complex answer than 10-year-old Ginger to the question, "Compare the advantages and disadvantages of using simple spells for self-protection." This is because, as an adolescent, Hermione is able to think:A. egocentrically.
B. deductively.
C. in metacognitive ways. D. in multiple dimensions.
Answer:
D. In Multiple dimensions
Explanation:
As an adolescent, Hermione is able to do more complex thinking. Also known as formal logical operations and includes the ability to reason from known principles, consider many points of view, think about the process of thinking and do alot of abstract thinking. Ginger can think in multiple dimensions because at his age they have the ability to only think in concrete ways.
Mann Corporation has been investing $18,000 for the last four years in an investment scheme that will mature at the end of the current year. It will be receiving $80,000 at the time of the maturity. $80,000 received at maturity is an example of _____.
a. annuity due
b. ordinary annuity
c. lump-sum amount
d. uneven cash flow
Answer:
c. lump-sum amount
Explanation:
Lump-sum amount -
It refers to the one complete amount of money , is referred to as lump - sum amount .
A lump -sum investment ,. refers to the amount of money invested at one time .
Similarly ,
The returns can be lump - sum , where the person receives the complete amount at one go after maturation , is referred to as lump - sum amount .
Hence , from the given scenario of the question ,
The correct option is c. lump - sum amount .
While specialization allows firms to produce many goods and services at lower production and transaction costs than individuals can, most households still produce some goods and services for themselves. Which of the following provides a reason for this?
a. Households can minimize spillover benefits by producing some goods and services for themselves.
b. Technological advances such as computers, crock pots, and bread makers have increased households' efficiency in producing many goods and services.
c. Household production provides a way to avoid taxes.
d. The production of some goods and services requires special skills or resources.
Answer:
The answer to this question is c. Household production provides a way to avoid taxes.
Explanation:
Potential competitors may enter an industry and begin to take market share from existing companies. What would be one of the largest challenges a new entrant would need to overcome to be successful when entering the industry?
Production costs are high and require high volumes to achieve profitability.
Explanation:One of the largest challenges that will be faced by the potential competitors when they try to enter an industry will be that they will face that cost of production will be higher and they would require higher volumes for achieving profits. When a company is new to an industry there will be competitors who are already established well on that particular industry.
The challenges and the opportunity that are in existence will be well known to the existing competitors. They already have buyers and suppliers chain. Hence, the new entrant will have higher production cost and also they require higher volumes to achieve profits.
You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. Which of the following are included in the true cost of going skiing? Check all that apply.
1.The rental of any ski equipment you need
2.The cost of a lift ticket
3.The cost of your ski jacket you purchased last year
4.The wages you forgo by going skiing
Answer:
The rental of any ski equipment you need
The cost of a lift ticket
The wages you forego by going skiing
Explanation:
True cost includes all the cost incurred when you decide to go skiing. It includes opportunity cost and amount spent skiing
The opportunity cost of skiing are the wages you forgo when you go skiing.
The other true costs are the expenses you incur while skiing. They are: The rental of any ski equipment you need
The cost of a lift ticket.
The cost of the ski jacket isn't added because you already own the jacket.
I hope my answer helps you
Sandhill Company reports the following financial information before adjustments. Dr. Cr. Accounts receivable 78,000 Allowance for doubtful accounts 500 Sales revenue (all on credit) 710,000 Sales returns and allowances 36,000.
Prepare the journal entry to record Bad Debt Expense assuming Sandhill Company estimates the necessary allowance for doubtful accounts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,570 debit balance
Answer:wazzzzupppp
Explanation:waaaazzzuuuuup
Sophia is an architect and she is trying to decide whether to hire Jacob, a draftsman, to assist with her work. Sophia could hire Jacob at $20 per hour but it would take him three times as long to complete a task as it takes Sophia. Sophia is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?
Answer:
b. Jacob should be hired at the $20 per hour wage rate
Options
a. Sophia should do the drafting work herself because she has the lower opportunity cost
b. Jacob should be hired at the $20 per hour wage rate
c. Sophia should not hire Jacob because it would be faster for her to do the work herself
d. Jacob should be hired, but only if he is paid more than $30 per hour
Explanation:
Sophia cannot fullfil their client request on time without hiring an employee Assuming Jacob is the best possible candidate for Sophie she should consider to hire it as three hours of Jabor will cost 60 dollars while an hour of his work is worth 90 dollars
Thus, making convinient to hire it as there is a profit of 30 dollars.
We should also conider jacob will earn experience over time and this will make it a better employee in the long-run.
What do Keynesians mean when they say that "you can't push on a string"?
a. An increase in the supply of goods does not really create its own demand.
b. If the government reduces taxes in an attempt to increase household consumption, it will not always work.
c. An increase in the money supply will not always stimulate the economy.
d. If the government wants to get something done, the best way is not to force the issue, but to offer incentives.
e. If the government puts too much expansionary pressure on the economy, it will probably "overheat."
Answer:
c. An increase in the money supply will not always stimulate the economy.
Explanation:
The central bank with a series of bad policies or with the intention to do it, it can slow down the economy or generate a recession by changing interest rates, money supply and other instrument.
But, it cannot stimulate "push" the ecnomy with the same instrument or measure it used to slow dowm (interest rate and money supply)
Thus, making the central bank ineffective to drive the economy out of a recesssion.
Jane and Sarah were watching the evening news when viewers were asked to weigh in on the city's proposed tax increase. Later in the broadcast, these results were posted. Both Jane and Sarah were skeptical: 68 percent of the viewers supported the tax increase. They wondered how well the type of people who chose to participate would represent the views of all the city's citizens. Jane and Sarah are demonstrating:
Answer:
Critical thinking
Explanation:
Critical thinking refers to gathering information, analyzing it in depth so as to arrive at a conclusion which guides an individuals actions.
Critical thinking requires precision as a trait coupled with high observation skills. Such an activity requires impartial thoughts, an objective mind, not influenced by personal bias or prejudice.
In the given case, Jane and Sarah are assessing the views of the viewers with regard to proposed tax increase, based upon the results announced by the broadcaster. Skepticism is one of the traits required for critical thinking as it makes an individual probe further.
Jane and Sarah are demonstrating critical thinking.
. Accounts receivable that cannot be collected. (p. 412) 2. Crediting the estimated value of uncollectible accounts to a contra account. (p. 412) 3. The difference between an asset's account balance and its related contra account balance. (p. 412) 4. The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts. (p. 412) 5. The amount of accounts receivable a business expects to collect. (p. 412) 6. A method used to estimate uncollectible accounts receivable that assumes a percent of credit sales will become uncollectible. (p. 413) 7. A method used to estimate uncollectible accounts receivable that uses an analysis of accounts receivable to estimate the amount that will be uncollectible. (p. 413) 8. Analyzing accounts receivable according to when they are due. (p. 414) 9. Canceling the balance of a customer account because the customer does not pay. (p. 418) 10. Recording uncollectible accounts expense only when an amount is actually known to be uncollectible. (p. 419)
Answer:
Uncollectible accountsAllowance methodBook valueBook value of accounts receivableNet realizable valuePercent of sales methodPercent of accounts receivable methodAging of accounts receivablesWriting off an accountDirect write off methodSuppose that the demand for digital cameras is elastic, and the supply of digital cameras is inelastic. A tax of $20 per camera levied on digital cameras will decrease the effective price received by sellers of digital cameras by________.
Answer:
It depends on the relative elasticties (ie. how elastic demand is/inelastic supply is). The price received by suppliers would decrease by $20 if demand is perfectly elastic: the burden of the tax falls primarily on the supplier since their supply is inelastic.
Therefore:
The tax will raise the equilibrium price from the old level (P*) to the new price paid by consumers (Pc). The price that producers will receive (Pp) is the amount consumers pay minus the amount of the tax, or Pc - t. (depending on the relative elasticities)
Explanation:
Key points :
Tax incidence is the manner in which the tax burden is divided between buyers and sellers. The tax incidence depends on the relative price elasticity of supply and demand. When supply is more elastic than demand, buyers bear most of the tax burden. When demand is more elastic than supply, producers bear most of the cost of the tax. Tax revenue (to the government) is larger the more inelastic the demand and supply are.Depending on the circumstance (relative elasticities of demand and supply), the burden of tax can fall more on consumers or on producers.
Typically, the incidence, or burden, of a tax falls both on the consumers and producers of the taxed good. But if we want to predict which group will bear most of the burden, all we need to do is examine the elasticity of demand and supply.
The tax burden falls on the more inelastic side of the market. In this case since supply is more inelastic than demand, the tax burden will fall more on them.
When a tax is introduced in a market with an inelastic supply, the sellers have no choice but to accept lower prices.
Further explanation:
By introducing a tax, the government essentially creates a wedge between the price paid by consumers, Pc and the price received by producers, Pp. In other words, of the total price paid by consumers, part is retained by the sellers and part is paid to the government in the form of a tax. he distance between Pc an Pp is the tax rate. The new market price is Pc , but sellers receive only Pp per unit sold since they pay Pc - Pp to the government.
Summary:
The tax incidence depends on the relative price elasticity of supply and demand. When supply is more elastic than demand, buyers bear most of the tax burden. When demand is more elastic than supply, producers bear most of the cost of the tax. Tax revenue is larger the more inelastic the demand and supply are.
Sellers (suppliers) have to carry a higher tax burden if supply is less elastic than demand. In other words, the side that has a relatively more inelastic curve (i.e., reacts less to price changes) has to carry a larger share of the tax burden, regardless of who the tax is initially levied on.
In a market for digital cameras where demand is elastic and supply is inelastic, the effective price received by sellers will decrease significantly due to a $20 tax, potentially by the full amount of the tax. This occurs because sellers, who cannot easily adjust their quantity supplied, bear a larger share of the tax burden.
The question explores the implications of a $20 tax on digital cameras when demand is elastic and supply is inelastic. In such a market structure, when a tax is levied, the burden tends to fall more heavily on the side of the market that is less responsive to price changes. Given that the supply of digital cameras is inelastic (suppliers cannot easily adjust their quantity supplied in response to price changes), and demand is elastic (consumers are sensitive to price changes and can easily switch to substitutes), the effective price received by sellers of digital cameras will decrease significantly.
Considering the principles of tax incidence in markets with these characteristics, sellers bear a larger share of the tax burden when their ability to adjust is limited. Therefore, the $20 tax will lead to a decrease in the effective price received by sellers by nearly the full amount of the tax, if not the entire $20, depending on the exact elasticity measures of demand and supply.
Simon and his managers are discussing the unemployment, inflation, and interest-rate trends that might affect their chain of sandwich shops over the next 12 months and the projected growth in the areas where the stores are located. The managers are studying the ______ forces in their organization's general environment.
Answer:
Economic
Explanation:
Economic factors are important because they can affect a company's revenues and profits. Simon and his manager are discussion economic factors which include inflation, interest rate and inflation. These economic forces are country-specific factors because they are macroeconomic variables. They affect a country and indirectly affect firms and organisations. Managers need to study economic forces in organisations general environment.
The distribution of hourly sales for a local family owned store is normally distributed with a mean of $225 per hour and a standard deviation of $75 per hour. Which of the following intervals contains the middle 95% of hourly sales
Answer:
The standard deviation of 75 dollars
Explanation:
Standard deviation, S.D.= 75 dollars; Mean, M= 225 dollars; Mean deviation, D= ?
S.D. = √ D² - M
∴ 75 = √ D² - 225
D² = 75² - 225 = 5625 + 225 = 5950
∴ D = √5950 = 24.4 dollars
From the above, it shows that, the standard deviation of 75 dollars contains the middle 95 percent of hourly sales.
The interval which contains the middle 95% of hourly sales computed using the empirical relation principle for a normal distribution is $75 to $375
The middle 95% can be interpreted using the empirical relation as being 2 standard deviations from the mean.
Given the Parameters :
Mean, μ = $225 Standard deviation, σ = $75The middle 95% equals 2σ from the mean :
Hence, the sales interval can be written as :
μ-2σ to 2σ+μμ-2σ = $225 - (2 × 75) = $225 - $150 = $752σ+μ = (2 × $75) + $225 = $150 + $225 = $375Therefore, the interval which contains the middle 95% of hourly sales is $75 to $375
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Lekeisha's income exceeds her expenditures. Lekeisha is a
a. saver who demands money from the financial system.
b. saver who supplies money to the financial system.
c. borrower who demands money from the financial system.
d. borrower who demands money from the financial system.
Answer:
b. saver who supplies money to the financial system.
Explanation:
Lekeisha's income exceeds her expenditures, this means that after using money to satisfy all her immediate needs, she still has some money left. Lekeisha saves this money, for example, by depositing in a savings account. This funds then enter the financial system because the bank uses part of it (or all of it) to make loans.
Chris has a job as a sales representative for a pharmaceutical company. The company offers both quarterly and annual bonuses based on performance. The company also has a profit-sharing plan for its employees. This demonstrates Fayol's principle of __________.a. subordination of individual interests to the common interest.
b. equity.
c. remuneration of personnel.
d. esprit de corps.
e. initiative.
Answer:
c. remuneration of personnel
Explanation:
Henri Fayol developed the fourteen principles of management.
One of the fourteen principles being, Remuneration of personnel.
Fayol was of the opinion that in order to extract the best performance from employees, appropriate remuneration system must exist in an organization.
This meant emphasizing on employee satisfaction by following fair remuneration practices coupled with adequate incentive system which rewards good performance.
In the given case, the pharmaceutical company offers performance based incentives in the form of quarterly as well as annual bonuses in addition to an existing profit-sharing plan for employees. This is an example of Fayol's principle of Remuneration of personnel.
A firm's natural resource exploitation site will require an expenditure of $5 million to reclaim the site for environmental purposes. That expenditure is expected to be made five years from now. The present value today of that amount is $3.5 million. Because of this obligation, by what amount will (1) total depletion on the site increase and (2) how much accretion expense will be recognized, over the five years (in millions)?
Answer:
(1) $3.5 million
(2) $1.5 million
Explanation:
The account of natural resources is compounded by the duty to sell the properties, which is the present value of the $5 million to be paid later, or $3.5 million.
Total depletion over most of the life of the project thus increases by this number. Accretion expense is the growth in the obligation over time.
The $3.5 million amount will increase to $5 million in five years, and at that time that amount's expended.
Which of the following is an asset account?A.Wages PayableB.Unearned RevenueC.Accounts ReceivableD.Notes Payable
Answer:
C.Accounts Receivable
Explanation:
The balance sheet comprises of total assets, total liabilities and the stockholder equity
The total assets could be further classified into a current asset, fixed asset, and the intangible assets
Whereas
The total liabilities comprise of current liabilities and the long term liabilities
So, the wages payable, unearned revenue, and the note payable is a liability account while the account receivable is a current asset account
Which is NOT an example of a behavior exhibited in a market economy? a. For their wedding, Alex and Erika choose Matte Photography instead of Pro Finish Photography, since Matte Photography is cheaper. b. Despite the advice of its business partners, Puna discontinues its most popular lines of clothing, and chooses instead to produce retro jean jackets and purple sweatpants, thinking that jean jackets and sweatpants are bound to make a fashion comeback. c. The president of the European country of Semolina decrees that pasta must be consumed at all meals in an effort to help domestic pasta makers. d. Nettoyer decides to introduce a soap scent, Pomegranate, in response to Schoon's new soap scent, Blood Orange, and Sauber's award-winning scent, Tangerine.
Answer:
An example of a behavior that is not exhibited in a market economy is;
c. The president of the European country of Semolina decrees that pasta must be consumed at all meals in an effort to help domestic pasta makers.
Explanation:
A market economy is a situation where the prices of goods and services in the market is controlled purely by the market forces of demand and supply. The prices are majorly set by competing private businesses without any form of government restrictions. Economists like Adam Smith postulated that when the market was controlled by forces like competition, supply and demand with limited government interference, it led to efficiencies as compared to if the government was involved.
There are different examples of behavior exhibited in a market economy, namely;
1. For their wedding, Alex and Erika choose Matte Photography instead of Pro Finish Photography, since Matte Photography is cheaper. In this case Alex and Erika made a decision to go for an option based on price. A characteristic of a market economy.
2. Despite the advice of its business partners, Puna discontinues its most popular lines of clothing, and chooses instead to produce retro jean jackets and purple sweatpants, thinking that jean jackets and sweatpants are bound to make a fashion comeback. This is an example of a market economy behavior since Puna makes the decision freely without any external restrictions.
3. Nettoyer decides to introduce a soap scent, Pomegranate, in response to Schoon's new soap scent, Blood Orange, and Sauber's award-winning scent, Tangerine. Nettoyer has the freedom to introduce a new product in the market in order to compete effectively,. This is a behavior characteristic of the market economy.
An example of a behavior that is not exhibited in a market economy is;
1. The president of the European country of Semolina decrees that pasta must be consumed at all meals in an effort to help domestic pasta makers. This is because the government through the president provides restrictions on the consumption of pasta.
In a market economy, decisions made by consumers and firms in the marketplace drive production and consumption. The behavior exhibited by the president of Semolina, a top-down government directive rather than a market-decided outcome, is not consistent with the principles of a market economy.
In a market economy, decisions about what goods to produce and how to produce them are made by consumers and firms interacting in the marketplace. Among the choices provided, only one stands out as a non-example of behavior in a market economy. It's the option c. The president of the European country of Semolina decrees that pasta must be consumed at all meals in an effort to help domestic pasta makers. This situation reflects not a market decision but rather a top-down government mandate, which isn't indicative of behavior typically found in a market economy.
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Under the UCC, a(n) ____ is a practice or method of dealing, regularly observed and followed in a place or vocation or trade. A. course of dealing B. usage of trade C. course of performance D. integrated document
Option B
Under the UCC, a(n) usage of trade is a practice or method of dealing, regularly observed and followed in a place or vocation or trade.
Explanation:
Under section 2 of the Uniform Commercial Code, usage of trade is frequently employed to assist in rendering deals and to present terms distinct purposes.
A usage of trade in a manner or process of distributing ought such consistency of practice in a place, employment, or commerce to sustain an expectation that it will be perceived concerning the transaction. Proof of a usage of trade may be possible as improving the express terms of an argued contract when it does not disclaim them.
Arie is a team lead for a group of engineers working on a new product. Arie decides to assign four additional engineers to the project to optimize corporate resources. His decisions, in this scenario, are ________ in nature.A. functional B. managerial C. strategic D. operational E. active
Answer:
B. managerial
Explanation:
When something involves activities of management is called managerial. In the example given this is the nature of the behavior because Arie is organizing and directing the corporation in order to optimize and be efficient.
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Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast are likely to see ads for clothing and hair care products, due to
A. cultural expectations.
B. male domination in corporate boardrooms.
C. differing demographic data for potential and past viewers.
D. marketers' general perceptions.
E. multiyear advertising contracts that cannot be broken.
Answer:
Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast are likely to see ads for clothing and hair care products, due to;
C. differing demographic data for potential and past viewers.
Explanation:
Marketing is the selling of a product by the use of various channels to improve a company's market share. An aspect of marketing is advertising. Advertising is the use of visual and audio material to promote a product for commercial purposes. Research has shown that effective advertisement campaigns often translate to increased demand for advertised products. When companies increase the sale of their products, there is a huge potential in increasing the company's profit margins. The major aim of most companies in commercial business is to increase their profit margins since this is what is considered as success in commercial business.
Before deciding to produce an advertisement there are many factors that need to be considered. An example is to analyse the demographic data. Demographic data is information that is characteristic about a certain group of people. In our case, advertisements usually target a given audience based on age, income levels, and gender. Viewers of the world Series are mostly of the male gender so it would be advisable to run advertisements that appeal to that group.
If a 35 percent increase in price of golf balls led to an 42 percent decrease in quantity demanded, then the demand for golf balls is:_______.
a. perfectly elastic.
b. relatively elastic.
c. relatively inelastic.
d. unit elastic.
Answer:
The correct answer is option b.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to a change in the price of the commodity.
It calculated by measuring the ratio of the percentage change in quantity demanded and percentage change in price.
Price elasticity for golf balls
= [tex]\frac{\% \Delta Qd}{\% \Delta P}[/tex]
= [tex]\frac{42}{35}[/tex]
= 1.2
Here, the value of price elasticity is 1.2. The price elasticity is greater than 1 means that the demand for a commodity is relatively elastic. A proportionate change in price causes more than proportionate change in quantity demanded.
An outward shift of __________.a. a nation's production possibilities frontier represents economic growth. b. a situation in which a country produces more of one good and less of another. c. rising prices of the two goods on the production possibilities frontier model. d. an impossible situation.
Answer:
A. a nation's production possibilities frontier represents economic growth
Explanation:
A production possibilities frontier shows the idea that in a given economy, factors of production such as land and capital are scarce.
When there is an OUTWARD SHIFT in the PPF curve, it shows that there's increase in factors of production, meaning the economy is able to produce more goods which invariably represents economic growth.
When there's an INWARD SHIFT in the PPF, it means there's low amount in the factors of production which will lead to decrease in the amount of goods produced.
option A. An outward shift of a nation's production possibilities frontier represents economic growth.
Explanation:An outward shift of a nation's production possibilities frontier represents economic growth. This means that the country is able to produce more goods and services with its available resources, indicating an improvement in its overall economic performance.
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In his spare time, Fred likes to restore old furniture and sell it to his friends. He is a lawyer by trade. During 2017, he sells $500 worth of furniture and has $21,000 worth of expenses. Which one of the following is true?
a.Fred may deduct all $21,000 of his expenses because Fred is engaged in a trade or business.
b.Fred may deduct all $21,000 of his expenses because Fred is engaged in a hobby.
c.Fred cannot deduct any of the expenses because he is engaged in a hobby.
d.Fred's deductions are limited to the income from selling furniture because he is engaged in a hobby.
e.None of these choices are correct.
Answer:
d.Fred's deductions are limited to the income from selling furniture because he is engaged in a hobby.
Explanation:
Fred will only deduct the $500 sales from the furniture hobby the other expenses aren't deductible as they aren't backed for occasional sales from their hobby.
It is important to notice there is a another limit to how much a person can deduct from this type of activities which is 2% of the gross income
Therefore if a person makes 100,000 gross income per year
it can deduct a maximum expense of 2%.
Fred can only deduct expenses up to the amount of income generated from his furniture restoration hobby, which is $500, not the full $21,000 in expenses he incurred.
Fred is engaged in what appears to be a hobby, as it is not his primary trade and it does not appear to be pursued with a profit motive, given the large discrepancy between the expenses and income. Therefore, the correct answer is d. Fred's deductions are limited to the income from selling furniture because he is engaged in a hobby. The IRS only allows hobbyists to deduct expenses up to the amount of income generated by the hobby. This means Fred can only deduct $500 of his $21,000 in expenses against the $500 income from selling the furniture, and cannot use the remaining expenses to offset other income.