A total asset turnover ratio of 4. 7 indicates that: ______________
a. For every $1 in net sales, the firm acquired $4. 7 in assets during the period. B. For every $1 in assets, the firm produced $4. 7 in net sales during the period.
c. For every $1 in assets, the firm earned gross profit of $4. 7 during the period. D. For every $1 in assets, the firm earned $4. 7 in net income. D. For every $1 in assets, the firm paid $4. 7 in expenses during the period
Answers
A total asset turnover ratio of 4.7 indicates that: (B). "For every $1 in assets, the firm produced $4.7 in net sales during the period."
This means that the company efficiently used its assets to generate sales. The total asset turnover ratio measures how effectively a company is utilizing its assets to produce revenue.
The asset turnover ratio is a metric that reveals how effectively a business uses its own assets to produce income or sales. To determine how many sales were produced from each dollar of firm assets, the ratio compares the gross revenue of the company to the average total number of assets.
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Related Questions
d. Do these two methods give you consistent results with regard to the standard of living of minimum-wage workers over time? e. The minimum wage did not change over the eight-year period from 1981 to 1989. By what percentage did the purchasing power of the minimum wage decline over this period? (Hint: Inflate the value of the minimum wage in 1981 to its equivalent in 1989. Then generate the percent change.) What happened to the standard of living of minimum-wage workers over the period from 1990 to 2000 ? (Inflate the 1990 minimum wage and compare it to the 2000 minimum wage.)
Answers
D. Comparing the standard of living of minimum-wage workers over time using two different methods may not necessarily yield consistent results.
E. The percentage change, you would use the formula: ((New Value - Old Value) / Old Value) * 100.
The standard of living is a multifaceted concept that encompasses various factors such as income, purchasing power, access to goods and services, and overall well-being. Changes in the minimum wage alone do not provide a comprehensive picture of the standard of living.
Other factors, such as inflation, changes in the cost of living, employment opportunities, and overall economic conditions, also play a significant role in determining the standard of living. Therefore, relying solely on changes in the minimum wage may not accurately reflect the overall changes in the standard of living of minimum-wage workers over time.
To determine the percentage decline in the purchasing power of the minimum wage from 1981 to 1989, you would need to adjust the value of the minimum wage in 1981 to its equivalent in 1989, taking into account the inflation rate over that period. Once you have the inflated value of the minimum wage in 1989, you can calculate the percentage change compared to the minimum wage in 1981.
For example, if the minimum wage in 1981 was $5 per hour and the inflation rate from 1981 to 1989 was 30%, the inflated value of the minimum wage in 1989 would be $5 * (1 + 0.30) = $6.50 per hour.
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Which of the following is the best definition of a liability in accounting?
A. Anything your company owes to someone besides the business
owner
O B. A debt your business owes that must be repaid during the present
accounting period
c. Anything your company owes to the business owner
D. Anything your company needs to sell during the present
accounting period
Answers
The best definition of liability is anything your company owes to someone besides the business owner (option a).
What is liability?Liabilities are future benefits that would have to be sacrificed in the future by an entity to other entities as a result of past transactions. Liabilities reduce the net worth of a company.
Liabilities are resources that have been borrowed or that are owned. They would need to be repaid at a future date. An example of a liability is debt and account payable.
Liability can be short term or long term. It is short term if it has to be paid within a year and it is long term if its duration is greater than a year or one accounting period.
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Somebody help I'll give 30 points
Answers
Answer:
1. Salesforce helps their people feel good by giving back to the community. They also offer great challenges and rewards, and have open communication culture.
2. Cisco offers good benefits that focus on family and enabling people to combine parenthood with their jobs. It’s also a great place to learn and develop professionally.
3. Admiral allows people to give back to the community through charity. They have built a strong sense of belonging and believe in the importance of having fun so people bring their best to work.
Explanation:
Answer:
Happy meal wih a mcdoobale
Explanation:
A stock market is a public market for trading a company's stocks and derivatives. The bid-ask spread in a dealer market represents the profit that a dealer would make on a transaction involving a security. Which of the following statements best describes the bid-ask spread? The difference between the closing price of the security and the opening price of the security on the day of the transaction. The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. The sum of the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. Erik, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Alison, is willing to sell 1,500 shares of the same stock. Unfortunately, Erik and Alison don't know one another and must complete their transactions using the stock exchange's market-making dealer. XYZ's market maker is willing to sell her shares for $30.65 per share and purchase additional shares for $30.25 per share. Select the most appropriate values in the following table: Term Bid price Ask price Bid-ask spread Value $30.25 $30.65 $0.40 If the market maker is willing to purchase the entire block of 1,500 shares from Alison and, from that block, resell 1,000 shares to Erik, then the market maker's net profit from Erik's transaction-excluding any inventory effects-will be_______.
Answers
Answer: The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it.
Net profit = $400
Explanation:
The bid ask spread is the difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it.
From the question, we have been given the following information:
Bid price = $30.25
Ask price = $30.65
Bisk ask spread = Ask price - Bud price
= $30.65 - $30.25
= $0.40
Net profit = $0.40 × 1000
= $400
problem 2-3 dividends and retained earnings [lo1] nataro, incorporated, has sales of $675,000, costs of $337,000, depreciation expense of $81,000, interest expense of $50,500, a tax rate of 23 percent, and paid out $42,500 in cash dividends. what is the addition to retained earnings? (do not round intermediate calculations.)
Answers
The addition of retained earning of Nataro Inc is $116,505
Retained earnings are a company's cumulative net earnings or profits after dividend payments are deducted.
Formula for calculating the retained earning is:
RE = RE(o) + NI - D
where:
RE = retained earning
RE(o) = beginning period retained earning
NI = net income
D = cash dividends
In the given problem:
sales = $675,000
cost = $337,000
depreciation expense = $81,000
interest expense = $50,500
Hence,
Gross income = sales - all expense
= 675,000 - (337,000 + 81,000 + 50,500)
= 206,500
Net income = gross income - tax
= 206,500 - 23% x 206,500 = 159,005
Therefore, retained earning addition:
retained earning addition = RE - RE(o) = NI - D
= 159,005 - 42,500 = 116,505
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What are the goals of government regulation?
low unemployment, price stability,
economic growth
O high unemployment, price instability,
economic growth
low unemployment, price stability,
economic steadiness
O high unemployment, price instability,
economic steadiness
Answers
Answer: A) low unemployment, price stability, economic growth
Explanation: Government regulation attempts to promote growth, full employment, and price stability for the well-being of the citizens
The goals of an ideal government while making regulations shall include the following purposes,
low unemployment, price stability,economic growth.Therefore, the option A holds true.
What is the significance of government goals?The goals of a government can be referred to or considered as the qualitative and quantitative targets set by the government in order to foresee better conditions in the future. These are backed by economic plans and regulations.
For a developing or a developed government, the goals must be economically based while being regulated. These goals must include reduced poverty and unemployment in order to achieve a healthy economic growth.
Therefore, the option A holds true and states regarding the significance of the goals of a government.
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Which tree organization is responsible for 90% of the world trade?
Answers
90% of all trade is regulated by the World Trade Organization (WTO).
What exactly does the WTO do?The World Trade Organization (WTO) is the sole international body responsible for enforcing international trade regulations. Its major objective is to ensure that trade proceeds as smoothly, reliably, and freely as possible. Geneva, Switzerland, home to the WTO's headquarters, is a special location with numerous missions to the WTO from the United Nations and other organizations.
Who is in charge of the WTO?Governments from the WTO's members run it. All significant decisions are taken by the entire membership, whether it be through the ministers, their ambassadors, or representatives.
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12. Market efficiency and perfect price discrimination Perfect price discrimination is efficient because it converts what would have been deadweight loss into consumer and producer surplus inefficient because it converts a portion of consumer surplus into producer surplus inefficient because it results in no consumer surplus efficient because it converts into producer surplus what had been consumer surplus and deadweight loss
Answers
Market efficiency and perfect price discrimination is efficient because it efficient because it converts into producer surplus what had been consumer surplus and deadweight loss.
Perfect price discrimination allows a firm to be more efficient by making it sell at more output level. The firm would have more efficiency level at its factors of production.
Market efficiency is achieved with perfect price discrimination because what would have been dead-weight loss is converted into consumer and producer surplus through perfect price discrimination.
For the market, efficiency is achieved because the dead-weight loss is converted into producer and consumer surpluses, with enormous benefits to the society.
Thus, perfect price discrimination achieves allocation efficiency for both the producer and the consumer (or the society as a whole).
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Because some stadiums make more money from car parking and food/beverage sales than smaller venues, the proportion of ticket sales going to acts is higher in stadium deals.
True
False
Answers
The proportion of ticket sales that go to acts is higher in stadium deals because some stadiums make more money from parking and food/beverage sales than smaller venues. It is true.
stadium: an enclosure with a large amount of spectator seating as well as a wide area for sporting events and other exhibitions. The name is stadium derived from the Greek term for length, the stade, which refers to the distance covered in the first Greek footraces. Since the footrace course at the ancient Olympic Games in Olympia was exactly a stade in length, the word for the unit of measurement was first applied to the footrace and then to the venue.
The first Greek stadiums were shaped like a U or a horseshoe and were long and narrow. Sometimes they were carved into the side of a hill, as in Thebes, Epidaurus, and Olympia, the birthplace of the Olympic Games in the eighth century BCE. The Greeks also constructed hippodrome stadiums, which had a similar design but were larger enough to hold stadium four-horse chariot races, which were a part of the Olympic Games as early as the 7th century BCE.
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Which is an example of the law of demand?
A. A decrease in the price of iPhones causes a decrease in the quantity of iPhones cases
B. A decrease in the price of iPhones causes no change in the quantity of iPhones demanded
C. An increase in the price of iPhones cases
D. An increase in the price of iPhones causes a decrease in the quantity demanded
Answers
Answer: D
Explanation: : price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.
influences of Business environment,
Answers
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
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(RR calculation) Determine to the nearest percent the IRR on the following projects a. An initial outlay of $11,000 resulting in a free cash flow of $3,000 at the end of year 1. 56,000 at the end of year 2. and $9,500 at the end of year 3 b. An initial outlay of $11.000 resulting in a free cash flow of 59.500 at the end of year 1. 56,000 at the end of year 2, and $3,000 at the end of year 3 c
Answers
The IRR for project A is 17%, the IRR for project B is 20%, and the IRR for project C is 19%, all rounded to the nearest percent.
To calculate the IRR (internal rate of return) for these projects, we need to use the formula:
NPV = ∑(Cash Flow / (1 + r)^t) - Initial Outlay
Where NPV is the net present value, Cash Flow is the cash flow for each year, r is the discount rate or IRR, t is the year of the cash flow, and Initial Outlay is the initial investment.
For project A, the NPV would be:
NPV = -11,000 + $3,000/(1+r) + 56,000/(1+r)^2 + 9,500/(1+r)^3
To solve for r, we can use a financial calculator or spreadsheet program. The IRR for project A is approximately 17%.
For project B, the NPV would be:
NPV = -11,000 + 59,500/(1+r) + 56,000/(1+r)^2 + 3,000/(1+r)^3
Again, we can use a financial calculator or spreadsheet program to solve for r. The IRR for project B is approximately 20%.
For project C, the NPV would be:
NPV = -11,000 + 56,000/(1+r) + 56,000/(1+r)^2 + 3,000/(1+r)^3
Once again, we can use a financial calculator or spreadsheet program to solve for r. The IRR for project C is approximately 19%.
In summary, the IRR for project A is 17%, the IRR for project B is 20%, and the IRR for project C is 19%, all rounded to the nearest percent.
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true/false. Many believe arbitration is much less expensive than Itigation. However, one could argue that because the process is similar to ligation, and Businesses often feel compelled to here an attorney because of the confusing process, the costs really aren't that much less
Answers
The statement "Many believe arbitration is much less expensive than Litigation. However, one could argue that because the process is similar to ligation, and Businesses often feel compelled to here an attorney because of the confusing process, the costs really aren't that much less" is true as arbitration can also require legal representation and fees.
Although many people think that arbitration is less expensive than litigation, it could be argued that the costs aren't necessarily lower. This is due to the fact that, like litigation, the arbitration process may still entail legal counsel and costs.
Businesses might also feel compelled to hire lawyers to help them navigate the potentially complicated arbitration process which can raise the overall cost. As a result, the idea that arbitration is inherently less expensive than litigation can be contested because the costs may be similar or barely different.
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Define technological literacy.
Answers
Answer:
Technology Literacy is the ability to safely, responsibly, creatively, and effectively use appropriate technology to: communicate; access, collect, manage, integrate, and evaluate information;
Explanation:
Use technology to meet personal needs, interests, and learning styles.
Answer:
Technology literacy is the capacity to use suitable technology in a safe, responsible, creative, and effective manner to communicate, access, collect, manage, integrate, and evaluate information.
Explanation:
Can someone pls help ASAP pls
Answers
Have you ever considered designing a program to help people? Here is your chance. Follow the instructions below to design some of the important elements of your own human services program.
Create a mission statement specific to what you are setting out to accomplish.
Consider the following questions and make notes:
What is the need?
Why do people need your organization?
Who will your organization help?
What is your service population?
Where will these services be made available?
How will you inform people of your services?
List Objectives/Tasks
Immediate
Objective 1: How will you complete this task? (Include logic and reasoning behind the objective: how long do you expect it will take your organization to succeed at accomplishing your objective?)
Long Term
Objective 2: How will you complete this task? (Include logic and reasoning behind the objective: how long do you expect it will take your organization to succeed at accomplishing your objective?)
Staff
How many direct service positions are available? What positions are they?
How many program-planning and design positions are available? What positions are they?
How many administrative positions are available? What positions are they?
What is the total number of staff members needed?
Budget
Define the needs of your organization, such as supplies, equipment needed, property, etc. What role will fundraising play in budget planning?
Evaluation
Design a method for monitoring your progress. Explain the details of how you intend to use this tool to ensure that you are on track for accomplishing your goals for your organization.
Name
Finally, after considering the nature of your organization, develop a name for it.
Make a presentation of your organization's mission statement, goals, target population, principles, etc. This can be in the form of a four-hundred-word essay, a three-page outline, or a graphic representation such as a chart.
Answers
To create a human services program, you must first develop a business plan that aligns with your needs and then create the mission statement.
How to create a business plan?It corresponds to a document used to identify all the needs of a new business, such as its risks, resources, legal requirements, mission, personnel needs, etc. successful.
The mission statement is developed to be the statement of the identity of a business in the market, that is, it is a summarized document that demonstrates the reason for the existence of the business, who are its stakeholders and what are the company's values.
Therefore, questions like "What is the need?" and "Why do people need your organization?" will serve as a guide that will direct the creation of the business plan and mission statement in a way that is more aligned with your objectives.
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i. Rohit after doing his graduation has decided to run a retail shop as a source of livelihood.
ii. He procures the goods from the wholesalers according to the consumer's demand and
maintains a regular supply of goods to his customers.
[5]
TGIS-Raipur
4 / 5
iii. Customers are well satisfied with his services due to which his sales turnover is very high
and he is earning a good return on his capital employed.
iv. Seeing his Successful business, two other retailers have also opened their shops in the same
area giving him tough competition reducing his market share and margin of profits. But
Rohit knows, in spite of his best efforts put into the business, there is always the possibility
of inadequate profits or losses.
a. Identify the economic activity Rohit is engaged in.
b. Enlist the features of identified economic activity with reference to the underlined words
in each sentence given above.
Answers
Answer:
b
Explanation:
just had the same question
Answer:
a-business is the economic activity
b-features are
profit earning- as it js essential for survival growth and expansion of business
dealings in goods and services on a regular basis - and not merely one single transactions of sale or purchase
The "invisible hand" concept suggests that
A. changes in product demands are only randomly reflected in changes in the demands of for resources
B. Profit maximization is inconsistent with its efficient allocation of resources
C. When firms maximize their profits society's output will also be maximized.
D. Government action is necessary to correct for market failures
(This is an economics question)
Answers
1. Which of the following are tasks associated with business administration positions? (2 poi
Select the two that apply.
answering phones
designing goods for production
delivering goods to market
maintaining records
repairing computers
Answers
Answer:It's A
Explanation: Took the test
Goods sold to Mahesh Rs 20000 journal entries
Answers
Answer:
see below
Explanation:
This transaction is affecting sales. It is increasing sales( revenue account) by Rs 20,000. An increase in sales is recorded by crediting the sales account.
The goods are sold to Mahesh. It is an increase in accounts receivable ( asset account). An increase in assets is recorded as a debit to the asset account.
The Journal will be as follows.
Mahesh A/c Dr. Rs. 30,000
Sales A/c Cr. Rs.20,000
What are 3 advantages of a command economy?
Answers
The main three advantages of command economy are listed below:
1. Centralized decision making: In a command economy, all economic decisions are made by the government. This allows for a more centralized and coordinated approach to economic planning, which can be beneficial for achieving specific economic goals, such as increasing industrial production or improving infrastructure.
2. Ability to direct resources towards priority sectors: A command economy allows the government to direct resources towards priority sectors, such as education, healthcare, and infrastructure, without the interference of market forces. This can be beneficial in ensuring that the basic needs of the population are met.
3. Greater control over inflation: Government control over the economy can help to keep inflation in check by controlling the supply of money and regulating the prices of goods and services. This can help to stabilize the economy and promote long-term growth.
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A new body of evidence is emerging in the field of behavioral finance which shows that investors often behave irrationally, but in predictable ways. Explain the following biases that affect the rationality of people's decision-making process: i. overconfidence ii. self-attribution bias
iii. herding
Answers
Overconfidence: Excessive belief in one's abilities and knowledge, leading to overestimation of investment performance. Self-attribution bias: Attributing success to internal factors and failure to external factors, distorting decision-making.
i. Overconfidence: This bias refers to an individual's excessive belief in their abilities and knowledge, leading them to overestimate their investment performance. Overconfident investors may take excessive risks, underestimate uncertainties, and make investment decisions without thoroughly considering all available information.
ii. Self-attribution bias: This bias occurs when individuals attribute their investment successes to their own skills or abilities, while attributing failures to external factors beyond their control. This bias distorts decision-making by inflating one's confidence and overlooking personal mistakes, potentially leading to poor investment choices and a lack of accountability.
iii. Herding: Herding bias describes the tendency of individuals to follow the actions and decisions of others, even if it contradicts rational analysis or information. This bias stems from the belief that others possess superior knowledge or that safety lies in numbers. Herding behavior can amplify market trends, leading to bubbles or crashes, as individual decision-making is influenced more by social conformity than by independent analysis of investment fundamentals.
These biases highlight how irrational behavior can influence investment decisions, leading to suboptimal outcomes and market inefficiencies. Understanding and mitigating these biases is crucial for investors to make more rational and informed choices.
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What is market information?
Answers
Answer:
Market Information means an electronic document (also available in paper form upon request) located on the Trading Platform which sets out the commercial details for each Market, including but not limited to: Margin Factors, the minimum and maximum Quantity and Our Spread.
Explanation:
brainliest plz
Answer:
The results of marketing research that are used to plan for future marketing or product development activities. The information may come from a single source or through a system of collection.
Explanation:
on edge 2022
Which of the following would most likely negatively affect a person's net worth?
A. A $25,000 salary
B. A $500 savings bond
C. A $500,000 mortgage
D. A $5,000 money market account
Answers
Answer: c
Explanation:
$500,000 mortgage would most likely negatively affect a person's net worth. Thus, option (c) a $500,000 mortgage is correct.
What is net worth?
Totally unrelated to income is what is meant by the phrase "net worth." Liabilities are subtracted from assets to arrive at the person's own net worth. The wealthy possess possessions including real estate, investments, jewels, memorabilia, cars, and so on. A period of emergencies is covered by the net worth.
A person's personal net worth is significantly impacted by a $500,000 mortgage. The amount of money saved by the individual who wants to spend it is their net worth. The net worth mostly consists of investments and personal savings. Money accumulates to form the net worth.
The mortgages are highly impact on net worth. The net worth are personal liabilities minus to personal asset.
Therefore, option (c) a $500,000 mortgage is correct.
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291. Much of the hope for continued improvement of the economy lies in the projection of increasing consumer spending this year. . A. projection of increasing consumer spending B. projection of consumers increasing spending for C. projected consumer spending increase 37 D. consumer spending that is projected to increase E. increase in consumer spending that is projected for
Answers
Answer:
The correct answer is E:
Much of the hope for continued improvement of the economy lies in the increase in consumer spending that is projected for.
Explanation:
i. Much of the hope (this is the main Subject of the conversation)
ii. for continued improvement (this is the Prepositional phrase. It modifies the noun “hope”)
iii. of the economy (this is a Prepositional phrase – it modifies the noun “improvement”)
iv. lies in the projection (This is the main Verb – “lies”)
v. of increasing consumer spending this year. (This is the prepositional phrase. It modifies the noun “projection”)
At first glance, it would appear that the positive experience that is anticipated is the projection.
A projection (unqualified) in this case is an estimate of how a thing will be in the future.
Having stated this, we see that it is more logical to hope for a positive experience that will occur than to just hope. Hence the hope is really in the increase in consumer spending not in the projection as a separate word.
(E) therefore is the Correct option because in this option that in this option “that” modifies “increase”.
Cheers
True or False? Everyone needs to save some money for retirement, so it doesn't matter at what age you start to save.
True
O a
False
Ob
Answers
"Everyone needs to save some money for retirement, so it doesn't matter at what age you start to save."
True
Answer:
true (a)
Explanation:
SECTION B
ANSWER ALL ITEMS IN THIS SECTION.
1. Fill in the blanks by classifying the following activities as primary, secondary or
tertiary production.
(Total 5 marks)
A
= Banking
В.
= Forestry
С.
Canning of fish
D.
= Doctor
Е.
Working as a lumberjack
Answers
A-tertiary
B-primary
C-secondary
D-tertiary
E-primary
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to sustain a competitive advantage, one question companies must answer is this: does the information technology create value for the firm by lowering costs or providing a better product or service? true false
Answers
Yes, it is one of the questions that a company must answer to sustain a competitive advantage. In case, information technology does not create value by providing a better product or service at a lower cost, the competitive advantage cannot be sustained for long. Therefore, the given statement is true.
What is technology?Technology is the use of knowledge in a specific, repeatable manner to achieve practical aims. The outcome of such an effort is sometimes referred to as technology. Technology is widely used in many aspects of life, including daily life, science, industry, communication, and transportation. Technologies can be both real things like machinery or utensils and intangible instruments like software. Numerous technological developments have caused societal shifts. Stone tools, which were used in prehistoric times, are the first known form of technology. This was followed by the use of fire, which helped fuel the Ice Age expansion of the human brain and the creation of language.
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The third element of an effective team is:
a. Each team member must have a specific role.
b. All team members must know each other in advance of working together.
c. There should be an all-for-one and one-for-all team attitude.
d. All team members succeed or fail together.
e. Each team member should hold each other accountable and help each other assume responsibility for what needs to be done.
Answers
The third element of effective team is (A) Each team member must have a specific role.
A group of employees working together to complete a specific task or achieve a common goal is referred to as teamwork in the workplace. Teamwork can be practiced through brainstorming sessions, open communication channels, regular meetings, and a variety of other collaborative activities.
Third element is delegation of tasks based on strengths.
Teams that work well together are aware of each team member's strengths and weaknesses. One advantage of good teamwork is that team leaders and members are skilled at identifying all aspects of a project and assigning tasks to the most appropriate team members. This increases productivity and ensures that team members are valued for their contributions to the overall project.
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In a hypothetical economy the level of the percentage of reserved available (rr) and the percentage of free available er is 8% and 5% correspondingly. The percentage of fiat money in circulation that the individuals (c) hold is 10%. Calculate the money multiplier and choose one of the following: a. 0.43, b. 7.33 c. 4.78 d. 5
Answers
Money multiplier is a measure of the amount by which the money supply is increased by each unit increase in the monetary base.
Given data is: Reserve Ratio (rr) = 8% Excess reserve ratio (er) = 5%Currency reserve ratio(c) = 10%Formula for Money Multiplier is: Money Multiplier = 1 / Reserve Ratio Money Multiplier = 1 / rr = 1 / 8% = 12.5Assuming an initial deposit of $1,000, the money supply would be calculated as: Money Supply = Initial Deposit * Money Multiplier Money Supply = $1,000 * 12.5Money Supply = $12,500Therefore, the money multiplier is 12.5 and the answer closest to it is option d. 5.
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