____ is a useful sales and marketing tool to help companies match customers with products they would be likely to purchase.

Bennie Razor Company should recognize a loss of $10,000 at the time of the sale.

Data and Calculations:

Cost of machine = $80,000

Estimated useful life = 10 years

Date of purchase  = June 30, 2007

Date of sale = Jan. 1, 2013

Period of use = 5.5 years (from June 30, 2007 to Jan. 1, 2013)

Annual depreciation on straight-line basis = $8,000 ($80,000/10)

Accumulated depreciation for 5.5 years = $44,00 ($8,000 x 5.5)

Net book value at sale date = $36,000 ($80,000 - $44,000)

Sales proceeds = $26,000

Loss recognized on sale = $10,000 ($36,000 - $26,000)

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The major conflict and minor conflicts of "Tea Party" are contradictory opinions and minor differences between members of the society, which work together to reveal the theme of injustice, discrimination, and inequality.

The Tea Party's major conflict and minor conflictsIn "Tea Party," the central conflict is the tension between various members of the society who have contradictory opinions. Some people believe that a tea party is a time for pleasant conversation and relaxation, while others believe that it is an opportunity to advance their personal agendas or engage in more confrontational dialogue. The minor conflicts in the play are the smaller differences between members of society, which can lead to hostility, rivalry, or tension. For example, there are minor disagreements about the appropriate attire for a tea party, the types of refreshments that should be served, and the most suitable way to make small talk with other guests.

How they work together to reveal the theme The conflicts in "Tea Party" are used to reveal the theme of injustice, discrimination, and inequality. The play explores how a simple social gathering can expose the deep-seated prejudices and biases that exist in society. By showing the conflicts between different groups of people, the play demonstrates how social norms and values can create inequality and reinforce discriminatory attitudes. The play also examines how these attitudes can be challenged and changed by people who are willing to stand up for what is right and just.

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The situation (C) "the water of Dale Lake is getting polluted due to factory wastes" is one that necessitates government interference as a result of a market failure.

This is because pollution is a negative externality, which occurs when the actions of one party have negative effects on another party without the latter receiving any compensation. In this case, the factory is causing pollution to the water of Dale Lake, which negatively affects the people who use the lake for recreational purposes or rely on it for drinking water. The factory is not paying for the damage it is causing, and therefore there is a market failure.

Government interference is needed to regulate the factory's actions and prevent further pollution of the lake.

This question should be provided as:

Which situation constitutes a market failure and requires government interference?

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The types of services offered by the 2022 car is known as Convenience, Safety and Security.

The car's nissan-connect is a special features which allows the driver or car-user to remotely access the vehicle functions from the mobile device or smart-watch.

Hence, the section of navigation, entertainment and security are remotely control through the device specifically produced for the car.

In conclusion, the types of services offered by the 2022 car is known as Convenience, Safety and Security.

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Answer: protectionism, tariffs, quotas, tariffs, European,

retaliatory, increase, cheaper, losses

Explanation: Plato / Edmentum

Adjusting country level income per head for purchasing power parity uses the cost of a common basket of goods in each country to adjust for price differences across countries. Purchasing Power Parity (PPP) is an economic theory that helps to determine the relative value of currencies. The price level of a country's goods is measured by purchasing power parity.

Adjusting the country-level income per head for PPP means to adjust the differences in income levels by accounting for differences in the cost of living. The cost of a common basket of goods in each country is used to adjust the price differences across countries. The basket of goods includes products such as food, clothing, utilities, transportation, etc. that people commonly purchase. It reflects the cost of living and the inflation rate in each country. The cost of a common basket of goods can vary from country to country due to various factors such as local taxes, import tariffs, transportation costs, and exchange rates. By using PPP, economists can compare the economic conditions of different countries in a fair and accurate way.

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Situations that can be handled by using the Management Information Systems are that an organization needs different types of management to achieve business goals smoothly. However, managers, executives, and employees face problems and hurdles while running the organization.

Management Information systems are used by businesses to gather, process, and store data at all levels of operation. In order to provide the information necessary to conduct business on a daily basis, management compiles and disseminates this data.

Information systems are used by every employee in the business, even those who make hiring and firing decisions and pay the bills. A computer database could be used by a vehicle dealership to track the most successful products.

To sell goods through the Internet, a retail establishment can employ a computer-based information system. In reality, in order to gain a competitive advantage over rival companies, many (if not most) firms focus on MIS goal alignment.

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Answer:

Primary

Explanation:

Any survey is an example of a primary research.

The research by Maddie, who created a survey to determine students' favorite places to shop, is A. Primary research.

Primary research depends on direct data and not on previous data collected by another researcher.

For example, Maddie's creation of a survey to determine students' favorite places to shop demonstrates primary research.

Thus, the research by Maddie, who created a survey to determine students' favorite places to shop, is Option A.

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From 2011 to 2018, ESPN lost 14 million cable tv subscribers, costing the company over a billion dollars annually. Thus, the given statement is false.

ESPN has long served as a symbol of the cable and broadcast industries' insensitivity to cord-cutting and changes in the TV market. Executives sued businesses that aimed to provide customers with more choice in how they saw video material after years of downplaying the trend as something only the poor did.

Surveys suggest that 56% of customers would quickly sever ties with ESPN if it meant saving the $8 per month they pay for the channel. Clearly, ESPN executives assumed cord-cutting was little more than a fad that would simply end once Millennials started having children.

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When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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Answer:

I think it would be education

Explanation:

Answer: A. Education

Explanation:

Assessing whether the United States has a crime "problem" compared to other advanced and industrialized nations is a complex matter that requires careful analysis and consideration of various factors. It is essential to recognize that crime rates and their comparison can be influenced by numerous socio-economic, cultural, and demographic factors.

Here are some points to consider:

Crime Rates: When evaluating crime levels, it is crucial to examine various crime indicators, such as violent crime rates, property crime rates, or specific types of offenses. Comparative analysis should consider the specific types of crimes and the frequency at which they occur.

Data and Reporting: Comparing crime rates across nations can be challenging due to differences in reporting practices, data collection methodologies, and legal definitions. Variations in crime reporting and recording practices can affect the accuracy and comparability of crime statistics.

Socio-economic Factors: Crime rates are influenced by socio-economic factors such as poverty, income inequality, unemployment rates, educational attainment, and social welfare systems. These factors can vary among countries and have an impact on crime levels.

Cultural and Demographic Differences: Cultural and demographic factors, including population density, diversity, social norms, and attitudes towards crime, can also affect crime rates. These factors can differ significantly among nations, leading to variations in crime levels.

Regarding the definitions of crime and criminal behavior, they are critically important to political entities for several reasons:

Legal Framework: Definitions of crime form the foundation of a country's legal system. They define what actions are considered unlawful and provide guidelines for law enforcement, the judiciary, and the criminal justice system to identify, prosecute, and punish offenders.

Consistency and Fairness: Clear and precise definitions of crime ensure consistency and fairness in the application of laws. It helps prevent arbitrary or discriminatory enforcement and ensures equal treatment under the law.

Public Safety and Order: Defining criminal behavior helps protect public safety and maintain social order. By identifying and categorizing certain behaviors as crimes, governments can establish rules and regulations that help deter individuals from engaging in harmful actions and protect citizens from harm.

Resource Allocation: Accurate definitions of crime assist in resource allocation for law enforcement, judicial processes, and correctional systems. It enables governments to focus their efforts and resources on combating specific types of criminal behavior based on their severity and impact on society.

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The probability weighted average of the interest rate future values at the end of each of the three periods is used to determine this, and the future values are then discounted back to the present using the interest rate.

The tree is built using the current stock price and a simulation of the up and down movements over the course of the three periods using the provided probability and percentage changes.

Each end node's option value is determined before being processed back up the tree to the starting node. The starting node's computation serves as the end option value.

The stock's annual payout range is $27 - $17 = $10.

If the stock price is $27 when the option expires, its value will be =$27-$22 =$5.

If the stock price is $17, the option will also have no value.

The stock option has a payment range of $5 and $0;0 = $5.

To determine the amount of stock shares, balance the range:

$5/10 = 0.5 Option range/Stock range

The stock option payoff for 0.5 shares will be either $13.5 or $8.5. The payout for the portfolio and options will be $13.5- $5, which equals $8.5, or $8.5 $0; 0 = $8.5.

PV = $8.5/ (1+) is the present value of $8.5 at the daily compounding risk-free rate.

Complete question:

ABC stock is currently selling for $120. The exercise price of the call option is $125. Using a one-period binomial model, calculate the price of the call option assuming an interest rate of 3% per year. Assume further that over the next year, the stock price will either increase by 10% or decrease by 10%. What is the price of the call option? Show detailed work?

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Answer:

I think it's 3 but i don't know for sure also can you give me brainlist if I'm right please I really need it

To properly endorse the check received from your Aunt Louise for your birthday, you should sign your name on the back of the check and include "For Deposit Only" along with your checking account number.

When you receive a check, it's important to endorse it properly before depositing it into your account. By signing your name on the back of the check and adding "For Deposit Only" along with your checking account number, you're indicating that the check is meant for deposit into your account only.

This helps ensure that the funds are credited to your account securely and prevents unauthorized individuals from cashing the check.This helps ensure the secure and accurate deposit of the funds into your account.

Hence, The correct option is 3. Sign your name and write "For Deposit Only" and your checking account number on the back of the check.

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Equity and basic needs are easily achieved. On the other hand, achieving national security, freedom and choice can be more difficult.

What's the called equity?

Equity is amount invested or owned by the owner of the company. In a company's balance sheet, the difference between liabilities and assets shows how much equity the company has. Stock prices or values ​​determined by valuation professionals or investors are used to determine stock value.

What is the equity in Example?

Equity can be calculated by subtracting liabilities from assets and can be applied to a single asset such as a company. B. Applies to real estate, or companies. For example, if someone owns a $400,000 house and has a mortgage of $300,000, the $100,000 difference is equity.

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At the end of the cycle only in the accounting cycle should an accountant prepare a trial balance. The correct option is C.

A trial balance's purpose is to ensure that all entries made to an organization's general ledger are properly balanced. Each general ledger account's ending balance is listed in a trial balance. Each accounting entry's total dollar amount of debits and credits is supposed to match.

The trial balance is created after all transactions in the ledger accounts have been recorded. All ledger account balances to the credit and debit sides are recorded in the trial balance. It is typically prepared at the end of the fiscal year, prior to the preparation of final accounts.

Thus, the ideal selection is option C.

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Answer:

The answer is 108.36!

Explanation:

This is a tricky one lol.

First you 160 x .30 which equals 48 and then you subduct that from 160 which that is 112. Then you do the same thing for the 10% off. So that is 112 x .10 which is 11.2. Subduct that from 112 which is 100.8. Then you have to add the 7.5 sales tax. So thats 100.8 x .075 which is 7.56. Then you add that to the 100.8 which is 108.36.

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When conducting a market analysis, it is important to undertake both a quantitative and qualitative assessment of the market.

This involves evaluating the size and value of the market, identifying customer segments and their buying patterns, assessing competition and challenges through Porter's Five Force Model, and considering economic, social, cultural, and ethical factors that may impact the market. Students conducting a case study analysis on market analysis should critically examine these aspects to gain a comprehensive understanding of the market in question.

By conducting a thorough analysis, students can identify key insights that can be used to inform strategic decisions and optimize business outcomes.By addressing these elements, students can gain a comprehensive understanding of market dynamics and their impact on the business case under investigation.

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Answer: Relative scarcity could be described as that where the resources are limited in supply for a short while, due to manufacturing or supply challenges.

Absolute scarcity could he described as where supply is naturally limited. No possibility of the supply increasing.

Explanation:

Relative scarcity could be described as that where the resources are limited in supply for a short while, due to manufacturing or supply challenges.

Absolute scarcity could he described as where supply is naturally limited. No possibility of the supply increasing.

In relative scarcity, there is a probability of the supply to be made available later while in absolute, there is no possibility of it happening.

Answer:

The higher the interest rate, the more willing suppliers of loanable funds will be to lend money.

Explanation:

Answer:

The demand curve for loanable funds is downward sloping, indicating that at lower interest rates borrowers will demand more funds for investment. The supply curve for loanable funds is upward sloping, indicating that at higher interest rates lenders are willing to lend more funds to investors.

Explanation:

The Scrum Team might discuss all of the points during a Sprint Retrospective. Therefore the correct answer is (E).

The Sprint Retrospective is an opportunity for the Scrum Team to reflect on the previous sprint and identify areas for improvement.

Methods of communication: The Scrum Team may discuss different communication methods used during the sprint, use of different communication tools and their effectiveness.

The way the Scrum Team does Sprint Planning: The team may evaluate the effectiveness and effectiveness of their Sprint Planning process and identify areas for improvement.

Skills needed to improve the Development Team's ability to deliver: The Scrum Team may assess the skills required by the Development Team to enhance their performance and delivery. Training needs and its methods  for skill development need to be worked upon.

Its Definition of Done: The team may discuss whether the current Definition of Done is appropriate or if any adjustments or improvements are necessary.

Therefore the correct answer is E. All of the above as all the above topics can be discussed during a Sprint Retrospective.

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Negative emotions that arise from failed search processes are referred to as "search frictions." These emotions can include frustration, disappointment, and anxiety, among others.

Search frictions occur when an individual is unable to locate the information or revenue they are seeking, which can result in a negative emotional response. These negative emotions can hinder an individual's ability to effectively process information, make decisions, or complete tasks, as they can lead to cognitive overload and reduced focus.

Additionally, search frictions may result in users losing trust in the information system or platform they are using, potentially causing them to abandon the search or seek alternative sources. It is essential for designers of information systems and search platforms to minimize search frictions by providing efficient, user-friendly, and accurate search capabilities.

This will improve user experience, increase satisfaction, and reduce the likelihood of negative emotions arising from failed search processes.

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1. Advantages and disadvantages of accepting credit card payments from customers:

Advantages:

- Increased sales: Accepting credit card payments can attract more customers and increase sales since it provides a convenient payment option.

- Faster payments: Credit card transactions are processed electronically, resulting in quicker payment receipt compared to checks or invoices.

- Reduced risk of bad debt: Payments made by credit cards are typically secure and reduce the risk of non-payment or bad debts.

- Competitive advantage: Offering credit card payments can give businesses a competitive edge and improve customer satisfaction.

Disadvantages:

- Transaction fees: Credit card processors charge fees for each transaction, which can reduce profit margins for businesses.

- Chargebacks and disputes: Customers have the ability to dispute charges or request chargebacks, which can lead to administrative hassle and potential loss of funds.

- Security risks: Accepting credit card payments involves security risks, such as the potential for fraud or data breaches. Businesses must implement secure payment processing systems to mitigate these risks.

- Dependence on third-party processors: Accepting credit cards requires a relationship with a payment processor, which adds a layer of dependency on external entities.

2. Difference between Sales Order and Sales Estimate:

- Sales Order: A sales order is a document generated by a business in response to a customer's purchase request. It outlines the specific products or services ordered, quantities, prices, and delivery details. It serves as a confirmation of the customer's intent to purchase and provides instructions for fulfilling the order.

- Sales Estimate: A sales estimate, also known as a sales quote or a sales proposal, is a document provided to potential customers to outline the anticipated costs and terms of a proposed sale. It includes pricing information, descriptions of products or services, and any relevant terms and conditions. A sales estimate is usually prepared before a customer commits to making a purchase.

The main difference between the two is that a sales order is generated after a customer has committed to making a purchase, whereas a sales estimate is prepared before a customer's commitment. Sales orders are used for actual transactions and serve as a basis for processing and fulfilling customer orders, while sales estimates are used for providing pricing information and negotiating terms with potential customers.

3. Reasons for requiring customer deposits when purchasing on account:

Companies may require customers to pay a deposit when purchasing on account for the following reasons:

- Managing risk: Requiring a deposit helps mitigate the risk of non-payment or default by customers. It provides a measure of financial security for the company in case the customer fails to fulfill their payment obligations.

- Financing large orders: Deposits can help finance the costs associated with fulfilling large orders. It allows the company to cover initial expenses or procure necessary materials before the full payment is received.

- Custom orders or special requests: For custom orders or special requests that require additional time, resources, or customization, a deposit ensures the customer's commitment to the purchase and covers any upfront expenses incurred by the company.

- Protecting against order cancellations: Deposits act as a deterrent against order cancellations since customers have a financial stake in the transaction. It helps reduce the risk of last-minute cancellations that can result in losses for the company.

4. Recording items received from a purchase order without a purchase invoice:

If items have been received from a purchase order but the purchase invoice has not yet been received, the following steps can be taken to record the transaction:

- Create a goods received note (GRN): Prepare a GRN to document the items received. Include details such as the date, supplier, description, quantity, and value of the received items.

- Record the receipt in the inventory system: Update the inventory system to reflect the received items. Increase the inventory quantity and update the corresponding value based on the cost of the items.

- Accrue the purchase cost: Since the purchase

invoice is not available, create an accrual entry to recognize the liability for the received goods. Debit the inventory or expense account and credit the accounts payable or accrued purchases account.

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According to Herzberg, relationships is an example of a hygiene factor.

Frederick Herzberg's Two-Factor Theory suggests that certain factors in the workplace can influence job satisfaction and dissatisfaction. Hygiene factors are related to the work environment and are considered essential for preventing job dissatisfaction, but they do not directly contribute to job satisfaction. Among the options provided, relationships best align with the concept of a hygiene factor.

Work relationships refer to the interactions and connections employees have with their colleagues, supervisors, and peers. These relationships can significantly impact an employee's job satisfaction or dissatisfaction. Positive relationships characterized by trust, cooperation, and support can create a pleasant work environment, while negative or strained relationships can lead to dissatisfaction.

Hygiene factors are necessary to ensure a comfortable and functional work environment, but they do not necessarily motivate or provide intrinsic satisfaction. Examples of other hygiene factors can include job security, salary, working conditions, company policies, and supervision.

In contrast, factors such as responsibility, advancement, the work itself, and recognition are considered motivators or satisfiers according to Herzberg's theory. These factors are linked to intrinsic motivation and personal fulfillment, directly influencing job satisfaction and performance.

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According to Herzberg, The following is an example of a hygiene factor Option D. Relationships.

According to Herzberg's Two-Factor Theory of motivation, hygiene factors are elements in the work environment that, when adequate, do not necessarily motivate individuals, but their absence or dissatisfaction can lead to dissatisfaction and demotivation. These factors are related to the job context and include aspects such as salary, working conditions, company policies, job security, relationships with supervisors, and organizational culture.

The relationships an individual has with colleagues, supervisors, and subordinates in the workplace can impact their overall job satisfaction. If the relationships are characterized by conflict, lack of support, or poor communication, it can lead to dissatisfaction. However, the presence of positive relationships alone may not necessarily motivate individuals. It is considered a hygiene factor because it contributes to the work environment and can prevent dissatisfaction, but it does not directly lead to motivation or job satisfaction.

Hygiene factors are important because they set the foundation for a positive work environment. When these factors are met, they create a baseline level of satisfaction and prevent dissatisfaction. However, they do not contribute significantly to individual motivation and achievement.

To enhance motivation and job satisfaction, Herzberg identified another set of factors called motivators, which include aspects such as recognition, responsibility, advancement, and the nature of the work itself. These factors are more directly related to the intrinsic rewards and fulfillment that individuals derive from their work. Therefore, the correct option is D.

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Bethany is using communication innovation to manage the required task.

Communication is the process of relaying information between people or parties about a specific issue. It can be done through various means that will help the flow of that required information.

Through the process of communication, Bethany is able to ensure the safe and timely arrival of the exhibit parts for her company's trade show. The innovation in transportation that she used is that of communication with the people involved to help her move the exhibit parts and delivered them on time and safely. It is also one important aspect of globalization.

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That which is not a criterion when evaluating financial service providers is this: C. past and current employees.

To successfully evaluate the qualification of a financial service provider, the customer must be able to look at their present and past history. They should consider their ability to incorporate emerging technologies into their businesses.

It is not really the business of the consumer to dig out the past and current employees of the business. He should be interested in other relevant factors like the above.

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Answer:

Louis Vuitton (LV) had the prolific year 2014 because it continued to grow, despite changes in its market environment. The company has been responsive in its strategies and has maintained a long-term future (LVMH 4). Nevertheless, the company continues to face competitive challenges in the luxury product market. It faces the challenge of sustaining its performance amid the growing difficulties in penetrating new markets and the improvement in the activities by rivals to target its dominant market segment. The company follows a differentiation strategy.

The overall strategies are taken by LV also lead to changes in the parent company, as LV is the main revenue contributor to the LVMH group. The company has to sell to three main customer segments without jeopardizing its reputation in any of them. The segments are absolute, aspirational, and accessible. The absolute segment is very critical of customer care, product quality, and overall brand reputation. It also has the widest variation in preferences in the main global markets of LV. Besides, it has a substantial demand that has forced LV to reconsider many of its decisions that could have affected its performance in this segment. The aspirational segment has mixed characteristics while the accessible segment is less critical to brands and, therefore, most prone to sway to the competition. All the customer segments are collectively influenced by a great brand and product innovation strategy that LV has been exploring in the past few years (LVMH 34-56). The European monetary problems are easing, which should present a good environment for growth in the market (LVMH 5).

​Social

The company has relied on leaders brought in by its parent company LVMH. It has also relaxed its use of in-house production resources in the past to focus on outsourcing (LVMH 54-55). However, the decision was reversed to save the company’s brand. Another problem is that the personal luxury business is growing in different directions in separate markets that LV serves. Its biggest market continues to be China, Europe, Japan, and the United States. Its Chinese market characteristics are different from those of Europe and Japan. However, the company has to meet the challenges of these markets without seeming to abandon any of its quality standards for customer service and product development. For example, it cannot discount products or follow noncompany-owned distribution models even when such strategies would significantly lead to a rise in revenues in the respective markets. These issues include a balance of the values and heritage of Louis Vuitton. The company has a 150-year reputation that it has to uphold while responding to the modern challenges of the business (Mahbubani 4).

​Technological

The company has a limited product range, and the main products are more than a century old. The leather bag collection and the trunks with a five number combination lock have been in production since the late nineteenth century. They can rely on this technological reputation to defend their market share and appeal to the absolute and aspirational customer segments that are fixated on getting true luxury regarding uniqueness, heritage, quality, and visibility. The product line allows LV to claim that it is offering the most beautiful specimens of French manufacturing (Mahbubani 2). The exclusivity of the designs and their ruggedness are reputations that help the LV brand to sell to existing and new luxury customers. Customers get information and look up things or exchange views online, which is the way they shop. The behavior shapes the direction that LV is taking when differentiating its experience online. The company is building a following in social media channels to improve interaction with its brand. The digital platforms also use new forms of advertising to different niches like soccer fans (LVMH 11).

The journal entry to record budgeted revenues will include a debit to estimated revenues. Budgeted revenue refers to an estimation of the revenue that a business entity expects to receive over a given period of time, usually one year. Option C is correct.

In this context, estimated revenue refers to revenue projections for the future or anticipated revenue that is yet to be collected. A journal entry is a record of a transaction that is recorded in an accounting journal. The journal entry shows the accounts affected, the amount of each debit or credit, and a brief explanation of the transaction. A debit entry is an entry that shows an increase in assets, such as cash or accounts receivable, a decrease in liabilities such as accounts payable or a decrease in equity.

A credit entry is an entry that shows a decrease in assets such as cash or accounts receivable, an increase in liabilities such as accounts payable, or an increase in equity such as capital. The journal entry to record budgeted revenues will include a debit to estimated revenues. Therefore, option C (a debit to estimated revenues) is correct.

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Answer:

False

Explanation:

The internet is composed by multiple Hosts and obviously the only way to shut down the internet is to shut down the catrillion computers that all together host the internet.

expectation theory predicts that the expected one-year interest rate in one year's time will be 3.75%.

If the expectation theory is correct, the expected one-year interest rate in one year's time is 3.75%.Explanation:The expectation theory predicts the future interest rates based on the present yield curve, assuming that investors and lenders will be compensated at the same rate for lending at various maturities. The expectation theory explains how expected rates of interest or yields for different bonds can be used to explain the yield curve's current shape. The expectation theory assumes that long-term interest rates are determined by the average of short-term interest rates in the future. Therefore, the one-year interest rate expected one year from now is the rate investors expect to earn in one year's time. In this case, the one-year spot interest rate is r1​=1.25% and the two-year interest rate is r2=3.75%.

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