The Pounds R Us Company produces weight lifting equipment. It has a long-term debt ratio [LTD/(LTD+Equity)] of .65 and a current ratio of 1.2. Current liabilities are $800, sales are $4000, the profit margin is 7%, and ROE is 25%. What is the $ amount of current assets?

Answers

Answer 1

$960 is the amount of current assets when current liabilities is $800 and current ratio is 1.2.

What type of asset is equity?

On a company's financial accounts, equity is neither an asset nor a liability. Equity is the result of deducting obligations from assets. The balance sheet of a corporation shows equity. As it determines the position of any business owner, equity is a valuable asset to a company. Net worth, stockholders equity, and capital are other names for it. Equity may be determined by: Assets – Liabilities equal equity. Equity can be applied to a single asset, such a piece of real estate, or to a company by deducting liabilities from assets. The $100,000 difference, for instance, is equity if a homeowner has a house worth $400,000 but owes $300,000 on the mortgage.

Current ratio = Current Assets / Current liabilities

Current assets= 800*1.2= $960.

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Related Questions

Suppose a security with a risk-free cash flow of $150 in one year trades for $140 today. If there are no arbitrage opportunities, what is the current risk-free interest rate

Answers

With no arbitrage, the current risk-free interest rate is $ 7.14% and $ 1.0714% in one year.

The PV of the security's cash flow is ($150 in one year) ((1+r), where r is the one-year risk-free interest rate. If there are no arbitrage opportunities, this PV equals the security's price of $140 today. Therefore,                              

=  $140 today  = ($150 in one year) / (1+r)                                                               = ($150 in one year) / $140 today = (1+r) = $ 1.0714 in one year/ $ today, so = 7.14%                                                                                            

The risk-free rate of return, most commonly abbreviated as the "risk-free rate," is the rate of return on a fictitious investment with predetermined payments over a certain amount of time that is expected to fulfill all financial obligations. The risk-free rate may be acquired without taking any risks, hence any other investment that involves any risk needs to have a higher rate of return in order to entice investors to hold it. In reality, market participants frequently select the yield to maturity of a risk-free bond issued by a government of the same currency, whose default risks are so minimal as to be negligible, in order to deduce the risk-free interest rate in that currency.

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Which of the following is an example of a task performed by a server-side script?
A. playing a video in your browser
B. providing a navigation bar for navigating a website
C. displaying a message before you submit an online form
D. validating the entries in an online form
E. presenting an online form to complete

Answers

Validating the entries in an online form is an example of a task performed by a server-side script.

What is a server-side script?

A script/program that runs on the server when a user requests information is known as a server-side script.

The web server examines the page before the client or visitor requests it. The web server locates the page file on the disk after reading it, loads it into memory, and then requests that the script engines (or interpreter) run the script code.

The HTML document is produced by the web server and sent back to it after processing. The client's computer screen displays the website after the browser processes both the client side script and the HTML page received from the server.

The following are additional server-side script features:

Control database data. How you create and administer the database will be largely influenced by the kind of server-side script you plan to utilize. Additionally, HTML document facilitates access control to the database's data and distributes pertinent info appropriately.

Exchange cookies with others. For the website to build and send cookies, server-side codes are necessary. Cookies save information like logins and passwords, which enhances the user experience on websites.

Validate and encrypt data. For sensitive data, like financial or medical records, encryption is extremely crucial. Back-end scripts support information security by validating and encrypting data to prevent unwanted access and misuse

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Graphically, as a consumer buys more of a good, the marginal utility line will a. Follow the same shape as the total utility line b. Increase steadily and then decline. c. Continuously decline if diminishing returns are present d. Increase as more goods are consumed.

Answers

Graphically, the marginal utility line will increase as a buyer purchases more of a certain commodity. resemble the overall shape of the utility lines. Increase

What does graphically illustrated mean

These samples may include sensitive material and were chosen at random; they do not necessarily represent the views or policies of Collins or HarperCollins, the publisher of which Collins is a subsidiary.

Please send the Collins team an example sentence if you have any feedback. Read on...

India serves as a stark example of this.

Marketing Fundamentals: Principles and Practice (1986)

These numbers alone show in graphic detail how Japan's military commitment in China has increased.

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What are the factors that affect changing business trends?

Answers

The factors that affect changing business trends are technological advancements, globalization, economic environment.

What is business?
Business
is an activity which involves the buying and selling of goods and services, or the exchange of resources for money. It involves risk taking and decision making in order to gain profit and success. Businesses can be small and large, from a single person enterprise to a large multinational corporation. It is an economic system that is essential for the functioning of a society, as it provides employment and income for individuals, and helps to generate wealth. Businesses are responsible for creating products and services that cater to the needs of consumers.

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True or false: When auditing financial statements, auditors seek to identify all misstatements in the financial statements, regardless of size.

Answers

False. Only substantial misstatements are targeted by auditors. Despite the possibility of doing so, they do not intentionally include non-material misstatements in the design of their audit methods.

Factual misstatement, judgement misstatement, and projected misstatement are the three different kinds of misrepresentation. A misrepresentation that is factually accurate is one that involves the client's account balances or transactions. Typically, auditors have access to supporting papers so they can check them for factual errors. Inaccurate judgement: Judgmental misstatement is a type of error that happens in audits when the client's judgement and the auditor's judgement diverge. The accounting estimate and accounting policies on areas where judgement is required, which auditors deem improper, are some examples.

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What are agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together

Answers

Brokerage Firms exist to help their clients find the right buyer and seller for a transactions by bringing them together at the best price for every party, all while taking a commission for your services.

What is Brokerage Firm?

An intermediary who brings together buyers and sellers to finish a transaction for company shares, bonds, choices, and other investment vehicles is known as a brokerage business or brokerage company. Once the transaction is completed, commissions or fees are levied as payment to the broker.

In a number of situations, such as investing, borrowing the money, and purchasing real estate, a brokerage provides intermediary services. Brokers act as middlemen to facilitate transactions between buyers and sellers. A broker might be a person or a business.

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What are 4 principles of an effective team?

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4 principles of an effective team are Clear Roles and Responsibilities,  Open Communication, Mutual Respect and Collaborative Goals.

1. Clear Roles and Responsibilities: Establishing clear roles and responsibilities for each team member is essential for a team to be effective. Everyone should know their job and have the necessary tools and resources to do it well.

2. Open Communication: Effective teams have an open and honest communication system. This includes both verbal and non-verbal communication, and allows team members to provide feedback, ask questions, and express concerns.

3. Mutual Respect: Respect is the foundation of any successful team. Team members should respect each other’s opinions, backgrounds, and experiences.

4. Collaborative Goals: Team members should be working towards the same goal. This encourages collaboration and allows the team to work together towards a common purpose.

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Why is it important to start saving early to meet your short-term and long-term needs?

Answers

Starting to save early is important because it allows you to meet your short-term and long-term financial needs.

Starting to save early gives you time to build up a cushion for any unexpected expenses. It also gives you the opportunity to invest your money and make it grow over time.

When you save early, you can take advantage of compound interest, which means that your money will earn interest on the principal plus any interest that has already been earned. This allows your money to grow faster over time.

Additionally, having a long-term savings plan can help you achieve financial goals such as buying a home or paying for college tuition. Saving early also helps to protect you from financial hardship in the future by providing an emergency fund to cover unexpected expenses.

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Why does unemployment rise during a recession?

Answers

Answer: During the recession, which is a time of weak economic growth the demand for goods and services declines, and businesses start to lay off employees while holding off on boosting prices. Thus, during recessions, unemployment increases.

Explanation: The unemployment rate is the percentage of unemployed people among the total labor force in an economy.

Unemployment rate = (Number of unemployed individuals )/(sum of employed and unemployed individuals)x 100

Changing economic conditions in a country may lead to a rise or fall in the unemployment rate. Good economic condition is expected to reduce the unemployment rate while bad economic conditions are expected to inflate the unemployment rate.

Unemployment during Recession: During the recession, which is a time of weak economic growth the demand for goods and services declines, and businesses start to lay off employees while holding off on boosting prices. Thus, during recessions, unemployment increases and inflation declines.

Your customer wishes to purchase shares of an IPO. During the cooling- off period, the customer can A) indicate an interest in the offering. B) purchase shares in limited amounts. C) enter an order to sell the new issue short upon the effective date. D) pay in advance for shares to be purchased when the cooling-off period ends.

Answers

The correct answer to the given question about the customer's wish to purchase a share of an initial public offering (IPO), the customer can: A) indicate an interest in the offering.

A stock launch, also known as an initial public offering (IPO), is a public offering in which shares of a company are sold to institutional and typically also to retail (individual) investors. The shares are typically underwritten by one or more investment banks and listed on one or more stock exchanges. A privately held corporation becomes a public company by undergoing this procedure, also referred to as floating or going public. Initial public offerings can be used to increase a company's equity capital, monetize the investments of private shareholders, such as the founders of the company or private equity investors, and make it simple to trade existing holdings or raise additional capital in the future by becoming publicly traded.

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Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e. G. , 32. 16. ):


Stated Rate (APR) Number of Times Compounded Effective Rate (EAR)


9. 1 % Quarterly %


18. 1 Monthly


14. 1 Daily


11. 1 Infinite

Answers

The Effective Annual Rate (EAR) for 9. 1 % Quarterly %, 18. 1 Monthly, 14. 1 Daily, 11. 1 Infinite are 9.42%,  19.68%, 15.14%  and 11.74% respectively.

What do you mean by Effective Annual Rate?

The rate of interest that is actually generated on an investment or paid on a loan as a result of compounding interest over a specified amount of time is known as the Effective Annual Rate (EAR). It is used to evaluate various financial products that compute annual interest with various compounding periods, such as weekly, monthly, yearly, etc., and is typically higher than the nominal rate. The effective yearly interest rate rises up over time as the number of compounding periods goes up. The nominal rate specifies a yearly percentage rate regardless of compounding, although the actual annual rate is typically greater. When compared to the nominal rate, the effective yearly rate rises as the number of compounding periods increases.

EAR=(1+APR/m)^m-1

where m=compounding periods

1. EAR=(1+0.091/4)^4-1

=9.42%(Approx).

2. EAR=(1+0.181/12)^12-1

=19.68%(Approx).

3. EAR=(1+0.141/365)^365-1

=15.14%(Approx).

4. EAR=(e)^APR-1

where e=2.71828

EAR=(2.71828)^0.111-1

=11.74%(Approx)

So, The required answers are 9.42%, 19.68%,15.14% and 11.74% approximately.

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Which of the following are essential questions that strategic leaders need to consider to increase the probability of entering an industry successfully? (Check all that apply.)
Multiple select question.
When to enter?
Who are the players?
How to enter?
What type of entry should be made?
Why is it important to study the external environment?

Answers

The essential questions that strategic leaders need to consider to increase the probability of entering an industry successfully are

a) When to enter?

b) Who are the players?

c) How to enter?

d) What type of entry should be made?

It's essential to ask yourself the right questions in order to increase the probability of success when entering into an industry.

When it comes to entering a new industry, strategic leaders have many important questions to consider.

The main questions are when to enter, who the players are, how to enter, and what type of entry should be made. By carefully considering each of these questions, leaders can increase their chances of entering the industry successfully.

These questions help in forming proper strategies for entering into an industry.

Knowing the answers to these questions is key to setting up a successful venture into the industry.

The question will correctly be written as:

Which of the following are essential questions that strategic leaders need to consider to increase the probability of entering an industry successfully? (Check all that apply.)

Multiple select question.

a) When to enter?

b) Who are the players?

c) How to enter?

d) What type of entry should be made?

e) Why is it important to study the external environment?

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The excess of expected sales over the sales level at the break-even point is known as the: ?
Multiple Choice O Sales turmover O Profit margin. O Contribution margin. O Relevant range Margin of safety

Answers

The excess of expected sales over the sales level at the break-even point is known as the Relevant range Margin of safety.

Option D is correct.

What is the break-even safety margin?

The difference between the expected profitability and the break-even point is the margin of safety. Divide current sales by the breakeven point to arrive at the margin of safety formula.

What does it mean to have a safety margin?

An investment principle known as the margin of safety states that an investor should only purchase securities when their intrinsic value is significantly lower than their market price. To put it another way, the margin of safety is the difference between a security's market price and your estimate of its intrinsic value.

Why is the safety margin so important?

Since it indicates optimal performance and the capacity of a company to cushion itself against market volatility, a high margin of safety is frequently favored. However, increasing sales volume is necessary to increase a low margin of safety, which may indicate an unstable business position.

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If the number of labor force participants equals 146.8 million people and 8.2 million are unemployed, how many are employed

Answers

The Employed Population is computed at 138.6 Million.

The definition of employment rate is the percentage of the labor force that is employed. They are calculated as the proportion of people who are employed to people who are of working age. The economic cycle has an impact on employment rates, but over the long run, higher education, income support, and policies that encourage women and underrepresented groups in the workforce have a substantial impact.

Given Data:
Labor Force = 146.8 Million

Unemployed Population = 8.2 Million

Using the following formula, we can calculate the Employed Population:

Labour Force = Unemployed Population + Employed Population

146.8 = 8.2 + E

E = 146.8 - 8.2 = 138.6

Therefore, the Employed Population = 138.6 Million.

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special-purpose groups designed and structured in the interests of maximum efficiency are known as______

Answers

special-purpose groups designed and structured in the interests of maximum efficiency are known as formal organization.

The bureaucratic model of formal organization, developed by sociologist Max Weber, is centred on the rationalisation of operations through rules and procedures. It is one of the formal organisation models that is used the most. Such regulations may be closely adhered to in some cultures and organisations, but in others they could be little more than formalities. To make it easier to achieve the organization's objectives: Each employee in a formal organisation is given a specific task to do. He/she strives to accomplish specific objectives that align with the objectives of the company. To make it easier for different activities to be coordinated: Individuals' power, duty, and accountability within the organisation are clearly laid out. facilitating the coordination as a result.

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6 main emotional road blocks james L adams identified as preventing us from creativity

Answers

James L. Adams identified six main emotional roadblocks that prevent creativity. These roadblocks are fear of failure, fear of the unknown, self-doubt, low self-esteem, pessimism, and a lack of motivation.

Fear of failure can be a powerful roadblock to creativity as it can limit our willingness to try something new or take risks. Fear of the unknown can also prevent us from being creative, as we may be unsure of what to expect.

Self-doubt can keep us from being creative as we may not believe in our own abilities.

Low self-esteem can lead to a lack of confidence, which can keep us from pursuing creative activities.

Pessimism can prevent us from seeing the potential of our ideas, as we may expect them to fail.

Finally, a lack of motivation can be an obstacle to creativity, as we may not feel inspired to create. By recognizing and overcoming these emotional roadblocks, we can open ourselves up to greater creativity.

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Which of the following types of business organizations do not protect owners' personal assets from losses incurred by the business?
General partnership.
Sole proprietorship.
S corporation.
C corporation.

Answers

General partnership and Sole proprietorship both business organizations do not protect owners' personal assets from losses incurred by the business.

What are business organizations?

A business organisation is an entity created with the intention of conducting a purchasing and selling business. These organisations are founded on the legal systems that control contracts, exchanges of goods and services, ownership rights, and incorporation. Managing and planning different activities is a concern of the business organisation system. In order to produce goods and services, resources like labour, equipment, capital, and funds must be accumulated and coordinated. The successful business works to manage and regulate all of these production factors.

Whether a corporation is set up as a C or S corporation, its owners have limited liability, which protects their personal assets from losses caused by the businesses. Owners of general partnerships and sole proprietorships are personally liable for the company's losses.

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Entries for Materials GenX Furnishings manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric Polyester filling Lumber Glue The materials purchased during June are summarized from the receiving reports as follows Fabric Polyester filling Lumber Glue Materials were requisitioned to individual jobs as follows $40,500 28,600 62,400 6,550 $440,000 180,000 360,000 40,000 Polyester Filling Fabric $205,000 110,000 130,000 Lumber Glue Total Job 601 Job 602 Job 603 Factory overhead-indirect materials Total $400,000 234,000 310,000 $34,800 34,800 $166,000 $333,000 $34,800 $978,800 $75,000 $120,000 88,000 55,000 125,000 36,000 $445,000

Answers

Journal entries for materials are used to record the purchase. Therefore, $1,020,000 is debited to Materials and credited to Accounts Payable.

What does journal entry mean?

A journal entry is a record of business transactions in your books of accounts. Double-entry bookkeeping creates at least two journal entries for each transaction. A single transaction can cause many changes in a company, so accountants track them all in journal entries.

Journal entries fall into six main types: opening journals, transfer journals, closing journals, adjusting journals, compound journals, and reversing journals. Each of these entries has a specific function in accounting.

What are Tally's journal entries?

Tally ERP 9 uses Journal Vouchers to record cash and non-bank financial transactions. Journal entries record transactions related to depreciation, accruals, credit fixed asset sales, depreciation balances, and adjustment transactions.

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In Adam Smith's view, which of the following is not the role of government in business? a. Providing defense against foreign governments b. Regulating business activity c. Ensuring internal order d. Providing education

Answers

In Adam Smith's view Regulating business activity of the following is not the role of government in business.

What is Business?

An innovative company or group that engages in professional activities is referred to as a business. They could be industrial, commercial, or something else. Businesses that are for-profit operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.

The term regulating business activity refers to that government. Regulates businesses by taxing them. The tax rate is the percentage that a company must pay to the state as well as the local government. based on their entity.

Therefore, Thus option(B) is correct. By regulating business activity. The government regulates businesses by taxing them.

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In the PSSP hierarchy of needs model, which level is illustrated by a "Got Milk?" magazine campaign that encourages customers to drink more milk?

Answers

In the PSSP Hierarchy of needs model, the level which is illustrated by a got milk magazine campaign which tends to encourage the consumers to drink more milk is for the physiological needs.

The PSSP Hierarchy of Needs is considered to be a theory which is put into the shape of a pyramid which tends to represent a consumer's needs. Here, the needs which are most important to a consumer and their well-being are at the bottom of the pyramid and so as the needs get less important they then move up in the pyramid.

However, the physiological needs are considered to be the lowest level of Maslow's hierarchy of needs. They are considered to be the most essential things a person needs in order to survive. Thus, they include the need for water, shelter, water, rest, warmth, and health.

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On the direct labor budget, the total quantity of direct labor hours needed is computed as A. quantity needed for production + indirect labor hours direct labor hours. B. estimated direct labor hours needed x cost per hour. C. units to be produced indirect labor hours x cost per labor hour. D. units to be produced x direct labor hour per unit.

Answers

Option D is correct. On the direct labor budget, the total quantity of direct labor hours needed is computed as units to be produced x direct labor hour per unit.

What is direct labor budget?

A direct labor budget is a financial plan that estimates the amount of labor costs required to produce a certain quantity of goods or services. It is used to project the number of direct labor hours needed and the cost of that labor in order to produce a specific number of units. The budget typically includes information such as the number of units to be produced, the direct labor hours required per unit, and the cost per hour of direct labor. The direct labor budget is used in conjunction with the production budget and the direct materials budget to project overall production costs and to help managers make informed decisions about production planning and labor utilization.

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Would you describe the Classic Watch Company
as being product-oriented or market-orientated?
Explain your answer.

Answers

Answer:

The Classic Watch Company is likely market-oriented. This means that the company is focused on understanding its customers’ needs and wants and designing products that meet those needs. The company takes into account the preferences of the market and adjusts its products to meet the demands of the market. The company is not just focused on creating a product and expecting the market to buy it; instead, it is actively seeking out customer feedback and using it to make informed decisions about the products and services it offers.

When planning an effective lead nurturing campaign, what is the first step that you should take as an inbound professional: Setting goals
Creating content
Selecting personas
Identifying the timeline
Measuring and improving.

Answers

Setting goals is the first step that an inbound professional should take when planning an effective lead nurturing campaign.

How do you begin a campaign for lead nurturing?

Make an automated travel first. Making automated journeys is the simplest method to design your lead nurturing campaigns in Campaign Monitor. Simply select "Create a new travel" under "Automation" in the menu. You then use specific parts and decide on triggers to begin the journey.

What should be the first thing an advertiser thinks about when planning a campaign?

The first thing an advertiser should consider when planning a campaign is the advertiser's goal. It implies that the advertiser's work should be clear. His goal should be clear so that he can devise a better strategy. Pricing, targeting options, and creative messaging are all part of this.

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How can I raise my credit score 20 points fast?

Answers

This is how raise your credit score 20 points fast is given below:
1. Pay down your credit card balances.
2. Dispute any errors on your credit report.
3. Make all of your payments on time.
4. Limit your credit applications.
5. Increase your credit limit.
6. Become an authorized user on someone else

What is credit score?

A credit score is a three-digit number that represents a person’s creditworthiness. It is calculated by credit bureaus based on an individual's credit history, which includes information about their debts and repayment history. A good credit score is generally considered to be above 700, while a score below 620 indicates a bad credit score. A credit score can have a significant impact on an individual's ability to access loans and other forms of credit. It is also used by lenders to assess the risk of lending money to a particular borrower. A good credit score can therefore help an individual secure loans with more favourable interest rates and repayment terms.

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According to the consensus of the research, some people are genetically predisposed to be entrepreneurs. Group of answer choices True False

Answers

The claim is untrue because an entrepreneur takes on all of the risk while launching a brand-new, cutting-edge company on their own.

Does entrepreneurship run in the family?

The study's findings are fascinating. 37% to 48% of the propensity to start your own business is inherited. Important behavioral traits like extroversion and openness are genetically predetermined, therefore genes might affect your propensity to start your own business by affecting your "entrepreneur personality."

Is being an entrepreneur a calling for everyone?

In summary, success in any area of life is not a result of innate qualities. Instead, it is accomplished by life experiences, education, and desire. Likewise, in business. Entrepreneurs are not genetically predisposed.

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PPE stands for __________________ and is specialized clothing or equipment, worn by an employee for protection against infectious materials.

Answers

PPE, or personal protective equipment, refers to specialized clothing or other items that employees wear to protect themselves against infectious materials.

What do PPE's five examples mean?

Wearing personal protection equipment, also referred to as "PPE," can assist lower risk exposure. PPE includes items like gloves, foot and eye protection, protected hearing devices (earplugs, muffs), hard helmets, respirators, and full body suits.

How come PPE is used?

PPE acts as a barrier between your skin, mouth, nose, and eyes and infectious agents including bacteria and viruses when worn properly (mucous membranes). The barrier may stop the transmission of contaminants from blood, body fluids, or respiratory secretions.

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What are the 3 basic economic questions that a country must answer about limited resources?

Answers

Every community must respond to three inquiries given that all economic resources are limited: What types of products and services are necessary? How exactly should these products and services be created? Who makes use of these products and services?

'What is an economic system?'

A country's or a region's economic system is how societies or governments manage and distribute the resources, services, and goods that are readily available. Land, capital, labor, and physical resources are all subject to economic system regulation. A community's economic structure is made up of a variety of institutions, organizations, entities, decision-making procedures, and consumption patterns, and these all make up an economic system.

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A retailer inflated the price of its dining room sets so that when it put them on sale, it appeared to customers that they were getting a better deal than they really were. In doing so, the retailer was engaged in _______. Multiple choice question.

Answers

Skimming the price. Skimming entails setting exorbitant costs when an item is first released and then progressively dropping the price when additional competitors come onto the scene. This kind of pricing is good for companies entering emerging areas.

How does retail inflation work?

The CPI tracks changes in the costs of goods and services at country, urban, and national levels as well as retail prices at a specific level for a certain item. CPI-based inflation, also known as retail inflation, is the term used to describe the change in the inflation figures over time.

What is inflation, exactly?

Inflation is defined as the rate of price growth over a predetermined time frame. The rise in the general price level or the increase in the cost of living in a country are two examples of broad measures of inflation.

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What are the 3 market structures?

Answers

The 3 main structures of the market are perfect competition, monopolistic competition, and oligopoly.

In perfect competition, there are a large number of firms competing in the same market. These firms produce homogenous goods, meaning that the products are all the same. Prices are determined by the market and there are no barriers to entry or exit structures.

In monopolistic competition, there are a large number of firms selling differentiated products. This means that each firm has something unique to offer, allowing them to gain an edge over their competitors. Prices in this market structure are determined by the demand and supply for the products. There are also barriers to entry and exit.

Finally, in an oligopoly, there are only a few firms in the market. These firms have control over the prices and production of their products, since they are the only ones offering them. Entry and exit is also difficult due to the few players in the market.

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6) An investment will pay $5,000 at the end of each year for 25 years and on the date of the last payment will also make a separate payment of $40,000. If your required rate of return on this investment is 5%, how much would you be willing to pay for the bond today

Answers

An investment will pay $5,000 at the end of each year for 25 years and the last payment will also make a separate payment of $40,000. If your required rate of investment is 5%, the amount will be $82281.83.

What is an easy way to define investment?

A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person invests in a good, they do not intend to utilize it as a source of immediate consumption, but rather as a tool for future wealth creation.

How Do Investments Operate?

The simplest way to understand how investing works is to acquire an asset for a low price and then sell it for a higher price. This type of investment return is referred to as a capital gain. One strategy to make money investing is to generate returns by achieving capital gains or selling assets for a profit.

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