if $10,000 is invested at 7% annual interest, which is compounded continuously, what is the account balance after 8 years, assuming no additional deposits or withdrawals are made?
The account balance after 8 years when 10,000 is invested for 8 years is $85,800.03.
What is the account balance?When an amount is compounded continusoly, it means that the amount invested and the interest that has already been accrued increases exponentially over the course of the investment period.
The formula for calculating future value when there is continuous compounding is : A x e^r x N
Where:
A= amount e = 2.7182818 N = number of years r = interest rateFV = $10,000x (2.718^ 0.07) x 8 = $85,800.03
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Answer: $17,506.72
Explanation:
If an account is being continuously compounded, the following formula can be used
A = Pe to the power of rt
where:
P = principal balance = 10000
r= APR = 7% = 0.07
t = number of years - 8
Solve for A, the account balance after 8 years:
A = 10000e to the power of 0.07(8)
A = 10000 e to the power of 0.56
A = 10000(1.750672)
A = 17506.72
in addition to identifying products or services that customers might buy to address their problems, it’s also important to consider
In addition to identifying products or services that customers might buy to address their problems, it’s also important to consider whether your customer is motivated enough to pay for a solution.
An empathy map is a collaborative tool team can use to gain a deeper insight into their clients. Much like a user character, an empathy map can constitute a group of users, which includes a client phase. The empathy map was first created with the aid of Dave gray and has won a lot of reputation within the agile network.
At the same time as the two could have factors in the commonplace, a price prop is more product- and service-orientated while an assignment assertion is greater aim-orientated. Right here are examples for HubSpot and our CRM platform: price Proposition: “An easy-to-use CRM.” project assertion: “To help corporations grow higher.”
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1. Describe at least one global trend that you think offers a business opportunity in the global marketplace. (1-5 sentences. 2. 0 points).
An business that sells products devoid of plastic while its rival does so. The ability of plastic bags to maintain competitive prices will provide them a market edge in the current climate, when ocean plastic pollution and global warming are issues of the utmost importance and societal impact.
What is a business?The act of producing, acquiring, and reselling goods to generate income is referred to as business. It also encompasses "any activity or venture undertaken for profit." Creditors may seize the owner's personal property if a company accumulates debt. Rates of corporate taxation are not allowed in a firm structure. The expression is frequently used colloquially to refer to a company, like a corporation or cooperative. Corporations are distinct legal entities with limited liability for their owners/members and are taxed at corporate rates, in contrast to sole proprietorships and partnerships.
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a manufacturer of sports apparel and sports equipment experienced a sharp drop in sales during the covid-19 pandemic. the marketing manager asks the marketing research department to investigate this alarming development. the first step taken by the researchers in their process should be to group of answer choices
The marketing manager asks the marketing research department to investigate this alarming development. The first step taken by the researchers in their process should be to group of Formulate a specific research problem.
What is development?Development is the process of producing growth, progress, positive change, or the addition of physical, economic, environmental, social, and demographic factors.Permission is required for each development, but the effects are different for each development, so there are three types of development. The three types of development are: Compliance; Benefits; and Non-Compliance. Different types of development have different evaluation processes. Development is the process of producing growth, progress and positive change in economic, environmental, social and demographic terms without compromising environmental resources. Development is a growing process, new information, or an event. The change from caterpillar to butterfly is a good example of evolution.To learn more about development from the given link :
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During last month, your beginning inventory was $17,500, your purchases were $19,252, and your ending inventory was $15,757. What was the cost of goods sold cogs?.
20,995 was the cost of goods sold cogs .
What do you mean by cost?
The cost is the sum of money that a business spends on the development or manufacturing of goods or services. It excludes the profit margin markup. The sum of money spent to create a good or product, as seen from the seller's perspective, is the cost.An expense needed to create, market, or prepare an asset for regular use is called a cost.Cost of goods sold
17,500 Beginning inventory
+19,252 Plus purchased inventory
- $15,757 Minus ending inventory
=20,995 Cost of Goods Sold
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How long would you wait in line for a store to open?
How long a person will wait in a line for a store to open depends on the patience level of the person and the importance of the products that he needs to buy.
People often have to wait in lines in a store when there is a huge discount or when the store is closed.
Many people who are shopaholics have the tendency to wait for hours in line in order for their favorite store to open. On the other hand, some people do not have patience and will not wait in line for a very long time for a store to open.
If the product that is to be bought is an important one and can be bought from a specific store only, then a person can wait in line for hours.
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airlux antarctica has current assets of $500 million, current liabilities of $400 million and a cash ratio of 0.25. how much cash and marketable securities does it hold? (enter your answer in millions rounded to 1 decimal place.)
The value of Cash and Marketable securities is $100million
What are Marketable securities?In order to be ready for circumstances where they may need to act quickly, like seizing an acquisition opportunity that arises or paying contingent payments, businesses usually keep cash in their reserves. A business will, however, invest some cash in short-term liquid securities rather than keeping all of it in its bank accounts, where there is no chance of earning interest.In this manner, the business may generate returns on its cash rather than letting it stay idle. The business can readily sell these securities if a sudden need for cash arises. A group of assets classified as marketable securities is an illustration of a short-term investment product.Cash ratio is a used to evaluate a company's ability to repay its current liabilities.
It is the most important ratio in evaluating liquidity. Cash ratio should be maintained minimum one. Mainly, creditors will use this ratio as a performance measure.
A has $400 million of current liabilities, $500 million of current assets and 0.25 cash ratio.
[tex]Cash ratio=\frac{cash+marketable securities}{current liabilities}[/tex]
0.25 = (Cash + Marketable securities) ÷ $400 Million
0.25 x $400 million = Cash + Marketable securities
Cash + Marketable securities = $100 million
So, The value of Cash and Marketable securities is $100million
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Which theory would support the idea that by increasing the efficiency of resource utilization in the global economy, international trade results in greater economic growth and provides economic benefits to all countries that participate in a global trading system?.
According to the principle of comparative advantage, two countries can still trade in a way that is advantageous to both even though one country can produce all items more cheaply than the other. This hypothesis states that relative effectiveness is important.
What is comparative advantage?In an economic model, producers who can produce a given good at a lower relative opportunity cost or autarky price—that is, at a lower relative marginal cost before trade—have a competitive advantage over rival producers. Comparative advantage refers to the economic reality of the benefits from trade for individuals, businesses, or nations that result from variations in their factor endowments or technological development. He showed that if two nations with the capacity to produce two different commodities enter into a free market, each nation will increase its overall consumption by exporting the good for which it has a comparative advantage while importing the other good, provided that there are differences in labour productivity between the two nations.
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alpar company produces several lines of laundry hampers. the factory is highly automated and uses an activity-based costing system to allocate overhead costs to its various products. during the upcoming period the company expects to produce 72,000 units. the costs and cost drivers associated with four activity cost pools are given below: activities unit level batch level product level facility level cost $20,000 $8,000 $15,000 $36,000 cost driver 4,000 labor hours 200 set-ups % of use 72,000 units production of 20,000 units of its popular foldable hamper required 2,000 labor hours, 50 setups, and consumed one-quarter of the product sustaining activities. what amount of unit-level costs will be allocated to the product?
Amount of unit-degree fees could be allotted to the product is $500
The required details for costs in given paragraph
Calculation to decide the quantity of batch-degree fees in an effort to be allotted to the product
Using this formula
Allocation rate=(Total batch degree overhead value/Total hobby base ) * Set-ups
Let plug within side the formula
Allocation rate=( $10,000/four hundred set-ups) *20 set-ups
Allocation rate=$25 according to set-up *20 set-ups
Allocation rate=$500
Therefore the quantity of batch-degree fees in an effort to be allotted to the product is $500
Cost in a enterprise corporation is an cost that the enterprise takes on with a purpose to promote a product or service. These fees consist of such things as lease for a retail space, investments in replenishing inventory, and wages paid to employees. Costs are the important fees that need to be made so that it will run a enterprise. Every thing of manufacturing has an related value.
The value of labor, for example, used within side the manufacturing of products and offerings is measured in phrases of wages and benefits.
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the dhl global connected index, which tracks the flow of capital, information, trade, and human resources, indicates that the degree of globalization continues to decline.
a. true
b. false
The DHL global connected index, which tracks the flow of capital, information, trade, and human resources, indicates that the degree of globalization continues to decline. This statement is True.
Globalization is a term used to describe the growing interdependence of the world's economies, cultures, and peoples due to cross-border trade in goods and services, technology, and investment flows. , people and information.
Globalization, or globalization, is the process of interaction and integration between people, businesses, and governments around the world. Overall, globalization reduces production costs. This means that companies can offer goods at a lower price to consumers. The average cost of goods is an important factor contributing to rising standards of living. Consumers also have access to a wider variety of goods.Learn more about globalization here: https://brainly.com/question/25499191
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suppose that annual income from a rental property is expected to start at $1,300 per year and decrease at a uniform amount of $50 each year after the first year for the 15-year expected life of the property. the investment cost is $8,000, and i is 9% per year. assume that the investment occurs at time zero (now) and that the annual income is first received at eoy one. how much will be the loss or profit after 15 years? scribd
When converting multiple future values into a single combined present value, the net present value is used. This can be used to evaluate a project's viability and profitability.
Although there is a positive return on the investment, it is very low. Over the course of 15 years, the return has a net present value of 3.61 percent.
According to Knight, the "net present value is the present value of the cash flows at the required rate of return of your project compared to your initial investment" is the value of the project's cash flows. In practical terms, it is a way to figure out your project or expense's return on investment, or ROI.
What exactly is net present value and what is its significance?
Net present worth shows how much cash a venture or speculation will acquire or lose regarding the present assets. Due to the impact of factors like inflation and lost compound interest, a project's future cash flow does not accurately reflect its current cash flow, so the NPV changes accordingly.
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You have a $5000 loan for 5 years. Your annual percentage rate(APR) is 12.5%. What is your monthly payment
$112, Will be the monthly payment.
What is APR?
The annual interest produced by a sum that is paid to investors or charged to borrowers is referred to as the annual percentage rate (APR). APR is a percentage that expresses the actual annual cost of borrowing money throughout the course of a loan or the revenue from an investment. This does not account for compounding and includes any fees or additional expenditures related to the transaction. Consumers can evaluate lenders, credit cards, or investment goods using the APR as a benchmark figure.
If you took out a $5,000 personal loan for five years at a rate of 12.5% interest, your monthly payment would be $112. Over the course of this loan, your total interest payment would be $1,749.
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which of the following is the best example of corporate advertising? group of answer choices saturn inc.'s use of a popular actress as a spokesperson mars and gray promoting its concern for the environment crest golf's signing of pro-golfer bryan raymond as a spokesperson w
The best example of corporate advertising is:
Crest golf's signing of pro-golfer bryan raymond as a spokesperson.
The correct answer is: Option C: Crest golf's signing of pro-golfer bryan raymond as a spokesperson.
Crest golf's signing of pro-golfer Bryan Raymond as a spokesperson is the best example of corporate advertising because it is a very direct way of promoting the company and its products. By signing a well-known celebrity or athlete, the company is able to reach a large audience and create a strong brand identity. This type of advertising is very effective in increasing brand recognition and building customer loyalty.
The corporate advertisin:Advertising is a form of marketing communication used to promote or sell something, usually a product or service. Companies use advertising to promote their products or services in order to generate more sales.
There are different types of advertising, including online, print, television, and radio advertising. Online advertising includes banner ads, pop-up ads, and text ads. Print advertising includes ads in newspapers, magazines, and flyers. Television and radio advertising includes commercials, infomercials, and product placement.
Advertising is a powerful tool that can influence people’s buying decisions. It can be used to persuade people to buy a product or service that they may not need or want. It can also be used to convince people to buy a product or service that they would not normally buy.
Advertising can be a positive force for good, promoting products and services that improve people’s lives. It can also be a negative force, convincing people to buy products and services that they don’t need or want.
When used responsibly, advertising can be a valuable tool for companies and a force for good in the world.
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how is a seed-stage company valued? a. on the anticipation of future growth b. on the value that it has on hand c. by the number of shareholders d. on the basis of its financial history
A seed-stage company valued on the anticipation of future growth.
Is a short-term loan convertible into stock when more funding is provided?With a convertible note, an investor effectively lends money to a startup and receives equity in the business instead of a return in the form of principal plus interest. Convertible notes typically convert into equity in conjunction with a subsequent financing round.
How much return on investment does the average angel investor anticipate?For angel investors, a successful portfolio has an effective internal rate of return of about 22%.
3 Even though this may appear like a fantastic investment to investors and too pricey to entrepreneurs with startup companies, such company endeavors rarely have access to cheaper forms of funding like banks.
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Hillyard company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:.
The average collection period is determined by dividing the sum of the starting and ending receivables balances by the total annual credit sales.
How do you calculate cash collection from credit sales?The average collection period is determined by dividing the sum of the starting and ending receivables balances by the total annual credit sales. The amount of sales made on credit and in cash are both included in the total.
Cash sales are 20% of total sales where as remaining 80% sales are credit sales. Cash collection schedule prepared will display the actual cash collected from sales. The sales made on credit are collected in the following month.
1. Schedule of Cash Collection:
Particulars: January February March Quarter
Cash Sales $77,400 $77,400 $118,200 $273,000
Credit Sales $201,600 $201,600 $472,800 $876,000
Total Collections $279,000 $279,000 $591,000 $1,149,000
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if a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 15 percent receives a deposit of $600, it has a
it has a: a. $510 increase in required reserves and no increase in excess reserves.
Does the reserve ratio account for extra reserves?Excess reserves for commercial banks are compared to standard reserve requirement amounts established by central banking regulators. The minimum liquid deposits (such as cash) that must be held in reserve at a bank are determined by these required reserve ratios; anything above that is deemed excess.
The amount of deposits that banks must hold as needed reserves is determined by the central bank.
Deposits x Reserve Requirement = Required Reserves
0.2 x $100,000 = $20,000
The discrepancy between reserves and necessary reserves is known as excess reserves.
Reserves required = 0.15 x 600 = 90
Reserves in excess = 600 - 90 = 510.
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kevin works at a company in ohio and is in charge of researching available export opportunities. which two organizations should he initially contact to learn more? (check all that apply.)
The U.S. Department of Commerce's International Trade Administration manages Export.gov as a collaborative effort with the 19 Federal Agencies that provide export help programs and services.
Even small agencies can get into exporting with the help of mentors and modern-day technology.
What type of organization is usually used as a relied on middleman for exporting situations?Distributors. are export intermediaries who symbolize the employer in the overseas market. Often, distributors signify many companies, appearing as the “face” of the organisation in that country, promoting products, imparting consumer service, and receiving payments.
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https://brainly.com/question/21897468#SPJ4a case study in the chapter analyzed purchasing-power parity for several countries using the price of big macs. here are data for a few more countries:
The case study leaves out price of a Big Mac which is $4.37.
What is a case study?An extensive, in-depth analysis of a particular case (or occurrences) in a practical situation constitutes a case study. For instance, case studies in medicine may focus on a single patient or sickness; case studies in business may cover a specific firm's strategy or a wider market; similarly, case studies in politics may range from a single political campaign to a big organization (e.g., a world war). Instead of only one observation (N=1), a case study may contain several observations (one or multiple individuals and entities across multiple time periods, all within the same case study). Cross-case research is the term used to describe research projects that include numerous examples, as opposed to within-case research, which refers to studies of a single instance.
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In the context of the Competing Values Framework, which of the following is true of market culture?
A. It refers to a structured workplace where leaders act like coordinators.
B. It refers to a competitive workplace where leaders are hard drivers
C. It refers to a friendly workplace where leaders act like father figures.
D. It refers to a dynamic workplace where leaders stimulate innovation.
In the context of the Competing Values Framework, It refers to a competitive workplace where leaders are hard drivers.
Organizational culture is defined by the conflicting value framework. The organizational culture that is evaluated by the structure is
1.Hierarchy
2.Market
3.Adhocracy
4.Clan
Adhocracy culture describes an organizational culture that is built on initiative and creativity. By valuing freedom and individual creativity, the adhocracy culture inspires workers to take charge and run the risk of starting their own business.Market culture refers to a way of life that emphasizes competition among leaders in the workplace. Market Culture is the organization's focus on the outside world and is governed by its leaders.Clan culture refers to a way of life that emphasizes a supportive workplace where the leader serves as a father figure.The Hierarchy culture refers to the workplace arrangement in which managers serve as coordinators within an organization.Learn more about Hierarchy culture, here
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the process of finding present values is also frequently called discounting compounding annualizing leasing sampling
The process of finding present values is also frequently called discounting.
The two discount types available are trade discount and cash discount. "With [company name] you can receive 20% off your first purchase. Start saving by shopping now! This is a great illustration of a discount message for brand-new clients. People who recently joined your texting or emailing list could receive it. Value refers to the degree of significance of something or an action, with the intention of determining the best courses of action to take or the best ways to live, or to describe the significance of various actions. Honesty, integrity, benevolence, kindness, courage, and self-assurance are a few examples of values. People can use these values to determine what is or is not desirable for them.
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which of the following is true of product costs?
A) For merchandising companies, product costs do not include freight costs.
B) They are expensed in the period they are paid.
C) For external reporting, GAAP requires that they be expensed before the products are sold.
D) They are first recorded in an inventory account.
The following is true of product costs is
c. They are first recorded in an inventory account. Product costs are costs to be recorded as part of inventory: Raw materials inventory if the materials were not yet used in the production
product costs associated with a product include all materials that go into making it, the cost of any laborers who work on it, as well as all facility and administrative costs.
Direct materials, direct labor, and manufacturing overhead make up the three main cost categories for product costs
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terry, a salesperson for big ticket sales, creates a tailored presentation to share with a consumer and solicit feedback. what type of communication channel is he using? group of answer choices impersonal nonpersonal private personal
Terry, a salesperson for big ticket sales, creates a tailored presentation to share with a consumer and solicit feedback. Personal communication channel is used by Terry.
Sender and receiver connect directly to one another in a one-on-one setting through a personal communication channel. In this instance, the salesperson is soliciting feedback from the customer while presenting a presentation that is tailored to the specific needs of the client. This form of communication is significantly more intimate when compared to, say, mass media channels like radio or television. Private communication is more intimate when compared to public channels of communication. It makes it possible for the sender and the recipient to have a two-way conversation in which information and feedback are exchanged.
Terry's preferred method of customer contact is highly individualized because it is tailored to the specific consumer in question and actively solicits the client's response. One of the most frequent situations in which a salesperson will use this form of communication is when they are attempting to establish a rapport with a customer. The communication channel Terry uses to spread his message seems more private and intimate because Terry has prepared a tailored presentation to share with a specific customer. In order to have a more intimate conversation, this type of interaction typically involves one person talking to another. By using a personal communication channel, Terry is able to forge a more intimate connection with the client, which could be helpful when requesting feedback from them. A more direct conversation is also made possible by this method of communication, which might be more effective in grabbing the customer's attention.
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deliberate manipulation of government spending and taxes to promote macroeconomic goals is known as group of answer choices discretionary fiscal policy. automatic stabilizers. expansionary fiscal policy. contractionary fiscal policy. monetary policy.
"Discretionary fiscal policy" refers to the intentional manipulation of government expenditure and taxes to advance macroeconomic aims.
Define the term Discretionary Fiscal Policy?Government budget changes are made through fiscal policy in order to affect overall demand. i.e., altering spending and taxes.
Discretionary fiscal policy refers to adjustments in tax rates and/or spending levels made by the government. For instance, lowering the VAT in 2009 to increase spendingTaxes are decreased while spending on the government is increased under an expansionary fiscal strategy. Reduced taxes, such as the UK's lower VAT rate, enhance disposable income and, in principle, should encourage consumers to spend.Automatic fiscal stabilisers are distinct from discretionary fiscal policy. Automatic stabilisers are when a government mechanically spends more during a recession because more people are requesting unemployment benefits. The government may decide to raise public work spending programs as well, though, if they consider that these automatic compressions are not enough.To know more about the Discretionary Fiscal Policy, here
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gary incurred $5,200 in qualified medical expenses in 2022. his agi for the year is $50,000. gary will be able to deduct $_____as an itemized deduction for medical expenses.
Gary incurred $5,200 in qualified medical expenses in 2022. his age for the year is $50,000. Gary will be able to deduct $ 1450 as an itemized deduction for medical expenses.
50000 (0.075)= 3750
5200-3750=1450
Each of the terms 'tax deduction' and 'tax exemption' talk over with a reduction of taxable earnings; they're types of tax alleviation or tax breaks supplied by means of the authorities. However, tax exemptions may additionally encompass entire relief from taxes, reduced prices, and tax on the simplest portion of profits.
Tax deductions are the amount of money that can be reduced from the entire taxable earnings. To get the net profits of a taxpayer, the deduction quantity is first protected in the gross total earnings after which subtracted from it. It's a miles type of concession obtained through the taxpayers from the earnings tax department.
Overall deductions from gross revenue or “deductions from revenue” method discounts from gross sales resulting from the inability to gather charge of expenses. Such reductions include awful debts; contractual adjustments; uncompensated care; administrative, courtesy, and coverage discounts.
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A business owner pays $1,200 per month in rent and a total of $120 per hour in employee salary for each hour the store is open. On average, the store brings in $200 in net sales per hour.
If x represents number of hours per month the store open. then system of equations is A C(x) = 200x R(x) = 1,200+120x.
What is system of equations?Mathematicians refer to a finite set of equations for which common solutions are sought as a "system of equations" or "equation system." v A collection of one or more linear equations involving the same variables is known in mathematics as a system of linear equations (or linear system). In mathematics, the theory of linear systems serves as the cornerstone and a core component of linear algebra, a topic that is utilised in the majority of contemporary mathematical fields. Numerical linear algebra is a crucial component of many fields, including engineering, physics, chemistry, computer science, and economics. Computational algorithms for finding the solutions are a key component of this field.
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which term describes the action taken to force a sale of real property encumbered by a lien?
Foreclosure describes the action taken to force a sale of real property encumbered by a lien.
The term "lien" describes a legal claim or legal right that is made against the property that is held as security for the repayment of a debt. A creditor or a court order can both establish a lien.
The lien's main function is to ensure that an underlying obligation, such the loan's repayment, will be met. The lender or creditor is legally entitled to seize the asset subject to the lien if the borrower fails to fulfil the underlying obligation.
Assets are secured by a variety of liens, the three most common of which are bank, real estate, and tax liens. The contract for the property must be paid when it comes to property.
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information in a supply chain flows to and from which of the following?
a. distribution centers
b. wholesalers
c. manufacturers
'information in a supply chain flows to and from manufacturers .
Manufacturing is defined as creating new products from raw materials or parts. Examples of manufacturing industries include car companies, bakeries, shoe stores, and tailors. They do not manufacture products or provide services.
A manufacturer is someone who makes products such as cars, boats, bicycles and computers in factories. A producer is someone who does not make a product, such as food, in a factory. Producers also produce television programs, films, radio programs and media
General manufacturing companies manufacture, fabricate, and process products from raw materials and commodities to components, assemblies, and end-use products in a variety of industries. and are involved in preparation.
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it is a good idea for home buyers to go first to a mortgage company and _____.
'it is a good idea for home buyers to go first to a mortgage company and pre-qualify.
Mortgage companies are financial companies that underwrite and issue (provide) their own mortgages to homebuyers and use their equity capital to make loans.
A mortgage lender is a financial institution that lent you money. A mortgage servicer is the company that submits the mortgage statement. Servicers also handle the day-to-day operations of loan administration.
A mortgage is a type of loan used to purchase or maintain a house, land, or other type of property. The borrower agrees to pay the lender over time, usually in a series of periodic payments split into principal and interest. The property then acts as collateral to secure the loan
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a. at what quantity is average total cost the lowest? units b. if the firm expects to produce 500 units on average, which average total cost curve has the lowest average total cost?
If the firm expects to produce 500 units on average, which average total cost curve has the lowest average total cost ATC2
What is Anatomical Therapeutic Chemical (ATC)?The Anatomical Therapeutic Chemical code is a special number given to a medication based on the organ or system it affects and how it functions. The World Health Organization maintains the classification scheme (WHO).According to the organ or system on which they work, as well as their therapeutic, pharmacological, and chemical qualities, the active compounds are grouped into various groups in the Anatomical Therapeutic Chemical (ATC) classification system. There are five main levels of classification for drugs.Air traffic controllers come in three different varieties. There are three types of controllers: tower, terminal, and en route.To learn more about Anatomical Therapeutic Chemical refert to:
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your customer recently purchased three put contracts on first mate coffee, inc., stock. the strike price is $75 and the premium was $2.50. he later executed the contract. how much did he pay for the three contracts?
Customer recently purchased three put contracts on first mate coffee, inc., stock. The strike price is $75 and the premium was $2.50 He pay for the three contracts is $750.
At a strike price of $2.50, three contracts for 100 shares cost $700.
Finding the ideal strike price is crucial to successful stock and index option trading. The price at which you agree to purchase or sell a certain stock is referred to as the "strike price." An HUVR call option with a strike price of 1220 or 1240, for instance, would be needed if the stock of Hindustan Unilever was trading at Rs. 1200 and you anticipated a 5% increase in price. The finest balance of intrinsic worth and time value can only be found in these strikes. Contrarily, if you decide to purchase a 1340 call option only because the premium is little, you are unlikely to profit.
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