The invention that contributed to Portuguese sea-faring under the leadership of Prince Henry the Navigator was the D. astrolabe .
What was the astrolabe ?The astrolabe was an ancient instrument used by mariners and astronomers to measure the altitude of celestial bodies, such as the sun and stars.
The astrolabe was a crucial tool for the Portuguese navigators during their explorations, as it allowed them to travel further into unknown waters with more accuracy and confidence.
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how do general partnerships limited partnerships and limted liability partnerships differ A. general- partners share equally in both responsibility and liability B. limited-only one partner is required to be a general partner
C. LLP-all partners are limited partners D. All of the above
The correct answer is D. All of the above statements are incorrect. All three types of partnerships differ in terms of the type of liability assumed by the partners and the level of management control they have over the business.
General partnerships are a type of partnership where all partners share equally in both responsibility and liability for the business. This means that each partner is personally liable for the debts and obligations of the partnership, regardless of how much each partner invested or how much each partner was involved in the day-to-day operations of the business. Additionally, each partner has an equal say in how the business is run, and profits and losses are divided equally among the partners. Limited partnerships, on the other hand, have both general partners and limited partners. Only one partner is required to be a general partner who has unlimited liability for the business, while the other partners are limited partners who have limited liability. Limited partners are not involved in the management of the business, and their liability is limited to the amount of their investment in the partnership. General partners, on the other hand, have unlimited liability and are responsible for managing the business. They also have the ability to make decisions that affect the partnership. LLPs are similar to limited partnerships in that all partners have limited liability for the business. However, unlike in limited partnerships, all partners in an LLP have the ability to manage the business. This means that all partners have a say in how the business is run, and each partner is liable only for their own actions and decisions. LLPs are often used by professionals such as lawyers, accountants, and architects because they offer protection from personal liability for malpractice or negligence committed by other partners.
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A company is developing a highly available web application using stateless web servers. Which services are suitable for storing session state data? (Select TWO.)
A. CloudWatch
B. DynamoDB
C. Elastic Load Balancing
D. ElastiCache
E. Storage Gateway
The services suitable for storing session state data in a highly available web application using stateless web servers are: (B) DynamoDB and (D) ElastiCache.
DynamoDB and ElastiCache are the server-less databases designed to run the high performance applications at any level. These databases provide high performance storage of key-value pairs. They provides facilities like built-in security, continuous backups, in-memory caching, and data import and export tools.
Web application is a software application that can be accessed using the web browser by the help of internet. The examples of web applications are online forms, shopping carts, word processors, spreadsheets, video and photo editing, file conversion, etc.
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a journal entry that debits work in process and manufacturing overhead and credits raw materials records the ______
A journal entry that debits Manufacturing overhead and credits Accounts payable could be made to record - the issuance of materials
Journal entry is the demonstration of keeping up with or making measurements of any exchanges either money related or non-monetary. Exchanges are recorded in a bookkeeping magazine that shows a venture's charge and FICO rating adjusts. The magazine access can incorporate a few accounts, everything about's both a charge or a credit.
A Journal entry is a document of a business endeavour exchange to your undertaking books. In twofold access accounting, you are making essentially magazine sections for every exchange. since an exchange can make different changes in a business undertaking, a clerk tracks every one of them with dairy sections.
The entries is alluded to as an auxiliary digital book. the magazine is known as the books of interesting section or Books of high passage. The exchanges are kept in the magazine in sequential requests. With the assistance of a diary, record obligations are coordinated.
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Which two methods can be used to pass conversion attributes such as model type, color, and year of production through a floodlight activity? (select two)
The two methods that can be used to pass conversion attributes such as model type, color, and year of production through a floodlight activity are: Custom Floodlight Variables, Dynamic Remarketing.
Custom Floodlight Variables (CFV): Custom Floodlight Variables allow you to pass custom data through a Floodlight tag. This method involves creating custom parameters in the Floodlight tag and then passing data through those parameters from the conversion page. For example, you could create a custom parameter called "model" and pass the model type through that parameter.
Dynamic Remarketing: Dynamic Remarketing allows you to show ads to users based on the specific products or services they viewed on your website. This method involves passing data such as product ID, model type, color, and year of production through a Floodlight tag on the product page. This data is then used to show relevant ads to users who viewed that product.
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what is an example of an unfunded mandate?
An unfunded mandate is a government requirement or regulation that imposes a financial or administrative burden on states, local governments.
An unfunded mandate is a type of government regulation that imposes a financial burden on states, local governments, or private organizations without providing them with the necessary funding to comply with the mandate. This type of regulation can cause financial strain on the affected parties and lead to reduced services or program cutbacks. Unfunded mandates are typically controversial as they are seen as a violation of the principle of federalism, which calls for a division of power between the federal government and the states. Proponents argue that unfunded mandates are necessary to ensure uniformity and consistency in policy implementation, while insurance opponents claim that they are an unfair burden on those who are required to comply with them. Overall, unfunded mandates are a complex issue that requires careful consideration of the costs and benefits of regulation.
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What are the 4 phases of crisis development?
The four phases of the development of a crisis are the potential or the pre-crisis phase, the latent crisis phase, the acute crisis phase and the post-crisis phase.
Crisis can basically be divided into four types of phases which are the potential or the pre-crisis phase, the latent crisis phase, the acute crisis phase or the crisis phase, and the post-crisis phase. These classifications basically enable us to understand the dynamics of a particular crisis.
With the understanding of the characteristics of these different types of phases, it becomes more clear or apparent regarding how one should react to them.
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what kinds of things should a business keep in mind when looking for facilities
The kinds of things should a business keep in mind when looking for facilities are space, location and cost.
“Facilities” are tangible objects built or installed for a specific purpose. Facilities support organizations. Maintenance of buildings, IT infrastructure and services, lighting, furnishings, and premises.
Facilities Management (FM) focuses on how these facilities are managed. It can be defined as a management discipline that ensures effective and efficient support services for various organizations.
It is a function within an organization focused on integrating people, processes, places and technology into existing environments to improve organizational productivity and people's quality of life.
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True or false, Inventory is defined as the stock of any item or resource used in an organization.
True. Inventory is defined as the stock of any item or resource used in an organization is correct.
The term inventory refers to the raw materials used in production and the goods produced and available for sale. A company's inventory is one of its most important assets, as inventory turnover is one of the company's shareholders' primary sources of revenue and bottom line.
There are three types of inventory: raw materials, work-in-progress, and finished goods. It is classified as a current asset on the company's balance sheet.
Inventory is a very important/significant asset for any business. It is defined as the range of commodities used in production or finished goods owned by a company during normal business operations.
There are three general categories of inventory: raw materials (all materials used to manufacture finished goods), work in process (WIP), and finished or ready-to-sell goods.
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which item CANNOT be used as collateral for a loan? a)house b)large, high-value record collection c)bank account d)ca
It is possible to use a house, a large high-value record collection, or a bank account as collateral for a loan, but a car cannot be used as collateral if it has a lien against it.
An account is a record of financial transactions that are associated with a particular individual or entity. Accounts are used to keep track of money that is coming in and going out, as well as to monitor the balance of assets and liabilities. There are many different types of accounts, such as bank accounts, investment accounts, and credit accounts. Each account has its own unique set of terms and conditions that dictate how it can be used and what fees may be associated with it. Accounts can be used to help manage personal finances, as well as for business purposes. By keeping accurate Multimarket records of financial transactions in various accounts, individuals and businesses can monitor their financial health, make informed decisions, and plan for the future.
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aaron is trying to decide what combination of baseballs and baseball bats to buy. his total utility for different quantities of baseballs and baseball bats is given in the table below. baseballs are $10 each and baseball bats are $5 each. aaron has a total of $30 to spend. what is the total utility of aaron if he buys 1 baseball and 4 baseball bats
According to the chart, the total utility of Aaron if he buys 1 baseball and 4 baseball bats is 83. Thus option C is correct.
What is total Utility?Total utility refers to the complete sense of fulfillment or satisfaction a consumer has after using a particular good or service. The total utility rises as long as the marginal utility is positive.
In the given chart, there is the total utility of different combinations is given. According to the question for 1 baseball and 4 baseball bats, the total utility will be 83.
Therefore, option C is appropriate.
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when it comes to diversity, it is important that managers ________.
When it comes to diversity, it is important that managers: Embrace diversity: Managers should value and appreciate differences in their team members, including differences in race, ethnicity, gender, age, culture, religion, sexual orientation, and other characteristics.
Foster inclusion: Managers should create a work environment where all team members feel included, heard, and respected. This includes actively listening to diverse perspectives, involving everyone in decision-making, and addressing any biases or discrimination that may arise.
Educate themselves: Managers should seek to understand the unique experiences and perspectives of their team members and work to educate themselves about different cultures, customs, and backgrounds. This can help them to better support and lead a diverse team.
Prioritize equity: Managers should prioritize equity in their decision-making, ensuring that everyone has equal opportunities to grow, develop, and succeed in the organization.
Create diverse teams: Managers should strive to create diverse teams, both in terms of demographics and skill sets. This can help to foster innovation and creativity, and lead to better outcomes for the organization.
Measure progress: Managers should track and measure progress on diversity and inclusion initiatives to ensure that they are making meaningful progress towards their goals. This can help to identify areas where additional support may be needed and ensure that efforts to promote diversity and inclusion are effective.
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what international treaties supported peace after ww1
Treaty of Versailles and The Paris Peace Conference supported peace after ww1.
A peace agreement known as the Treaty of Versailles[4] was signed on June 28, 1919. It ended the state of war between Germany and the majority of the Allied Powers, making it the most significant treaty of World War I. Exactly five years after the war-starting death of Archduke Franz Ferdinand, it was signed in the Palace of Versailles.
On the German side, separate treaties were signed by the other Central Powers. The United States signed a separate peace agreement with Germany and never approved the Versailles Treaty.
Even though the fighting came to an end on November 11, 1918, it took the Allies six months of discussions at the Paris Peace Conference to reach a settlement. Germany was compelled to attend the negotiations after being denied permission to do so.
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"Expenses directly tied to the level of business activity is the definition of A. variable costs. B. expected value. C. marginal costs. D. fixed costs.
The definition of fixed costs is expenses that are directly related to the volume of business activity.
What is fixed costs?Regardless of the company's level of activity, fixed costs are an expense that remain constant. The following are some examples of fixed costs: rent, salary, insurance, property taxes, interest costs, depreciation, and perhaps certain utilities. Common fixed costs that are represented as indirect expenses include depreciation. Businesses develop a plan of depreciation expenses for investments in assets whose values decline over time. As an illustration, a business might invest in machinery for an assembly line used in manufacturing, which is expensed over time using depreciation. Costs known as fixed expenses do not fluctuate whether sales or manufacturing volumes rise or fall. This is because they aren't actively involved in producing a good or providing a service. Thus, fixed costs are regarded as indirect costs.
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What benefits does worker motivation generate for an organization? (Select all that apply.)
Increased productivity
Improved quality
Improved work environment
Employee motivation is defined as the level of energy, commitment, perseverance and creativity that employees bring to their work.
The advantages include:
Increased productivityImproved qualityA better work environmentMainly because it enables management to pursue corporate goals. Without a motivated workplace, companies could find themselves in a very risky situation.
Motivated employees can lead to increased productivity and enable the organization to achieve higher levels of efficiency. Employee motivation is the internal and internal motivation to make efforts and actions necessary for work activity.
Motivation therefore plays a very important role and ensures that employees stay active and do their best for their organization. In addition, high motivation leads to a lower fluctuation rate.
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What is definition of business cycle ?
The business cycle is a pattern of monetary action generally comprising of downturn, recuperation, development, and decline.
The business cycle is brought about by the powers of the organic market — the development of the GDP Gross domestic product — the accessibility of capital, and assumptions regarding what's in store. This cycle is by and large isolated into four particular portions: extension, pinnacle, constriction, and box.
The business cycle is the normal extension and withdrawal of the creation and result of labor and products that occur throughout some undefined time frame. The monetary ascent and fall of a firm in the economy.
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Future value is the __________ value of an investment at some time in the future.
The value of a current asset at some point in the future, based on an estimated growth rate, is known as future value (FV). Using the FV calculation, investors may predict an investment's profit with reasonable certainty.
What is an Investment?Investments are financial commitments made to acquire assets in the hopes that their value would rise over time. Investment necessitates the loss of a current resource, such like time, wealth, or effort. In the world of finance, investing is done in order to profit from the asset being put to use. A gain (profit) or loss realised through the sale of a home or investment, unrealized capital gain (or loss), investment income like dividend, interest, or rental income, or a mix of capital gain and income may all be included in the return. The return can additionally involve foreign exchange profits or losses as a result of shifting exchange rates. Riskier investments typically provide better returns, according to investors.
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True or False. decision makers need to consider what they can and will do before they consider what they should do.
Decision-makers need to consider what they can and will do before they consider what they should do. - False
Determining a decision, acquiring data, and weighing potential solutions are all steps in the decision-making process. A decision maker is an individual or a particular group that is in charge of making crucial strategic decisions depending on a variety of factors, such as the length of time available, the resources at hand, the type and quality of information at hand, and the number of interested parties.
Prior to considering what they can and will do, decision-makers must think about what they should do. This entails comprehending the issue, establishing moral commitments, and taking into account realistic decision-making techniques. They investigate the anticipated values of their decisions. These ideals are predicated on what they anticipate taking place.
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jack purchased a $200,000 whole life insurance policy and designated his wife, judy, as the beneficiary. several years later, jack surrendered the policy for the lump-sum cash value of $100,000. jack had paid gross premiums of $90,000 and had received dividends of $20,000. what are the tax consequences to jack upon receipt of the cash surrender proceeds from the policy?
We must first establish Jack's taxable income in order to compute the tax implications Jack will face upon receiving the cash surrender profits from the insurance policy.
How much cash surrender proceeds from the policy?$90,000 in total premiums were paid.
$20k in dividends were received.
Value of surrender: $100,000
Jack's cost basis for the insurance coverage is the $90,000 in total premiums paid. The difference between the surrender value and cost basis, or $100,000 - $90,000 = $10,000, represents the gain on the policy.
For Jack, this $10,000 gain is taxable income in the year of surrender. The applicable tax rate is determined by Jack's overall income and tax bracket.
On top of that, Jack might be required to pay taxes on the $20,000 in dividends he earned. The dividends are taxable income in the year they were received if they were paid in cash and were not reinvested.
The gain of $10,000 plus any relevant taxes on the dividends received would total Jack's taxable income. It is suggested that you speak with a tax expert for advice on your particular situation.
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Which of these best describes prices in a market economy?
a. a signal for consumers to purchase less
b. a signal for producers to manufacture less
c. a set of compromises between buyers and sellers
d. a set of compromises between the government and citizens
A set of compromises between buyers and sellers best describes prices in a market economy. (Option C)
How does market economy work?In a market economy, prices are determined through the interaction of supply and demand. Buyers and sellers negotiate prices based on their individual needs and preferences, and prices reflect the relative scarcity of goods and services in the market economy. When demand for a product is high and supply is limited, prices tend to increase.
When demand is low and supply is plentiful, prices tend to decrease. In this way, prices represent a compromise between what buyers are willing to pay and what sellers are willing to accept. The government may play a role in regulating prices in some cases, but in general, prices in a market economy are determined through the actions of buyers and sellers.
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what aspects of an organization do od interventions seek to change?
Whether it's organisational structures, leadership styles, or behavioural patterns, OD interventions aim to change certain parts of an organisation.
Programs and procedures used in organisational development (OD) interventions aim to enhance an organization's performance. These actions are intended to produce activities. The goal of organisational development (OD) interventions is to help an organisation accomplish its objective by resolving an issue.
These intervention efforts aim to enhance how the organisation operates and give managers and leaders the tools they need to better control the cultures of their teams and organisations. Interventions in human processes, technological structures, human resource management, and strategic transformation are all examples of interventions.
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suppose a technological advancement occurs. what would we expect to happen in the market?Equilibrium quantity and price would increase Equilibrium price would increase and quantity would decrease Equilibrium price would decrease and quantity would increase Equilibrium quantity and price would decrease
If a technological advancement occurs, we would generally expect the equilibrium quantity to increase and the equilibrium price to decrease. This is because technological advancement would likely increase the supply of the product.
leading to a greater quantity being produced at a lower cost. As a result, suppliers would be willing to sell more of the product at a lower price, which would encourage buyers to purchase more of the product as well.
However, the exact effect on equilibrium quantity and price will depend on various factors, such as the nature of technological advancement, the elasticity of demand and supply, and the degree of competition in the market. It's possible that the equilibrium price may increase if the demand for the product also increases due to technological advancement, or if the supply of the product is limited by other factors such as resource constraints.
Overall, the impact of technological advancement on the market will depend on the specific circumstances and characteristics of the market in question.
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how did henry ford alter working conditions for his employees? A. Increased their wages B, Give them a weekend off C, Recruit more workforce D. A and B correct
The correct option is D, Henry ford alter working conditions for his employees increased their wages and gave them weekends off.
Employees are individuals who are hired by an organization to provide labor or services in exchange for wages or salary. They are an essential part of the workforce, and can include full-time, part-time, and contract workers, as well as temporary and seasonal employees.
Employees are typically subject to the rules and regulations of their employer, which may include dress codes, working hours, and workplace conduct policies. They may receive benefits such as health insurance, retirement plans, and paid time off, and may also be eligible for performance-based bonuses and other incentives. Employers have a legal and ethical responsibility to provide a safe and healthy work environment for their employees, and to comply with employment laws and regulations.
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Which of the following is defined as a tax rate that decreases when the tax base increases?
a. Average tax
b. Proportional tax
c. Marginal tax
d. Progressive tax
e. Regressive tax
As the taxable amount rises, the tax rate decreases under this taxation system. Alternatively said, the tax rate and the taxable income regressive tax have an inverse connection.
When a tax is levied, it is said to be regressive if the tax rate drops as the amount subject to taxation rises.A tax that grows in rate as the amount subject to taxation rises is referred to as a progressive tax. As a tax rate moves from low to high, it is said to be "progressive" if the average tax rate for a taxpayer is lower than the marginal tax rate for that individual. It usually gets better and more sophisticated when anything is progressive. something retrogressive.
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"Suppose that the world price of copper is $4 a pound. Poland does not trade internationally, and the equilibrium price of copper in Poland is $3 a pound.
Poland then begins to trade internationally.
(i) The price of copper in Poland _____.
The quantity of copper produced in Poland _____.
A. falls; decreases
B. rises; increases
C. falls; increases
D. rises; decreases
(ii) The quantity of copper bought by Poland _____.
Poland _____ copper.
A. decreases, exports
B. increases; exports
C. increases; imports
D. decreases; imports"
(i) The answer is D. When Poland begins to trade internationally, it will be able to buy copper from other countries at the world price of $4 a pound. This will create an incentive for Polish producers to increase their prices to at least the world price in order to compete with imports.
Therefore, the price of copper in Poland will rise from the previous equilibrium price of $3 a pound. At the same time, the quantity of copper produced in Poland will decrease, as Polish producers will have to compete with imports and may find it harder to sell their copper at the higher price.
(ii) The answer is C. When Poland begins to trade internationally, it will be able to buy copper from other countries at the world price of $4 a pound. This means that Polish consumers will be able to buy copper at a lower price than before, and the quantity of copper bought by Poland will increase. Since Poland was previously producing less copper than it was consuming, it will now need to import more copper to meet its needs. Therefore, Poland will import more copper than before, and will no longer be self-sufficient in copper production.
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Transcribed image text: Returning items purchased online occurs in which phase of the buyer decision process? а Postpurchase behavior b Purchase decision с Need recognition d Information search e Evaluation of alternatives What effect has the advent of free online returns had on consumer behavior? a The practice of free online returns has not had a significant impact on consumption. b Consumers are returning items purchased online at higher rates. с Consumers are more careful about the goods they buy online. d Consumers have become more concerned about the impact of returns on the environment. e Consumers are less willing to pay full price for items purchased online.
Returning items purchased online occurs in which phase of the buyer decision process Post purchase behavior.
Briefing:-The effect has the advent of free online returns had on consumer behavior Consumers are returning items purchased online at higher rates.
Which of the following describes how a buyer decides to purchase something?Recognizing a problem or need is the first stage in the purchasing process. Customers won't be persuaded to buy the product if you don't understand their needs. An internal stimulus (such as hunger or thirst) or an exterior stimulus might cause a need to arise (e.g. advertising).
Which step of the buying decision-making process is the advised criteria to use?By offering criteria to utilize for the purchase, producing brand names that may fit the criteria, and forming consumer value perceptions, the information search stage helps the consumer understand the issue.
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what is the second step in the path to financial literacy?(1 point) responses
The path to financial literacy may vary depending on the source or the individual providing the information. However, a common second step in the path to financial literacy is typically to create a budget or a spending plan.
Creating a budget involves identifying your income, expenses, and financial goals, and then allocating your resources in a way that aligns with your priorities. This can help you gain a better understanding of your financial situation, track your spending, and make informed decisions about how to manage your money. By creating a budget, you can also identify areas where you may need to cut back on spending or increase your income to achieve your financial goals.
Other common steps in the path to financial literacy may include building an emergency fund, paying off debt, saving for retirement, and investing for the future.
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item 17 zach is a franchisee with digger's doggies, a chain of hotdog shops. he was doing well until several other digger's doggies franchisees got in trouble and were forced to close their shops. soon afterward, zach's business declined and was also forced to close. this is an example of
Zach is a franchisee with Digger's Doggies, a chain of hotdog shops. He was doing well until several other Digger's Doggies franchisees got in trouble and were forced to close their shops. Soon afterward, Zach's business declined and was also forced to close. This is an example of the coattail effect.
What does the coattail effect means?The coattail effect, also known as the down-ballot effect, is the tendency of a popular political party leader to attract votes for other party candidates in an election.
In the United States, for example, the party of a successful presidential candidate often wins many seats in Congress as well; these Members of Congress are elected "on the coattails" of the president.
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what systems discourage people from coming forward with entrepreneurial ideas?
There are several systems that discourage people from coming forward with entrepreneurial ideas. One such system is the lack of financial resources or access to funding.
Another discouraging factor is the fear of failure. Starting a new venture is risky and can be intimidating, especially if one has never done it before. Many individuals may be hesitant to take the plunge and pursue their entrepreneurial dreams due to the possibility of failure and the associated stigma.
In addition, there may be legal and regulatory hurdles that make it difficult for individuals to start their own businesses. Licensing requirements, zoning restrictions, and other regulations can create significant barriers to entry for aspiring entrepreneurs.
Finally, cultural norms and expectations can also discourage individuals from pursuing entrepreneurial ideas. For example, there may be societal pressure to follow traditional career paths or to prioritize stability and security over risk-taking and innovation.
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Pitman Company is small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a commission of 15% selling price for all items sold.
Barbara Cheney, Pitman’ controller, has just prepared the company’s budgeted income statement for next year. The statement follows:
Pitman Company
Budgeted Income Statement
For the Year Ended December 31
Sales……………………………………………………………………………………
$16,000,000
Manufacturing costs:
Variable………………………………………………………………………
7,200,000
Fixed overhead…………………………………………………………..
2,340,000
9,540,000
Gross margin………………………………………………………………………
6,460,000
Selling and administrative costs:
Commissions to agents……………………………………………….
2,400,000
Fixed marketing costs…………………………………………………
120,000
Fixed administrative costs…………………………………………..
1,800,000
4,320,000
Net operating income………………………………………………………..
2,140,000
Fixed interest cost……………………………………………………………..
540,000
Income before income taxes……………………………………………..
1,600,000
Income taxes (30%)……………………………………………………………
480,000
Net income………………………………………………………………………..
1,120,000
*primarily depreciation on storage facilities.
As Barbara handed the statement to Karl Vecci, Pitman’s president, she commented, "I want ahead and used the agents’ 15% commission rate in completing these statements, but we’ve just learned that they refuse to handle our products next year unless we increase the commission rate to 20%".
"that the last straw", Karl replied angrily. "Those agents have been demanding more and more, and this time they’ve gone too far. How can they possibly defend a 20% commission rate?"
"they claim that after paying for advertising, travel, and the other costs of promotion, there’s nothing left over for profit," replied Barbara.
"I say it’s just plain robbery", reported Karl. "And I also it’s time we dumped those guys and got our own sales force. Can you get your people to work up some cost figures for us to look at?"
"We’ve already worked them up," said Barbara. "Several companies we know about pay a 7.5% commission to their own salespeople, along with a small salary. Of course, we could have to handle would be more than offset by the $3,200,000 (20% x $1,600,000) that we would avoid on agents commission."
The breakdown of the $2,400,000 cost follows:
Salaries:
Sales managers…………………………………..
$ 100,000
Sales persons……………………………………..
600,000
Travel and entertainment………………………..
400,000
Advertising……………………………………………….
1,300,000
Total………………………………………………………….
2,400,000
"Super", replied Karl. "And I noticed that the $2,400,000 is just what we’re paying the agents under the old 15% commission rate."
"It’s even better than that," explained Barbara. "We can actually save $75,000 a year because that’s what we have to pay the auditing firm now to check out the agents reports. So our overall administrative costs would be less."
"Put all of these numbers together and we’ll show them to the executive committee tomorrow," said Karl. "With the approval of the committee, we can move on the matter immediately."
Required:
1. Compute Pitman Company’s break-even point in sales dollars for the next year assuming:
a. The agents’ commission rate remains unchanged at 15%
b. The agents’ commission rate is increased to 20%
c. The company employs its own sales force.
2. Assume that Pitman Company decides to continue selling through agents and pays the 20% commission rate. Determine the volume of sales that would be required to generate the same net income as contained in the budgeted income statement for next year.
3. Determine the volume of sales at which net income would be equal regardless of whether Pitman Company sells through agents (at a 20% commission rate) or employs its own sales force.
4. Compute the degree of operating leverage that the company would expected to have on December 31 at the end of next year assuming:
a. The agents commission rate remains unchanged at 15%
b. The agents’ commission rate is increased to 20%.
c. The company employs its own sales force.
Use income before income taxes in your operating leverage computation.
5. Based on the data in (1) through (4) above, make a recommendation as to whether the company should continue to use sales agents (at a 20% commission rate) or employ its own sales force. Give the reasons for your answer.
1. a. Break-even point (Sales) = Fixed Costs / (1 - Contribution Margin Ratio)
= ($9,540,000 + $2,400,000) / (1 - 0.15)
= $16,800,000
b. Break-even point (Sales) = Fixed Costs / (1 - Contribution Margin Ratio)
= ($9,540,000 + $2,400,000) / (1 - 0.20)
= $18,000,000
c. Break-even point (Sales) = Fixed Costs / (1 - Contribution Margin Ratio)
= ($9,540,000 + $2,400,000 - $75,000) / (1 - 0.075)
= $17,000,000
2. Sales = (Fixed Costs + Desired Net Operating Income) / Contribution Margin Ratio
= ($9,540,000 + $2,140,000) / 0.20
= $17,675,000
3. Break-even Point (Sales) = Fixed Costs / (1 - Contribution Margin Ratio)
= ($9,540,000 + $2,400,000 - $75,000) / (1 - 0.075)
= ($9,540,000 + $2,400,000) / (1 - 0.20)
= $17,675,000
4. a. Operating Leverage = % Change in Net Operating Income / % Change in Sales
= (1,600,000 - 2,140,000) / (16,000,000 - 18,000,000)
= -1.5
b. Operating Leverage = % Change in Net Operating Income / % Change in Sales
= (1,600,000 - 2,140,000) / (16,000,000 - 18,000,000)
= -1.5
c. Operating Leverage = % Change in Net Operating Income / % Change in Sales
= (1,600,000 - 2,140,000) / (16,000,000 - 17,000,000)
= -1.25
5. The company should continue to use sales agents at a 20% commission rate. This is because the cost of employing its own sales force and the cost of paying the agents a higher commission rate are the same.
What is Break-even point ?Break-even point (BEP) is a financial measure that is used to determine when a company's total revenue is equal to its total expenses. This is the point at which a company makes no profit or loss, and is considered a critical point for businesses to monitor, as it helps them gauge their performance and make better decisions about their operations. It is calculated by dividing the company's total fixed costs by the difference between its average revenue per unit and its average variable cost per unit. Once a business reaches its break-even point, it can begin to generate profits, and any increase in revenue will result in higher profits.
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the amount a company would have to pay to replace its merchandise is called the . multiple choice question. scrap value cost of good sold market value retail value
The amount a company would have to pay to replace its merchandise is called the "market value" (option c).
Market value refers to the price that a company would have to pay in the current market to replace or acquire a particular asset, such as inventory or equipment.
In the context of merchandise, market value is the price that the company could sell the merchandise for in the current market. It is often used as a benchmark for valuing inventory, and is typically lower than the retail value or the cost of goods sold.
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