The current yield of a bond is computed as the ratio of the annual coupon payment to the market price. A security's current yield is calculated by dividing its annualized return by its market value.
The yearly return on an investment (interest or dividends) is calculated by dividing it by the security's current market value. Instead than focusing on a bond's face value, this metric looks at its current price. The return an investor would anticipate making if they bought and kept the bond for a year is represented by current yield. The return an investor really earns if he retains a bond to maturity, however, is not represented by current yield. Bond investments, which are securities offered to an investor at a par value (face amount) of $1,000, are those to which current yield is most frequently used. Bonds are traded between investors, and each bond has a coupon amount of interest that is printed on the bond certificate.
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which of the following is a feature of the adversary system? a. a partisan decision maker b. an informal set of procedures c. sentences rendered by a prosecutor d. the presentation of evidence from both parties
Acts as a single and unbiased umpire, making sure that the sides adhere to the laws of evidence and process.
What does procedure clarify?Procedures describe how to complete a task. A procedure is also known as a work instruction. When trying to prepare a Quality system, the term procedure describes a process, so while a set of instructions refers to something more basic, such as a specific step in the process.
What exactly is a process example?Procedures provide steps or directions for completing an office project or task. For actions such as sending files to clients as well as conducting office fire drills, your company may follow a specific procedure.
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Attribute inspection measures
A. whether or not the product attributes conform to the inspector's personal tastes.
B. if cause and effect are present.
C. if the product is good or bad.
D. such dimensions as weight, speed, size, or strength to see if an item falls within an acceptable range.
The correct response is C. if the product is good or bad. Inspection of attributes determines if a product is good or terrible.
Elegance Bratton is the author and director of the 2022 American drama film The Inspection. The movie, which was based on Bratton's real-life experiences, is on a young man who encounters homophobia both at a Marines boot camp and from his mother at home. On September 8, 2022, the movie had its global premiere at the Toronto International Film Festival. On November 18, 2022, A24 released the movie in theatres around the country. The movie received generally favourable reviews from critics, and Pope's performance was lauded and nominated for a Golden Globe. Ellis French joins the Marine Corps and is sent to Parris Island, South Carolina, for boot camp. He initially possesses the necessary physical attributes, but struggles to hide his sexual orientation. As a result, he becomes the subject of a dangerous hazing by training instructor Leland Laws and a fellow recruit, Laurence Harvey.
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ibm, microsoft, novell, redhat, sun, and others offer certifications that test knowledge of what?
IBM, Microsoft, Novell, Red Hat, Sun, and others offer certifications that test knowledge of operating systems.
The computer's operating system (OS) carries out the fundamental duties such processing input and output, managing files, memory, and processes, and managing external devices like hard disks and scanners.
The American multinational technology company Microsoft Corporation creates software applications, home appliances, laptops, and related services.
Laptops, workstations, storage technologies, and networking gear are just a few of the hardware and software items that IBM is renowned for. Additionally, it offers advising, technological, and commercial services in fields like cloud computing, database management, and AI.
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What is the plan phase of data analysis?
The data science team creates data sets for production, testing, and training during this phase. Based on the work done in the model planning phase, the team constructs and implements models.
Data analysis: What is it?Applying statistical and/or logical methods in a systematic way to explain and show, summarise and assess, and evaluate data is known as data analysis. Shampoo and Resnik (2003) state that various analytical techniques "offer a way of drawing inductive inferences from data and differentiating the signal (the phenomenon of interest) from the noise (statistical fluctuations contained in the data)".
While statistical methods may be used in data analysis for qualitative research, analysis frequently turns into an ongoing, iterative process where data is continuously gathered and processed virtually concurrently. Indeed, during the entire process of gathering data, researchers typically look for patterns in observations.
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When one commercial bank borrows from another commercial bank, it pays the __________ rate, when the bank borrows from The Fed it pays the ____________ rate.
Question 6 options:
discount; federal funds
T-bill; discount
federal funds; discount
prime; federal funds
nominal; real
Answer:
prime federal funds
Explanation:
it pays the prime rate, when the bank borrows from the fed it pays the federal funds
A bank statement provided by the bank includes: Multiple Choice A list of outstanding checks A list of petty cash amounts. The beginning and the ending balance of the depositor's account. A listing of deposits in transit. < Prev11 of 50N 2 MacBook Air statement account that is used to record cash overages and cash shortages arising from petty cash transactions on change is titled: Multiple Choice Cash Lost Bank Reconciliation Petty Cash. Cash Over and Short < Prev 12 of 50E Nat MacBook Air The Cash Over and Short account Multiple Choice ls used when the cash account reports a credit balance. Is used to record the income effects of errors in making change and/or processing petty cash transactions Is not necessary in a computerized accounting system Can never have a debit balance. < Prev 130, 501ll Not MacBook Air 880F 1 2 3 4 Basic bank services do not include Multiple Choice Bank accounts. Bank deposits. Checking Electronic funds transfer < Prev 14 of 50 MacBook Air ltu Cileeks that... Outstanding checks refer to checks that have been: Multiple Choice Written, recorded, sent to payees, and received and paid by the bank.
The answers are:
C. The depositor's account's starting and closing balances.D. Cash Over and ShortB. Is employed to document the financial implications of mistakes made when processing petty money transfers or making change.C. Checking D. Written, entered into the accounting records, sent to the payee, but not yet received by the bankWhat is Cash Over and Short account?An financial statements account where shortages or overstocks in petty cash handling are documented is the cash over and short account, also called as cash over short account.
Cash overage refers to situations where the amount received or the balance on hand exceeds the balance on the petty cash ledger, whilst cash shortage refers to the opposite.
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Rest of the options for the given questions,
B). Written and not yet recorded in the company books.
C). Held as blank checks.
D). Written, recorded on the company books, sent to the payee, but not yet paid by the bank
Douglas Snyder is a single taxpayer, and he qualifies for the entire Child Tax Credit. In 2021, Douglas has a modified adjusted gross income (MAGI) of $201,000. When Douglas prepares his income tax return his Child Tax Credit will be reduced by what amount
Douglas will see a $1,950 reduction in his Child Tax Credit when he files his income tax return.
The child tax credit may or may not be taxable.No. It is a tax advantage that is only partially refundable. If you don't owe any taxes, you could be able to get some of the credit in the form of the a refund, which would lower your tax obligation by the credit's value.
Would the child tax benefit apply to advance payments this year?The American Rescue Plan Act temporarily modified the credit in several ways for the tax year 2021, including by requiring a series of advance payments between July through December 2021. At the time of writing, this improvement had not been carried over to the current tax year.
For each eligible child in 2019, the maximum child tax credit was $2,000. However, if the single person's MAGI exceeds $200,000 per year, this amount gradually decreases.
For every $1,000 that your MAGI exceeds the cutoff, it phases out by $50; in this case, the phaseout is equal to 1 x $50, or $50.
Total deduction = $2,000 - $50 = $1,950
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Which is the type of payment called that is paid to an employee by the employer either at the time of retirement or when he is leaving the job?
A pension plan is an employee benefit in which the company pledges to make monthly contributions to a pool of money put aside to finance payments to qualified employees once they retire.
What Exactly is a Pension Plan?A pension plan is an employee benefit in which the firm agrees to make monthly contributions to a fund set aside to finance payments to qualifying employees when they retire.
Traditional retirement funds are becoming increasingly infrequent in the US private sector. They have mostly been replaced by less costly corporate retirement benefits, such as the 401(k) retirement savings plan.
According to the United States Census Bureau, there are over 6,000 public sector retirement systems in the United States that manage $4.5 trillion in portfolio assets for 14.7 million working members.
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Debt can be avoided through which of the following? Select one: a. Investing in high risk b. Budgeting finances C. Frivolous spending d. Employer benefits
b. Budgeting finances is the most effective way to avoid getting into debt.
This can be done by creating a budget, tracking expenses and income, and setting aside money for savings. A budget should include all sources of income and all expenses, including rent, utilities, groceries, entertainment, and miscellaneous items like haircuts and car repairs.
You should also include emergency funds in your budget in case of unexpected expenses. After you have a budget in place, you should track your expenses carefully and make sure that you do not exceed your budget. This can help you create a cushion of savings and prevent you from getting into debt.
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When the price elasticity of demand is equal to 1 the demand is said to be?
The elasticity of demand is unitary if the value is 1. In other words, changes in quantity follow those in price.
Elasticity quantifies how much one economic indicator changes by percentage in reaction to a change in another. A 10% price rise results in a 20% decrease in demand quantity if the price elasticity of demand for that object is -2. In neoclassical economic theory, elasticity is a key idea that aids in understanding a variety of economic concepts, including the incidence of indirect taxation, marginal concepts related to the theory of the firm, wealth distribution, and different types of goods related to the theory of consumer choice. When talking about how welfare is distributed, particularly in terms of consumer, producer, or government surpluses, a grasp of elasticity is crucial. Elasticity is a key notion in many economic theories, and it may be seen in a number of key indicators. These include the elasticity of demand at different prices, the elasticity of supply at different prices, the elasticity of demand at different income levels, the elasticity of substitution between factors of production, the cross-price elasticity of demand, and the elasticity of substitution across time. The idea of elasticity appears in various key indicators and is prevalent in many economic theories. Price elasticity of supply, price elasticity of demand, income elasticity of demand, elasticity of substitution between components of production, cross-price elasticity of demand, and elasticity of intertemporal substitution are a few of these.
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The elasticity of demand is unitary if the value is 1. In other words, changes in quantity follow those in price.
How does price elasticity work?A good's quantity sought is calculated using its price elasticity of demand. Almost all items see a decline in demand when prices rise, but certain goods are more affected than others.
The price elasticity gives the percentage change in the quantity needed when a price rises by 1% and all other variables stay the same. A 1% rise in price causes a 2% decrease in the amount sought if the elasticity is 2. Other elasticities measure the impact of changes in other variables on the required quantity.
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Do investments that pay higher rates of return carry higher risk?
High-risk investments have a higher potential of producing higher returns than other types, but they also pose a larger risk to your money.
Does a higher rate of return imply a higher degree of risk?Greater risk is associated with a greater possibility of higher return, whereas greater likelihood of lesser return is associated with greater risk. The risk return trade-off refers to the trade-off that an investor must make when weighing investment options between risk and return.
What attributes high risk investments have?A high-risk investment is one that has either a significant percentage probability of losing money or doing poorly—or a disproportionately high danger of suffering a catastrophic loss.
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in which step of the sales process would potential clients be contacted?
In the prospecting step of the sales process would potential clients be contacted
Sales professionals would get in touch with potential customers during the prospecting stage of the sales process. In order to identify and qualify leads and ascertain whether or not they are a good fit for the provided product or service, this stage entails contacting potential clients. The first phase of the sales process, this step is often referred to as lead generation.
This makes it possible for a salesperson to prepare ahead of time by gathering more knowledge about their target clients before giving a presentation or getting in touch with them. The majority of salespeople frequently employ this procedure because it allows them to learn more about their clients and boosts their confidence before approaching them.
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When choosing from various types of flat panel display, choose _______ for low power consumption.
a.liquid crystal display (LCD)
b.light-emitting diode (LED)
c.plasma
d.organic LED
Option D is correct. When choosing from various types of flat panel display, choose organic LED for low power consumption.
Flat-panel displays are electronic review advances used to empower individuals to see content (actually pictures, moving pictures, text, or other visual data). They are slim, lightweight, give better linearity and are equipped for higher goal than run of the mill shopper grade televisions from prior periods. They are typically under 10 centimeters (3.9 in) thick. The most widely recognized kinds of level board shows are Liquid-Crystal Displays (LCD) and Light-Emitting Diode (LED) technologies, which are at times joined. Level board presentations can likewise be partitioned into two showcase gadget classifications: unstable and static.
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Consumer goods such as soap, milk, and deodorants are generally classified as ____products. a. convenience b. speciality c. utilitarian d. shopping.
Consumer goods such as soap, milk, and deodorants are generally classified as option a. convenience products.
In contrast to intermediate products, which are used to create other things, a final good, also known as a consumer good, is a finished product that is ready for sale and is utilised by the customer to satisfy current wants or requirements. A bicycle or a microwave oven are finished commodities, but the components used to make them are intermediate goods.
A consumer good that is easily accessible and regularly purchased is referred to as a convenience product. A convenience good often does not require a lengthy decision-making process because it is easily accessible. These products, which fall under the categories of staple, impulse, and emergency goods, are frequently found in convenience stores.
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The decision to approve a capital budget is an example of a(n) ________ decision.
Select one:
A. structured
B. analytic
C. semi-structured
D. undocumented
E. unstructured
An illustration of an unstructured choice is the choice to approve a capital budget.
Which type of decision is deciding whether to produce a new product?As a result, it is clear that the individual making the decision about whether to launch a new product line is doing so in accordance with a systematic process. The process of choosing a course of action involves identifying a decision, acquiring data, and weighing potential answers. By collecting pertinent information and identifying options, a step-by-step decision-making process can assist you in making more careful, considered decisions.
Group decision-support systems (GDSS) are specialized systems that offer a group electronic environment so that managers and teams can come up with answers to unstructured and semi-structured problems together. Finding, recognizing, and comprehending the organizational problems constitute the intelligence phase of decision-making.
Therefore the correct answer is option E) unstructured .
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what type of stakeholders include community, government, nongovernmental organizations, and business support groups?
Nonmarket stakeholders include community, government, nongovernmental organizations, and business support groups.
What is a stakeholder?An entity that has an interest in the success of a project or business venture is referred to as a stakeholder. Stakeholders, who may be inside or outside the organization supporting the project, have a vested interest in the project's success. Because of their decision-making power, stakeholders are crucial to the success of every project. A project cannot survive without the support of important or key stakeholders.
As with any other project participant, a stakeholder is a person, however some are simpler to manage than others. You'll need to develop the skills to apply stakeholder mapping strategies to determine who your main stakeholders are and make sure you are meeting their needs.
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Which of the following are not included in GDP but probably should be? (Check all that apply.) e value of intermediate goods used in the assembly of final produC B. Financial asset transactions C. Transactions in the underground economy. D. The value of leisure.
GDP calculates the monetary value of the final goods and services—those purchased by the consumer—produced in a nation during a specific time period (say a quarter or a year). Hence option C and D is correct.
What is GDP ?It accounts for all the output produced inside a nation's boundaries. GDP is made up of products and services generated for market consumption as well as certain nonmarket production, including government-provided defence or educational services.
Gross national product, or GNP, is a different concept that accounts for all national output.
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What are the government programs to assist entrepreneur?
The taxpayer-supported initiatives help business visionaries as they foster a public strategy for the general improvement of little and medium-scale ventures. Keep contact with the Arranging Commission, Focal Services, Monetary Foundations, and State Government. From the projects and arrangements of a few state legislatures.
States help business people through financial strategy, foundation advancement, business improvement support, and the burden and facilitating of guidelines.they desire to stimulate the growth of the economy and job percentage in the country
Their obligations are to give an invigorating business climate and improvement backing to SMEs, by animating regulation, working on institutional limits, delivering sufficient proportions of financial strategy, and laying out the vital foundation.
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The taxpayer-supported initiatives help business visionaries as they foster a public strategy for the general improvement of little and medium-scale ventures.
Keep contact with the Arranging Commission, Focal Services, Monetary Foundations, and State Government. From the projects and arrangements of a few state legislatures.
States help business people through financial strategy, foundation advancement, business improvement support, and the burden and facilitating of guidelines. they desire to stimulate the growth of the economy and job percentage in the country
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When discussing weighing schemes for calculating the weighted average cost of capital, the preferences can be stated as (1 Point) market value weights are preferred over book value weights and target weights are preferred over historic weights. book value weights are preferred over market value weights and target weights are preferred over historic weights. book value weights are preferred over market value weights and historic weights are preferred over target weights. market value weights are preferred over book value weights and historic weights are preferred over target weights.
Market value weights are favoured over book value weights when considering weighing systems for determining the weighted average cost of capital, and goal weights are favoured over historic weights.
The amount that a business is anticipated to charge on average to all of the holders of its securities in order to fund its assets is known as the weighted average cost of capital (WACC). The company's cost of capital is a popular name for the WACC. It's significant that the international market, not administration, controls it.
The phrase "market value" refers to the amount that a corporation or commodity is valued by market players on the financial sector.
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What is Accenture best known for?
Accenture plc is a Dublin-based Irish-American professional services firm that specializes in IT consulting and services.
What do you mean by services?Services like banking, education, medical care, and transportation make up the majority of the economies of rich nations. IT services are the application of business and technical expertise to enable organizations to create, manage, and optimize the information and business processes or gain access to it. They also represent the economies of the majority of emerging nations.
It can be difficult to tell a service from good at times. What, for instance, is the administration of medication in conjunction with the diagnosis of a physical condition or disease in healthcare? In point of fact, it includes both goods (such as diagnostic and medical devices) and services (such as medical professionals' expertise).
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A global marketing strategy refers to:
Correct Answer
O the strategy currently used by most U.S. domestic firms that when entering a new international market, these firms offer only those products that require the least amount of product adaptation.
Correct Answer
O the strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
Correct Answer
O the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
Correct Answer
the global strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm’s products through a host nation’s local businesses.
A global marketing strategy refers to: the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
Global marketing, which provides products and services to customers locally, nationally, and internationally, is another topic of study in general business management.
International marketing is the use of marketing concepts in more than one country, by companies overseas, or across international boundaries. It can be done through exporting a company's products to other nations, entering a local joint venture with another firm, or receiving foreign direct investment. International marketing is necessary for the development of the country's marketing mix. International marketing includes using the current marketing mix, strategies, and tools for export as well as relationship-building strategies like localization, local product offerings, pricing, production, and distribution with specialised promotions, offers, websites, social media, and leadership.
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What role do senior leaders play in achieving innovation strategy? Multiple Choice a. Full commitment from senior leaders is key for strategic success b. Senior leaders need only recruit the human capital c. The main role for senior leaders in innovation is setting HR practices d. Innovative culture and climate depends on senior leaders
The role that the senior leaders have to play in achieving innovation strategy is : Full commitment from senior leaders is key for strategic success. Option a
What is meant by innovation strategy?The utilization of resources to achieve a company's goals for innovation, value delivery, and competitive advantage is guided by an innovative strategy. A competitive and technology environment study for a corporation should be part of the strategy. its potential and external obstacles.
A clearly defined plan of organized actions that a person or team must do in order to meet the organization's development and long-term sustainability goals is known as an innovation strategy.
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To decide whether the slope coefficient indicates a "large" effect of X on Y. you uy variable in regression model is normally distributed look at the A) size of the slope coefficient and identically distributed tean of zero ception of B) regression R2 C economic importance implied by the slope coefficient D) value of the intercept
To decide whether the slope coefficient indicates a "large" effect of X on Y economic importance implied by the slope coefficient.
In mathematics, the slope or slope of a line is a quantity that indicates both the direction and the slope of the line. Calculating the slope using the ratio of "vertical change" to "horizontal change" between two different (arbitrary) points on a straight line.
Ratios are sometimes written as quotients, giving the same value for every two different points on the same line. The "slope" of a descending line is negative. This line may be practical, as determined by a road surveyor, or it may appear in schemes depicting roads and roofs as descriptions or designs.
Hence the correct option is C
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What advantage can intellectual property rights give to a business? (1 point)
O. They can help to innovate new ideas and technology.
O They insure a business against stolen data or information.
O They insure a business against property damage.
O They can protect the business's innovations from being stolen by a competitor.
Answer:
They can protect the business's innovations from being stolen by a competitor.
Explanation:
intellectual property rights, such as patents, trademarks, and copyrights, can provide businesses with legal protection for their innovations and creative works. These rights can help businesses to prevent competitors from stealing or copying their ideas and products, which can give them a competitive advantage in the market. By protecting their innovations, businesses can maintain control over their intellectual property and potentially generate revenue from licensing or selling it to others. In this way, intellectual property rights can help businesses to innovate new ideas and technology, and potentially increase their profitability.
What are the five 5 points you should identify when speaking to stakeholders?
Here are some essential suggestions for effectively managing stakeholder expectations:
1. Let them know you care.
2. Continuous Communication.
What are stakeholders?According to the definition of a stakeholder of a corporation found in a 1963 internal Stanford Research Institute paper, a stakeholder is a member of "groups without whose support the organization would cease to exist".
R. Edward Freeman later developed and promoted the theory in the 1980s.
The following are some crucial ideas for properly managing stakeholder expectations:
1. Let them know you care.
2. Continuous Communication.
3. Pay attention carefully.
4. Promise less and deliver more.
5. Reporting.
Therefore, here are some essential suggestions for effectively managing stakeholder expectations:
1. Let them know you care.
2. Continuous Communication.
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An economy is enlarging its stock of capital goods a. when gross investment exceeds replacement investment (depreciation). b. when net investment exceeds gross investment. c. whenever gross investment is positive. d. when replacement investment exceeds gross investment
When gross investment is higher than replacement investment, the stock of capital goods in an economy is growing. So the right option is (a) when gross investment exceeds replacement investment (depreciation).
Buildings, machinery, tools, and equipment are a few examples of the capital goods that firms employ to produce their goods and services. A higher-level concept known as capital resources has been described slightly differently by many academics.
When looking at macroeconomics from a long term perspective, investment will raise capital stocks. Any rise in capital stocks will boost society's productive capacity, which will therefore spur economic growth.
An asset loses money worth over time as a result of use, damage, or obsolescence. Depreciation has measured for this decline. Depreciation, or a decline in asset value, could be brought on by a variety of other variables, such as bad market conditions, etc.
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when the government does not use quotas, taxes or other means to restrict what its citizens can buy from or sell to another country, it is called
When the government does not use quotas, taxes or other means to restrict what its citizens can buy from or sell to another country, it is called free trade.
Free trade agreements are agreements between governments that allow access to each other's marketplaces. FTAs can force local sectors to become more competitive and rely less on government support.
The following are some characteristics of free trade agreement :-
• FTAs may force local industries to improve and become less reliant on government assistance.
• They may draw in fresh capital, open up new markets, and increase GDP.
• The degradation of a nation's natural resources, the demise of its traditional ways of life, and local employment instability are only a few of the problems that FTAs may subject a country to.
• Countries must balance the benefits of free trade agreements on the domestic level with their negative repercussions.
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What are 3 things an organization can do to create a safe workplace and culture?
Communicate. Provide Instruction. Set a good example. Create and implement a process for positive reporting. Engage Employees. Put your JHSC into Action is one action a company may do to foster a secure working environment and culture.
A general term for social behavior, institutions, and conventions found in human civilizations as well as the individuals who make up these groups and their knowledge, beliefs, and skills is "culture." It is common to claim that a certain region or location is where culture started or was inspired. The variety of cultures present in various societies serves as proof that enculturation and socialisation are the learning processes via which people pick up culture. A set of rules for conduct, appearance, language, and manner in a situation that acts as a guide for expectations within a social group is known as a cultural norm. It establishes socially acceptable behaviour under law. Accepting a social group with one culture can be risky, just as accepting one species might be risky.
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The three things an organization can do to create safe workplace and culture are communicate, provide instruction and set a good example.
What is a workplace?Workplaces are locations where individuals execute tasks for the employers or for their own benefit. Aggression specific to the workplace is something that happens there. There are many various ways to be aggressive at work, from verbal acts (such insulting someone or spreading rumors) to physical assaults (e.g., punching or slapping). Workplace aggression can make it difficult for someone to do their job well, lead to physical and mental health problems, and change how they act at home and in public. When an employee acts aggressively at work, there may be an increase in missed days (absences), and some employees may decide to quit.
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How much should you deposit at the end of six months in an account paying 14% compounded semi-annually to receive semi-annual payments of P2,000 for the next 8 years?
The amount that you should deposit (present value) at the end of six months in an account paying 14% compounded sem-annually to receive semi-annual payments of P2,000 for the next 8 years is P18,893.30.
What is the present value?The present value is the future cash flows discounted at an interest rate to the current period.
Discounting is the opposite of compounding as the latter computes the future value while discounting computes the present value.
The present value is computed using the PV factor or an online finance calculator as follows:
N (# of periods) = 16 semiannual periods (8 years x 2)
I/Y (Interest per year) = 14%
PMT (Periodic Payment) = P-2000
FV (Future Value) = P0
Results:
PV (Present Value) = P18,893.30
Sum of all periodic withdrawals = P32,000.00 (P2,000 x 16)
Total Interest =P13,106.70
Thus, if you deposit P18,893.30 compounded at 14% in six months, you can withdraw P2,000 semiannually for 8 years.
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A nation allowed its currency to be valued based on supply and demand. This is known as a _______ exchange rate. brainly
When a nation allows its currency to be valued based on supply and demand, it is known as a floating exchange rate.
When a country has a floating exchange rate, the foreign exchange market determines the value of its currency based on supply and demand in relation to other currencies. This contrasts with a fixed exchange rate when the rate is fully or primarily decided by the government.
Since governments and central banks often endeavor to make their currency price beneficial for international commerce, a floating exchange rate does not indicate that countries do not try to interfere and control the price of their currency. Following the collapse of the gold standard and the Bretton Woods pact, floating exchange rates gained popularity.
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