true or false: under the terms of a standard universal policy, if beth stops paying her premiums, then the administrative fee and cost of death benefit will be deducted from the savings portion of her policy (assuming sufficient cash value accumulation,) and the policy will remain active. true

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Answer 1

In the event that the insured passes away accidentally, the accidental death benefit rider offers extra life insurance coverage.

In the event that the insured becomes disabled and unable to work, the waiver of premium rider relieves the policyholder of making premium payments.

How long does a universal life policy require payments?

A form of permanent life insurance is universal life insurance. Universal life insurance is in force for the remainder of your life, as opposed to term life insurance, which is intended for a certain time, such as 20 years (unless you stop making premium payments).

How does a universal life insurance policy operate?

What's the process for universal life insurance? As a type of permanent insurance, universal life insurance offers lifetime protection as long as payments are paid. This contrasts with term life insurance, which only offers protection for a predetermined amount of time, such 10 or 20 years.

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a company's product sells at $12.34 per unit and has a $5.51 per unit variable cost. the company's total fixed costs are $96,300. the break-even point in units is:

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Break-even point in units= 14,088 units

Giving the following information about the breakeven point

A company`s product sells at $12.30 per unit and has a $5.45 per unit variable cost. The company's total fixed costs are $96,500.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 96,500/ (12.3 - 5.45)

Break-even point in units= 14,088 units

The breakeven factor is the factor at which the overall price line intersects the overall sales line . It is the range of devices a organization have to promote to generate a 0 profit.

Sales under the breakeven factor imply a loss, while income above the breakeven factor imply a profit.

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question content area deferred revenue is revenue that is a.earned and the cash has been received b.not earned and the cash has not been received c.not earned but the cash has been received d.earned but the cash has not been received

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Option (c) is the best choice. Deferred revenue is money that has been received but is not yet earned.

Describe deferred revenue with several instances.

Unearned income, also referred to as deferred revenue, is the term used to describe advance payments a company receives for products or services that will be supplied or provided in the future. The prepayment recipient company reports the sum as a liability on its balance sheet known as deferred revenue. Money received in advance for goods or services that will be supplied later is referred to as deferred revenue. Rent payments made in advance or annual membership fees paid at the start of the year are common examples of deferred revenue.

Why are obligations for deferred revenue?

Deferred revenue is a short-term liability account because, unlike a debt, it relates to goods and services that you owe clients rather than money that you owe them. To accurately record income and expenses in the period they really occurred, accounting often employs deferrals like deferred revenue.

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Yuan wants to analyze his idea for an entrepreneurial venture using a structured approach that looks at various aspects of the proposed venture and how viable they are. This is known as​ ________.

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Four forms of corporate entrepreneurship—opportunist, enabler, advocate, and producer—have been identified by Robert C. Wolcott and Michael J.

What two perspectives exist on the entrepreneurial approach?

Entrepreneurship was described by Radosevic, Yoruk, Edquist, and Zabala (2012) from the perspectives of 1) a micro phenomenon and 2) a macro phenomenon.

Which four different innovation strategies are there?

According to Dodgson et al., there are four types of innovation strategies: proactive, active, reactive, and passive.

What are the four entrepreneurship theories?

Theories of entrepreneurship include those based on culture, the economy, sociology, and psychology.

The two aspects combined result in a matrix with four dominating models: producer, enabler, advocate, and opportunist.

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when the us allowed foreign banks to enter the us capital market and domestic banks to expand their operations overseas in the late 1970s, it was due to blank . multiple choice question. forecasting deregulation a subsidiary a buy-out

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When the US allowed foreign banks to enter the US capital market and domestic banks to expand their operations overseas in the late 1970s, it was due to deregulation which is the reduction of state regulations.

Deregulation is the removal or reduction of state regulations, usually in the economic sphere. It is the repeal of governmental economic regulation. While companies complain about how a regulation is impeding their ability to compete, the government removes it.

The declared reasoning for deregulation is frequently that few or no and simpler regulations will increase competitiveness, resulting in higher productivity, greater efficiency, and lower overall prices.

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why did the new dealers argue that the works progress administration (wpa) would not bankrupt the federal government even though it meant deficit spending?

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The New Dealers argued that the WPA would not bankrupt the federal government even though it meant deficit spending because creating jobs, it would generate tax revenues.

Write a note on Works Progress Administration.

The American New Deal organization known as the Works Progress Administration (WPA; renamed the Work Projects Administration in 1939) recruited millions of job seekers (mainly men without formal education) to complete public works projects, such as the building of public structures and roadways. By executive order, it was established on May 6, 1935, as a crucial component of the Second New Deal.

The first allocation for the WPA in 1935 was $4.9 billion, or around $15 per person in the United States and 6.7 percent of the GDP in that year. The WPA, led by Harry Hopkins, provided paid employment to the jobless in the US during the Great Depression while enhancing the nation's public infrastructure, including parks, schools, and highways.

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for the retail inventory method, normal spoilage of inventory is treated as: multiple choice deducted in the retail column after calculating the cost-to-retail ratio. deducted in the cost column before calculating the cost-to-retail ratio. deducted in the cost column after calculating the cost-to-retail ratio. deducted in the retail column before calculating the cost-to-retail ratio.

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The spoilage of inventory is deducted in the retail column after calculating the cost-to-retail ratio.

Inventory spoiling is the term used to describe how products naturally degrade while going through the production or inventory stages of the sales cycle. This is the product line degradation that is typically seen as inevitable and expected. Following the determination of the cost-to-retail proportion, spoilage is subtracted from the retail column.

By deducting the period's sales from the items that are currently on the retail market, the retail inventory technique first calculates the quantity of ending inventory at retail. The cost-to-retail ratio is then multiplied by the ending inventory at retail to arrive at the cost. Cost percentages are typically based on partnerships from prior years, which may not accurately represent the relationship at hand. An overestimation of the ending inventory may also result from failing to account for theft or inventory spoilage.

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true or false: home ownership can limit your mobility as it might be difficult to sell your home when interest rates are low and when the economy is doing well.

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False: When interest rates are high and the economy is slow, selling a home may be hard.

What is the most well known type of lodging?

In the United States, single-family homes make up the majority of homes. They are typically found in the suburbs and are less common in densely populated areas.

Which kind of property rises in value the most?

Land appreciates due to its limited availability; As a result, the demand for land rises in tandem with population growth, raising its cost over time.

What is the American term for a house?

Additionally, I frequently refer to my house as "my home. "My house is just a house otherwise. There is no such thing as an apartment. The usage of the three terms by the average American is very similar to this.

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a. in the fiscal year ended july 31,2014, intuit reported net income of $1,009 million. how much did intuit pay in dividends to its common shareholders?

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Intuit paid $211 million in dividends to common stockholders for the year ended July 31, 2014.

What is stockholders ?Stockholders are also called corporate or individual shareholders who own at least part of the share capital of an organization. Stockholders most often own the company and usually buy the company's performance in the form of a higher stock valuation.To elaborate on the underlying meaning of the term, "shareholders" technically mean owners of shares, which can be interpreted as inventory rather than shares. Conversely, “shareholder” means the owner of the shares and only the equity interest in the company.Holders of ordinary shares of a corporation are called ordinary stockholders.Common stockholders elect the company's board of directors and vote on certain transactions, such as:  Merger of Company with Another Company.

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what are the three broad categories of incentive pay?multiple select question.incentives linked to individualsincentives linked to company turnoverincentives linked to reducing competitionincentives linked to organizational performanceincentives linked to groups

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The many kinds of incentive pay fall into three broad categories incentives linked to individual, group, or organizational performance.

The various types of incentive pay are divided into three broad categories. Individual, group, or organizational performance-based incentives. Here are the different  incentive pays.

Annual bonus: An annual payment that is typically based on a worker's annual salary.

Signing bonus: A one-time payment made when a candidate agrees to work for a company.

A discretionary or spot bonus is a one-time cash payment that recognizes past performance.

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a salon that is not a price taker can move the price for the services it provides. when setting the price for its services, can ignore profit-maximizing strategies. lower servicing costs more than its competitors. reduce its advertising budget more than its competitors.

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The correct option is reduce its advertising budget more than its competitors.

Advertising is a promotional interest which objectives to sell a products or services to a audience. it is one of the oldest varieties of advertising and marketing which attempts to steer the actions of its target audience to either buy, sell, or do something precise.

Advertising is a advertising communique that employs an openly subsidized, non-non-public message to sell or sell a product, service or idea. Sponsors of advertising and marketing are usually organizations wishing to promote their services or products.

Advertising and marketing is a advertising and marketing tactic regarding purchasing area to promote a product, service, or reason. The actual promotional messages are referred to as advertisements, or ads for brief. The aim of advertising and marketing is to reach human beings most in all likelihood to be inclined to pay for a business enterprise's products or services and entice them to shop for.

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According to the digital disconnect and the lecture, the global digital divide is the result of _____.

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According to Digital Disconnect, the global digital divide is the result of the hyper-commercialization of Internet development that only serves affluent populations/groups.

The Digital Disconnect refers to experts' examination of current theory, research, and practice in socio-digital inequality. The Digital Disconnect provides a thorough analysis of capitalism's exploitation of the Internet. As per the Digital Disconnect, it is the hypercommercialism of mainstream computing technologies that causes the global digital divide. The global digital divide refers to global discrepancies, particularly between developing countries, and developed in access to computing and information resources such as the Internet, as well as the opportunities that such access provides.

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Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as​ __________.

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Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as​market segmentation

What is the process of dividing a market into smaller groups? Market segmentation refers to “dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes,” targeting is defined as “evaluating each market segment's attractiveness and selecting one or more segments to enter,” Based on demographics, demands, goals, shared interests, and other psychographic or behavioral characteristics used to better understand the target audience, market segmentation divides a market into subsets.You may use this targeting in your product, sales, and marketing efforts by analyzing your market segments. The four primary categories of market segmentation are thought to be geographic, psychographic, behavioral, and demographic; however, there are many other tactics you can employ, as well as countless variants on the four primary types. Three Different Types of Segmentation and Their Use psychologically based segmentation.The values, beliefs, perceptions, attitudes, interests, and actions of the consumer are taken into account by this segmentation technique.segmentation based on demographics.segmentation by location.

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kendall's company has bought office stationery and business cards from the same printing company for five years. kendall's company recently moved into a bigger office down the street. she called the printing company to order new stationery with the updated address. this is an example of a(n)

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This is an example of a Modified Rebuy

Modified Rebuy is a situation in which an individual or an organization rebuys the goods but just makes a few certain changes that are modified in the buying process. These changes can be related to many elements while purchasing it can either be the supplier or some specific elements of previous orders that need changes.

When Kendall's company bought stationary and business cards from the same company and then moved to a bigger office she updated the address of the office which is a change while making the purchase.

Hence, this type of purchasing is an example of Modified Rebuy.

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an increase in population growth would affect the dynamics of the solow model in the same way as which of the following? 12 a) an increase in the rate of depreciation. b) an increase in the rate of investment. c) an increase in the level of technology. d) an increase in efficiency

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Option (b), which calls for a rise in the rate of investment, is the right choice.

What changes in the Solow model do more people make?

According to the Solow model, a rise in the population growth rate accelerates the growth of total output but has no long-term impact on the growth of output per person. The steady-state level of per capita output decreases as the population growth rate rises.

What are the Solow growth model's primary components?

What it is A long-term economic growth model, the Solow growth model examines three key variables: capital accumulation, labor growth, and multifactor productivity. Economists use the latter to refer to technical advancement, which has an impact on labor and capital as well as the other two factors.

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true or false: self-employed taxpayers pay the employee portion of the fica tax burden through self-employment taxes, but they are exempt from paying the employer portion.

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self-employed taxpayers pay the employee portion of the fica tax burden through self-employment taxes, but they are exempt from paying the employer portion . This statement is false.

Tax payment for self employed?

The practice of working independently rather than for an employer is known as self-employment.If a person chooses to be recognized as a self-employed individual or is generating income for which a tax return must be filed, tax authorities will typically view them as such.The crucial question for tax authorities in the real world is not whether a person is engaged in a business activity—which is still referred to as "trading" when referring to the provision of a service—but rather whether the activity is profitable and, as a result, potentially subject to taxation.To put it another way, the tax authorities generally ignore occasional and hobby- or enthusiast-based economic activity because trading is likely to be ignored if there is no profit.People who work for themselves are typically referred to as sole proprietors (or sole traders), independent contractors, or partners.

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jacquie is bidding against several other people on an item at an auction. she knows the bid is already higher than what she originally wanted to pay, but she doesn't want to give up, so she keeps bidding. what type of decision-making problem does this demonstrate?

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The type of decision-making problem does this demonstrate is an escalation of commitment.

Escalation of commitment, Takes place when individuals maintain a failing direction of movement after information well-known shows this can be a negative path to follow. It is sometimes referred to as sunk prices fallacy due to the fact the continuation is regularly based on the concept that one has already invested in this path of motion.

As an example, if a person publicly commits to their intentions (like going to the gym 3 instances a week) in order that they come to be much more likely to observe thru on their plans. Marketplace researchers may also experience commitment bias whilst study members refuse to contradict themselves and stubbornly keep on with their initial reviews.

The escalation of dedication (or the related sunk-cost fallacy) is whilst we behave completely irrationally and hold to pursue something that promises more and more terrible effects (monetarily, psychologically, emotionally, and many others.) in preference to changing course.

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elsa company had january 1 inventory of $300,000 when it adopted dollar-value lifo. december 31 inventory at year-end prices was $379,500, and the price index was 110. what is elsa's ending inventory presented on the balance sheet for the current year using dollar-value lifo?

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$349,500 is else's ending inventory presented on the balance sheet for the current year using dollar-value LIFO.

Inventory (American English) or stock (British English) refers to the products and materials that a business holds for the final word goal of resale, production, or utilization. Inventory management is a discipline primarily concerning specifying the form and placement of stocked goods. it's needed at totally different locations inside a facility or within several locations of an offer network to precede the regular and planned course of production and stock of materials.

The conception of inventory, stock, or work in process (or add progress) has been extended from producing systems to service businesses [1][2][3] and comes by generalizing the definition to be "all work within the method of production - all work that's or has occurred before the completion of production".

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it is now prime day, the deal is selling well, but you just got a call from the vendor explaining that they will not be able to fill any more units for the next 3 weeks. your instock manager (anjali patel) says that we should cut the deal off early to preserve inventory for that 3-week period. what are the factors you would consider before deciding whether to cut the product off early? rate the relevance of each response below.

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Competitor activity- Very effective: The competitor's activity is a very important component to take into account in order to prevent the company from losing out on market demand to rival businesses.

Effective vendor relationship: Since early contract termination would Competitor activity ensure a smooth flow, the vendor relationship is important but not very high on the scale.

Impact of unpleasant experience on customers- Highly effective: The impact on the customers would be quite significant, which would lead to Competitor activity the customers abandoning the brand.

The impact of the revenues must also be properly taken into account in rival businesses order for the system's benefit analysis to adequately capture the full program.

Competitor activity- Very effective: The competitor's activity is a very rival businesses important component to take into account in order to prevent the company from losing out on market demand to rival businesses.

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xyz corporation is planning an add-on offering. xyz currently has outstanding shares and is now raising additional capital to build a new manufacturing plant. the quiet period during which no research may be published on xyz will last for how many days?

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The quiet period in which no research may be published on XYZ will last for 3 days from the effective date. the correct option is (A).

Research is imaginative and methodical activity done to broaden the body of knowledge. It entails the objective gathering, organizing, and analysis of data in order to improve comprehension of a subject or issue. A research project could build on prior contributions made in the field. Research may duplicate portions of earlier projects or the project as a complete to check the precision of instruments, processes, or experiments. Observation, discovery, analysis, and the R&D of techniques and systems for the growth of human knowledge are the main goals of basic research. Research are conducted and published.

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The question was incomplete. Check below the complete question.

XYZ Corporation is planning an add-on offering. XYZ currently has outstanding shares and is now raising additional capital to build a new manufacturing plant. The quiet period in which no research may be published on XYZ will last for how many days?

A. 3 days from the effective date

B. 12 days from the effective date

C. 30 days from the effective date

D. 40 days from the initial filing of the registration statement

homer is considering a project with cash inflows of $950 a year for years 1 to 4, respectively. the project has a required discount rate of 11 percent and an initial cost of $2,100. what is the discounted payback period? a) 3.05 years b) 2.68 years c) 3.39 years d) 2.21 years e) never group of answer choices

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The discounted payback period for the project is 2.68 years.

What is discounted payback period?

The discounted payback period (DPB), also known as the time it takes to break even on an investment, is the number of years it will take for the project's initial cost to equal the discounted value of its predicted cash flows. When a project's cumulative net present value reaches zero, that time period is known as the zero period.

The cumulative discounted cash flows will start out with a negative value because of the investment's initial cost, but as money is made after the initial investment, the discounted cash flows for those years will be positive, and the cumulative discounted cash flows will move in a positive direction toward zero. DPB happens when the discounted cash flows that have been cumulatively negative turn positive or rebound.

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as a financial coach, your client is retiring today with $812365 in retirement savings. you have worked with her to invest that money in a stable account paying a guaranteed rate of 9.1 percent. she will need to make ordinary withdrawals over the expected 135 months of her remaining life. your client is an only child and has no living family members. she has already paid for her funeral and now plans to withdraw her money at the end of every month in equal monthly installments until her account is completely depleted. how much are her monthly payments?

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Her monthly payments is $6017.52.  A savings account is a simple type of financial product that allows you to deposit funds and earn a small amount of interest.

What is savings account?A business savings account is a bank account where you can save money for future business needs. When you need money, you can get it quickly and easily from your savings account. Depending on your bank, you can choose from a variety of savings accounts. A savings account is a simple type of financial product that allows you to deposit funds and earn a small amount of interest. These accounts are federally insured up to $250,000 per account owner and provide a secure place for your money to grow while earning interest.Business savings accounts can be used for a variety of purposes, including saving for unexpected or planned expenses, earning interest, preventing overdrafts, and increasing security measures. Minimum balances and opportunity costs may apply to business savings accounts.

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an investment offers a total return of 9.0 percent over the coming year. janice yellen thinks the total real return on this investment will be only 2.5 percent. what does janice believe the inflation rate will be over the next year?

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Janice believes the inflation rate will be 4.72% next year

Compute the exact inflation rate as follows:

Nominal rate of interest =(1 + real rate)x(1 +inflation rate)-1

11%=(1+6%)x(1 +inflation rate)-1

1+11% / (1+6%) -1 = inflation rate

inflation rate =4.72%

Thus, the inflation rate is 4.72%.

On the above, the better costs of those objects earn the lender more interest. As an example, if the rate of tv will increase from $1,500 to $1,600 due to inflation, the lender makes extra money due to the fact that 10% interest on $1,600 is more than 10% interest on $1,500.

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pull mechanisms to encourage drug and vaccine development could include: group of answer choices tax credits patent extensions on other products of the firm that develops the desired product both prizes for successful development of the desired product and patent extensions on other products of the firm that develops the desired product. prizes for successful development of the desired product

Answers

Pull mechanisms to encourage drug and vaccine development could include prizes for successfully developing the desired product.

One of the largest reasons the pharma industry is not interested in antibiotic drug development is that it is an extremely pricey challenge. in line with estimates, the value of growing an antibiotic is around $1.5 billion.

To solve this hassle the university is engaged in go-disciplinary studies including inspecting deep-sea sponges in the look for new antibiotics. developing new antibiotics.

Inventing new technologies to hit upon antibiotic resistance in blood samples.

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Recently a family from virginia received the keys to their new 3d printed home. The 3d printer that manufactured this home is primarily a ________ innovation.

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This house was made using a 3D printer, which is essentially a technological innovation.

Why is 3D printing used?

A technological advancement that has the power to completely alter the industrial sector is additive manufacturing, sometimes known as 3D printing. Using 3D printing, plastic filament spools or resin tray contents are transformed into physical objects. 3D printing is literally out of this world.

NASA has a 3D printer on board the International Space Station where astronauts can print out unusual objects like this maintenance wrench without having to send them into orbit.

Large enterprises, small businesses, amateurs, and students all use 3D printing. Since technology allows for the creation of physical objects from digital designs, there are various uses for 3D printers.

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If you are looking for information about financial aid at many different institutes of higher education, who should you contact?.

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A cosigner and the borrower share equal responsibility for repaying the debt, but a parent loan places all of the burden on the parent.

What exactly does EFC mean?

Colleges utilize an index number called your Expected Family Contribution (EFC) to calculate how much financial help you are eligible for. Your EFC is determined using the data from your Free Application for Federal Student Aid (FAFSA®) and a methodology set by law.

Why is it conceivable that you can receive less money than you borrowed in loans?

A loan works on a rather simple principle: you borrow money, then you pay it back. However, the amount you owe is greater than what you borrowed. This is a result of the interest and fees that a lender assesses you for using its funds. It is additionally known as a finance charge.

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as part of an anti-obesity program, the government places an excise tax on high-fat foods. we would expect consumers to pay almost all of this tax if demand is:

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As part of an anti-obesity program, the government levies an excise tax on high-fat foods. We expect consumers to pay almost all of this tax if demand is inelastic and supply is elastic.

Because the flexibility of demand and supply affects the tax burden. More of the tax burden is borne by people the more inelastic the curve is.

When the elasticity is greater than one, it indicates that the demand or supply is very responsive to changes in price. A demand or supply is said to be inelastic if its elasticity is less than one, indicating that it is not very responsive to price changes.

A boost in demand will cause a small price increase but a significant increase in demand when the supply is elastic. If supply is inelastic, a rise in demand will lead to a big price increase but a little rise in demand. The supply is said to be price inelastic if the price elasticity of the supply is less than 1.

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alexa owns a coffee shop. the following information is from her accountant: expenses: advertising $37.00 coffee, cups, sweetener, flour, etc. $7.69 per cup of coffee and a muffin monthly rental $145.00 what will her break even point be if she sets the price for coffee and a muffin at $11.69.

Answers

Alexa must sell 17 coffee and muffins to break even

Advertising expense = $37.00

Coffee, cups, sweetener, flour etc expense = $7.69

Rent = $145.00

Total cost = 37 + 145 + 7.69

= 189.69

Price of coffee and a muffin = $11.69

Let x be the number of coffee and muffin being sold by Alexa:

The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in production where the revenue from a product equals the cost of manufacture.

Break-even point:

11.69x = 189.68

x = 16.22 or 17

So, she must sell 17 coffee and muffins

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the difference between a broker and a dealer is group of answer choices brokers bring together buyers and sellers, but carry no inventory; dealers stand ready to buy and sell from their inventory. dealers sell drugs; brokers sell houses. brokers transact in stocks and bonds; currency is bought and sold through dealers. none of the options

Answers

The difference between a broker and dealer .a dealer is that brokers bring buyers and sellers together, but they don't have any inventory. Sellers are ready to buy and sell from their inventory.

Dealers are those representatives who work for themselves. In the financial market, dealers can be both private individuals and legal entities that allow them to trade financial assets themselves. Opening business opportunities for others is the job of a broker. In addition, commission brokers can be either people or businesses.

In the context of the financial market, the key difference between a dealer and a broker is that dealers may hold some inventory while engaging in their own trading. They buy and sell using their inventory. Brokers have no inventory of their own as they are only financial intermediaries who can connect two dealers. As a result, brokers own no inventory of their own; instead, they only search for the right customers and sellers.

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by the middle of the nineteenth century, henry cort's system of puddling had resulted in group of answer choices britain greatly increasing its output of cotton. a quadrupling of british coal production. britain becoming by far the world's leading iron producer. the enhancement of pig iron impurities. an improvement in agricultural production.

Answers

By the middle of the nineteenth century, Henry Cort's system of puddling had resulted in Britain becoming by far the world's leading iron producer.

  Henry Cort was an English manufacturer of ironware who had previously worked as a Navy pay agent. In England's Industrial Revolution, Cort started using cutting-edge production techniques to refine iron from pig iron to wrought iron. He obtained a patent for an improved version of the puddling technique for casting iron in 1784.

   At the Fontley Works, Cort expanded his ideas, which led to the 1783 patent for a straightforward reverberatory furnace to refine pig iron and the 1784 patent for his puddling furnace, which contained grooved rollers that automated the traditionally tedious process.

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you have just won the state lottery and have two choices for collecting your winnings. you can collect $100,000 (option 1) today or receive $12,000 (option 2) per year for the next ten years. a financial analyst has told you that you can earn 5% on your investments. which option would you choose?

Answers

Option 2. Although you would only be receiving $12,000 per year, you would be earning 5% on your investment, which would compound over the ten years. This would result in a larger sum of money than if you had taken the lump sum of $100,000 today.

What is investment?
An investment is the purchase or item purchased with the intention of earning income or increasing in value. An rise in the value of an asset over time is referred to as appreciation. When a person buys a good as just an investment, the intention is not to eat the good but rather to use it to create wealth in the future. An investment is always the outlay of certain resource presently, hard work, money, or a resource the hope of a greater payoff later than what was initially put in. For example, an investor may buy a monetary asset now with the expectation that it will generate income in the future or that it will be sold at a higher price later for a profit.

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