Which of the following misstatements is not related to the completeness assertion for revenue?
A) Goods are shipped, but revenue is not recorded.
B) This year's revenue is recorded next year.
C) Next year's revenue is recorded this year.
D) Revenue is not recognized for services that have been performed.
Option C, Next year's revenue is recorded this year. Regardless organization of when the consumer actually pays in cash, revenues are reported or recognized as they are generated.
The organization does not adhere to its declared guidelines for approving sales orders. internal control's efficiency. organization has not stated in the financial revenues statements that internal control is effective. The audit report and findings must disclose and provide documentation for errors and misstatements of a substantial nature. revenues Processing checks offer a reassuring guarantee that only authorized data are handled. An audit of your revenue cycle should look at all aspect of your billing process, from scheduling through organization verifications, coding and charge input, payment posting, and all routine follow-up.
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Sixteen years ago, Ms. Cole purchased a $648,000 insurance policy on her own life and named her son as sole beneficiary. She has paid $40,176 total premiums to keep this policy in force. a. This year, she liquidates the policy for its $49,896 cash surrender value. Does she recognize income on the liquidation? b. Now assume that Ms. Cole is terminally ill. The insurance policy provides that a person with a life expectancy of less than one year can liquidate the policy and receive 80 percent of the death benefit. She does so and receives a $518,400 accelerated death benefit. Does she recognize income on the liquidation?
Ms. Cole recognize income on the liquidation in requirement A and does not recognize income on the liquidation in requirement B.
Give a brief account on insurance policy.The insurance policy, which is often a standard form contract between the insurer and the policyholder, outlines the claims that the insurer is legally obligated to cover. For an initial payment known as the premium, the insurer promises that it will pay for losses brought on by risks covered by the conditions of the policy. Insurance contracts are made to address particular needs, so they have several aspects that are uncommon in many other forms of contracts. Insurance policies are standard forms, thus they contain boilerplate wording that is the same for many different kinds of insurance policies.
To solve the question :
A
Does she recognizes income on the liquidation? Yes
Recognized Income (49896-40176) $ 9,720
B
Does she recognizes income on the liquidation? No
Recognized Income Nil
In Requirement B, the liquidation income is $518,400 which is not taxable.
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The complete question is attached below.
Crane Company purchased 300 of the 1000 outstanding shares of Swifty Company's common stock for $670000 on January 2, 2021. During 2021, Swifty Company declared dividends of $115000 and reported earnings for the year of $430000.
If Crane Company uses the equity method of accounting for its investment in Swifty Company, its Equity Investments (Swifty) account at December 31, 2021 should be
O $635500.
O $764500.
O $799000.
O $670000.
If Crane Company uses the equity method of accounting for its investment in Swifty Company, its Equity Investments (Swifty) account at December 31, 2021 should be $764500.
Equity Investment = ($670000 + ($430000 × 0.30) - ($115000 × 0.30)
Equity Investment = $764500
Shares of a corporation are bought by equity investors with the hope that their value will increase in the form of capital gains or capital dividends. If the value of an equity investment increases, the investor would receive the additional money either by selling their shares or by the company liquidating its assets and paying all of its debts. Equities add diversification to a portfolio, improving its asset allocation.
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One of the most common reasons firms make use of an extranet is to
A. prevent employees from using the Internet for private purposes on company time.
B. post information that can be accessed only by employees of the organization.
C. extend an organization's intranet to outside customers.
D. increase the speed at which employees can access information on the Internet.
Answer: C. extend an organization's intranet to outside customers.
Explanation:
An extranet is a private network that uses the Internet to securely share part of an organization's internal network with external stakeholders, such as customers, partners, and suppliers. This allows these stakeholders to access certain information and resources on the organization's intranet, such as product catalogs, order forms, and customer service portals. Extranets are often used to improve communication and collaboration between an organization and its stakeholders, and to provide external stakeholders with access to information that would not be available to them through the public Internet.
Ecosystem services include: 1, food supply; 2, water flow regulation; 3, urban temperature regulation; 4, moderation of environmental extremes; and 5, recreation. Select a case study with which you are familiar and describe how a proposed policy or project might affect the provision of two of these ecosystem services.
Please write a 1-2 page typed essay in response and Please cite readings (text, outside readings) to support your arguments.
The correct answer is Provisioning Services Ecosystems provide the conditions necessary for commercial food production as well as for subsistence living.
Most people think of food when asked to name a service that nature provides. We have access to fish, animals, fruits, vegetables, plants, and other ecosystem-produced goods. Any form of benefit that may be obtained from nature is a provisioning service. Products like food and water, the control of floods, soil erosion, and disease outbreaks, as well as immaterial advantages like recreation and spiritual benefits in natural regions, are examples of ecosystem services. Ecosystems offer the conditions required for both subsistence life and commercial food production. As the population continues to expand, the need for these essential services grows.
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As you know, price elasticity may be calculated using the following formula. [(New Quantity - Old Quantity) / Old Quantity] [(New Price old Price) / Old Price] For a price-inelastic product, the resulting number is O greater than 1 O less than 1 O greater than 0 O less than 0 O equal to 1
The price elasticity may be calculated in the formula [(New Quantity – Old Quantity) / Old Quantity] [(New Price old Price) / Old Price], then price-inelastic product, the resulting number is less than 1. Option B is correct.
What is the price elasticity?The price elasticity measures the change in consumption of a product in response to a change in its price.
Price elasticity of a product occurs when a percentage change in price generates a smaller percentage change in quantity required, In the given scenario, a product's price elasticity is always less than 1.
A product is considered elastic if its price elasticity is greater than one. It indicates that a percentage change in price leads to a greater percentage change in quantity requested.
Therefore, option B is correct.
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T/F if we are tracking quality of performance for a class of students, we should plot the individual grades on an x-bar chart, and the pass/fail result on a p-chart.
If we are tracking quality of performance for a class of students, we should plot the individual grades on an x-bar chart, and the pass/fail result on a p-chart is true.
What are the purposes of an X-bar graph?The X-bar chart displays how the mean or average varies over time, while the R chart displays how the range of the subgroups changes over time. In addition, it is employed to keep track of the impact of theories for process improvement.
An X-bar, what is it?The x-bar, also referred to as the arithmetic mean or average, is a measurement of the mathematical center of sample data and will serve to illustrate the central tendency of that data.
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Paying people more when they contribute more increases motivation, which in turn leads to high performance. TRUE/FALSE
Paying people more when they contribute more increases motivation, which in turn leads to high performance is a True Statement.
Financial incentives are those that include giving the staff members cash directly. The most talented or high-performing employees receive financial incentives.
A high-performance workplace is an outcome of consistently balancing investment in people, processes, the physical environment, and technology, to measurably boost employees' capacity for learning, discovery, innovation, teamwork, and leadership, and to achieve efficiency and financial advantage.
So giving monetary rewards to employees will make them feel that their hard work is acknowledged by the company and the organization values its outperforming employees which as a result will motivate them and leads to high work performance.
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which of the following can result from an error in posting? question 15 options: overpayment to a vendor understated income unequal cash balances all of the above
Understated income can result from an error in the posting.
What is income?Income is often defined in monetary terms and refers to an entity's capacity for saving and spending money during a specific time period. Income can be conceptually challenging to define, and it may differ depending on the industry. For instance, a person's income in a legal sense and their income in an economic sense may not be the same thing. In the United States, income is defined by tax law as the sum of all wages, salaries, profits, interest payments, rent, and other forms of earnings received within a calendar year. Building up both monetary and non-monetary consumption capacity—the former serving as a proxy for total income—may be the aim in public economics.
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within situational control, the power to make work assignments and reward and punish is called ____ power.
Within situational control, the power to make work assignments and reward and punish is called Position power.
A person with power can influence others by convincing them that they hold a position of authority inside a group or organisation, which entitles them to make key choices and order the other members of the organization to follow them. The official authority that stems from a person's title or position in a group or an organization is known as the power of position. The effect that a leader's presence or style produces is known as charisma.
Expertise is the result of knowledge or expertise.Referent: The authority that comes from the identity that people have with you.Power derived from the capacity to reward others is called a reward.Coercive power comes from the anticipation of punishment from others.To know more about Power here
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a voluntary monetary gift for 15 to 20 percent of the cost of the wine for the wine steward is an example of which of the following?
A voluntary monetary gift for 15 to 20 percent of the cost of the wine for the wine steward is an example of a tip for hourly personnel.
Who are the stewards?A person who administers things on behalf of someone else or others, such as managing their finances or managing their property. 2. a person in charge of another's household, who is responsible for procuring food, managing the servants, etc.
What is the major duty of the steward?A steward helps keep a bar, lounge, or restaurant tidy and hygienic, helps with dishwashing, and attends to patrons' needs. Additionally, the steward may handle routine office duties including taking reservations, answering the phone, and dispensing essential information.
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A major effort of most businesses, especially retail businesses, in using customer relationship management (CRM) systems is to collect _____ about customers.
A major effort of most businesses, especially retail businesses, in using customer relationship management (CRM) systems is to collect data about customers.
What do you mean by customers?A person or business that purchases goods or services from another firm is referred to as a customer. Customers are important because they produce income. Businesses would fail if they weren't there.
Why is the consumer so crucial?They not only make greater purchases but they also attract new customers. Your customers act as your sales representatives. In actuality, 56% of consumers said they would tell their friends and family about a business that provided exceptional customer service. By providing excellent customer service, you may keep clients who will be happy to recommend your business.
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A firm is producing the allocatively efficient level of output if? A.)total revenue is equal to total cost b.) marginal revenue is equal to marginal cost c.) price is equal to average total cost d.) price is equal to marginal cost e.) price is equal to total cost
A firm is producing the allocatively efficient level of output if b.) marginal revenue is equal to marginal cost.
When is a firm producing at allocative efficiency ?When supply and demand are in balance, the cost of a given supply exactly matches the demand for the commodity. This is the state of allocative efficiency. When a product's marginal cost, price, or marginal benefit are identical (P = MC), allocation efficiency is attained.
Price and marginal cost of production are identical in a market with perfect competition. Consider the cost of a good as a measurement of the societal benefit obtained for that commodity; after all, a buyer's willingness to pay indicates the value of a good to them.
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what does the underlined word mean in the following sentence? el bombero comienza a ayudar a las personas. business man judge lawyer firefighter
The words "to graduate from" and "el bombero commences aiding others" are underlined. Judge, lawyer, businessman, and firefighter.
What exactly does a businessman do?The core of the economy is businesspeople. When it comes to earning and spending money, you could describe an entrepreneur as a master of all trades. They are present in almost every company, handling purchases and sales, running operations, managing personnel, balancing the books, and managing funds.
What characterizes the ideal businessman?Being a good leader is perhaps one of a good businessman's most crucial traits. You must ensure that your team members will respect and obey you and your judgments. This isn't going to happen unless you are an strong leader.
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Answer:
Explanation
business man
two independent methods of forecasting based on judgment and experience have been prepared each month for the past 10 months. the forecasts and actual sales are as follows
For the previous 10 months, two separate forecasting models that rely on judgement and experience have been created each month. predictions and real sales
What is a forecast based on judgement and opinion?
Forecasts are used by managers while creating budgets. Forecasting's goal is to make decision-making less risky. A forecast is useful for estimating production volume, inventory requirements, labour hours needed, cash needs, and finance requirements. The forecasting methods employed by businesses are covered in this chapter and can be divided into qualitative approach and quantitative approach. The qualitative approach uses CEO perspectives, the Delphi technique, sales force polling, and consumer surveys to make forecasts that are based on judgement and opinion. Simple techniques, moving averages, exponential smoothing, trend analysis, and time series decomposition are all included in the quantitative approach
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according to international financial reporting standards, the revaluation of equipment when fair value exceeds book value results in a(n) : Multiple Choice
decrease in net income.
increase in net income.
increase in other comprehensive income.
decrease in other comprehensive income.
increase in other comprehensive income. A loan principal or an intangible asset like intellectual property might regularly have its book value decreased over a predetermined period of time by using amortization in accounting.
In contrast to amortizing a net actuarial gain for pensions, a net actuarial loss for pensions will result in a fall in retained earnings and a rise in cumulative other comprehensive income.As a result, there will be $35 million in cumulative other comprehensive income on the balance sheet from the previous year. The components of other comprehensive income that were created during the reporting period ($15 million) and the comprehensive income accumulated over the current and prior periods ($50 million) are the two aspects of other comprehensive income that are reported.
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_______ and _______ refers to the strategy whereby a firm makes or collects payments early or late depending on anticipated currency movements so that they have the most favorable impact for the company.
Hedging and Arbitrage refers to the strategy whereby a firm makes or collects payments early or late depending on anticipated currency movements so that they have the most favorable impact for the company.
Hedging and arbitrage are two important strategies used by companies to minimize the risk of currency fluctuations and maximize their profits. Hedging is a strategy used by companies to protect against currency fluctuations. It involves setting up a transaction that offsets the losses that could occur due to a currency fluctuation. For example, a company may purchase a forward contract to buy a certain currency at a future date, at a predetermined exchange rate. This locks in the exchange rate and protects the company from any losses that may occur due to a decrease in the value of the currency. Hedging is often used by companies that are exposed to currency fluctuations due to their global operations, such as multinational companies.
Arbitrage is a strategy used by companies to take advantage of currency fluctuations. It involves buying and selling currencies at different rates to make a profit. For example, a company may purchase a currency in one market at a lower rate and then sell it in another market at a higher rate. This allows the company to take advantage of price differences and make a profit. Companies may also use arbitrage to speculate on the future direction of a currency’s exchange rate.
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documents appropriate for destruction (i.e., beyond records retention requirements and not subject to a legal hold) should be destroyed immediately when possible. TRUE FALSE
When it is practical, documents that should be destroyed right away (i.e., those that are no longer needed for records retention and are not the subject of a legal hold) should be done so. It is true.
Employee retention techniques are procedures that an organization does to keep its employees (e.g. through compensation, policies, benefits, office perks, etc.). When developing these strategies, a company's primary goal is to reduce employee turnover, or the number of people who leave a company during a specific time period.
Depending on the nature of each industry, a low turnover rate may even be beneficial, but greater percentages might be costly both financially and in terms of time invested. It can be expensive to replace an employee; the cost varies depending on the position. Losing high-performing personnel can have an adverse effect on team productivity and morale since it necessitates changes to the routine operations and workflows of a department or team, especially if the departing employee is a manager or higher.
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T/F the magnuson-moss warranty act applies only when written warranties are made voluntarily on consumer products that cost more than $15.
The statement is True. The Magnuson-moss warranty act applies only when written warranties are made voluntarily on consumer products that cost more than $15.
A purchaser is someone or a set who intends to order or uses purchased items, merchandise, or offerings in the main for non-public, social, family, family, and similar desires, who is not without delay related to entrepreneurial or enterprise activities. The time period maximum commonly refers to a person who purchases goods and services for personal use.
In a financial system, a client buys items or services frequently for consumption and no longer for resale or for commercial functions. consumers pay few amounts of money (or equivalent) for goods or offerings.) than consume (use up). As such, clients play a crucial function inside the financial device of a capitalist device and shape a fundamental part of any economy. Without patron calls for, manufacturers might lack one of the key motivations to produce: to sell to clients. The purchaser also paperwork one stop of the chain of distribution.
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blank are savings accounts that guarantee a depositor a set interest rate over a specified interval of time as long as the funds are not withdrawn prematurely.
Certificates of deposit (CDs) are savings accounts that guarantee a depositor a set interest rate over a specified interval of time as long as the funds are not withdrawn prematurely.
A certificate of deposit (CD) is a time deposit, a financial product normally sold via banks, thrift establishments, and credit score unions inside the u.s. CDs vary from financial savings money owed in that the CD has a specific, constant term (frequently one, three, or six months, or one to 5 years) and commonly, a set hobby fee. The bank expects the CD to be held until maturity, at which era they may be withdrawn and hobby paid.
CDs normally require a minimum deposit and might provide better prices for larger deposits. The exceptional rates are generally offered on "Jumbo CDs" with minimum deposits of $ hundred,000. Jumbo CDs are normally sold via big institutional investors, such as banks and pension budgets, which are interested in low-threat and stable funding alternatives. Jumbo CDs also are referred to as negotiable certificates of deposits and come in bearer form. those paintings are like conventional certificates of deposits that lock in the predominant quantity for a set time frame and are payable upon maturity.
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Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails. One way for both Todd and Jorge to avoid this risk would be to organize their firm as a(n):sole proprietorship.corporation limited partnership.general partnership.
Todd and Jorge have considered starting their own business but are concerned about the chance of losing their personal assets if the business fails. One way for both to avoid this risk would be to organize their firm as a corporation. So option b. is correct.
A corporation is legally an independent and distinct entity from its owners. Corporations possess many of the analogous legal rights and accountabilities of individuals. An essential element of a corporation is limited liability, which signifies that its shareholders are not personally accountable for the company's debts. A corporation may be created by an individual or a group of people with a shared goal. That does not ever implicate earning a profit. The precise legal meaning of a corporation differs from jurisdiction to jurisdiction, but the Corporation's most crucial trait is anyway a limited liability.
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Suppose you pre-ordered a non-refundable movie ticket to Avengers: Infinity War. On the day of the movie you decide that you would rather not go to the movie. According to economists, what is the rational thing to do? Since you do not want to go to the movie and the cost of the movie ticket is a sunk cost, how much you paid for the ticket should not influence your decision. You should go to the movie to minimize your losses. You should go to the movie to maximize your utility. You should not waste resources. Since you have paid for the ticket you should watch the movie.
The price of the movie ticket is a sunk cost, thus it shouldn't affect your choice. You should only consider if you want to see the movie while making your selection.
What exactly does the term "behavioral economics" mean?To comprehend how and why people behave the way they do in the real world, behavioral economics integrates elements of economics and psychology. It is distinct from neoclassical economics, which makes the assumption that most people have well defined interests and base their decisions on those values in a well-informed, self-interested manner.
Understanding economic behavior and the motivations behind the activities of economic actors is crucial. Then, behavioral economists examine them using social, moral, and psychological variables. Economic players are typically presumptively rational in textbooks.
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FILL IN THE BLANK Customer acquisition ___ (CAC) is a metric that is used by e-commerce companies and other sales related organizations to assess the costs associated with convincing a potential customer to purchase a service or product.
E-commerce businesses and other sales-related organizations use the concept of customer acquisition costs to measure the expenses involved in persuading a potential consumer to buy a service or good.
What do a client and an example mean?A client is sometimes considered to be someone who purchases a good, business, or product. Customers are more clearly defined as individuals or organizations that are presently purchasing, have recently purchased, or may be considering purchasing a services or goods from another person or business.
What does a good client mean?Excellent Clients Aspire to Self-Sufficiency To suit their demands, they must be able to customize and alter it instantly. These are the folks who find a great deal of joy in figuring out the solution on their own and view asking for assistance from others as a sign of personal failure.
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Suppose the exchange rate is 90 yen per U.S. dollar and the United States wants to keep the exchange rate at a target rate of 90 yen per U.S. dollar.
If the demand for U.S. dollars increases, the Fed ______.
If the demand for U.S. dollars increases, the Fed sells dollars to lower the exchange rate.
What does exchange rate mean to you?A relative price of one currency stated in terms of another currency is called an exchange rate (or group of currencies). The exchange rate is a crucial economic factor for nations like Australia who participate substantially in global trade.
Why is it significant?A currency's exchange rate is the cost at which two different currencies can be converted between two different countries or economic regions. It is used to calculate the value of different currencies in relation to one another and is crucial in figuring out how trade and capital flows operate.
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Under the NASAA Model Rule covering Investment Adviser records, the adviser's articles of incorporation must be retained for how long after the adviser ceases business operations?
Under the NASAA Model Rule covering Investment Adviser records, the adviser's articles of incorporation must be retained for 3 years after the adviser ceases business operations.
The recordkeeping rule for investment advisors requires that "partnership articles and any amendments, articles of incorporation, charters, minute books and stock certificate books of any investment advisor be preserved for at least 3 years after termination of the enterprise".
An individual or business that receives compensation for advising customers regarding securities is known as an investment advisor. Investment advisers and financial advisors are not the same even if the names have a similar sound.
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Full Question: Under the NASAA Model Rule covering Investment Adviser records, the adviser's articles of incorporation must be retained for how long after the adviser ceases business operations?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
since about 1970 in the u.s., question 33 options: decreases in the wages of unskilled workers, relative to skilled workers, have led to increased inequality in family incomes. increases in the wages of unskilled workers, relative to skilled workers, have led to increased equality in family incomes. inequality in family incomes has increased, despite increases in the wages of unskilled workers relative to skilled workers. inequality in family incomes has decreased, despite increases in the wages of skilled workers relative to unskilled workers.
Beginning around 2000, the labour income portion of pay started to fall, which increased demand for skilled workers relative to unskilled workers.
What caused the rise in salary disparity?Numerous causes are linked to the increase in economic inequality in the United States. These include the deterioration of the minimum wage, globalisation, the collapse of unions, and technological advancement, in no particular sequence.
What are the common reasons of pay inequality and stagnation, according to economists?A examination of the economic literature indicates that skill-based technological change was a significant factor in producing this rising wage inequality and slower wage growth (change increasing the demand for skilled over unskilled workers).
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which of the following terms refers to a citizen of one country who is working in a second country for an organization that is headquartered in a third country? a. A home-country national b. A third-country national c. A host-country national d. A second-country national
A third-country national is a citizen of one nation who works in another for an organization with its headquarters in another nation.
Four different nationalities are employed. These are nationals of the host organization nation, the home nation, the second nation, and the third nation. Employees who are employed by the headquarters of a second country yet are natives of that country of origin are referred to as host country employees.
Home country employees, also known as nationals, are people who work for a firm with its headquarters in the same nation where they were born and raised. Second-country nationals are workers who carry out their duties in the nation where the employment firm is based.
A third-country national is a citizen of one nation who is employed by a corporation with headquarters in another nation but who is doing his duty in a separate nation.
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suppose you are long 100 contracts on amzn 1-year 25-delta strangle (25-delta call 25-delta put). how much will your option position increase in value if amzn stock price goes down by $1 (use negative number if value decreases; a contratct is 100 shares).
The overall impact on your position, if you are long 25 contracts of TSLA stock and short 100 contracts of a 1-year 25-delta call option on TSLA, depends on the current price of the stock as well as the terms of the option contracts.
What do you mean of stock?Stocks are the common name for any corporation's ownership certificates. If you own shares of a certain corporation, you are known as a shareholder. A stock is an investment in a publicly traded company. Common stock or preferred stock are the two major types of stock that are often issued when a corporation sells shares of stock to the general public.
What are the uses of stock?To prepare delectable liquids called stocks, which are used to make soups, sauces, and stews, various ingredients are slowly simmered in water. They are seasoned with meat, poultry, fish, game, or seafood and are prepared with mirepoix, herbs, and spices. A new firm typically has 10,000,000 authorised shares of common stock, but as the business expands, it may issue additional shares to investors and staff members, increasing the overall number of shares. It is challenging to obtain an exact count because the amount fluctuates a lot. Equities, stocks, and shares are all interchangeable terms.
Briefing:A stock's delta call option is a gauge of how much the price of the option is anticipated to fluctuate in reaction to changes in the value of the underlying asset. When the price of the underlying stock rises by $1, a call option with a delta of 25 will normally grow in value by about half as much as the stock. Consequently, your option position will gain value by roughly 25 * $1 / 1 = $25 if the stock price increases by $1.
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question 2 which of these are common responsibilities of systems administrators? check all that apply. 1 point help users to pick the right desktop chair
A systems administrator is responsible for several different tasks, such as maintaining servers, troubleshooting user problems, and setting up new user accounts and computers.
The term "system administrator" refers to the person who is in charge of configuring and managing the system or server. It's possible for system administrators to work in the IT division. The majority of the content that follows also applies to employment as network, database, security, and Microsoft Windows system administrators.
The system administrator is in charge of the following:
administration of users (setup and maintaining account)System upkeep Check that the peripherals are functioning properly.In the event that hardware fails, quickly arrange for repairs.system performance being watchedEstablish file systemsUse tools like apt command/apt-get command, dnf command/yum command, zypper command, apk command, and others to instal software.firmware and software patchingEstablish a backup and recovery plan (disaster recovery [DR])network communication is being watched.As soon as a new OS or piece of software is released, update the system.Apply the rules for using the computer system and network.Create security guidelines for users. A sysadmin needs to be well-versed in computer security, including firewalls and intrusion detection systems. Tools like wireshark and the nmap command must be used correctly. Internal wiki documentation is required. Using the man or help commands, you must be able to read manual pages.Management of identities and passwordsadministration of a networkadministration of databasesUnderstanding and using Unix and Linux log files for troubleshootingTo know more about system administrator:
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Good X is produced in a perfectly competitive industry in long-run equilibrium. If the consumption of good X generates positive externalities, the private market will produce
A.n the socially optimum amount of good X
B.more than the socially optimum amount of good X
C.the socially optimum amount of good X
D.good X only if the government grants a subsidy for the production of good X
E.good X only if the government levies a corrective tax on the production of good X
If the use of good X results in favorable externalities, the private market will produce less of good X than is necessary for society.
How do externalities affect markets if a positive externality in consumption is present in a market then?When there is a positive externality, the third party profits from the transaction between a buyer and a seller without bearing any of the costs. If this is the case, markets frequently generate less than necessary since producers do not take into account the additional benefits to others.
Negative externalities indicate that not all costs are borne by the producer, which leads to excess production. Positive externalities reduce output since the customer does not receive the full advantages of the good.
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