Adopting even the smallest sustainable habits might add up because going green includes making better decisions during daily activities. But making those routines into habits is the secret to success.
Which five sustainable practices are there?The five sustainable actions listed below can become habits to help you lead a greener existence.
1. Use recycled paper and plastic bags when you shop: One of the best environmental practices is to reuse and recycle paper and plastic bags.
2. Choose electronic documents:Because they extract carbon dioxide from the air and change it into oxygen, trees are an essential component of the environment.
3. Steer clear of single-use kitchenware:Use reusable silverware and plates in place of single-use paper products.
4. Use Eco-friendly Toileteries: See for sustainable shampoos, conditioners and soaps that you can be refilled.
5. Recycle Old Shoes:It is only natural to want to upgrade wardrobe with new items.
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Global Trade, Inc. has $1,000 face value bonds outstanding with a market price of $1,013. The bonds pay interest annually, mature in 11 years, and have a yield to maturity of 5.34 percent. What is the current yield
The current Yield is 5.41%
Given,
Global Trade, Inc. has $1,000 face value(FV) bonds outstanding
The bonds outstanding have a market price(MP) of $1,013.
The bonds pay interest annually, mature in 11 years(n).
yield to maturity(YTM) = 5.34 percent
Current yield is the ratio of coupon payment of a bond to its current market price.
Let the Annual Coupon Payment be 'CP'
Therefore, we need to calculate the coupon payment by using the following formula:
YTM = [ CP + ( FV - MP ) / n ] / [ ( FV + MP ) / 2 ]
Now substituting the values in the above formula we get,
5.34% = [ CP + ( $1,000 - $1,013 ) / 11 ] / [ ( $1,000 + $1,013 ) / 2 ]
5.34% = [ CP + ( $1,000 - $1,013 ) / 11 ] / [ ( $1,000 + $1,013 ) / 2 ]
5.34% = [ CP - $1.18 ] / 1006.5
1,006.5 x 5.34% = CP - $1.18
53.75 = CP - 1.18
CP = 53.75 + 1.18 = $54.83 annually
Current Yield = Annual Coupon payment / Current market price
Now substituting the values in the above formula we get,
Current Yield = $54.83 / $1,013
= 0.0541
= 5.41%
Hence, the current yield is 5.41%.
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Financial Statements and Accounting Reflection
Write responses in your OWN words.
A company's financial stability may be seen at a brief look due to the financial statements that reveal information about its operations, performance, and cash flow. The main goal of financial statements is to give information about an organization's financial situation, operating outcomes, and cash flow.
The primary goals of accounting are to maintain an accurate record of financial transactions, produce an expense journal, and prepare this data for reports that are frequently required by law. The recording of data is the most fundamental accounting function. Accounting is essential to starting a business because it makes it easier to keep track of income and expenses, ensures legal compliance, and gives investors, management, and the government access to quantitative financial data that can be used to make decisions.
The Financial statements are documents that describe a company's operations and financial performance. Government organizations, accounting companies, etc. frequently audit financial statements to guarantee accuracy and for tax, financing, or investing purposes.
Financial statements that must be provided are:
income statement, balance sheet, statement of cash flows.The process of combining financial data to make it transparent and understandable for all stakeholders and shareholders is referred to as accounting. Recording and reporting a company's financial transactions, financial performance, and cash flows is accounting's primary objective.
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Determine what strategy should be used in the following situation. You are demoting an employee to avoid laying them off.
The correct answer in following Situation is Ethical, Direct and Intend to Deceive.
Keeping the Indirect Strategy Ethical:
The sender using an indirect approach in an ethical manner.
A. Ethical:
It is ethical to reduce the emotional impact of a bad news by making use of an indirect approach which is less harsh and blunt unlike the direct approach. In situations such as communicating that a person has lost his job, it is important that the manager communicates using indirect approach.
Direct demoting an employee to avoid laying them off.
B. Direct:
You are communicating facts to someone that has less time. Therefore the direct approach would be most appropriate as it goes straight to the point without delays.
If you put bad news at the end if the mail ,you Intend to deceive
Your boss is extremely busy therefore in this case it would be important to use the direct approach and move straight to the point from the beginning not hiding the bad news at the end of the mail.
Your question is incomplete, but most probably your full question was:
Question attached in below -
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Since taxes are not a direct component of aggregate demand changes in taxes do not have multiplier effects on income.
Components of aggregate demand in a closed economy are consumption(C), investment(I), and government expenditure(G).
So, AD = C + I + G
And consumption is a function of disposable income(Yd) which means
C = C1 + b(Yd)
Where disposable income Yd = (Y - T ). So, disposable income is the remaining income after paying the tax to the government.
So, the AD = C1 + b(Y - T) + I + G. For simplicity we can consider investment and government expenditure as constant.
At equilibrium Y = AD so, Y = C1 + b(Y - T) + I + G.
At period 0, when tax increases ΔT amount then it will decrease consumption at b* ΔT amount. So for any given level of Y, planned expenditure is now lower than income. So initially equilibrium Y decreases by b* ΔT amount. In period 1 this change in income will decrease the consumption at a rate of b(b* ΔT) amount. So Y also decreases by amount b2 * ΔT amount and so on.
So the total change in Y is = b* ΔT + b2 * ΔT + .....
= b* ΔT ( 1 + b + b2 + .....)
= b* ΔT [ 1/ (1- b)]
So, ΔY = b* ΔT [ 1/ (1- b)]
or, ΔY/ ΔT = b / (1-b)
So even if tax is not a direct component of aggregate demand it has a multiplier effect on income. If tax decreases then it will increase disposable income and so as the consumption. An increase in consumption has a positive effect on income in that period and that increased income has a positive effect on consumption in the next period and so as the income. This process will go on.
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Some agencies used hidden or disguised print and visual messages that allegedly register in the subconscious and fool people into buying product. These are called:
Some agencies used hidden or disguised print and visual messages that allegedly register in the subconscious and fool people into buying products. These are called Subliminal Advertising.
What is Subliminal Advertising?Subliminal messages are frequently incorporated into other media, such as TV advertising or songs, and are visual or audible stimuli that the conscious mind cannot see. This type of messaging can be utilized to enhance or heighten the persuasiveness of commercials or to send a whole other message.Even when you actively search for them, true subliminal messages are invisible to the conscious mind and cannot be seen or detected there. This is due to the fact that daily stimuli, such as what we see and hear around us, are above the threshold of conscious perception, in contrast to subliminal messages, which are below it.
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Economic models often simplify the real world by holding all things equal and changing one variable to determine the impact of the change. the ""all things equal"" assumption is also known as:
Economic models often simplify the real world by holding all things equal and changing one variable to determine the impact of the change. The "all things equal" assumption is also known as ceteries paribus.
An economic model is a simplified version of reality that lets us to look at, recognize, and make predictions about economic behavior. The purpose of a model is to take a complex, real-global situation and pare it down to the essentials.
An economic model is a simplified description of reality, designed to yield hypotheses about economic behavior that can be tested. A critical characteristic of an economic model is that it's far always subjective in layout due to the fact there are no goal measures of financial consequences.
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What physical property of the part iii reaction products indicated that the products were not all ionic compounds?
Ionic solids have three physical properties that are linked to ionic bonds: melting point, boiling point, and hardness. Because ionic solids are relatively strong, it takes a significant amount of energy to break them apart. As a result, ionic solids have high melting and boiling points. Ionic bonds are electrostatic forces that attract positive and negative ions.
An ionic compound is a three-dimensional network of mutually attract alternating cations and anions. Chemists consider the basic indicators of a reaction, such as a change in temperature, change in color, the development of an odor, to help determine whether reaction has occurred.
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A _____________ is a fee levied by your lender that represents pre-paid interest on your mortgage loan.
A foreclosure is a fee levied by your lender that represents pre-paid interest on your mortgage loan.
What is foreclosure?foreclosure serves as the the action of taking in the possession of a mortgaged property in case they fail to meet up with mortgage payments.
In this case, A foreclosure is a fee levied by your lender that represents pre-paid interest on your mortgage loan.
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True or False: The market for public utilities, such as gas and electricity, exhibits the two primary characteristics that define perfectly competitive markets. True False
The market for public utilities, such as gas and electricity, exhibits the two primary characteristics that define perfectly competitive markets. The given statement is true.
What do you mean by perfectly competitive markets?A perfect market, also known as an atomistic market, is defined by various idealizing conditions, which are together referred to as perfect competition, or atomistic competition, in economics, specifically general equilibrium theory.
A market structure where all suppliers are equal and overall supply and demand are in equilibrium is referred to as perfect competition in economics. Perfect competition exists, for instance, when multiple companies are producing a commodity and no one company has a competitive edge over the others.
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The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y2 June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y3 June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. (Record the redemption only.) Required: 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. 3. Determine the carrying amount of the bonds as of December 31, 20Y2.
Based on the bond price, the interest payments, and the periods, the journal entries by Winklevoss Inc. will be:
Date Account details Debit Credit
Jul 1, 20Y1 Cash $63,532,267
Discount on bond payable $10,467,733
Bonds payable $74,000,000
________________________________________________________
Dec, 31 Interest expense $4,331,693
Discount on bond payable $261,693
Cash $4,070,000
________________________________________________________
Dec, 31 Income summary $4,331,693
Interest expense $4,331,693
Date Account details Debit Credit
June, 30 interest expense $4,331,693
20Y2 Discount on bonds payable $261,693
Cash $4,070,000
________________________________________________________
Dec, 31 interest expense $4,331,693
20Y2 Discount on bonds payable $261,693
Cash $4,070,000
________________________________________________________
Dec, 31 Income summary $8,663,386
Interest expense $8,663,386
________________________________________________________
Date Account details Debit Credit
June, 30 Bonds payable $74,000,000
20Y3 Loss on redemption $ 7,940,961
Discount on bonds payable $9,420,961
Cash $72,520,000
What are the journal entries for callable bonds?Discount on bonds payable:
= 74,000,000 - 63,532,267
= $10,467,733
Cash 31 Dec:
= 74,000,000 x 11% x 0.5
= $4,070,000
Cash 30 June 20Y2
= 74,000,000 x 11% x 0.5
= $4,070,000
Cash 31 Dec 20Y2:
= 74,000,000 x 11% x 0.5
= $4,070,000
in 20y3, the bonds were redeemed which is why the Bonds payable account was debited because as a liability account, it is debited to show a decrease.
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When selecting an investment, which criterion relates to the expected rate of return on an investment, usually over a period of one year?
The measure of liquidity determines how fast you can withdraw the money you invested if you need it or desire it.
Liquidity and Return on investment
In the event of an emergency or other financial setback, you can access liquidity in the form of your emergency savings account or the cash you have on hand. Additionally, liquidity is crucial since it enables you to take advantage of chances. A common profitability statistic used to assess how well an investment has done is the Return on Investment (ROI). ROI aims to quantify the amount of return on a specific investment in relation to the cost of the investment.
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Committing funds today with the expectation of earning a return on those funds in the future in the form of additional cash flows is required when a company makes a(n):_______
An Investment means the act of committing funds today with the expectation of earning a return on those funds in the future in the form of additional cash flows.
What is an Investment?This refers to the act of redirecting resources from being consumed today so that they may create benefits in the future and also includes use of assets to earn income or profit.
Therefore, committing funds today with the expectation of earning a return on those funds in the future in the form of additional cash flows is required when a company makes an Investment.
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The Family Inventory of Life Events and Changes (FILE) measures the severity of different stressors. The most severe of all is
The Family Inventory of Life Events and Changes (FILE) measures the severity of different stressors. The most severe of all is the death of a child.
What is the Family Inventory of Life Events and Changes means?
Hamilton McCubbin, Joan Patterson, and Lance Wilson created the Family Inventory of Life Events and Changes (FILE) in 1983 as a measure of family stress. It evaluates the accumulation of life events that a family has to deal with (the AA factor of the Resiliency Model).
What is the resiliency model of family stress adjustment and adaptation?
Based on these resources, McCubbin and McCubbin (1996) produced the Resiliency Model of Family Stress, Adjustment, and Adaptation, which explains a family's capacity to adjust to a challenging environment.
Which model has been used for decades to describe the impact of stresses on families?
Conger and Conger (2002) developed the Family Stress Model (FSM), which hypothesizes that these family dynamics may be crucial in moderating the impacts of economic hardship on children's outcomes.
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Other things equal, the demand for a good tends to be inelastic (less elastic), the longer the time period considered. more the good is considered a luxury good. fewer the available substitutes. more narrowly defined is the market for the good.
Other things equal, the demand for a good tends to be more inelastic A) the fewer the available substitutes.
Inelastic merchandise is usually necessities without applicable substitutes. The maximum commonplace goods with an inelastic call for are utilities, pharmaceuticals, and tobacco products. companies imparting such merchandise hold greater flexibility with prices because demand stays constant even if fees boom or decrease.
Inelastic is a monetary term regarding the static amount of a terrific or service while its price adjustments. The inelastic manner that when the rate goes up, customers' shopping for habits live about the same, and when the rate goes down, consumers' shopping for conduct additionally remains unchanged.
An elastic call for is one in which the exchange in quantity is demanded because of exchange in rate is huge. An inelastic call is one in which the change in the amount demanded due to an alternate in charge is small.
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Jane Bouvier is a computer scientist working for a state university. Her job description states that she is responsible for the development and maintenance of the College of Business web sites. Jane was not permitted to take the training classes that her male counterparts in other colleges in the university were permitted to take, at university expense. Jane felt that she was falling behind without this additional training. When she raised her concern to her supervisor she was told that she would have to pay for the training herself. Answer the following questions:
a. What law is the university likely violating and what type of claim should Jane bring under this law?
b. What does Jane have to establish to prove discrimination in this case?
c. What case from the text is similar to this situation?
Please explain your answers.
The law that the university likely violating is the civil rights law.
a. What law is the university likely violating and what type of claim should Jane bring under this law?
The University is violating title VII of the Civil Rights Act of 1965 and Jane can file the complaint with the EEOC to enforce her rights.
b. What does Jane have to establish to prove discrimination in this case?
She just need to prove she has been discriminated on the basis of gender. She was not paid for her training because she was woman.
What case from the text is similar to this situation?
The similar case is Moore Vs Alabama state university, 980 F. Supp.426
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The primary difference between a change in demand and a change in the quantity demanded is:.
Answer:
factors determining them
Many companies in the sharing economy have successfully taken their business to foreign markets as well. What challenges do you see for these companies as they expand into foreign markets?
Some challenges for these companies as they expand into foreign markets are foreign policy, cultural differences and language barriers.
What is an effective internationalization strategy like?It is one in which organizations develop a plan in line with their needs and the market to which they want to expand their business. For this, it is important to adapt products, services and communication to the local culture, to be a brand accepted by consumers and well positioned in the market.
Therefore, the international expansion of an organization can be positive and profitable when there is a strategy aligned with the needs of the local market.
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The challenges that is seen for these companies as they is Policy from the foreign countries.
What are foreign policies?They are guidelines made by countries where goods and services are imported from or where business transactions.
The policies may not be in favor on the trader coming from another country this include higher tax and duties been paid.
Therefore, The challenges that is seen for these companies as they is Policy from the foreign countries.
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A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers in the industry if the company's management team fails to
This strategy will not result in a company that is one of the best performers in the industry if the company's management team does not meet the brand's cost per pair sold.
What is a low cost strategy?Corresponds to the process of lower pricing than that performed by competitors, so that there is an increase in demand and market positioning.
It corresponds to a generic marketing strategy that is applied to obtain economies of scale as production increases, which generates a reduction in unit production costs through the efficient use of production factors, generating an operational advantage.
Therefore, it is necessary for the company to compensate the low price for the manufacturing cost, which gives it economies of scale that make the low cost strategy effective.
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The fixed asset turnover ratio is computed as __________ divided by __________.
a. sales; average book value of fixed assets.
b. net income; average book value of fixed assets.
c. sales; book value of fixed assets.
d. average book value of fixed assets; sales.
The correct option is (a) sales; average book value of fixed assets.
The fixed asset turnover ratio is computed as sales divided by average book value of fixed assets.
The fixed asset turnover ratio demonstrates the effectiveness of a company's current fixed assets in driving sales. A greater ratio suggests that management is making better use of its fixed assets. No information can be gleaned from a high FAT ratio about a company's capacity to produce reliable earnings or cash flows.
The ratio of sales to the value of fixed assets is known as fixed-asset turnover. It shows how effectively the company is generating sales by utilizing its fixed assets.
A greater ratio is typically preferred since it suggests that the business is effective at producing sales or revenues from its asset base. A lower ratio suggests that a business is not utilizing its resources effectively and may be experiencing internal issues.
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The economic condition that results from a continual rise in prices, or what some people call "too much money chasing too few goods" is
The economic condition that results from a continual rise in prices is inflation.
What is an inflation?Inflation is a when there is a general increase in the price levels of goods and services. During an inflation, the value of money would erode quickly. Inflation can be caused when the demand for goods exceeds it supply or when there is an increase in the cost of production.
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Products that are purchased to solve a sudden problem and a customer does not actively seek are _______.
Products that are purchased to solve a sudden problem and a customer does not actively seek are unsought products.
Unsought Products are the ones that consumers do not normally go looking for, or about which the average consumer may not even be aware of, as is it may be a new brand. Thus, a consumer would prefer not to think about buying.
Unsought Products are the products purchased to solve a sudden problem. Thus, these products can include emergency products such as bandages and ointment and automobile parts which are used to repair a car.
Hence, the answer was given and explained above.
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Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to
Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to Contingency.
What is Contingency?A contingency is the potential possibility of a bad event, such as a pandemic, economic downturn, natural disaster, fraud, or terrorist attack. The coronavirus outbreak that struck businesses in 2020 made many employees reliant on remote work. Companies had to adopt a remote work strategy as a result. Working remotely wasn't an option for some organizations, though, and as a result, increased security measures for both employees and clients were put in place to stop the virus from spreading.Although contingencies can be planned for, it is often impossible to predict the kind and breadth of such unfavorable events in advance. Businesses and investors conduct analyses and put defensive measures into place to prepare for potential possibilities.
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If direct materials per unit are $20, direct labor per unit is $10, variable overhead per unit is $2, and fixed overhead per unit is $1, total product cost per unit is:_________ $
If direct materials per unit are $20, direct labor per unit is $10, variable overhead per unit is $2, and fixed overhead per unit is $1, total product cost per unit is $33.
What is the cost?The term cost refers to the actual money are spent on the manufacturing of the product. The product are manufacture to spend on money are raw material, transportation, wages, salary, and other expenses add. The all expenses are added to identify the cost.
The direct cost of the product can be computed by adding the costs of all direct materials, all direct labor, and all overhead charges of the manufacturing process.
According to the given the cost are;
direct materials per unit are $20
direct labor per unit is $10
variable overhead per unit is $2
fixed overhead per unit is $1
total product cost per unit is ?
total product cost per unit is 20 + 10 + 2 + 1
total product cost per unit is 33
As a result, direct materials per unit are $20, direct labor per unit is $10, variable overhead per unit is $2, and fixed overhead per unit is $1, total product cost per unit is $33.
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jones Corporation had a beginning inventory of 300 units which it bought for $5 each. Jones bought 500 more units at $4 each on February 1st and 200 units more for $6 each on February 5th. On February 8th Jones sold 150 units. What is Jones' cost of goods sold under the FIFO method
Calculation of cost of goods sold under FIFO method:
units Rate Total
Opening inventory 300 $5 $1500
Purchases 500 $4 $2000
Purchases 200 $6 $1200
Sales 150 $5 $750
The cost of goods sold is $750
What is FIFO?FIFO is also known as First In First Out method, it is used to calculate the movement of inventory, the first unit is sold first and on.
Therefore the units available in the beginning inventory is sold first and the units sold is only 150 units while the inventory is 300 units so all the units sold are calculated at a rate of $5.
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The Board of Directors has voted to add a new product line. Casey's department will be directly responsible for implementing the changes. Casey identifies a project team to take the lead. Does Casey's project team have a role in the decision
No, because the decision has already been made by the Board of Directors.
More about directors and decision making:
The board's decision-making process is divided into two stages: communication and decision-making. Each director decides whether to incur a cost to communicate his information to others during the communication stage. At the decision-making stage, all directors take actions (e.g., vote) based on their private information and information inferred from the discussion, and the board makes a collective decision. Directors may have conflicts of interest and thus prefer a decision that is not in the best interests of the shareholders. Directors may also have a preference for conformity and thus incur a loss if their actions differ from those of other directors, such as voting differently than the majority.
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Under the adea, an employer can win a disparate impact case if it can show that the discriminatory decision was based on a reasonable factor other than?
Under the ADEA, an employer can win a disparate impact case if it can show that the discriminatory decision was based on a reasonable factor other than age.
This is further explained below.
What is ADEA?Generally, The Age Discrimination in Employment Act of 1967 is a piece of legislation that was passed in the United States in order to prohibit discrimination in the workplace against anybody in the country who is at least 40 years old. In 1967, President Lyndon B. Johnson gave the measure his signature, making it official and making it a law.
In conclusion, In a disparate effect lawsuit, an employer may prevail if it can establish that the discriminatory decision was made on the basis of anything other than age, such as gender or race.
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Which form of feasibility incorporates both physical and mental integration of the design work system during job completion
The form of feasibility that incorporates both physical and mental integration of the design work system during job completion is technical.
What is operation management?Operations management basically has to do with the efficiency of an organization in terms of its product and service offerings. It also include planning, managing and supervising in an organization.
It is to be noted that the goal of operations management is to maximize efficiency while producing goods and services that effectively fulfill customer needs
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Mobilizing finance and building partnerships in cities to advance environmental goals, especially in preventing the flow of trash into the ocean
Together, we may achieve several social, economic and environmental advantages that prevent waste from entering the ocean and increase the resilience of the entire city.
What is 'Mobilizing finance and building partnerships in cities' event about?The focus of this event will be on cities' crucial contributions to environmental goals, particularly in halting the flow of rubbish into the ocean. Around 80% of the 11+ million tons of plastic debris that are dumped into the ocean each year come from land, mostly as a result of inadequate municipal waste management. Over half of the world's population lives in cities, but they are rarely taken into account when making international decisions. However, cities all over the world are attempting to enhance sanitation, safeguard public health, boost tourism, and produce economic growth. Cities are given a formal framework for addressing these interconnected issues through the Urban Ocean® initiative. With assistance from cities and organizations on all five continents, our initial cohort of 11 cities concentrates on Asia and Latin America. What are Environmental Advantages?Environmental change is the alteration or disturbance of the natural environment, most frequently brought on by human activities and ecological processes. Various variables, such as natural disasters, human meddling, or animal contact, might cause changes in the environment. Environmental change includes both physical changes and non-physical elements, such as an invasion of invasive species.With this information in hand, cities can bring together stakeholders to forge agreement on plans that are based on research, with the ultimate objective of enlisting partners and financiers to carry out solutions. City resilience leaders from Asia, Southeast Asia, and Latin America will attend this event along with officials from national-level governments, non-governmental organizations, and these regions.
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_____ involves abstaining from any activity that will affect an individual financially.
a. premium collection
b. loss prevention
c. risk assumption
d. loss control
e.risk avoidance
The risk assumption involves abstaining from any activity that will affect an individual financially. Assumption of risk is a tort law defence, specifically an affirmative defence, that bars or limits a plaintiff's right to recover against a negligent tortfeasor.
If the defendant can demonstrate that the plaintiff voluntarily and knowingly assumed the risks at issue inherent in the dangerous activity in which the plaintiff was participating at the time of their injury. A person who understands and recognizes the danger inherent in a particular activity cannot recover the damages in the event of injury under the assumption of risk doctrine.
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The inflation rate is the percentage change in the _____ from one year to the next. Deflation is a situation in which the _____ is _____ and the inflation rate is _____.
The inflation rate is the percentage change in the price level from one year to the next. Deflation is a situation in which the price level is falling and the inflation rate is negative.
What are the inflation and deflation rates?
Prices rise during inflation and decline during deflation. Different asset classes can simultaneously experience inflation and deflation. Both have negative effects on economic growth when taken to the extremes, although for different reasons. The Federal Reserve, the country's central bank, attempts to regulate them as a result.
Why deflation Is worse than inflation?
Because interest rates can only be decreased to zero, deflation is worse. Demand is further decreased as businesses and consumers feel less fortunate and spend less. As a result, prices decline and businesses make less money. When customers anticipate price drops, they put off purchasing as long as they can. They are aware that the price will decrease the longer they wait.
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