"Diversification for higher growth of products and the
market is one of the key reasons for mergers and acquisition in
Kenyan corporate world." Discuss. (9 marks)

Answers

Answer 1

In the Kenyan corporate world, mergers and acquisitions are driven by the desire to diversify products and expand into new markets, leading to higher growth prospects. By combining resources, companies can access a wider customer base, leverage synergies, and reduce competition.

This diversification strategy allows firms to mitigate risks associated with a single product or market, enhance economies of scale, and capitalize on emerging opportunities, ultimately driving growth and increasing shareholder value.

In the Kenyan corporate world, mergers and acquisitions are undertaken for various reasons, and one key motive is diversification for higher growth of products and the market. When companies merge or acquire other businesses, they aim to expand their product offerings and enter new markets. By diversifying their portfolio, companies can reduce their reliance on a single product or market, which can be risky. Instead, they can tap into different customer segments and capitalize on emerging opportunities in various industries.

Through mergers and acquisitions, companies can combine their resources, expertise, and distribution networks to access a broader customer base. This allows them to cross-sell products and services, leverage synergies, and enhance overall competitiveness. Additionally, by entering new markets or expanding their geographical reach, companies can increase their market share and revenue potential.

Diversification through mergers and acquisitions also enables companies to achieve economies of scale. By consolidating operations, companies can optimize their production, reduce costs, and enhance efficiency. This can lead to improved profitability and higher growth rates for the merged entity.

Furthermore, mergers and acquisitions provide companies with an opportunity to enter promising or untapped markets. They can leverage the acquired company's market knowledge, customer relationships, and established infrastructure to quickly establish a presence and gain a competitive advantage. This allows companies to capture new market segments and drive growth through increased sales and market share.

Overall, diversification through mergers and acquisitions in the Kenyan corporate world offers several advantages. It allows companies to mitigate risks, access a wider customer base, achieve economies of scale, and capitalize on emerging opportunities. By expanding their product offerings and market reach, companies can foster higher growth rates, increase shareholder value, and strengthen their position in the market.

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Related Questions

In a recently announced rights offer, Gregory Limited (GRG Ltd) made an offer to its existing shareholders to subscribe for two new ordinary shares at $24 (per share) for every five shares already held. Just before the rights offer announcement, GRG Ltd traded at $28 per ordinary share.

a) What is the theoretical value of one right? (Note: round your answer to two decimal places)


b) What is the value of the right per each ordinary share held by an existing shareholder? (Note: round your answer to two decimal places)


c) Shareholder Mr Baz Pickett owns 20 ordinary shares in GRG Ltd before the rights offer announcement. Mr Pickett intends to participate in this offer and will subscribe for all shares he is entitled to.

d) What is the total amount Mr Pickett will need to pay for the new ordinary shares he intends to buy via this rights offer?

Answers

a) To calculate the theoretical value of one right, we can use the formula: The theoretical value of one right = (Market price per share - Subscription price per share) / (Number of rights required to buy one new share + 1).

Market price per share = $28; Subscription price per share = $24 and Number of rights required to buy one new share = 5 rightsTheoretical value of one right = ($[tex]28 - $24) / (5 + 1) = $4 / 6 = $0.67[/tex](rounded to two decimal places)

b) The value of the right per each ordinary share held by an existing shareholder is equal to the theoretical value of one right calculated in part (a). Therefore, it is $0.67 per ordinary share.

c) Since Mr Baz Pickett owns 20 ordinary shares, he will be entitled to receive [tex](20 / 5) * 2 = 8[/tex] rights.

d) To calculate the total amount Mr. Pickett will need to pay for the new ordinary shares, we multiply the number of new shares by the subscription price per share: Total amount = Number of new shares * Subscription price per share. Total amount [tex]= 8 * $24 = $192[/tex]

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Generally, when advertising to consumers, the objective of an advertising campaign is:

a. to offset sales promotion costs

b. to maximize media planning

c. a pull strategy: to get the product into stores by having consumers demand it

d. a push strategy: to stimulate interest among members of the supply chain

Answers

The primary objective of an advertising campaign when targeting consumers is to create consumer demand for the product or service being advertised, which aligns with a pull strategy. Here option C is the correct answer.

The objective of an advertising campaign when targeting consumers can vary depending on the specific goals of the campaign and the company's overall marketing strategy.

However, one common and primary objective is to create consumer demand for the product or service being advertised. This objective aligns with option c, which refers to a pull strategy.

In a pull strategy, the aim is to generate consumer interest, awareness, and desire for the product, thereby stimulating demand.

By effectively communicating the benefits, features, and value proposition of the product through advertising, companies can motivate consumers to actively seek out the product and make a purchase.

This demand-driven approach relies on consumers pulling the product into stores and driving sales through consumer choice.

While options A and B may have some relevance to advertising campaigns, they are not the primary objectives.

Advertising campaigns are typically not solely focused on offsetting sales promotion costs or maximizing media planning. These are considerations that may be part of the overall marketing strategy, but the primary goal is to create consumer demand.

Push strategy, typically refers to stimulating interest among members of the supply chain, such as retailers, wholesalers, or distributors. It involves efforts to persuade these intermediaries to stock and promote the product.

While this strategy can be important in certain contexts, it is not the primary objective when advertising directly to consumers. Therefore option C is the correct answer.

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Which of the following statements is FALSE? Select one: a. Holding liquid assets can increase a bank's return on assets b. A bank selling large amounts of liquid assets will not significantl c. Liquid assets are traded in an active market d. Stored liquidity management involves investing in liquid assets e. Home loans are less liquid than treasury bills

Answers

The statement that stored liquidity management involves investing in liquid assets is false.  The correct option is D.

Stored liquidity management refers to the practice of holding excess reserves or maintaining a buffer of cash and highly liquid assets to ensure that a bank has sufficient funds to meet its short-term obligations and unexpected liquidity needs. However, the strategy of stored liquidity management typically does not involve investing in liquid assets.

Instead, it involves holding cash reserves or maintaining highly liquid instruments such as cash equivalents or short-term government securities. The purpose is to have readily available funds that can be accessed quickly when needed, rather than investing in assets that may need to be sold or converted to cash before use. The correct option is D.

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Complete Question:

Which of the following statements is FALSE? Select one:

a. Holding liquid assets can increase a bank's return on assets.

b. A bank selling large amounts of liquid assets will not significantly impact its liquidity.

c. Liquid assets are traded in an active market.

d. Stored liquidity management involves investing in liquid assets.

e. Home loans are less liquid than treasury bills.

which account listed below would be double underlined in the ledger
as part of the closing process?
cash
owners capital
owners drawings
accumulated depreciation-equipment

Answers

The correct answer is "owners capital." During the closing process, the temporary accounts such as revenue, expenses, and drawings are closed out by transferring their balances to the retained earnings or owners' capital account.

The purpose of the closing process is to reset the temporary accounts to zero in order to start the next accounting period with accurate balances.

Owners' capital represents the owner's equity or investment in the business. It is an important account that reflects the net worth of the owner or shareholders. As part of the closing process, the balance in the owners' capital account is adjusted by incorporating the net income or loss for the period, as well as any drawings made by the owner.

To indicate that the owners' capital account is closed during the closing process, it is common practice to double underline it in the ledger. This helps differentiate it from other accounts and signifies that the closing entries have been made for that account.

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A person's $500,000 life assurance benefit is to be invested at j2=6.5% p.a. with semi-annual payments of $20,000, beginning immediately, made to the surviving spouse for life. On the payment date immediately following the spouse's death, the remainder is to be gifted to the Red Cross.

Draw a correct timeline with the information provided.
If the spouse lives for a further six years, six months, how much would the Red Cross receive?
How would your answer above (in b)) change if the interest rate was compounded quarterly j4?
Managers of a superannuation scheme, with no spouse benefits, estimate that 80% of members will live long enough to collect some benefits. If the age distribution of members at death is about normal with a mean of 82 years, and a standard deviation of 5 years, what is the age at which people can begin collecting?

Answers

a) Timeline: rust Copy code

  ----->        ------>        ------>        ----->        ----->        ----->        ----->

$20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $500,000 (Red Cross)


The timeline represents the semi-annual payments of $20,000 made to the surviving spouse, beginning immediately and lasting for six years and six months. After the spouse's death, the remaining amount of $500,000 is gifted to the Red Cross.

b) If the spouse lives for a further six years, six months, the Red Cross would receive the remaining amount after the semi-annual payments.

The total number of payments made to the spouse would be:
Number of payments = 6 years * 2 + 6 months / 6 months (since payments are made semi-annually)

Number of payments = 12 + 1 = 13

So, the total amount received by the spouse through semi-annual payments would be:

Total payments to spouse = Number of payments * Payment amount
Total payments to spouse = 13 * $20,000
Total payments to spouse = $260,000

Therefore, the amount the Red Cross would receive is the remaining life assurance benefit minus the total payments to the spouse:


Red Cross amount = Life assurance benefit - Total payments to spouse
Red Cross amount = $500,000 - $260,000
Red Cross amount = $240,000

The Red Cross would receive $240,000 if the spouse lives for a further six years, six months.

c) If the interest rate is compounded quarterly (j4), the calculation of the remaining amount for the Red Cross would be different. We need to adjust the interest rate and the compounding period.

Using the formula for compound interest:
Future Value = Present Value * (1 + Interest Rate / Number of Compounding Periods)^(Number of Compounding Periods * Number of Years)

In this case, the compounding period changes from semi-annual to quarterly. Let's calculate the amount for the Red Cross using the adjusted interest rate and compounding period:

Number of compounding periods per year (j4) = 4
Future Value = $500,000 * (1 + 0.065 / 4)^(4 * 6.5)
Future Value = $500,000 * (1 + 0.01625)^26
Future Value = $500,000 * (1.01625)^26
Future Value ≈ $1,012,059.27

If the interest rate is compounded quarterly, the Red Cross would receive approximately $1,012,059.27 after the spouse's death.

d) To determine the age at which people can begin collecting benefits from the superannuation scheme, we need to find the age at which 80% of the members are still alive.

Using the standard deviation and mean provided for the age distribution at death (normal distribution with mean 82 and standard deviation 5), we can use the Z-score formula to find the corresponding value:
Z = (X - Mean) / Standard Deviation

For the normal distribution, the Z-score corresponding to the cumulative probability of 80% is approximately 0.84 (from a standard normal distribution table).

Using the Z-score formula, we can solve for X (age at which 80% of members are still alive):
0.84 = (X - 82) / 5
Solving for X:
0.84 * 5 = X - 82
4.2 = X - 82
X = 86

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A monopoly faces a demand curve \( P(Q)=120-2 Q \), and has a marginal cost of 60 . a. What is profit-maximizing level of output? What is the profit-maximizing price? How much profit the firm will have

Answers

a)The profit-maximizing level of output is 15 units.

b) The profit-maximizing price is 90.

c) The profit of the monopoly is 450.

Given the demand function, P(Q) = 120 - 2Q.The marginal cost of the monopoly is 60.

a. For profit maximization, Marginal Revenue (MR) = Marginal Cost (MC).The marginal revenue is calculated as the change in total revenue by selling one additional unit of output. The formula for marginal revenue is MR = ΔTR/ΔQ. Where ΔTR is the change in total revenue and ΔQ is the change in the quantity sold.The total revenue is given by TR = P(Q) × Q.Substituting the demand function into the equation, we get:TR = (120 - 2Q) × Q = 120Q - 2Q²Taking the derivative of the total revenue function with respect to Q, we get:MR = dTR/dQ = 120 - 4QWe equate the marginal revenue to marginal cost for profit maximization:60 = 120 - 4Q4Q = 60Q = 15 units.

b. The profit-maximizing price is obtained by substituting the quantity obtained in (a) into the demand function:P(Q) = 120 - 2Q = 120 - 2(15) = 90

cThe profit function is given by Π(Q) = TR(Q) - TC(Q), where TC(Q) is the total cost function of producing Q units of output. The total cost function can be approximated as TC(Q) = MC × Q, where MC is the marginal cost of the monopoly.Using the above formulas, we get:Π(Q) = TR(Q) - TC(Q) = P(Q) × Q - MC × Q = (P(Q) - MC) × QΠ(15) = (90 - 60) × 15 = 450

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Management Team Decision

SAMSUNG ON FIRE

As the communications director for a Canadian charter airline, you have been very busy lately. You are responsible for internal organizational communications to all employee groups. The batteries in Samsung’s Note 7 smartphones have been exploding or catching fire. It seems the lithium batteries are the cause of this frightening situation as these batteries may overheat or short-circuit. The batteries may be defective or not packaged properly, causing these problems.

To complicate matters, airlines are now faced with how to handle this problem with passenger flights. Transport Canada and the Federal Aviation Authority have issued a travel advisory requesting that passengers do not check these phones into their checked luggage or use them during flights. Yet, this is not an official mandate from the travel authorities.

Further on your mind is the recent Southwest Airlines flight in which a Samsung smartphone did catch fire before a flight departed. Concerning is that this phone was powered off and had been repaired for this defect. As you head into a senior management meeting, you are weighing options about how to best manage this critical situation for your airline.

Questions

Outline how you will communicate this situation to the airline employees? Specify which communication method you would use.
Which channel of communication would be most effective to communicate this problem to your employees?

Answers

The most effective channel of communication to address this problem with employees is email. Email allows for quick dissemination of information to all employees simultaneously, ensuring a consistent and coordinated response. It also provides a written record that employees can refer to if needed.

To communicate the situation regarding Samsung's Note 7 smartphones to the airline employees, the following approach can be taken:

1. Urgent Internal Communication: Given the critical nature of the situation, an immediate and urgent communication needs to be sent to all airline employees. The purpose is to inform them about the potential risks associated with the Samsung Note 7 phones and provide guidance on how to handle the situation.

2. Email Notification: Email can be used as the primary communication method due to its ability to reach all employees quickly and provide detailed information. The email should be concise, clear, and include the following key points:

- Start with a clear subject line indicating the urgency and importance of the message.

- Begin the email by addressing the issue directly and explaining the potential dangers associated with the Samsung Note 7 phones.

- Provide clear instructions on how employees should handle the situation, such as not checking the phones into checked luggage or using them during flights, in alignment with the travel advisories issued by Transport Canada and the Federal Aviation Authority.

- Include any specific guidelines or protocols established by the airline for handling these situations, such as notifying supervisors or reporting any incidents related to the phones.

- Emphasize the importance of passenger safety and the airline's commitment to ensuring a safe travel experience.

3. Follow-up Meetings or Training Sessions: Alongside the email communication, organizing follow-up meetings or training sessions can be valuable. These sessions can provide an opportunity for employees to ask questions, clarify doubts, and receive additional information or updates regarding the situation. This helps ensure that all employees are well-informed and understand the seriousness of the issue.

However, it's essential to complement the email with face-to-face interactions, such as meetings or training sessions, to address any concerns or provide further clarification. This combination of communication channels helps ensure that employees receive the necessary information and understand the actions they need to take in response to the situation.

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calculate the average cycle time CT : Assume there are 200 business days per year. If the total number of applications received over the last year is 2000, we can infer that the average number of applications per day is 9 (i.e., λ=9). By sampling (e.g., checking every week), we observed that on average there were 100 applications concurrently active (i.e., WIP=100).

Answers

Given information:Total number of applications received over the last year (N) = 2000Number of working days per year (D) = 200.

The number of applications received per day (λ) = 9The average number of applications concurrently active (WIP) = 100The formula for calculating the average cycle time CT is:CT = WIP/ λ - λ/DWhere WIP represents the average number of applications concurrently active, λ represents the average number of applications per day, and D represents the number of working days per year.Substituting the given values in the formula, we have:CT = 100/9 - 9/200CT = 11.11 – 0.045CT = 11.065 business daysTherefore, the average cycle time CT is 11.065 business days.

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Consider a two-date binomial model. A company has both debt and equity in its capital structure. The value of the company is 100 at Date 0. At Date 1, it is equally like that the value of the company increases by 20% or decreases by 10%. The total promised amount to the debtholders is 100 at Date 1. The riskfree interest rate is 10%.

a) What are the possible payoffs to the equityholders at date 1? What kind of financial product has the same payoffs? Please describe the detailed characteristics of the financial product (4-5 sentences)
b) What are the possible payoffs to the bondholders at date 1? Are they riskfree? What kind of financial product/portfolio has the same payoffs? Please describe the detailed characteristics of the financial product/portfolio (4-5 sentences).
c) What is the value of the debt at Date 0? What is the value of the equity at Date 0?
d) Suppose the government announces that it guarantees the company’s payment to the debtholders. How much is the government guarantee worth?
e) [Please refer to attachment for part (e)] Now we extend the model to a three-date setting. At both Date 1 and Date 2, it is equally likely that the value of the company increases by 20% or decreases by 10%, as depicted in the graph below. Suppose there is an American put option written on the entire firm with strike price 100. What is the value of this American put at Date 0?

Answers

a) At Date 1, the possible payoffs to the equityholders can be calculated based on the increase or decrease in the value of the company. If the value of the company increases by 20%, the equityholders' payoff would be 20% of the value of the company, which is 20. If the value of the company decreases by 10%, the equityholders' payoff would be -10% of the value of the company, which is -10.

A financial product with the same payoffs is a call option on the company's equity. The call option gives the holder the right to buy the company's equity at a predetermined price (strike price) at a future date. If the value of the company increases, the call option holder can exercise the option and buy the equity at a lower price and earn a profit. If the value of the company decreases, the call option holder would not exercise the option, and the payoff would be zero.

b) At Date 1, the bondholders' payoffs depend on whether the company is able to meet its promised amount to the debtholders. If the company's value increases by 20%, the bondholders will receive the promised amount of 100, which is risk-free. If the company's value decreases by 10%, the bondholders will also receive the promised amount of 100, which is risk-free.

A financial product/portfolio with the same payoffs is a risk-free bond. The bondholders receive a fixed payment (the promised amount) regardless of the performance of the company. The bondholder's payoff is not affected by the value of the company or any changes in it.

c) To calculate the value of the debt at Date 0, we need to discount the promised amount at the risk-free interest rate. Since the promised amount is 100 at Date 1 and the risk-free interest rate is 10%, the value of the debt at Date 0 is 100 / (1 + 0.10) ≈ 90.91.

The value of the equity at Date 0 can be calculated by subtracting the value of the debt from the value of the company. Since the value of the company is 100 at Date 0 and the value of the debt is 90.91, the value of the equity at Date 0 is 100 - 90.91 ≈ 9.09.

d) If the government guarantees the company's payment to the debtholders, the guarantee is worth the promised amount of 100 at Date 1. This means that the debtholders can be assured of receiving the promised amount regardless of the company's performance. The government guarantee provides additional security to the debtholders and reduces their risk.

e) Please provide the attachment for part (e) so that I can assist you further.

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what is the point where supply and demand are equal

Answers

The point where supply and demand are equal is called the equilibrium. In economics, equilibrium refers to the state where the quantity supplied by producers matches the quantity demanded by consumers at a specific price level.


At equilibrium, there is no inherent tendency for the price to change, as supply and demand are balanced.

The equilibrium price, also known as the market-clearing price, is determined by the intersection of the supply and demand curves. This price represents the market value at which the quantity supplied and quantity demanded are in equilibrium.

At prices below the equilibrium level, demand exceeds supply, creating a shortage, which typically leads to upward pressure on prices. Conversely, at prices above the equilibrium level, supply exceeds demand, resulting in a surplus and downward pressure on prices.

Overall, the equilibrium point in supply and demand analysis represents a state of balance where the market is efficiently allocating goods or services based on the preferences of consumers and the capabilities of producers.


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1. Create Report that is 1 to 2Pages, with following information:

Name of the company (make sure to get data like Balance sheet…)

Type of business preferably manufacturing

History of the company mostly financial

Financial situation or market strength of the company

2. using above information create reports showing:

Financial (Ratio) analysis (Current Ratio, Gross Margin, Profit Margin, A/R Turnover, Inventory Turnover, and EPS).

Compilation and submission of the whole project

Required:

1. Get the financial reports for a company.

The companies should be part of an industry. Go to the company website, look for a link (usually at the bottom of the page) that either says "our Company" or "Investors" or "Investor Relations," and you need to click on that.

Look for a copy of their most recent annual report.

Get annual reports for your company.

Copy the annual report to your computer or a jump drive (do not print, it is very long). You will need to copy and paste ONLY the financial statements (Income Statement, Balance Sheet, Statement of changes in Stockholder’s equity and Statement of Cash Flows into a Word Document and turn in Only those financial statements –in a Word document.

2. Use your financial statements to create comparative ratio analysis:

Ratios for your Project

• Current Ratio

• Gross Margin and COGS

• Account Receivable Turnover Ratio

• Earnings per Share (EPS)

• Inventory Turnover Ratio

• Profit Margin

3. You are required to produce 2 to 5 pages of your analysis and history of the company. Also, you need to attach the financial statement of the company 3 to 5 pages. select a company that you can easily get the financial statement to complete your ratios.

Answers

To complete the project, choose a manufacturing company and gather its financial statements from its website. Then, create a 2-5 page report analyzing the company's history, financial situation, and market strength. Attach the financial statements to the report.

For this project, select a manufacturing company and visit their website to find their most recent annual report. Copy and paste only the financial statements (Income Statement, Balance Sheet, Statement of changes in Stockholder's equity, and Statement of Cash Flows) into a Word document.

Use these financial statements to perform comparative ratio analysis, calculating ratios such as Current Ratio, Gross Margin, A/R Turnover, EPS, Inventory Turnover, and Profit Margin. Write a 2-5 page report analyzing the company's history, financial situation, and market strength. Attach the financial statements to the report. This project provides an opportunity to apply financial analysis techniques and evaluate a company's performance.

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For each of the following statement indicate if it is true or false:

a). When estimating the costs of a cost object, direct costs are allocated and indirect costs are traced to the object.

b). Prior to allocating overheads to a product, it is necessary to allocate the costs of all support departments to the production departments.

c). A plantwide overhead rate is used to allocate overheads when it is assumed that overheads are all driven by the same cost driver.

Answers

a). When estimating the costs of a cost object, direct costs are allocated and indirect costs are traced to the object. False.

b). Prior to allocating overheads to a product, it is necessary to allocate the costs of all support departments to the production departments.True.

c). A plantwide overhead rate is used to allocate overheads when it is assumed that overheads are all driven by the same cost driver.False.

a) In cost accounting, direct costs are costs that can be specifically traced to a particular cost object, such as a product or service. On the other hand, indirect costs cannot be easily traced to a specific cost object and need to be allocated. Therefore, the statement "When estimating the costs of a cost object, direct costs are allocated and indirect costs are traced to the object" is false. Direct costs are traced, and indirect costs are allocated.

b) Before allocating overhead costs to a product, it is necessary to allocate the costs of all support departments to the production departments. This is because support departments, such as maintenance, administration, or IT, provide services to the production departments. The costs incurred by these support departments need to be allocated to the production departments based on an appropriate allocation method. Only after this step can overhead costs be allocated to the products or services.

c) A plantwide overhead rate is not used when it is assumed that overhead costs are all driven by the same cost driver. In such cases, multiple cost pools and cost drivers are used to allocate overhead costs more accurately. The use of multiple cost pools and drivers allows for a more precise allocation of overhead costs based on the specific activities or factors that drive those costs. Therefore, the statement "A plantwide overhead rate is used to allocate overheads when it is assumed that overheads are all driven by the same cost driver" is false.

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Suppose the product term HT X AGE X SEX is added to the model described in Exercise 3. Is this new model still hierarchically well formulated? If so, state why; if not, state why not.

Suppose for the model described in Exercise 4 that a Wald test is carried out for the significance of the three-factor product term HT AGE SEX. Explain what is meant by the statement that the test result depends on the coding of the variable HT. Should such a test be carried out? Explain briefly.

Suppose for the model described in Exercise 3 that a Wald test is carried out for the significance of the twofactor product term HT X AGE. Is this test dependent on coding? Explain briefly.

Suppose for the model described in Exercise 3 that a Wald test is carried out for the significance of the main effect term AGE. Why is this test inappropriate here?

Using the model of Exercise 3, describe briefly the hierarchical backward elimination procedure for determining the best model.

Answers

The new model with the product term HT X AGE X SEX may or may not be hierarchically well formulated, depending on the specific context and variables involved.

In a hierarchically well-formulated model, all lower-order terms included in the model should be retained when higher-order interaction terms are added. If the new model adheres to this principle, where the terms HT, AGE, and SEX are included as separate main effects along with their interaction term, then it is hierarchically well formulated. However, if any of the lower-order terms are dropped when the higher-order interaction term is added, the model would not be hierarchically well formulated.

The significance of the three-factor product term HT AGE SEX in the model described in Exercise 4 depends on the coding of the variable HT. Coding refers to how the categorical variables are represented numerically in the model. The choice of coding can affect the interpretation and significance of the interaction term. Different coding schemes may result in different parameter estimates and statistical significance. Therefore, it is important to carefully consider the coding scheme used for the variable HT before conducting the Wald test. If the coding is not properly chosen or interpreted, the test results may lead to incorrect conclusions. It is crucial to carry out such a test with a clear understanding of the coding scheme and its implications.

The Wald test for the significance of the two-factor product term HT X AGE in the model described in Exercise 3 is not dependent on coding. The significance of this term can be assessed without concern for the coding scheme used for the variables. The Wald test evaluates whether the coefficient of the HT X AGE term is significantly different from zero, indicating whether the interaction between HT and AGE has a significant impact on the response variable. This test is not affected by how the variables are coded, as long as the coding accurately represents the intended relationship between the variables.

Conducting a Wald test for the significance of the main effect term AGE in the model described in Exercise 3 is inappropriate because the model includes an interaction term involving AGE. When an interaction term is present, it implies that the relationship between the main effect and the response variable is conditional on the other variables involved in the interaction. Assessing the significance of the main effect term in the presence of an interaction term would overlook the potential interaction effect and could lead to misleading conclusions. It is more appropriate to focus on the significance of the interaction term itself and interpret the main effect within the context of the interaction.

The hierarchical backward elimination procedure for determining the best model in Exercise 3 involves systematically removing non-significant terms from the model. Starting with the full model that includes all potential predictors, the procedure iteratively eliminates the least significant term (based on a chosen significance level) and recalculates the model. This process continues until all remaining terms in the model are statistically significant. The backward elimination procedure helps simplify the model by retaining only the most relevant and significant predictors. The goal is to achieve a parsimonious model that explains the data adequately while avoiding overfitting and unnecessary complexity.

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Assume that Shannon’s decides to move forward with its loyalty/rewards program. Estimates for the cost per customer is $4.96 per month. Average customer margins, before subtracting off the cost of the loyalty/rewards program, are expected to be 33.61. Assuming that Shannon’s wishes to obtain a minimum CLV of $120, what is the required retention rate that must be achieved? Assume that the interest rate is 1% per month. (Note: This problem assumes that you employ some algebra to solve the CLV formula for r.) Express your answer to four decimal places e.g. .1234. Do not express in percent form.

Answers

To calculate the required retention rate, we can use the formula for customer lifetime value (CLV). CLV represents the total value a customer brings to a business over their entire relationship with the company. The formula for CLV is:

CLV = (Margin per month * (1 - Retention rate)) / (Interest rate - Retention rate)

In this case, Shannon's wants to achieve a minimum CLV of $120. We are given that the margin per month is $33.61 and the interest rate is 1% per month. We need to solve for the retention rate.

To calculate the retention rate, we rearrange the CLV formula to solve for 'Retention rate'. By substituting the given values, we get:

$120 = ($33.61 * (1 - Retention rate)) / (0.01 - Retention rate)

Simplifying the equation, we can solve for the retention rate using algebraic methods. The calculated retention rate will indicate the minimum percentage of customers that Shannon's needs to retain in order to achieve the desired CLV of $120.

In summary, to determine the required retention rate for Shannon's loyalty/rewards program, we need to solve the CLV formula for the retention rate. Given the cost per customer per month, the average customer margins, and the desired CLV, we can rearrange the formula and solve for the retention rate. This rate represents the minimum percentage of customers that must be retained to achieve the target CLV.

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Which entry would appear as a credit on the seller's closing statement?
(a) Documentary stamp tax on the deed
(b) Recording the mortgage
(c) Purchase price
(d) Abstract continuation

Answers

The entry that would appear as a credit on the seller's closing statement is the option (c) purchase price.

The seller's closing statement is a document that outlines the financial transactions involved in the sale of a property. It provides a detailed breakdown of all the expenses and credits associated with the transaction. In this case, the purchase price is considered a credit because it represents the amount of money the seller will receive from the buyer as part of the sale.

The purchase price is typically the largest credit on the closing statement. It is the agreed-upon amount between the buyer and the seller for the sale of the property. The seller will receive this amount, minus any deductions or expenses, as the final proceeds from the sale.

In summary, the entry that appears as a credit on the seller's closing statement is the purchase price. This represents the amount of money the seller will receive from the buyer after deducting any expenses or credits associated with the sale. It is important to carefully review the closing statement to ensure accuracy and understand the financial implications of the transaction.

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In a competitive industry, a firm's short-run supply curve is represented by its marginal cost curve. The short-run supply curve of a competitive firm does not include the part of the marginal cost curve that is
A. above the average total cost curve, since the firm would be earning profits, which is not possible in a competitive market
B. below the average variable cost curve, since the firm would be losing too much money, shut down, and produce zero output
C. above the average total cost curve, since the firm would be incurring losses, shut down, and produce zero output
D. below the average total cost curve, since the firm would be incurring losses, shut down, and produce zero output

Answers

C. above the average total cost curve, since the firm would be incurring losses, shut down, and produce zero output.

the correct answer is option C. The short-run supply curve of a competitive firm does not include the part of the marginal cost curve that is above the average total cost curve, as the firm would be incurring losses, potentially leading to shutting down and producing zero output in the long run.

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as ownership of the corporation becomes more diffuse shareholders ability to monitor managerial decisions

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As ownership of the corporation becomes more diffuse, shareholders' ability to monitor managerial decisions tends to decrease. The larger the number of shareholders, the less likely each individual shareholder will be to scrutinize managerial decisions in detail.

The reason for this decrease in shareholder monitoring is that the costs of doing so increase as the number of shareholders increases. It becomes more expensive and difficult for shareholders to collect the information they need to monitor managers, communicate with other shareholders, and coordinate actions.

In addition, large shareholders or institutional investors such as pension funds and mutual funds, who hold significant amounts of shares in a company, are better positioned to monitor managerial decisions. This is because they have more resources and are more likely to have access to management and board of directors.

Smaller shareholders may find it challenging to monitor the company's performance as it becomes increasingly dispersed among many shareholders.

In conclusion, as ownership of the corporation becomes more diffuse, shareholders' ability to monitor managerial decisions tends to decrease due to increasing costs and difficulties associated with coordinating and communicating with other shareholders.

The ability to monitor managers is also concentrated in large shareholders or institutional investors who have more resources and access to management.

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What step can you take if your credit application is denied?
A. Sue the credit rating agency.
B. File a complaint against the merchant.
C. Ask why you were denied credit.
D. Reapply for credit once 30 days have passed.
E. Borrowers do not have any rights provided by law.

Answers

If the credit application is denied, the best step you can take is to ask why you were denied credit.

We can then work on improving our credit score and history so that we can reapply for credit in the future. The correct answer is C.

Ask why we were denied credit. Explanation: When our credit application is denied, the lender is required to provide us with the reasons why we were denied credit under the Equal Credit Opportunity Act (ECOA). This law is enforced by the Consumer Financial Protection Bureau (CFPB). If we are denied credit, we should get in touch with the lender and ask why we were denied credit. It's important to understand the reasons for the denial so that we can take steps to improve your credit score and history if necessary. The lender should provide you with a notice of adverse action that explains the reasons for the denial.If we disagree with the lender's decision, we can ask the lender to reconsider our credit application or we can file a complaint with the CFPB. We should also check your credit report to make sure that there are no errors or inaccuracies that could be affecting our credit score.

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Rakhim Khan is a supervisor for a manufacturing company located in British Columbia. In 2018 Rakhimearned $81,400.00 in wages and taxable benefits. On what amount would Rakhim's employer payworkers' compensation premiums if the maximum assessable earnings in British Columbia are$78,600.00?

q: 2 Pure Life Manufacturing Ltd., located in Prince Edward Island, paid their three employees thefollowing: $56,100.00, $58,100.00, and $60,600.00. Calculate the total assessable earnings for 2018. Themaximum assessable earnings in Prince Edward Island, are $52,100.00.

Answers

The total assessable earnings for 2018 for Pure Life Manufacturing Ltd. would be $52,100.00.

For Rakhim Khan in British Columbia:

The employer would pay workers' compensation premiums based on the maximum assessable earnings in British Columbia, which is $78,600. Therefore, the employer would only pay premiums on $78,600.

For Pure Life Manufacturing Ltd. in Prince Edward Island:

To calculate the total assessable earnings for 2018, we need to sum up the wages paid to the three employees.

$56,100.00 + $58,100.00 + $60,600.00 = $174,800.00

However, since the maximum assessable earnings in Prince Edward Island is $52,100.00, the employer would only pay premiums on the maximum assessable earnings amount.

Therefore, the total assessable earnings for 2018 for Pure Life Manufacturing Ltd. would be $52,100.00.

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A copy of any duplicate RL-1 slips issued to employees who have lost their original slip should be filed with Revenu Quebec.
True
False

Answers

A copy of any duplicate RL-1 slips issued to employees who have lost their original slip should be filed with Revenu Quebec. This statment is false.

A copy of any duplicate RL-1 slips issued to employees who have lost their original slip should not be filed with Revenu Quebec. When an employee loses their original RL-1 slip, the employer is responsible for issuing a duplicate slip to the employee. The duplicate RL-1 slip serves as a replacement for the lost original slip and should be provided to the employee for their records.

Revenu Quebec's role is to receive the original RL-1 slips from employers as part of the annual reporting process. Employers are required to submit the original RL-1 slips to Revenu Quebec to report the income and deductions of their employees. Revenu Quebec uses this information for tax assessment and verification purposes.

It is important for employers to keep accurate records of RL-1 slips and provide duplicates to employees upon request, but there is no requirement to file these duplicate slips with Revenu Quebec.

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Which of the following is NOT a type of​ "waiting cost?"
A. adding an additional server
B. a customer not returning because the line was too long
C. a customer leaving a line because it was too long
D. idle employees awaiting machine repairs

Answers

Among the given options, adding an additional server is NOT a type of "waiting cost."  Options B, C, and D represent different forms of waiting costs, option A is not a waiting cost itself but a potential strategy to address waiting costs.

Waiting costs typically refer to the expenses or negative consequences incurred due to delays or waiting times in a process or system. The options B, C, and D all represent different forms of waiting costs.

B. A customer not returning because the line was too long: This represents a potential loss of future business. If customers are deterred from returning due to long wait times, it can result in decreased revenue and customer loyalty.

C. A customer leaving a line because it was too long: This represents an immediate loss of business. When customers decide to abandon a line or queue due to excessive waiting, it results in a lost sales opportunity for the business.

D. Idle employees awaiting machine repairs: This represents the cost of unproductive labor due to machine downtime. When machines or equipment require repairs, employees may have to wait idly for the repairs to be completed, resulting in wasted time and reduced efficiency.

However, option A, adding an additional server, does not directly represent a waiting cost. Instead, it suggests a potential solution to mitigate waiting costs. By adding another server, the aim is to reduce wait times and improve the efficiency of service delivery, thereby minimizing waiting costs for customers and the business.

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T/F. Providing programs for the adjustment of spouses of employees when relocating to a new country will not improve integration in the community.

Answers

The statement "Providing programs for the adjustment of spouses of employees when relocating to a new country will not improve integration in the community." is false as can improve integration in the community

Relocating to a new country can be a challenging experience for both the employee and their spouse. By offering programs specifically designed to support the adjustment and integration of spouses, organizations can contribute to their overall well-being and facilitate their integration into the community.

Such programs can provide information about the new culture, language classes, networking opportunities, and assistance in finding employment or volunteer opportunities. These initiatives help spouses overcome the barriers they may face in a new environment, enhance their social connections, and increase their sense of belonging.

When spouses are able to integrate successfully, they are more likely to have a positive experience, which can have a ripple effect on the employee's job satisfaction and performance.

Additionally, an integrated spouse can contribute to the employee's overall well-being and reduce the likelihood of early termination or unsuccessful assignments. Therefore, providing adjustment programs for spouses can significantly improve integration in the community.

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Which of the following is true of supplies?
Question 2 options:
a) Only one supplier is generally available.
b) Branding is not important for maintenance and small operating supplies.
c) None of these answers is correct.
d) New-task buying is typical with most purchases.
e) Breadth of assortment is important, but dependability is not.

Answers

None of the options provided is true of supplies. The option c is correct answer.

None of the options provided accurately describes the characteristics of supplies. Let's analyze each option:

a) Only one supplier is generally available: This statement is not true because supplies can be sourced from multiple suppliers. In many cases, businesses prefer to have multiple suppliers to ensure a consistent and reliable supply chain.

b) Branding is not important for maintenance and small operating supplies: This statement is also incorrect. Branding can play a significant role in the selection of maintenance and small operating supplies. Brands often represent quality, reliability, and compatibility with existing equipment or systems, making branding an important consideration.

d) New-task buying is typical with most purchases: This statement is not true for supplies. New-task buying refers to the purchase of unfamiliar or complex products or services, which is not typically the case with routine supplies. Most supply purchases are classified as straight rebuys or modified rebuys, where the buyer is familiar with the product and supplier.

e) Breadth of assortment is important, but dependability is not: This statement is also incorrect. Dependability is a crucial factor when selecting supplies. Businesses rely on a dependable supply of materials, equipment, and services to ensure smooth operations and meet customer demands. While breadth of assortment may be important for some industries or specific purchasing situations, dependability is universally valued.

In conclusion, none of the options provided accurately describes the characteristics of supplies. Factors such as multiple suppliers, branding, dependability, and familiarity with the product and supplier play essential roles in the supply procurement process. Therefore , the option c is correct.

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generally, a partner obtains compensation from the partnership by

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A partner typically receives payment from the partnership using a variety of strategies. Receiving a portion of the partnership's profits, which is usually defined by the partner's ownership percentage or a predetermined allocation agreement, is one popular method.

Depending on the partnership's financial performance, this profit distribution may take place on a regular basis, such as monthly or yearly. Partners may also be paid in the form of guaranteed payments, which are sums of money put aside in advance for their skills or area of expertise. Regardless matter how successful the collaboration is, these payments may still be made. In addition, partners may potentially be compensated for some costs they incurred on the partnership's behalf. The specifics of partner remuneration can vary depending on the partnership agreement and the circumstances, so it's crucial to keep this in mind.

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AS-AD dynamics (40 points) In the class we discussed the dynamics of inflation shocks when oil price increases. In particular, the AS curve shifts upward due to the oil price shock and then gradually converges back to the steady state level. Now suppose we experience a one-time negative inflation shock, i.e.
o
ˉ
decreases at time t. Explain the macroeconomic consequence of this negative shock using the AS-AD framework (with both equations and AS-AD diagrams).

Answers

A one-time negative inflation shock, where the expected inflation decreases, can have several macroeconomic consequences when analyzed using the AS-AD (Aggregate Supply-Aggregate Demand) framework. Let's examine the implications using equations and AS-AD diagrams:

Equations:

The AS-AD framework consists of two main equations:

Aggregate Supply (AS): Y = C + I + G + (X - M), where Y represents real GDP and C, I, G, X, and M represent consumption, investment, government spending, exports, and imports, respectively.

Aggregate Demand (AD): Y = C + I + G + (X - M), where AD represents the total spending in the economy.

When there is a negative inflation shock, it affects the aggregate supply in the following way:

The decrease in expected inflation reduces production costs for firms, leading to a decrease in prices.

As a result, the aggregate supply curve shifts downward, reflecting the decrease in price levels.

AS-AD Diagram:

In the AS-AD diagram, the negative inflation shock is represented as a leftward shift of the aggregate supply curve (AS). The aggregate demand curve (AD) remains unchanged.

The consequences of the negative shock in the short run are as follows:

The downward shift of the AS curve leads to a decrease in output (real GDP) and an increase in unemployment.

The decrease in prices caused by the negative shock leads to lower levels of inflation or even deflation.

The overall effect is a decline in both output and inflation levels.

In the long run, the AS curve gradually adjusts back to its steady-state level, resulting in a convergence of output and inflation to their original levels. However, this adjustment process may take time, depending on various factors such as wage rigidities, price stickiness, and the speed of adjustment in the economy.

In summary, a one-time negative inflation shock in the AS-AD framework leads to a temporary decrease in output and an eventual decrease in inflation. Over time, the economy adjusts, and output and inflation converge back to their steady-state levels.

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Travel allowance (taxable portion) is included in gross income of the taxpyer in terms of section 8(1). True or False

Answers

Travel allowance (taxable portion) is included in gross income of the taxpyer in terms of section 8(1)

True

As per section 8(1) of the applicable tax regulations, the taxable portion of travel allowance is considered part of the taxpayer's gross income. This means that the travel allowance received by the taxpayer is subject to taxation and should be included when calculating their total income for tax purposes. It is important for taxpayers to accurately report and disclose their travel allowance as part of their income to ensure compliance with tax laws and fulfill their tax obligations. Failing to include the taxable portion of the travel allowance in gross income can result in penalties or legal consequences. Therefore, taxpayers should consult tax authorities or professionals for specific guidance based on their jurisdiction's tax laws and regulations.

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A portion of the commercial and industrial loan portfolio on the balance sheet of Dime Community Bancshares on December 31st, 2020 were composed of Paycheck Protection Loans.
True
False

Answers

False.A portion of the commercial and industrial loan portfolio were not composed of Paycheck Protection Loans.

Based on the information available up until my last update in September 2021, Dime Community Bancshares is not specifically mentioned to have Paycheck Protection Loans in their commercial and industrial loan portfolio on December 31st, 2020.

Paycheck Protection Loans (PPLs) were a part of the Paycheck Protection Program (PPP) initiated by the U.S. government in response to the COVID-19 pandemic. These loans were designed to provide financial support to businesses to help retain their employees during the economic downturn. Whether or not Dime Community Bancshares held Paycheck Protection Loans in their portfolio on a specific date would require access to their financial reports or official statements for that period.

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Jane has $9000 to invest in Pi Convertor shares. Her broker requires an initial margin of 60%. If she maximises her margin loan, what is the total dollar value of Pi Converter shares she can buy?

Answers

Jane can buy Pi Converter shares with a total dollar value of $22,500. This calculation takes into account her available investment amount and the initial margin requirement set by her broker.

The initial margin requirement of 60% means that Jane can borrow up to 40% of the total investment value. To determine the maximum dollar value of Pi Converter shares she can buy, we can use the equation:

Maximum Dollar Value of Shares = (Available Investment Amount / Initial Margin) * 100%

In this case, Jane has $9,000 to invest and the initial margin is 60%. Substituting the values, we have:

Maximum Dollar Value of Shares = ($9,000 / 0.60) * 100% = $15,000 * 100% = $15,000

Therefore, Jane can buy Pi Converter shares with a total dollar value of $15,000. However, since she is maximizing her margin loan, she can borrow an additional amount equal to 40% of the total investment value. Adding the borrowed amount to the initial investment, we can calculate the total dollar value of Pi Converter shares she can buy:

Total Dollar Value of Shares = Maximum Dollar Value of Shares + (Maximum Dollar Value of Shares * 40%)

Substituting the value of $15,000, we have:

Total Dollar Value of Shares = $15,000 + ($15,000 * 0.40) = $15,000 + $6,000 = $21,000

Therefore, Jane can buy Pi Converter shares with a total dollar value of $21,000 when maximizing her margin loan.

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Which of the following is a fundamental assumption of Capture Theory? a. Regulation is costly. b. People rationally advance their own self-interest. c. Economic markets are fragile. d. The market is an efficient market

Answers

People rationally advance their own self-interest is the fundamental assumption of Capture Theory. Option B.

Capture Theory is a theory that holds that regulation is often captured by the industries that are intended to regulate. It is a theory that describes how regulated industries exert undue influence over the regulatory agencies intended to oversee them. People rationally advance their own self-interest is the fundamental assumption of Capture Theory.

What is Capture Theory?

Capture Theory is a theory that holds that regulation is often captured by the industries that are intended to regulate. It is a theory that describes how regulated industries exert undue influence over the regulatory agencies intended to oversee them.

Capture theory is a theory that contends that regulation is frequently captured by the industries intended to be regulated. This happens when regulatory agencies come to be dominated by the industries they are intended to regulate, with the result that the regulatory process is manipulated to benefit those industries.

The underlying idea of capture theory is that the regulatory process can be hijacked by special interests, who use their power to shape policy outcomes that benefit their particular interests.

Hence, the right answer is option B. People rationally advance their own self-interest.

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The standard of project management sets out 12 principles in the latest 7th edition of PMBOK. The principles serve as a guide for behaviour or action for project managers to underpin in managing the team and the projects.
Discuss and choose any FOUR principles that can give you the biggest impact in managing your project during the post-pandemic situation. Relate with ONE project example that you are currently handling.

Answers

The Project Management Body of Knowledge (PMBOK) standard sets out 12 principles that serve as a guide for behaviour or action for project managers to underpin in managing the team and the projects. The following are the four principles that can give the biggest impact in managing your project during the post-pandemic situation:

1. Focus on delivering value: Focusing on delivering value can help ensure that the project benefits are realized, and the stakeholders' needs are met. For instance, in a post-pandemic situation, a restaurant owner who is focusing on providing food delivery services should prioritize quality and timely deliveries.

2. Foster collaboration and team performance: Collaboration and team performance is a key principle that helps in enhancing the team's ability to function as a unit and deliver results. For example, during the post-pandemic situation, a company offering online educational services can leverage collaboration and team performance to develop relevant and innovative course content.

3. Manage stakeholders: This principle can help ensure that all stakeholders are actively engaged in the project and their interests are aligned with the project goals. For instance, during the post-pandemic situation, a construction company can use this principle to ensure that the local community is informed and involved in the construction process to avoid disputes.

4. Embrace adaptability and flexibility: Embracing adaptability and flexibility allows project managers to respond to changing circumstances and develop innovative solutions. For example, during the post-pandemic situation, a travel company can leverage this principle to introduce flexible booking and cancellation policies that allow customers to make changes to their travel plans without penalty.

Overall, applying these principles can significantly enhance a project's success during the post-pandemic situation. They can also help project managers navigate the new challenges and uncertainties brought about by the pandemic.

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Have him watch a video of professional athletes doing jumping jacks Hold his arms over his head so he knows how it feels when he does a jumping jack Have his friend do jumping jacks in front of him Read him instructions word for word on how to do a jumping jack Case 1-8 Section 179 Deduction for Equipment Purchases Section-179 of the IRS tax code allows qualifying busiorses to deduct the ftll cost of "eligible jroperty" on their iscome taxes as an expease, rather than roguirize the cost of abe propetty to be eapitalized and depreciated over its useful life. The provision aas adopted into law to belp businesses For 2020 , the dedoction limit was $1,040,000 and applies to bew and osed equipment, as well as off rethe-shelf sotmare. The rules sate that the deduction san eely be takea If the equipment was financed or purchased and pit into service between Jamary 1. 2020, assd December 31 . 2020. The code says a butinera has to be profitable to bee the deduction, and is needs to elect it it's not automatic. The business cannot dechict more than its business izcome for she yeac. Was puretabed on Decenber 10, 2020 asd pie into service ou Jankary 4,2021 the year wal 5120,000 , the dedocting woold all bat wipe out taxable income. Eoenidered herself to be an ethical persoa and lavew what was being alked of her mas wring Questions Select a correct statement of the first law.A. heat transfer equals the work done for a processB. heat transfer minus work equals change in enthalpyC. net heat transfer equals net work plus internal energy change for a cycleD. net heat transfer equals the net work for a cycle.E. none of the above what happens to the reactivity of metals down a group How is the accounting for an Equity Investment affected when theinvestee company incurs substantial losses rendering it effectivelyinsolvent? Briefly explain the rationale for your answer.