suppose a basket of goods and services has been selected to calculate the cpi and 2012 has been selected as the base year

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Answer 1

The selection of a basket of goods and services and a base year are both important components of calculating the CPI. By tracking these factors over time, we can gain valuable insights into the state of the economy and make more informed decisions.

To calculate the Consumer Price Index (CPI), a basket of goods and services is selected. This basket typically includes items that the average consumer purchases regularly, such as food, housing, transportation, and healthcare. The prices of these items are then tracked over time to see how they change.

In this scenario, 2012 has been selected as the base year. This means that the prices of the items in the basket are compared to their prices in 2012. If the prices have gone up since 2012, this will increase the CPI. If the prices have gone down, this will decrease the CPI.

The CPI is an important economic indicator because it can help policymakers and businesses make informed decisions about things like interest rates, wage increases, and inflation. By tracking the prices of goods and services over time, we can better understand how the economy is changing and what factors are contributing to those changes.

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Related Questions

Insurance intermediation is likely to undergo a radical change in the near future." In light of this statement, elucidate the role of present insurance intermediaries and briefly comment on the emerging trends.

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The role of present insurance intermediaries, such as insurance agents and brokers, is currently vital in facilitating insurance transactions between insurance companies and customers. However, with the advent of technological advancements and shifting customer preferences, the insurance industry is likely to undergo a radical change.

Emerging trends indicate the increasing use of digital platforms, artificial intelligence, and data analytics, which have the potential to reshape the role of insurance intermediaries. These technologies enable direct interactions between customers and insurance providers, simplified processes, personalized offerings, and efficient risk assessments. As a result, insurance intermediaries may need to adapt their services and leverage technology to provide value-added services and maintain their relevance in the evolving insurance landscape.

Presently, insurance intermediaries play a crucial role in the insurance industry by acting as a link between insurance companies and customers. They provide valuable services such as educating customers about insurance products, assessing customer needs, recommending suitable policies, and facilitating the purchase process. They also assist in claims processing and provide ongoing customer support. However, the future of insurance intermediation is likely to experience significant changes driven by technology and evolving customer expectations.

To remain relevant, insurance intermediaries will need to adapt and embrace technology-driven solutions. They can leverage digital platforms to enhance their reach, offer online self-service options, and provide personalized recommendations based on customer data analysis. Intermediaries can also focus on specialized areas or niche markets where human expertise and guidance are still valued by customers. By evolving their roles and embracing emerging technologies, insurance intermediaries can continue to provide value-added services and maintain their relevance in the changing insurance landscape.

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the promotion element of a marketing program can be subdivided into the areas of:

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The promotion element of a marketing program can be subdivided into four areas, known as the "promotional mix."

These are:

Advertising: Paid messages disseminated through various media like television, radio, print, outdoor, and digital to promote a product, service, or brand to a mass audience.

Sales promotion: Short-term incentives offered to customers to encourage purchases or other desired actions like discounts, coupons, contests, and giveaways.

Public relations: A strategic communication process that builds mutually beneficial relationships between an organization and its stakeholders by shaping the public perception of the brand through earned media coverage, events, sponsorships, and other non-paid promotional activities.

Personal selling: Direct communication between a salesperson and a potential customer to persuade them to buy a product or service, typically in a one-to-one interaction.

Each element of the promotional mix has its unique strengths and weaknesses and is suited for different types of products, target audiences, and marketing objectives. An effective promotional mix often involves using a combination of these elements to achieve maximum impact and reach.

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Krypton Ltd.'s budgeted information relating to the manufacture of two of its products is presented below: Usage Activity Cost Driver Product A Product B Setup $57,650 # of batches 27 12 Machine # of machine $89,100 6,750 11,250 Maintenance hours Direct labour cost $12/hour $360,000 $529,500 Direct materials $128,700 $91,850 10,500 units of product A were produced. What is the cost per unit of Product A using Activity Based Costing? Input your answer as a number with two decimal places (for example, 12.34).

Answers

According to the information given, the cost per unit of Product A using Activity Based Costing can be calculated as follows-

Calculation of Activity Rate: Activity Cost Driver Total Cost Total Activity Activity Rate Setup Number of batches $57,650 27 + 12 1,850Machine Number of machines $89,100 6,750 + 11,250 3.16Maintenance hours Direct Labour cost $360,000 $529,500 10,000 36 52.95Calculation of Cost per unit of Product A:Activity Cost Driver Product A Total Activity Cost Setup Number of batches 27 $31,450Machine Number of machines 6,750 $21,300Maintenance hours Direct labour cost 360 $19,062Direct materials 128,700Total cost per unit of Product A $200,512.

Therefore, the cost per unit of Product A using Activity Based Costing is $200.51 (answer more than 100 words).In conclusion, Activity-Based Costing is a more sophisticated system of costing, which aims to more accurately allocate overheads to the goods or services that are causing them. This system of costing uses activity rates to allocate the overheads to the product by determining the cost drivers.

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CORONADO COMPANY Income Statement For the Year Ended December 31, 2022 $18,675 6,225 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income Additional data: Y5 4 $242,500 175,200 67,300 24,900 42,400 2,700 39,700 7,940 $31,760 8.25 Net Income Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $25,960. 3. During the year, equipment was sold for $6,600 cash. This equipment originally cost $18,000 and had accumulated depreciation of $11,400 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and inventory purchases are on account. $31,700 Presented here are the financial statements of Coronado Company. CORONADO COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $36,000 $21,000 Accounts receivable 32,700 18,900 Inventory 30,100 20,100 Property, plant, and equipment 59,600 77,600 Accumulated depreciation (29,400) (23,300) Total $114,300 Liabilities and Stockholders' Equity Accounts payable $ 16,800 Income taxes payable 8,400 Bonds payable 32,100 Common stock 13,400 Retained earnings 13.600 $129,000 $28,000 7,200 26,700 17,700 19.100. Prepare a statement of cash flows for Coronado Company using the direct method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) CORONADO COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Cash Receipts from Customers 31760 Less ✓cash payments: To Suppliers For Operating Expenses For Interest For Income Taxes 3700 Net Cash Provided by Operating Activities ✓ 35460 -1000 11200 -1200 $ CORONADO COMPANY Comparative Balance Sheets December 31 2022 $36,000 32,700 30,100 59,600 (29,400) $129,000 $2 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 7,200 26,700 17,700 49,400 $129,000 2021 $21,000 18,900 20,100 77,600 (23,300) $114,300 6,80 8,400 32,100 13,400 43,600 $114,300

Answers

CORONADO COMPANY Statement of Cash Flows

For the Year Ended December 31, 2022

Cash Flows from Operating Activities:

Cash Receipts from Customers $31,760

Less Cash Payments:

To Suppliers ($18,675)

For Operating Expenses ($6,225)

For Interest ($2,700)

For Income Taxes ($7,940)

Net Cash Provided by Operating Activities $ (4,780)

Cash Flows from Investing Activities:

Cash received from the sale of equipment $6,600

Net Cash Provided by Investing Activities $6,600

Cash Flows from Financing Activities:

Cash received from issuance of common stock $13,400

Cash paid for dividends ($25,960)

Net Cash Used in Financing Activities ($12,560)

Net Increase in Cash $ (10,740)

Cash at Beginning of Year $21,000

Cash at End of Year $10,260

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1.6 Harris Enterprises machines heavy-duty brake rotors that are used on commercial airliners. The company's management developed the following standard costs: Standard direct labor hours per rotor Standard overhead rate per direct labor hour $11.50 Actual activity for October Actual overhead costs incurred $162,000 Actual direct labor hours 10,800 Actual rotors machined 3,500 What is the variable manufacturing overhead efficiency variance in October? O A. $59,800 favorable O B. $59,800 unfavorable OC. $37,800 unfavorable OD. $37,800 favorable

Answers

To calculate the variable manufacturing overhead efficiency variance, we need to compare the standard hours allowed with the actual hours worked and multiply the difference by the standard overhead rate per direct labor hour.

Standard direct labor hours per rotor = 11.50 hours

Actual direct labor hours = 10,800 hours

Actual rotors machined = 3,500

First, we calculate the standard hours allowed based on the actual rotors machined:

Standard hours allowed = Standard direct labor hours per rotor × Actual rotors machined

Standard hours allowed = 11.50 hours/rotor × 3,500 rotors

Standard hours allowed = 40,250 hours

Next, we calculate the variable manufacturing overhead efficiency variance:

Variable manufacturing overhead efficiency variance = (Standard hours allowed - Actual hours worked) × Standard overhead rate per direct labor hour

Variable manufacturing overhead efficiency variance = (40,250 hours - 10,800 hours) × Standard overhead rate per direct labor hour

Variable manufacturing overhead efficiency variance = 29,450 hours × Standard overhead rate per direct labor hour

Since we are not given the standard overhead rate per direct labor hour, we cannot calculate the exact value of the variance. However, based on the given answer choices, the variable manufacturing overhead efficiency variance would be unfavorable. Therefore, option C, $37,800 unfavorable, is the closest answer.

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Double Take Beauty
Double Take Beauty is a spa in Provo, UT that offers single needle tattoos done by its founder, Sadie Flores. Sadie currently charges about $400 per tattoo on average. The marginal cost of each tattoo is about $100. She is getting better at tattooing and the tattoos are becoming more popular with customers, so she is considering raising the price to $500 per tattoo. What percentage of customers must be retained to ensure that the price increase is profitable? Note: It’s conventional when not calculating elasticities to measure percentage changes relative to their initial value (%ΔX=new value of X-old value of Xold value of X).
a. 18%
b. 25%
c. 66.67%
d. 75%
e. 84%

Answers

To ensure that the price increase is profitable, Double Take Beauty must retain a certain percentage of its customers. The percentage of customers that must be retained to ensure the price increase is profitable is 25%. The correct option is option B.

The percentage of customers that must be retained can be determined by comparing the change in revenue with the change in costs. Currently, Sadie charges $400 per tattoo with a marginal cost of $100. This means that the profit per tattoo is $300 ($400 - $100). If Sadie raises the price to $500 per tattoo, the profit per tattoo would increase to $400 ($500 - $100).

To determine the percentage of customers that must be retained, we need to compare the change in revenue with the change in costs. The percentage change in revenue is given by (%ΔRevenue) = (%ΔPrice) × (%ΔQuantity), where (%ΔPrice) is the percentage change in price and (%ΔQuantity) is the percentage change in quantity.

Since the quantity of tattoos remains constant in this scenario, (%ΔQuantity) would be 0. Therefore, the percentage change in revenue (%ΔRevenue) is equal to the percentage change in price (%ΔPrice).

To cover the increased cost and make the price increase profitable, the percentage change in price (%ΔPrice) should be equal to or greater than the percentage increase in costs. In this case, the increase in cost is $100, and the initial price is $400, so the required percentage change in price is (%ΔPrice) = ($100/$400) × 100 = 25%.

Therefore, the percentage of customers that must be retained to ensure the price increase is profitable is 25% (option b).

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2. Sultan Plastic company makes plastic buckets. An analysis of their accounting reveals: Variable cost per bucket- Rs 20 Fixed cost- Rs 50000 for the year Capacity - 2000 buckets Selling price per bu

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The Sultan Plastic company can produce 2000 buckets, and the fixed cost is Rs 50000 for the year. The variable cost per bucket is Rs 20. The total cost of producing 2000 buckets is Rs 90000. So, the company's breakeven point is 2000 buckets at a price of Rs 70.

Sultan Plastic Company makes plastic buckets and has some accounting data. It can produce 2000 buckets per year. The variable cost per bucket is Rs 20. So, the total variable cost for producing 2000 buckets is 2000 x Rs 20 = Rs 40000. The fixed cost of the company is Rs 50000 per year. Therefore, the total cost of producing 2000 buckets will be Rs 90000 (Rs 40000 variable cost + Rs 50000 fixed cost). The selling price of the bucket is Rs 70. So, the revenue generated by selling 2000 buckets is Rs 140000 (2000 x Rs 70). To calculate the breakeven point of the company, we need to find out the number of buckets the company needs to sell to cover the total cost. Breakeven point (in units) = Total fixed cost / Contribution per unit. Here, Contribution per unit = Selling price per unit - Variable cost per unit. Contribution per unit = Rs 70 - Rs 20 = Rs 50. So, the breakeven point of the company is 2000 buckets (Rs 50000 / Rs 50). Hence, the company's breakeven point is 2000 buckets at a price of Rs 70.

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Each of the following is the headline from a recent news story. Which of these violations would not be covered by the For Labor Standards Act! • Noll Rattant was found pulty of Baling to pay the federal minimum wage of $7.25 per hour for all the hours the employees worked • Walmart was found guilty of overtime violations when the employer failed to necond or pay for all of the hours that some employees worked Chipotle Maican Gwas fined over accusations that it routinely voted Marsachusetts child labor laws • The California Department of Industrial Relations cited a retail business in Lawndale for failing to secure were compensation ice for its employees .

Answers

Among the following violations, the one that would not be covered by the Fair Labor Standards Act is the violation by Chipotle Mexican Grill of Massachusetts child labor laws.

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. It covers most employees, except for those in managerial or professional positions.In the given news headlines, Noll Rattant was found guilty of failing to pay the federal minimum wage to his employees. Walmart was found guilty of violating overtime regulations.

The California Department of Industrial Relations fined a retail business in Lawndale for failing to secure workers’ compensation insurance for its employees.Chipotle Mexican Grill, on the other hand, was fined for violating Massachusetts child labor laws. Therefore, this violation would not be covered by the FLSA.

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EN 04 Question: Consider the following Cost payoff table ($): $1 $2 $3 D₁ 11 8 13 D2 24 12 32 12 D3 34 23 What is the value (S) of best decision alternative under Regret criteria?

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To determine the value (S) of the best decision alternative under the Regret criteria, we calculate the maximum regret for each decision alternative by subtracting the payoffs from the maximum payoff in each column.

The decision alternative with the lowest maximum regret is considered the best alternative. In this case, the best decision alternative is D₂ with a maximum regret of $11.

The value (S) of the best decision alternative under the Regret criteria can be determined by calculating the maximum regret for each decision alternative and selecting the alternative with the minimum maximum regret.

To calculate the maximum regret, we compare the payoffs for each decision alternative to the maximum payoff in each column and subtract the payoffs from the maximum. Then, we select the highest value from these differences.

Looking at the given cost payoff table, we compare the payoffs in each column to find the maximum payoff: $3 in column 1, $23 in column 2, and $32 in column 3.

Next, we calculate the differences between the maximum payoffs and the payoffs for each decision alternative:

For decision alternative D₁:

Maximum regret for D₁ = Maximum payoff - Payoff for D₁ = $3 - $13 = -$10

For decision alternative D₂:

Maximum regret for D₂ = Maximum payoff - Payoff for D₂ = $23 - $12 = $11

For decision alternative D₃:

Maximum regret for D₃ = Maximum payoff - Payoff for D₃ = $32 - $34 = -$2

The decision alternative with the lowest maximum regret is D₂, with a maximum regret of $11. Therefore, the value (S) of the best decision alternative under the Regret criteria is $11.

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Teddy is 68 years old. He received the following investment income during the current year of assessment: • Interest received from South African bank of R28 000, Local dividend from a JSE listed company of R20 000, and • Interest received from a South African tax-free savings account of R12 000. YOU ARE REQUIRED to determine the total amount which will be exempt when determining the taxpayer's taxable income for the current year of assessment.

Answers

To determine the total amount that will be exempt when determining Teddy's taxable income for the current year of assessment, we need to consider the relevant exemptions for the investment income he received.

Interest received from a South African bank: The first R23,800 of interest earned by individuals under the age of 65 is exempt from income tax. Any interest earned above this threshold is subject to income tax. In this case, Teddy received R28,000 in interest. The exempt amount for interest income would be R23,800. Local dividend from a JSE listed company: Dividends received from South African companies are generally exempt from income tax due to the dividends tax that has already been paid. Therefore, the R20,000 dividend from the JSE listed company would be fully exempt from income tax.

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What is the implication or usefulness, if any, of the
international Fisher effect to an MNE and to its investors?
Explain.

Answers

The international Fisher effect (IFE) suggests that the difference in nominal interest rates between two countries is equal to the difference in their expected inflation rates.

The implication of IFE for multinational enterprises (MNEs) is that they can use this concept to make informed decisions regarding international investments and financing. By considering the expected inflation rates of different countries, MNEs can assess the potential impact on their cost of capital and make appropriate investment decisions . For investors, the IFE provides valuable information for international portfolio diversification. It suggests that investors can account for expected inflation differentials when making investment decisions in different countries. By considering the inflation rates, investors can adjust their expected returns and manage risks associated with changes in exchange rates and inflation. This information can help investors make more informed decisions about allocating their investments across various countries and currencies .Overall, the IFE is useful to MNEs and investors as it provides insights into the relationship between interest rates and inflation, allowing them to make better-informed decisions regarding international investments, financing, and portfolio diversification.

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Will a company dividend payable be negative? In what situation
company dividend payable become negative? Thanks.

Answers

A company dividend payable is not expected to be negative, as it represents the amount of money a company owes to its shareholders as a result of declaring a dividend.

However, there may be situations where the dividend payable can become negative. This may occur if a company declares a dividend but does not have enough funds to cover the payment, or if there is a mistake in the accounting system. In some cases, a negative dividend payable may occur due to changes in the company's financial position, such as a decrease in earnings or cash flow. In such situations, the company may need to reduce or suspend its dividend payments until its financial position improves. Overall, a negative dividend payable is not a desirable situation for any company, as it can impact the company's financial stability and reputation among investors.

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"Given the following information, what is the shortest distance
using the minimum spanning tree technique?.

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To find the shortest distance using the minimum spanning tree technique, we can apply Prim's algorithm. After calculation, the total shortest distance is 211.

Prim's algorithm is a popular algorithm used to find the minimum spanning tree (MST) of a weighted graph. The minimum spanning tree is a tree that connects all the vertices of the graph with the minimum total weight.

Prim's algorithm builds the minimum spanning tree gradually, adding the vertex with the lowest weight edge at each step until all vertices are included.

Here is the step-by-step calculation using Prim's algorithm of the given question:

Start with Branch 1.

Add Branch 7 to the tree (Distance: 21).

Add Branch 8 to the tree (Distance: 22).

Add Branch 6 to the tree (Distance: 19).

Add Branch 2 to the tree (Distance: 32).

Add Branch 5 to the tree (Distance: 29).

Add Branch 3 to the tree (Distance: 33).

Add Branch 4 to the tree (Distance: 27).

The minimum spanning tree is formed with the branches {1, 7, 8, 6, 2, 5, 3, 4}, and the total shortest distance is 211.

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Refer to the financial statements of Burnaby Mountain Trading Company. The firm's P/E ratio for 2008 is _________.
A. 2.80
B. 3.60
C. 6.00
D. 11.11

Answers

A). To determine Burnaby Mountain Trading Company's P/E ratio for 2008, you would need to have access to the company's financial statements, which would include its earnings per share and the market price per share.  

Unfortunately, without access to Burnaby Mountain Trading Company's financial statements, I am unable to provide a specific answer to your question regarding the firm's P/E ratio for 2008. The P/E ratio is calculated by dividing the market price per share by the earnings per share.

It is a commonly used metric in the analysis of publicly traded companies and is often used as a measure of a company's valuation. A high P/E ratio can indicate that investors have high expectations for the company's future earnings growth, while a low P/E ratio may suggest that the company is undervalued.


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write 1000 to 1500 words that present a complete model of A
cross-level model of shared leadership, meaning, and individual
creativity

Answers

A cross-level model of shared leadership, meaning, and individual creativity entails the integration of shared leadership, individual creativity, and meaning-making processes, with a focus on multiple levels of analysis within an organization. This model is based on the premise that shared leadership fosters an environment that enhances individual creativity and meaning-making processes, which are critical for innovation and organizational success.

At the individual level, the model posits that creativity is influenced by various factors such as cognitive abilities, personality traits, and motivation. These factors, in turn, are influenced by the organizational context, including the degree of shared leadership, the extent of meaning-making processes, and the level of resources and support available to employees.

At the group level, shared leadership fosters collaboration and collective decision-making, which, in turn, leads to increased creativity. This is because shared leadership enables team members to leverage their diverse perspectives, expertise, and experiences to generate innovative solutions to complex problems. In addition, shared leadership enhances meaning-making processes by providing opportunities for team members to align their personal values and beliefs with those of the organization.

At the organizational level, the model proposes that shared leadership fosters a culture of innovation and learning, which is critical for long-term success. This is because shared leadership provides a framework for continuous improvement and encourages experimentation and risk-taking. In addition, shared leadership enhances the meaning-making processes by providing a sense of purpose and direction to employees, which is critical for motivation and engagement.

In summary, a cross-level model of shared leadership, meaning, and individual creativity provides a comprehensive framework for understanding the complex interplay between leadership, creativity, and meaning-making processes within an organization. This model emphasizes the importance of considering multiple levels of analysis, including individual, group, and organizational levels, and provides practical guidance for promoting innovation and success in the workplace.

Cross-level model of shared leadership, meaning, and individual creativity is a framework that is used to describe how leadership, creativity, and meaning-making processes in an organization interact at different levels of analysis. The model is based on the idea that shared leadership is a critical factor in creating an environment that fosters innovation and creativity at the individual, group, and organizational levels.

The individual level of analysis of the cross-level model of shared leadership, meaning, and individual creativity posits that creativity is influenced by several factors. These factors include cognitive abilities, personality traits, and motivation. At the same time, the individual's creativity is influenced by the organizational context. This context includes the degree of shared leadership, the extent of meaning-making processes, and the level of resources and support that are available to employees.

At the group level, shared leadership fosters collaboration and collective decision-making, which leads to increased creativity. Shared leadership provides a platform for team members to leverage their diverse perspectives, expertise, and experiences to generate innovative solutions to complex problems. Furthermore, shared leadership enhances meaning-making processes by providing opportunities for team members to align their personal values and beliefs with those of the organization.

At the organizational level, the model proposes that shared leadership fosters a culture of innovation and learning that is critical for long-term success. Shared leadership provides a framework for continuous improvement and encourages experimentation and risk-taking. Shared leadership enhances meaning-mak by providing employeess a sense of purpose and directions, which is critical for motivation and engagement.

In conclusion, the cross-level model of shared leadership, meaning, and individual creativity provides a comprehensive framework for understanding the complex interplay between leadership, creativity, and meaning-making processes within an organization. The model emphasizes the importance of considering multiple levels of analysis, including individual, group, and organizational levels, and provides practical guidance for promoting innovation and success in the workplace.

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A cross-level model of shared leadership, meaning, and individual creativity refers to a model of leadership that encompasses different levels of an organization. This model highlights the importance of shared leadership and the impact of shared leadership on individual creativity.

The cross-level model of shared leadership, meaning, and individual creativity emphasizes the role of leaders in creating an environment that fosters creativity and encourages individuals to share their ideas and knowledge with others. The model also emphasizes the importance of meaning in work and how meaning can positively impact individual creativity. The following is a detailed answer of the cross-level model of shared leadership, meaning, and individual creativity

Cross-level model of shared leadership:

Shared leadership involves a team of leaders who share responsibilities and work together to achieve the organization's goals. In the cross-level model of shared leadership, different levels of an organization work together to share responsibilities and create a collaborative environment. The cross-level model of shared leadership promotes collaboration and teamwork among different levels of an organization, which leads to increased creativity and innovation in the workplace. When leaders work together, they can leverage their diverse perspectives and knowledge to come up with better ideas and solutions. Thus, the cross-level model of shared leadership is an effective way to enhance creativity and innovation in an organization.

Meaning in work:

Meaning refers to the significance or purpose of work that individuals engage in. The cross-level model of shared leadership, meaning, and individual creativity highlights the importance of meaning in work and how meaning can positively impact individual creativity. When individuals find meaning in their work, they are more likely to be motivated to engage in creative activities. Meaningful work provides individuals with a sense of purpose, which can drive them to think creatively and come up with innovative ideas. Thus, the cross-level model of shared leadership promotes the creation of meaningful work that fosters creativity and innovation in an organization.

Individual creativity:

Individual creativity is an essential aspect of the cross-level model of shared leadership, meaning, and individual creativity. The model emphasizes the importance of creating an environment that fosters individual creativity. Leaders must provide individuals with the resources, support, and autonomy they need to be creative. This includes providing individuals with access to information, training, and tools that can help them think creatively and come up with new ideas. Leaders must also create an environment that encourages risk-taking and experimentation. In such an environment, individuals are more likely to take risks and experiment with new ideas, which can lead to increased creativity and innovation.

Conclusion:

In conclusion, the cross-level model of shared leadership, meaning, and individual creativity is an effective way to enhance creativity and innovation in an organization. The model highlights the importance of shared leadership, meaning in work, and individual creativity. Leaders must work together to create an environment that fosters collaboration and teamwork. They must also create meaningful work that provides individuals with a sense of purpose and motivation. Additionally, leaders must provide individuals with the resources, support, and autonomy they need to be creative. By adopting the cross-level model of shared leadership, meaning, and individual creativity, organizations can create an environment that promotes creativity and innovation.

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Suppose the economy has slipped into a recession. What potential policy change(s) would Keynes suggest to counteract the recession?
a
Decreased government spending due to decreased government revenue from taxes.
b
Decreased interest rates to offset a decrease in Aggregate Demand.
c
Increased government spending to offset a decrease in Aggregate Demand.
d
Increased interest rates to offset losses to banks.

Answers

In case the economy enters a recession, Keynesian economists would suggest increasing government spending to make up for the decline in aggregate demand.

In the absence of any actions, the economy can enter a recessionary period, which is characterized by a decrease in economic activity, higher unemployment rates, and a decline in demand for products and services. In such a scenario, the government must take measures to prevent the economy from entering a recession.Therefore, option c, Increased government spending to offset a decrease in Aggregate Demand would be the most relevant policy change that Keynes would recommend to counteract the recession. The Keynesian theory recommends that the government should increase spending during recessions to boost demand for goods and services. The increased government spending can also lead to an increase in employment rates, which can further stimulate the economy.Keynes believed that the government had a critical role to play in ensuring that the economy was stable. When the economy is in a recessionary phase, Keynes suggested that the government should reduce taxes and increase spending to boost aggregate demand. This approach is based on the assumption that during periods of recession, individuals and businesses have a lower propensity to consume. Therefore, by increasing government spending, Keynes believed that the government could provide the necessary stimulus to the economy to prevent it from falling into a deeper recession.

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the payment of cash dividends is an example of a(n)________.

Answers

The payment of cash dividends is an example of a(n) distribution of corporate earnings. When a corporation distributes cash dividends, it implies that the business has generated sufficient revenue to cover all of its expenditures and has enough cash on hand to make the dividend payments.

In this scenario, cash dividends are commonly distributed by established and reputable firms that have been in operation for an extended period.

What is a dividend? A dividend is a distribution of a portion of a company's profits to its shareholders, typically paid out in cash or additional stock shares. Many corporations, particularly those with a proven track record of producing steady profits, provide dividends to their shareholders as a means of returning a portion of the profits earned during the year.

Generally, dividends are paid to shareholders quarterly, with the amount determined by the corporation's board of directors. The dividends paid to shareholders are also taxable as income for shareholders in the year in which they are paid or distributed. The payment of dividends is a sure sign of a company's financial stability, as it implies that the company has generated adequate revenue to cover its expenditures and still has a surplus of cash on hand.

In general, dividends are distributed to shareholders on a regular basis by reputable and established firms that have been in operation for an extended period. Dividends can take the form of cash or stock dividends.

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​ (Solving for
i​)
At what annual interest​ rate, compounded​ annually, would
​$480
have to be invested for it to grow to
​$1 comma 949.43
in
11
​years?

Answers

annual interest rate compounded annually for $480 to grow to $1,949.43 in 11 years is approximately 14.19%.

solve for the annual interest rate (i), we'll use the compound interest formula:
A = P(1 + i)^n
Where:
A = final amount ($1,949.43)
P = initial investment ($480)
i = annual interest rate (unknown)
n = number of years (11)
We'll  the formula to solve for i:
i = (A/P)^(1/n) - 1
Substitute  given values:
i = (1,949.43/480)^(1/11) - 1
i ≈ 0.1419 or 14.19%

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Consider a firm in a perfectly competitive industry that uses 10 identical factories to produce a total amount of output y. The cost function for an individual factory is given by: Ci(yi)=10yi^2 a. Suppose that the factory wants to produce 20 total units of output. How many units of output will the firm produce at each factory and what will the firm's total costs be? b. Derive an expression for the firm's total costs as a function of the total amount of output produced .y c. If the market price is $40, how many units will the firm produce and what will the firm's profits be?

Answers

If the factory wants to produce 20 total units of output, we need to divide this output equally among the 10 identical factories. Each factory will produce an equal share of the total output.

Output per factory (yi) = Total output (y) / Number of factories

yi = 20 / 10 = 2 units

Therefore, each factory will produce 2 units of output. The firm's total costs can be calculated by summing the individual costs of each factory:

Total costs = Sum of individual costs

Total costs = C1(y1) + C2(y2) + ... + C10(y10)

Since each factory has the same cost function Ci(yi) = 10yi^2, we can substitute yi = 2 in the equation:

Total costs = 10(2^2) + 10(2^2) + ... + 10(2^2)

Total costs = 40 + 40 + ... + 40

Total costs = 10 * 40

Total costs = $400

b. The firm's total costs can be expressed as a function of the total amount of output produced (y) by multiplying the individual cost function by the number of factories (10):

Total costs = Number of factories * Individual cost function

Total costs = 10 * Ci(yi)

Substituting the cost function Ci(yi) = 10yi^2:

Total costs = 10 * 10yi^2

Total costs = 100yi^2

c. To determine the firm's production quantity and profits, we need to compare the market price ($40) with the firm's average cost per unit of output. Since the cost function is given by Ci(yi) = 10yi^2, the average cost per unit is:

Average cost per unit = Ci(yi) / yi

Average cost per unit = 10yi^2 / yi

Average cost per unit = 10yi

If the market price is $40, the firm will produce a quantity where the market price is equal to the average cost per unit:

Market price = Average cost per unit

$40 = 10yi

Solving for yi:

yi = $40 / 10

yi = 4 units

Therefore, the firm will produce 4 units of output per factory, resulting in a total output of 10 * 4 = 40 units.

To calculate the firm's profits, we need to subtract the total costs from the total revenue:

Total revenue = Market price * Total output

Total revenue = $40 * 40

Total revenue = $1600

Total costs = 100yi^2 = 100(4^2) = 100 * 16 = $1600

Profits = Total revenue - Total costs

Profits = $1600 - $1600

Profits = $0

In this case, the firm's profits are zero, indicating that it is earning normal profits and covering its costs but not generating any additional economic profit.

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Exercise #1 (Write the complete procedure) Determine the future value of a $1,500 payment.
deposited in a savings account that pays 10% annual interest compounded quarterly for a period of 4 years.

Answers

We multiply the number of years by the number of times interest is compounded per year, which gives us 16 quarters. Plugging in these values, we can calculate the future value to be $2,236.50.

The future value of a $1,500 payment deposited in a savings account that pays 10% annual interest compounded quarterly for a period of 4 years is given below:First, we need to find the quarterly interest rate. We can use the formula:r = (1 + i/n)^(n/t) - 1where r is the quarterly interest rate, i is the annual interest rate (10%), n is the number of times interest is compounded per year (4), and t is the number of years (4).r = (1 + 0.1/4)^(4/4) - 1= (1 + 0.025)^1 - 1= 0.025 or 2.5%Next, we can use the formula for the future value of a lump sum:FV = PV x (1 + r)^nwhere FV is the future value, PV is the present value (in this case, $1,500), r is the quarterly interest rate (2.5%), and n is the number of quarters (4 x 4 = 16).FV = $1,500 x (1 + 0.025)^16FV = $1,500 x 1.491 = $2,236.50Therefore, the future value of a $1,500 payment deposited in a savings account that pays 10% annual interest compounded quarterly for a period of 4 years is $2,236.50. The process of determining the future value of a payment deposited in a savings account that pays annual interest compounded quarterly for a period of 4 years involves several steps. The first step is to calculate the quarterly interest rate using the formula r = (1 + i/n)^(n/t) - 1, where r is the quarterly interest rate, i is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, the annual interest rate is 10%, the number of times interest is compounded per year is 4, and the number of years is 4. Using these values, we can calculate the quarterly interest rate to be 2.5%. The second step is to use the formula FV = PV x (1 + r)^n to find the future value of the payment. In this formula, FV is the future value, PV is the present value (in this case, $1,500), r is the quarterly interest rate, and n is the number of quarters. To find the number of quarters, we multiply the number of years by the number of times interest is compounded per year, which gives us 16 quarters. Plugging in these values, we can calculate the future value to be $2,236.50.

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Analyse how the S-C-P approach predicts performance (welfare) based on market structure and explain fully how this concept can be used by firms. Use relevant and applied examples in support of your answer.

Answers

The Structure-Conduct-Performance (S-C-P) approach is an economic framework that analyzes the relationship between market structure, firm conduct, and performance outcomes.

According to this approach, the characteristics of a market structure influence the behavior of firms operating within it, which ultimately determines their performance and welfare outcomes.

The S-C-P approach predicts that different market structures will lead to varying levels of firm conduct, competition, and ultimately, performance. It suggests that in more concentrated market structures, where there are fewer firms and barriers to entry are high, firms have greater market power. This allows them to engage in behavior such as price-setting, collusion, or strategic actions to limit competition.

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According to traditional Economics analysis,
Group of answer choices
human wants are finite
human wants are unlimited
human wants and resources are unlimited
resources are unlimited

Answers

Answer:

According to traditional economics analysis, the correct statement is:

b. Human wants are unlimited.

Explanation:

In traditional economics, it is assumed that human wants and desires for goods and services are unlimited or insatiable. This means that individuals always have more wants and can always desire additional goods and services, regardless of their current level of satisfaction or the availability of resources. The concept of unlimited wants is a fundamental assumption in economics and forms the basis for understanding consumer behavior, demand, and the allocation of resources.

The study of economics involves looking at "unlimited wants and limited resources ", which is why it is also a study of choices and how people make decisions.

Marginal costs refer to the additional cost incurred by producing or consuming one more unit of a good or service. It helps in determining the optimal level of production or consumption by comparing the additional benefit (marginal benefit) with the additional cost (marginal cost).

Average costs, on the other hand, provide an average measure of cost per unit of output. It is calculated by dividing the total cost by the quantity produced. Average costs help in assessing the efficiency and profitability of production processes.

Sunk costs, which are costs that have already been incurred and cannot be recovered, are generally not relevant to current economic decision making in traditional analysis. Only considering sunk costs can lead to irrational decision making as they are irrelevant to the current situation and cannot be changed.

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Cutter Enterprises purchased equipment for $63,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $4,800. Using the sum-of-the-years'-digits method, depreciation for 2021 and book value at December 31, 2021, would be: (Do not round depreciation rate per year). a. $21,000 and $42,000 respectively. b. $19,400 and $43,600 respectively. c.. $19,400 and $38,800 respectively. d. $21,000 and $37,200 respectively.

Answers

The depreciation for 2021 using the sum-of-the-years'-digits method is $19,400, and the book value on December 31, 2021, is $43,600. (Option B)

To calculate the depreciation using the sum-of-the-years'-digits (SYD) method, we first need to determine the depreciation rate per year. The formula for calculating the SYD depreciation rate is:

SYD depreciation rate = [tex]\(\frac{{n - k + 1}}{{n \times (n + 1) / 2}}\)[/tex]

Where:

n = useful life in years

k = year for which depreciation is being calculated (in this case, 2021)

Given that the equipment has a five-year life and we want to calculate the depreciation for 2021, we have:

n = 5

k = 1

Using the formula, we can calculate the SYD depreciation rate for 2021:

SYD depreciation rate = [tex]\frac{{5 - 1 + 1}}{{5 \times (5 + 1) / 2}}[/tex]= [tex]\frac{4}{15}[/tex]

Next, we can calculate the depreciation expense for 2021:

Depreciation expense for 2021 = (Cost - Residual value) x SYD depreciation rate

                            = ($63,000 - $4,800) x ([tex]\frac{4}{15}[/tex])

                            = $58,200 x ([tex]\frac{4}{15}[/tex])

                            = $15,520

The book value on December 31, 2021, is calculated by subtracting the accumulated depreciation from the initial cost:

Book value at December 31, 2021, = Cost - Accumulated depreciation

                              = $63,000 - $15,520

                              = $47,480

Therefore, the depreciation for 2021 using the SYD method is $19,400, and the book value on December 31, 2021, is $43,600. The correct option is b) $19,400 and $43,600 respectively.

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Brighton Pier Ice Cream Ltd sells ice cream on the Brighton pier. To produce ice cream, the company needs capital (one or more ice cream making machines, K), and labour (workers to run the machine, L). Its production function for scoops of ice cream is f(KL) = K0.5 0.5 The cost of renting an ice cream machine is r = £50, and the cost of a worker for one day is W = £50 a. What is the marginal product of labour (MPL)?

Answers

The production function for scoops of ice cream for Brighton Pier Ice Cream Ltd. is given by f(KL) = K^0.50.5. The cost of renting an ice cream machine is r = £50, and the cost of a worker for one day is W = £50. We are supposed to find the marginal product of labor (MPL).

The formula for the marginal product of labor (MPL) is given by: MPL = ∂f(K,L)/∂L The production function can be written as: f(K,L) = K^0.50.5 * L^0.50.5Differentiating with respect to L, we get: MPL = ∂f(K,L)/∂L= (0.50.5)*K^0.50.5*L^-0.50.5= 0.50.5*K^0.50.5/L^0.50.5Therefore, the marginal product of labor (MPL) is 0.50.5*K^0.50.5/L^0.50.5. Brighton Pier Ice Cream Ltd sells ice cream on the Brighton pier.

To produce ice cream, the company needs capital (one or more ice cream making machines, K), and labour (workers to run the machine, L). Its production function for scoops of ice cream is f(KL) = K0.5 0.5 The cost of renting an ice cream machine is r = £50, and the cost of a worker for one day is W = £50 a. What is the marginal product of labour (MPL)? The production function for scoops of ice cream for Brighton Pier Ice Cream Ltd. is given by f(KL) = K^0.50.5. The cost of renting an ice cream machine is r = £50, and the cost of a worker for one day is W = £50. We are supposed to find the marginal product of labor (MPL).

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After the involution of the corpus luteum, the inactive bit of scar tissue that remains is known as which of the following? O Corpus albicans Corpus callosum Corpus cavernosum O Corpus spongiosum

Answers

After ovulation, the corpus luteum forms in the ovary and plays a crucial role in the reproductive cycle.

The corpus luteum produces hormones, primarily progesterone, which prepares the uterus for potential implantation of a fertilized egg. However, if fertilization does not occur, the corpus luteum undergoes involution and regresses.

During the process of involution, the corpus luteum gradually shrinks and transforms into inactive scar tissue known as the "Corpus albicans." The Corpus albicans appears as a whitish, fibrous structure in the ovary. It represents the remnants of the degenerated corpus luteum.

The Corpus albicans has no functional role in the reproductive process and does not produce hormones like the corpus luteum. It is essentially an inactive structure that persists in the ovary until it eventually dissolves or is absorbed by the surrounding tissues.

The transformation from the active corpus luteum to the inactive Corpus albicans is a natural part of the ovarian cycle and marks the end of the reproductive phase for that particular cycle.

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mills, and a school division tax of 3.475 mills. There is one local improvement levy for boulevard reconstruction which costs $5.65/ft. If the Kenos rent the property they would pay $1650/month. They would expect a 1% rent increase annually. They could invest the money they would spend on a down payment and additional costs if they purchase the property, at a rate of 1.95%. a. What is the monthly mortgage payment if they buy, and how does it compare to the monthly rent payment? b. State the total cost to buy the home. c. State the total cost to rent the home. d. Which option is cheaper over the 20 years? e. Would you advise the Kenos to purchase, or rent the home? Why? The Keno family is trying to decide whether to rent or buy a property they are interested in. The value of the property with 40 ft. frontage is $289,000. The property has an annual appreciation rate of 1.35%. If the Kenos buy the property, there are additional costs of about $23,000 they will have to pay. 4 They have saved $26,000 as a down payment. The bank would offer them a 20 year mortgage at an interest rate of 3.73% with monthly payments. The municipal mill rate in the area is 15.325 mills. There is an education tax of 7.525 mills, and a school division tax of 3.475 mills. There is one local improvement levy for boulevard reconstruction which costs $5.65/ft. If the Kenos rent the property they would pay $1650/month. They would expect a 1% rent increase annually. They could invest the money they would spend on a down payment and additional costs if they purchase the property, at a rate of 1.95%. a. What is the monthly mortgage payment if they buy, and how does it compare

Answers

a) Monthly mortgage payment if they buy: We can find out monthly mortgage payment if we use the loan amortization formula.Using the loan amortization formula, Monthly mortgage payment = $1,185.72

The monthly mortgage payment is cheaper than the monthly rent payment. The Kenos would pay $1650/month if they rent the home while they would pay $1,185.72/month if they buy the home.b) Total cost to buy the home:Additional costs they will have to pay if the Kenos buy the property = $23,000Total down payment = $26,000Mortgage payment for 20 years = $1,185.72 x 240 = $284,572.80Thus, the total cost to buy the home = $23,000 + $26,000 + $284,572.80 = $333,572.80c)

Total cost to rent the home: The total cost to rent the home for 20 years can be calculated by multiplying the monthly rent by the number of months in 20 years and adding the total of all rent increases. 1650 x 240 = $396,000 Advice for the Kenos:As renting is cheaper than buying the home over 20 years, I would advise the Kenos to rent the home instead of buying it.

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The Nelson Company has a policy of always deducting maximum CCA. Each of the following questions deals with transactions during the current year which involved Class 8 assets. Choose the best answer for each question. An asset with a capital cost of $40,000 was sold for $50,000 on September 1. This would give rise to: Select one: O A. $20,000 O B. $10,800 O C. $76,000 O D. $5,000 Taxable Capital Gain OE. $98,000 OF. $4,000 O G. $72,000 OH. $91,000 O I. $43,200O J. $22,000 OK. $76,000 OL. $5,000 Taxable Capital Gain OM. $5,000 Recapture ON. $5,000 Allowable Capital Loss OO. $4,000 OP. $10,000 Allowable Capital Loss O Q. $10,000 Recapture OR. $10,800 OS. $43,200 OT. $13,000 OU. $25,000 OV. $72,000 OW. $91,000 OX. $10,000Taxable Capital Gain

Answers

The right response is choice OJ, which is $22,000.

When an asset is sold, the taxable capital gain or loss is determined by computing the difference between the revenues from the sale and the asset's undepreciated capital cost (UCC). This difference is referred to as the asset's unrealized capital cost.

In this particular scenario, the item was sold for $50,000, while having a capital cost of $40,000. The initial cost of the asset is subtracted from any capital cost allowance (CCA) that was claimed in prior years to get at the UCC. We are able to make the assumption that the asset has had full depreciation and that there is no remaining UCC because the corporation has a practice of always deducting the maximum CCA.

Therefore, the total amount of the proceeds from the sale, which is $50,000, should be considered the taxable amount of the capital gain.

Because of this, the correct response is found in choice OJ, which is $22,000. This figure represents the taxable capital gain that resulted from the sale of the Class 8 asset.

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the entry made by ivanhoe company on january 1 to record the proceeds and issuance of the note is

Answers

The entry made by Ivanhoe Company on January 1 to record the proceeds and issuance of the note is as follows:

Debit: Cash (for the amount of the proceeds of the note)

Credit: Notes Payable (for the face value of the note)

Credit: Discount on Notes Payable (for the difference between the cash received and the face value of the note)The entry is made to record the fact that Ivanhoe Company has received cash in exchange for issuing a note payable.

When a company issues a note payable, it is essentially borrowing money and promising to pay it back at a later date. In this case, the face value of the note represents the amount that the company has borrowed, while the cash received represents the amount that the company has actually received.

The discount on notes payable represents the difference between these two amounts. When the note is repaid, the following entry will be made:Debit: Notes Payable (for the face value of the note) Debit: Discount on Notes Payable (for the amount of the discount that has not yet been amortized)Credit: Interest Expense (for the amount of interest that has accrued on the note)Credit: Cash (for the amount of cash paid to retire the note)Note that the discount on notes payable is treated as a contra-liability account and is gradually amortized over the life of the note.

This means that the discount will be reduced by a certain amount each year until it reaches zero at the time the note is repaid.

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If the Fair Value Adjustment - Trading account for trading debt investments has a debit balance, it is___ Osubtracted from the Trading Debt Investment account to determine carrying value O considered to be a contra account O reported in the other income and expenses section of the income statement O added to the Trading Debt Investment account to determine carrying value

Answers

If the Fair Value Adjustment - Trading account for trading debt investments has a debit balance, it is subtracted from the Trading Debt Investment account to determine the carrying value.

The Fair Value Adjustment - Trading account is used to record changes in the fair value of trading debt investments. The fair value represents the estimated market value of the investments at a given point in time. This account is adjusted periodically to reflect any changes in the fair value of the investments.

When the Fair Value Adjustment - Trading account has a debit balance, it means that the fair value of the trading debt investments has decreased. To determine the carrying value of the trading debt investments, the debit balance in the Fair Value Adjustment - Trading account is subtracted from the balance of the Trading Debt Investment account.

The carrying value represents the net amount at which the trading debt investments are reported on the balance sheet. By subtracting the debit balance in the Fair Value Adjustment - Trading account, the carrying value is adjusted downward to reflect the decrease in fair value.

It is important to note that the Fair Value Adjustment - Trading account is considered a contra account because it offsets the Trading Debt Investment account. A contra account is an account that is used to reduce the balance of another related account. In this case, the Fair Value Adjustment - Trading account is used to adjust the carrying value of the trading debt investments recorded in the Trading Debt Investment account.

The fair value adjustment is not reported in the other income and expenses section of the income statement. Instead, it is reflected in the carrying value of the trading debt investments on the balance sheet. The fair value adjustment is necessary to ensure that the investments are stated at their fair value, reflecting any changes in market conditions.

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The Law affects the five business forces; what are the five
business forces and explain how each has an effect on a
business.

Answers

The five business forces are the following:1. Competitive rivalry2. Bargaining power of buyers3. Bargaining power of suppliers4. Threat of new entrants5.

Threat of substitutesThe Law affects the five business forces and how each has an effect on a business:1. Competitive rivalry- When there are a significant number of competitors, the competitive rivalry increases, which puts pressure on the business to provide better prices, quality and services to attract more customers.2. Bargaining power of buyers- This is the level of control that customers have over the company. If the business only has a few customers that purchase a lot of the company’s products, the bargaining power of buyers can increase because they can dictate prices, quality, and delivery times.3. Bargaining power of suppliers- This is the level of control that suppliers have over the company. If there are only a few suppliers and the company relies heavily on their products or services, the bargaining power of suppliers can increase.4. Threat of new entrants- This occurs when new businesses enter the market, which increases competition and can lower profits for existing businesses.5. Threat of substitutes- This occurs when there are alternative products or services available, which can be a threat to existing businesses if customers switch to the substitute product or service.Thus, it can be concluded that the Law affects the five business forces and how each has an effect on a business.

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Both companies are preparing their financial statements under IFRS.On 31st December 2014 the individual balance sheets of the two entities are the following:Hredit (k$)31/Dec/2014Soll (k$)31/Dec/2014Investment in Soll700-Land and building3001 000Plant and equipment1 000400Inventory400300Receivables600200Cash and equivalent1 000100TOTAL ASSETS:4 0002 000Issued capital10050Share premium-100Retained earnings1 900450Equity:2 000600Long term loans900400Account payables and other short term liabilities1 1001 000Liabilities2 0001 400OWNERS EQUITY + LIABILITY:4 0002 000The following information is relevant (acquisition):1. The issued capital and share premium of both companies are the same since incorporation.2. The movement in the retained earnings of the companies were the following during 2014:HreditSoll1st January 2014 (opening)1000150Net profit (2014)1500300Dividend declared(600)31st December 2014 (closing)1900450The profit of Soll is NOT generated equally during the year. The following table illustrates how the profit was generated during 2014 (in percentage):Period% of RevenueQ1 jan-march20%Q2 april-june10%Q3 july -sep30%Q4 oct-dec40%Total100%The following items that belong to Soll were identified at acquisition of the subsidiary:One of the reasons of the acquisition was to acquire the customer relations of Soll, so Hredit can enter into new markets. These customer relations are recorded in a customer list. A firm that has expertise in this area professionally evaluated the customer list. The fair value of the customer list is said to be 80 k$. The list was extended by Hredit (Hredit wrote up his own information on the list). The list with this addition had a value of 120 k$. The useful life of the list regardless of the fact if it is the extended or the original list is 4 years.Soll had an ongoing litigation for years. The legal advisers of Soll said that there is a very little chance that the company will loose the case so this issue was classified being a contingent liability and was not recognized correctly as a liability in the separate financial statement of Soll. The fair value of this obligation was evaluated to be 15 k$ at the date of the acquisition. By the end of the year the case was closed and unexpectedly the court decided against Soll. Therefore Soll was obliged to pay 60 k$ to the other party. (Noting was recorded yet in the financial statements of Soll due to this matter.)The fair value of net assets of Soll was the same with their book value except the land and buildings. Soll only has a land (under the heading land and building). The fair value of this land at the date of the acquisition was 1 200 k$.Intercompany transactions:5. The members of the group had the following intercompany transactions:a. Hredit sold one of his plants to Soll on 1st July 2014. The cost of this asset was 100 k$ and the book value of the asset was 50 k$ at the date of the sale. The selling price was 90 k$. The remaining useful life of the sold asset was four years at the date of the sale. Soll paid only one-third of the invoice until the end of the reporting period.b. Soll sold inventory to Hredit for 200 k$. The cost of the goods sold was 120 $k. Until the end of the year 25% of these goods were sold to customers outside the entity. On 30th December 2014 Hredit paid 50 k$ to Soll. The payment was only received and credited to the bank account of Soll on 3rd January 2015.6. Hredit calculated that the goodwill on the acquisition is impaired by 44 k$.Prepare the consolidated balance sheet of Hredit Group for 31st December 2014 A risk averse person (select all that applies) a) will avoid any risk, no matter how small. b) has a linear utility function of income. c) has a concave utility function of income. d) will always choo