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kogti [31]
2 years ago
10

creative textiles inc. manufactures cloth and buys the chemical dyes for its use from california chemicals inc. california chemi

cals inc., in turn, buys uniform material for its employees from creative textiles inc. this scenario highlights a specific business practice known as .
Business
1 answer:
evablogger [386]2 years ago
3 0

This scenario highlights a specific business practice known as  <u>reciprocity</u>.

<h3>What is reciprocity</h3>

Reciprocity can be defined as the process in which two companies engages in a business transaction with one another by buying  product from each other . This simply means that companies A buy product from company B and company B return the favor by buying a product from company A.

Based on the given scenario the both companies engages in what is called reciprocity by exchanging business transaction  with each other.

Therefore this scenario highlights a specific business practice known as  <u>reciprocity</u>.

Learn more about Reciprocity here:brainly.com/question/15149544

#SPJ1

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"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth.
bixtya [17]

Answer:

the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.

Explanation:

"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." This policy directive follow the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.

<u>The reason is that in the short-run, deficits offer economic solutions by being an antidote to recessions, hence they could be a strategy of recession management in the short run</u>

<u>However in the long-run, deficits are not advisable as they could lead to debts because the major way to manage such deficits is by external borrowings. </u>

<u />

5 0
3 years ago
Johnson Company has current year accounts payable of $25,000 and cost of goods sold of $100,000. Compute Johnson Company’s days’
natita [175]

Answer:

the days payable outstanding is 91.25 days

Explanation:

The computation of the days payable outstanding is  shown below:

Days' payable outstanding is

= (Accounts Payable ÷  Cost of goods sold) × total number of days in a year

= ($25,000 ÷ $100,00) × 365 days

= 91.25 days

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Hence, the days payable outstanding is 91.25 days

7 0
3 years ago
Monique lends Taylor $1,200 on March 15, 2009. Taylor is expected to return $1,260 on March 14, 2010. Monique expects inflation
Irina-Kira [14]

Answer:

2.94%

Explanation:

Real Rate of Return is the actual rate of return that an investor gets from investment excluding any inflation effect.

Present Value = PV  = $1,200

Future Value = FV = $1,260

Numbers of period = n = 1 year

Use Following Formula to calculate the nominal Interest rate

FV = PV x ( 1 + r )^n

$1,260 = $1,200 x ( 1 + r )

$1,260 / $1,200 = 1+r

1.05 = 1 + r

r = 1.05 - 1 = 0.05 = 5%

As the 5% is the Nominal Interest rate

we Will Use the Fisher Effect formula to calculate the real Interest rate

1 + Nominal Interest Rate = ( 1 + Real Interest Rate ) x ( 1 + Inflation Rate )

1 + 5% = ( 1 + Real Interest Rate ) x ( 1 + 2% )

1 + 0.05 = ( 1 + Real Interest Rate ) x ( 1 + 0.02 )

1.05 = ( 1 + Real Interest Rate ) x 1.02

1 + Real Interest Rate  = 1.05 / 1.02

1 + Real Interest Rate = 1.0294

Real Interest Rate = 1.0294 - 1

Real Interest Rate = 0.0294 = 2.94%  

8 0
3 years ago
Read 2 more answers
(a) Graphically show &amp; explain how carpooling may eliminate the shortage.
balu736 [363]

Answer:Graphically show & explain how carpooling may eliminate the shortage.

Explanation:

4 0
3 years ago
The big problem with average-cost pricing is that:A. fixed costs are hard to estimate.
zavuch27 [327]

Answer:

B. it ignores the firm's demand curve.

Explanation:

A: With the help of average cost pricing, the fixed cost can quickly estimate. Therefore, it cannot be the answer.

C: The average cost must consider the effect of variable cost. Therefore, it is also the wrong statement.

D: It is easy to estimate profit if there is an average cost pricing.

B: average-cost pricing always ignores the demand curve because it is a "U" shaped curve. Because after a certain level of product selling, the average cost is increasing. On the other hand, demand curve is such that if the price decreases, the quantity demanded increases. Therefore, it is a downward slopping curve. Hence, it is understood that, average-cost pricing ignores demand curve.

6 0
3 years ago
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