The GIM suggested for the 14-unit property is 8.
Data and Calculations:
16 units 12 units 4 units
Selling price $1,200,000 $960,000 $480,000
Gross income $150,000 $120,000 $48,000
Gross Income Multiplier 8 8 10
A 14-unit apartment building's suggested GIM = 8
A property's gross income multiplier (GIM) measures the property value by dividing the property's sale price by its gross annual rental income.
Thus, the GIM suggested for the 14-unit property is <em>8.</em>
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The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of materiality. In auditing and accounting, the term "materiality" refers to the importance or "significance" of a sum, a transaction, or a discrepancy.
According to the general accepted accounting principles (GAAP) criterion known as "materiality," all items that are conceivably likely to have an influence on investors' decision-making must be documented or disclosed in full in a company's financial statements. The significance of information in financial accounts of a corporation is referred to as materiality. A transaction or business decision is "material" to the business if it necessitates reporting to investors or other users of the financial statements and cannot be excluded.
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Answer:
PPF : Downward Sloping Straight Line
Explanation:
PPF is the locus of product combinations that an economy can produce, given resources & technology.
It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.
Marginal Opportunity Cost (Slope of PPC): is ratio of a good sacrifised to gain each additional unit of the other good.
∆ Good sacrifised / ∆ Good gained
If this ratio is same i.e constant amount of a good is sacrifised to gain an additional amount of the other one , the slope of PPC is constant & it is a straight line
Eg : Good1 Good2 MOC [∆Good2/∆Good1]
0 20 _
10 10 -10/10 = -1 (10-20)/(10-0)
20 0 -10/10 = -1 (0-10)(/20-10)
So , same (1) good 2 is sacrifised to attain a good 1 each time.
However Generally: MOC is increasing , because of assumption that resources are unequally efficient in various goods production - shifting good from efficient to inefficient increases sacrifise each time. This makes PPC usually concave.
Answer:
the real GDP in 2019 is $200
Explanation:
The computation of the real GDP is shown below;
= Base year price × quantity produced in 2019
= $1 × 200
= $200
Hence, the real GDP in 2019 is $200
The above should be used to determine the real GDP in 2019 and the same should be relevant
<span>When downsizing employee the most effective method I feel will be to based the decision on facts or documented evidence that may be difficult to dispute. The source of data can be used maybe the last few performance appraisal results, absenteeism , productivity rate and other soft skills to measure suitability to the job. Create a matrix identifying the criteria and measure the grade of each employee based on the criteria. In a way this is a measured evaluation.
The least effective i would think are those decisions based on emotional considerations.</span>