Answer:
B. Studies why people sometimes don't optimize
Explanation:
Behavioral economics is the combination of psychology and economics applied to explain why individuals sometimes behave irrationally and don't make optimal economic decisions.
Behavioral economics takes into account human factors such as emotions, influence etc and cites them as one of the reasons as to why individuals act irrationally sometimes.
For example,most of our buying decision are influenced by what our peers buy and many a times lead us into buying those articles which we don't actually require.
Thus, behavioral economics (C). studies why people sometimes don't optimize.
Henway Inc has a clause in its employment contract that identifies the state law that will apply to any disputes that arise under the contract. This is called an:________
a. forum selection clause.
b. escalator clause.
c. omnibus clause.
d. reserve clause.
Answer:
correct answer is a. forum selection clause
Explanation:
solution
the correct answer is forum selection clause because as it suggests you forum selection
forum selection allows the party to choose the forum or the specific way to deal with the dispute between the two parties
so here organization Henway has chosen state law as that the way to deal with the dispute
so that correct answer is forum selection clause
A Ponzi scheme involves using new investment dollars to trick current investors into thinking they are earning high returns. If someone running a Ponzi scheme is bringing in new investors at a rate of 25% per year and stealing 10% of investments, what return could he pay investors? (Assume the money is never really invested.)
a) 15%
b) 20%
c) 25%
Answer: a) 15%
Explanation:
If an investor is bring in someone new at 25% and is stealing 10% of the investment, the return he could pay investors is (25-10%) which is 15%.
Suppose the money multiplier in the United States is 3. Suppose further that if the Fed changes the discount rate by 1 percentage point, banks initially change their reserves by 400. To reduce the money supply by 4,200 the Fed should:
Answer:
increase the discount rate by 3.5% points
Explanation:
Since the money multiplier is 3, a 1% increase in the discount rate will decrease the money supply by: $400 x 3 = $1,200
If the Fed wants to lower the money supply by $4,200, it should increase the discount rate by: $4,200 / $1,200 = 3.5 points
Gaining management agreement to a concise project goal that addresses the issue(s) of ____ is essential for both the project manager and management to stay synchronized with project expectations.
Answer:
-Scope
-Time Frame
-Budget
The following table contains statements that provide some analysis of policies that address smoking, lung cancer, and cigarette taxes.Categorize each of these statements as either positive or normative.Statement Positive Normative1.Lung cancer kills millions of people each year. 2.Too many people smoke. 3.If the government were to increase taxes on cigarettes, fewer people would smoke. 4.The government should increase taxes on cigarettes.
Answer:
Positive Statements:
Lung cancer kills millions of people each year.
If the government were to increase taxes on cigarettes, fewer people would smoke.
Normative Statements:
Too many people smoke.
The government should increase taxes on cigarettes.
Explanation:
A positive statement is one that seeks to describe the world as it is.
A normative statement is one that offers an opinion as to the way the world should be.
The following statements are correctly categorized whether they are either positive or normative. Statement Positive Normative.
Lung cancer kills millions of people each year: Positive statementToo many people smoke: Normative statementIf the government were to increase taxes on cigarettes, fewer people would smoke: Positive statementThe government should increase taxes on cigarettes: Normative statementThe positive statement makes a factual observation regarding the number of individuals affected by lung cancer annually.
A normative statement indicates that the current amount of smoking is deemed excessive or unacceptable by expressing an opinion or value judgment about it.
Positive statement assertion suggests a cause-and-effect connection and foresees a possible result of raising cigarette taxes.
A normative statement gives an opinion or a suggestion on what the government should do in terms of taxing cigarettes, demonstrating a value assessment of the desired course of action.
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You have informed users that you need to bring the machine down at the end of the day to perform routine maintenance. However, prior to shutting the system down, you want send a message to users and give them fifteen minutes to save data and exit the system.
Which of the following commands should you use?
shutdown -h +15 It is time for a shutdown!
Answer:
shutdown -h +15 It is time for a shutdown!
Explanation:
shutdown -h +15 It is time for a shutdown!
Celgene Corporation, a biopharmaceutical company based in New Jersey, develops cutting-edge drugs in a highly regulated environment. Areas such as informatics and functional genomics evolve on a daily basis, as do the regulations that control the pharmaceutical industry. The stem cell lines Celgene needs for research are very expensive and can be hard to acquire.At celgene, the environment is ______ because of the ______ and _______ because of the _______. resources are ______.
At celgene, the environment is dynamic because of the pace of change and complex because of the number of factors that are changing . resources are scarce .
Explanation:
Business conditions are dynamic in nature, as volatility continues to change. Changes in public policies, changes in market preference and judgment, technological changes, etc., For example. Such changes could be caused by internal and external factors and could have an impact on growth and business survival. This is why it is considered a competitive operating environment.
The dynamic business environment can also trigger economical changes. Falling interest rates can expand an enterprise or its competitors, and quickly change the growth rate of the industry. falling prices may do the same for necessary raw resources
A(n) ________ in the liquidity of corporate bonds will ________ the price of corporate bonds and ________ the yield on corporate bonds, all else equal.
Answer:
An increase in the liquidity of corporate bonds will increase the price of corporate bonds and decrease the yield on corporate bonds, all else equal.
Explanation:
Bond liquidity refers to how quickly the bonds can be redeemed and converted to cash. This relates to the ease with which an investor can sell his bond.
High liquidity bonds are costly as they are more in demand and an attractive investment for the investors.
Thus, bond liquidity is directly related to it's price.
The yield of a bond refers to the market rate of return and represents the expectation of the bondholder with respect to rate of return.
A high price bond ( high liquidity) usually pays higher coupon rate of interest which is higher than the market rate of return on similar bonds i.e yield to maturity. This means price of a bond is inversely related to it's yield. Higher the bond price, higher the coupon payment, lower the bond yield.
________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
A. Marketing data
B. Customer intelligence
C. Competitive intelligence
D. Marketing intelligence
E. Sales management
Answer:
D. Marketing intelligence
Explanation:
Marketing intelligence is the systematic collection and analysis of data about the market its operating or want to enter.
Marketing intelligence can be obtained through making research about the products (what consumer desire, branding type, pricing of the product, comparing competitor products, pricing and branding, e.t.c).
Marketing intelligence is use to for decision making and allows for product innovation or improvement thereby promoting the sales of its products.
Answer: Marketing Intelligence.
Explanation: Marketing Intelligence.
The new employee at Cork Manufacturing reported tp work and the employee reviewed the following information that was audited by the CPA:
Cork Manufacturing
Consolidated Balance Sheet Worksheet
December 31, 20XX
Assets Total:
Cash.................................................................$600,000
Notes receivable.....................................$750,000
Investment company A.......................$800,000
Other assets................................................$900,000
Total assets.............................................$3,050,000
Liabilities and Equities
Accounts payable...............................$25,000
Notes payable.....................................$100,000
Common stock....................................$1,000,000
Retained earnings..............................$1,925,000
Total liabilities and equities.............$3,050,000
Note to Accountant: This statement was prepared in accordance to GAAP
Which of the following described the role of the new employee
a) Managerial accountant
b) Financial accountant
c) CEO
d) Manager—financial analysis
Answer:
The correct answer is D
Explanation:
In this case, the new employee who reported to work, was given the responsibility to perform the review of the information on the balance sheet which was audited by the CPA.
So, here the role of new employee is described as the manager- financial analysis, who is responsible for the financial health of the organization or business, reviewing the financial data as well.
There is news that the price of Tucker’s Root Beer will increase significantly next week. If the demand for Tucker’s Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in ___.
Answer: Expectations
Explanation:
According to the given question, the position of the given demand curve are get changed based on the change in the expectations of the consumers or users for using the products such as tucker's root beer.
If the demand the given products and the services are get increased then automatically the price significantly increases.
This is due to the change in the expectations and also requirement of the customers in the market. and this concept is also refers as low of demand. Therefore, Expectations is the correct asmwer.
Therefore, Expectations is the correct answer.
During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share and was expected to yield 4% per year in dividends, while CNA Financial Corp. (CNA) stock cost $40 per share and was expected to yield 2.5% per year in dividends.† If you invested a total of $30,150 in these stocks and expected to earn $936 in dividends in a year, how many shares of each stock did you purchase?
Answer:
1. The total number of TD stock shares purchases=270
2. The total number of CNA stock shares purchases=450
Explanation:
1. Number of TD stock shares
Step 1: Determine the Total amount invested
Total amount invested=(Cost per TD share×number of TD shares)+(cost per CNA share×number of CNA shares)
where;
Total amount invested=$30,150
Cost per TD share=$45
Number of TD shares=x
Cost per CNA share=$40
Number of CNA shares=y
replacing;
45 x+40 y=30,150....equation 1
Step 2: Determine the total dividends in a year
Total dividends=(Expected TD yield×cost per TD share×number of TD shares)+(Expected CNA yield×cost per CNA share×number of CNA shares)
where;
Total dividends=$936
Expected TD yield=4%=4/100=0.04
Cost per TD share=$45
Number of TD shares=x
Expected CNA yield=2.5%=2.5/100=0.025
Cost per CNA share=$40
Number of CNA shares=y
replacing;
936=(0.04×45×x)+(0.025×40×y)
1.8 x+y=936....equation 2
Step 3: Combine equation 1 and 2 then solve simultaneously
Multiply equation 1 by 1;
(45 x+40 y=30,150)×1=45 x+40 y=30,150
Multiply equation 2 by 40;
(1.8 x+y=936)×40=72 x+40 y=37,440
Subtract equation 2 from equation 1;
45 x+40 y=30,150
-
72 x+40 y=37,440
-27 x+0=-7,290
-27 x=-7,290
x=-7,290/-27
x=270
The total number of TD stock shares purchases=270
2. Number of CNA stock shares
Replace the value for x in equation 2 above and solve for y;
1.8 x+y=936
where;
x=270
replacing;
(1.8×270)+y=936
486+y=936
y=936-486=450
y=450
The total number of CNA stock shares purchases=450
To solve the problem, set up a system of equations using the given information and solve for the number of shares of each stock purchased.
Explanation:To solve this problem, let's assign variables to represent the number of shares of each stock purchased. Let's say X represents the number of TD shares and Y represents the number of CNA shares. Since TD stock costs $45 per share, the total cost of TD shares would be 45X. Similarly, the total cost of CNA shares would be 40Y.
According to the given information, the total investment is $30,150, so we can write the equation 45X + 40Y = 30,150. Additionally, the expected dividend yield from TD shares is 4% and from CNA shares is 2.5%. We can find the total dividends earned by multiplying the number of shares by the dividend yield and summing them up, which gives the equation 0.04X + 0.025Y = 936.
Now we have a system of equations:
45X + 40Y = 30,150
0.04X + 0.025Y = 936
Solving this system of equations will give us the number of shares of each stock that were purchased.
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Which growth strategy is designed to increase sales of existing products to current customers, non-users, and users of competitive brands in served markets would utilize which of the following marketing strategies?
A. Control.
B. Market penetration.
C. Market development.
D. Diversification.
E. Product development.
Answer:
market penetration:
Explanation:
Market penetration refers to the approach of selling the service and product in the market that is specified for a particular product.
it is calculated by determining the total amount of product sales in the market compared to goal of selling products in the market.
it involves all process that is needed to promote or to grow the market percentage in a particular business.
it is calculated as
market penetration[tex]= \frac{market\ covered}{target\ market} \times 100[/tex]
Process improvement refers to the process of continually evaluating products and services to ensure maximum efficiency is being obtained from them.True / False.
Answer: True.
Explanation:
Process improvement occurs when a business establishment critically analyses it's process of operations, with the central aim of becoming more efficient in their operations. Process improvement is continuously carried out by organizations for constant improvement.
Process improvement involves evaluating and improving processes to ensure maximum efficiency and customer satisfaction.
Explanation:Process improvement refers to the process of continually evaluating products and services to ensure maximum efficiency is being obtained from them. It involves identifying and eliminating ineffective or wasteful processes to achieve better outcomes. Companies use quality techniques to study the variation present in their processes and make improvements to increase productivity. The ultimate goal is to provide customers with what they want consistently and achieve long-term company success.
The Shoe Store has cash of $300, accounts receivable of $700, accounts payable of $800, inventory of $1,300, long-term debt of $1,900, and notes payable in three months of $500. What is the current ratio?
Answer:
Current ratio = 1.77
Explanation:
given data
cash = $300
accounts receivable = $700
accounts payable = $800
inventory = $1,300
long-term debt = $1,900
notes payable 3 months = $500
solution
first we get here Current Assets that is
current assets = $300 + $700 + $1300
current assets = $2300
and now we get current liabilities that is
current liabilities = $800 + $500
current liabilities = $1300
so now we get Current ratio that is
Current ratio = [tex]\frac{2300}{1300}[/tex]
Current ratio = 1.77
The current ratio of the Shoe Store is 1.77.
Explanation:The current ratio is a financial metric used to assess a company's short-term liquidity and ability to cover its current liabilities with its current assets. It is calculated by dividing a company's current assets by its current liabilities. In this case, the Shoe Store's current assets include cash, accounts receivable, and inventory, which sum up to $2300.
The current liabilities consist of accounts payable and notes payable, which sum up to $1300. Therefore, the current ratio is 1.77 ($2300 / $1300).
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If you deposit $1,234.16 in your checking account each month, how much will you have deposited at the end of the year?
Answer:
$14,809.92
Explanation:
A checking account is an account with a bank that does not carry interest rate but allows the owner of the account to make deposit and withdraw from the account at any time without any prior notice to the bank. Therefore, it is a very liquid account from which money can be withdrawn using automated teller machines, checks, and others.
Another names for the account include transactional accounts, demand accounts and current accounts.
Instead of enjoying interest on the deposit, the holder pays bank charges to the bank for the service rendered to him by the bank that allows him withdraw or save at any time.
Since the account to does carry any interest rate, the amount that will have been deposited monthly for 12 months starting from January to December can be calculated as follows:
Amount deposited for 12 months = monthly deposit multiply by 12
Amount deposited for 12 months = $1,234.16 * 12 = $14,809.92.
I wish you all the best.
Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples and 41 pears. If the
economy is currently at point A, the opportunity cost of moving to point B is_________--
Answer:
4 apples
Explanation:
Given that
Point A = 50 apples and 40 pears
Point B = 46 apples and 41 pears
These points are located on the PPF at which various combinations of products are displayed by available resources and technologies.
So, the opportunity cost of moving from Point A to Point B would be 4 apples which is shown below:
= Point A apples - Point B apples
= 50 apples - 46 apples
= 4 apples
If the same number of units of good Y must be given up as each successive unit of good X is produced, then the PPF for these two goods is_________________.
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.
Financial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control a company's operations.True/false
Answer:
False
Explanation:
Managerial accounting is the type of accounting that classifies, analyze, interpret and communicate accounting information of an organisation to the managers of that particular organisation for pursuit and achievement of the organisation's goal. It is mostly for internal use by the managers of the firm to improve the firm's activities directed towards achieving the goal of the organisation. On the other hands, financial accounting is the process of recording, classifying, analyzing, measuring, interpreting and communicating financial data of an organisation to enable users of accounting information makes decision. The users of accounting information include the potential investors, shareholders, government, suppliers, customers etc. Therefore financial accounting is for external use while managerial accounting is for internal use of the business
As you fit investing for the future into your personal financial plan, you should consider
________ before investing into long term assets like stocks and bonds.
A) your near term cash needs
B) your near term major expenses like home purchase
C) your willingness and tolerance to bear risk
D) All of the above should be considered
Answer:
C) your willingness and tolerance to bear risk
Explanation:
Long term investment is the act of wealth creation for a future use of money.
investing into long terms involves some patience and risks because, investment like this cannot be for seen, it fluctuate sometimes leading to appreciation or depreciation in the value of money.
this helps in bringing maximum returns for your money over a period of more than 10 years. to better maximize these returns involves a lots of patience, tolerance and risks
Bradley, the president of Commerce & Trade, Inc., claims that certain actions by the federal government and the state of Delaware infringe on rights guaranteed by the Bill of Rights. All of these rights limit
a. none of the choices.
b. the federal government.
c. private citizens and corporations.
d. the states.
Answer:
The correct answer is B
Explanation:
The Bill of Rights is the one which guarantees the liberties as well as the civil rights to the individual such as the religion, press and freedom of speech.
It states the rules for the procedure which is due for the law and also reserves all the powers not delegated to the Federal Government to the States or the people.
Therefore, the one where all the rights limit the federal government.
When the Wright brothers designed their aircraft, they built a wind tunnel to model the aerodynamics of different wing designs. Identify each of the factors below as endogenous or exogenous to the Wright brothers' model.
Answer:
Endogenous factors (variables that can be controlled when performing a model test):
aircraft speedwing angleThe Wright brothers used the wind tunnel to improve the design of their aircraft's wings.
Exogenous factors (variables that cannot be controlled when performing a model test):
wind and rain air pressureNo one can control the climate.
The identification of the factors as endogenous or exogenous to the design of the Wright Brothers' aircraft model is as follows:
Endogenous Factors Exogenous Factors
1. aircraft speed wind and rain
2. wing angle air pressure
What is an endogenous factor?Endogenous factors are variables within the control of the Wright Brothers as they designed their aircraft. Examples are given above. The Wright Brothers employed wind tunnel in the design of the aircraft wings.
What is an Exogenous Factor?Exogenous Factors include variables outside the control of the Wright Brothers. For example, they could not control wind and rain (climate) affecting their aircraft design.
Thus, the endogenous and exogenous factors affecting the Wright Brothers' aircraft model have been identified.
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Prior to attending college, Marvin is offered a lucrative four-year contract as an actor on a daytime soap opera. Assuming that acting and attending college are Marvin's preferred alternatives and that he must choose between these two options, his opportunity cost of attending college after receiving the offer on the soap opera __, making him likely to attend college than before he received the offer. a. stays the same; equally likely b. decreases; more OC. increases; more d. increases; less o e. decreases; less
Answer:
d. increases; less
Explanation:
Based on the information provided it can be said that his opportunity cost of attending college after receiving the offer on the soap opera increases, making him less likely to attend college than before he received the offer. This is because by having another option available he has to choose between both scenario's that he enjoys and give up the other one, thus increasing his opportunity cost but at the same time since he has another option it makes it less likely that he would choose school.
Which of the following managers is demonstrating the management function of planning rather than organizing, controlling, or leading?
a. Sue told her employees the department needed 12% more sales this year than last and they would be contacting at least four new customers each week
b. Martin assigned six people to work on the advertising campaign and four to work on the customer database
c. Kyle reviewed the sales figures after six months and replaced three of the salespeople who were underperforming
d. Valerie awarded a $50 bonus to employees who brought in a new customer
Answer:
a. Sue told her employees the department needed 12% more sales this year than last and they would be contacting at least four new customers each week
Judge whether the following statement is true or false. "Since the accumulation-of-wealth stage extends into the mid-50s, financing the cost of education could remain important to me should I choose to continue my education or for the education of others who are important to me (spouse, child, etc.). It is not until Stage 2: Approaching Retirement - The Golden Years that the goal of educating children is usually accomplished. During Stage 3: The Retirement Years, estate planning issues are significant, and leaving part of my estate to fund education for my grandchildren could become important."
Answer:
True
Explanation:
Generally a person makes the most money when he/she is 40 to 55 years old, and that are the same years when their total expenses are also higher. One of the highest costs are education costs, specially their children's college costs.
Assume that your children are born when you are 30-35 years old, and 22 years later they are finishing college. That fits the time period when your income peaks, and that is why you have to try cover all education expenses before turning 60.
Once you retire, around age 65, your expenses tend to level down, and if you were able to have some accumulated wealth, then it is always a good idea to set some apart to pay for your grandchildren's college. That way you are helping both your children (reducing their costs) and your grandchildren.
Employees who experience ______ conflict and ______ facilitation between work and family roles are objectively healthier, less absent and better performing employees
a. high, low
b. high, high
c. low, low
d. low, high
Answer: The correct answer is (D) low, high
Explanation:
A conflict refers to a serious disagreement which is usually protracted while facilitation means a process of helping or assisting.
For an employee to be focused on the job, less absent and objectively healthier he needs more positivity both at home and at work.
Hence, an employee needs low conflict and high facilitation to function better
Identify the control that is most likely to prevent the concealment of a cash shortage
resulting from the improper write-off of a trade account receivable:
(1) Write-offs must be approved by a responsible offi cial after review of credit department
recommendations and supporting evidence.
(2) Write-offs must be approved by the accounts receivable department.
(3) Write-offs must be authorized by the shipping department.
(4) Write-offs must be supported by an aging schedule showing that only receivables
overdue by several months have been written off.
Answer:
(1) Write-offs must be approved by a responsible official after review of credit department recommendations and supporting evidence.
Explanation:
The establishment of various levels of approval and strict internal control procedure especially for write-off of receivables will go a long way to control many forms of frauds associated with receivable write-off.
In a standard organization, the credit department are to review the status of long outstanding receivables, identify the bad ones and make necessary recommendations to the approving authorities with the necessary documentations for final action (write-off).
To prevent concealment of a cash shortage due to improper account write-offs, approval of write-offs by a responsible official and review of credit department recommendations with supporting evidence is most effective.
Explanation:The control that is most likely to prevent the concealment of a cash shortage resulting from the improper write-off of a trade account receivable is option (1), where write-offs must be approved by a responsible official after review of credit department recommendations and supporting evidence.
This process ensures that there is oversight and verification of the legitimacy of write-offs, reducing the risk of fraudulent activity and errors. The scenario provided illustrates the importance of such controls, as Noel's attentiveness to a potential overpayment prevented a significant financial mistake.
What is a type of organization information systems? A) Executive information system.B) Decisions support system.C) Augmented reality system.D) Transactional processing system.E) Business-facing process system.F) Reengineering system.
Answer:
Executive information system.
Decisions support system.
Transactional processing system.
Explanation:
An organization's information system is a system of the collective process which is designed to capture, analyze, process and share all important data. The main goal behind setting up the organization information system is to achieve the target aim by the effective way.
The categories of a system that the organization information system include are:
Databases
Decisions support system.
Enterprise systems
Global information systems
Expert systems
Information system functionalities, etc.
Not adjusting the amounts reported in the financial statements for inflation is an example of which basic assumption or principle of accounting?a. Economic entity. b. Going concern. c. Historical cost. d. Full disclosure.
Answer:
c. Historical cost.
Explanation:
Based on the information provided within the question it can be said that this statement is an example of the basic principle of accounting known as historical cost. This term refers to using the value of something based on the original cost of when it was acquired and not adjusting the amounts for inflation or other newer variables.
Final answer:
Not adjusting financial statements for inflation exemplifies the historical cost principle, which records transactions based on their original cost. Other key accounting principles serve different functions, including the economic entity assumption, the going concern assumption, and the full disclosure principle.
Explanation:
The question is asking which basic assumption or principle of accounting is demonstrated by not adjusting the amounts reported in the financial statements for inflation. The correct answer is c. Historical cost. This principle dictates that companies record their assets, liabilities, and equity based on the original cost at the time of the transaction, rather than adjusting these figures for changes in purchasing power or market value over time. This concept is fundamental in accounting, as it provides a stable and consistent basis for recording and reporting financial transactions.
Although the historical cost principle may lead to the reporting of asset and liability values that do not reflect current market conditions, it is still widely used because it provides an objective measure that can be easily verified, thus making financial statements comparable between periods.
Other principles, like the economic entity assumption, the going concern assumption, and the full disclosure principle, serve different purposes. The economic entity assumption ensures that the business is treated as separate from its owners, the going concern assumption presumes that the organization will continue operating in the foreseeable future, and the full disclosure principle mandates that all information that affects the financial statement user's understanding must be disclosed.
Based on the parkerian hexad, what principles are affected if we lose a shipment of encrypted backup tapes that contain personal and payment information for our customers?
Answer:
Possession or control
Explanation:
From the perspective of the Parkerian hexad, the affected principles if a shipment of encrypted backup tapes belonging to customers and having their personal and payment information are possession or control. This is considered a physical media disposition on which the information was stored. To effectively and accurately describe the incident scope, the principle of possession would help us do this.
The loss of encrypted backup tapes affects confidentiality, integrity, and availability according to the Parkerian Hexad. This can lead to identity theft, financial theft, and loss of trust in the organization. Digital security remains crucial and includes the physical security of backup devices.
Explanation:The Parkerian Hexad Principles Affected by Loss of Encrypted Backup TapesThe loss of encrypted backup tapes that contain personal and payment information for customers impacts several principles defined by the Parkerian Hexad. These principles include confidentiality, as personal information has been potentially exposed; integrity, due to the uncertainty about whether the data has been tampered with; and availability, as the information on the tapes is no longer accessible to authorized individuals when needed. Such a breach of data security can lead to identity theft, financial theft, and loss of trust in the organization from its customers.
It is crucial to remember that digital information is highly replicable, and strong encryption may not be fully protective if the security of the physical tapes is compromised. The implications of such a loss are widespread, including potential legal issues, financial costs, and reputational damage to the organization.
Ultimately, without access to the data, the services provided by the organization can be severely hindered, thereby affecting its operations and the privacy of the individuals whose data was stored on the lost tapes.