what are similarities and differences between futures contracts and forward contracts?

Answers

Answer 1

Both futures contracts and forward contracts are financial agreements that allow buyers and sellers to lock in a price for an asset at a future date.

However, there are some similarities and differences between the two types of contracts.

Similarities:

1. Both are used to hedge against risk and lock in a price for an asset at a future date
2. Both involve an agreement between a buyer and seller
3. Both are used in the financial markets for trading commodities, currencies, and other assets

Differences:
1. Futures contracts are standardized and traded on exchanges, while forward contracts are customized and traded over the counter
2. Futures contracts are regulated by the Commodity Futures Trading Commission (CFTC), while forward contracts are not regulated
3. Futures contracts have daily settlement and margin requirements, while forward contracts do not
4. Futures contracts have a specific expiration date, while forward contracts can have a flexible delivery date

In conclusion, while futures contracts and forward contracts share some similarities, they also have key differences in terms of how they are traded, regulated, and settled. It is important to understand these differences in order to choose the right type of contract for your trading needs.

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Related Questions

The dividend-growth model may be used to value a stock:
Round your answers to the nearest cent.
$What is the value of a stock if:
D0 = $4.70
k = 13%
g = 8%
What is the value of this stock if the dividend is increased to $5.90 and the other variables remain constant?
What is the value of this stock if the required return declines to 10 percent and the other variables remain constant?
What is the value of this stock if the growth rate declines to 6 percent and the other variables remain constant?
What is the value of this stock if the dividend is increased to $5.80, the growth rate declines to 6

Answers

The dividend-growth model may be used to value a stock. Given:D0 = $4.70k = 13%g = 8%

The formula to calculate the value of the stock using the dividend-growth model is: P0 = D1/(k-g)Where, D1 = D0(1+g)Using the given values, we get: P0 = 4.7(1+0.08)/(0.13-0.08)P0 = $126.53The value of this stock if the dividend is increased to $5.90 and the other variables remain constant is: P0 = 5.9(1+0.08)/(0.13-0.08)P0 = $159.77

The value of this stock if the required return declines to 10 percent and the other variables remain constant is:P0 = 4.7(1+0.08)/(0.10-0.08)P0 = $161.95The value of this stock if the growth rate declines to 6 percent and the other variables remain constant is:P0 = 4.7(1+0.06)/(0.13-0.06)P0 = $74.08

The value of this stock if the dividend is increased to $5.80, the growth rate declines to 6 percent, and other variables remain constant is:P0 = 5.8(1+0.06)/(0.13-0.06)P0 = $111.17Therefore, the value of this stock if the dividend is increased to $5.80, the growth rate declines to 6 percent, and other variables remain constant is $111.17.

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Which examples demonstrate common qualifications for Security and Protective Services careers? Check all that apply.

Brooke negotiates with the prison inmates she supervises.
Ami is comfortable working alone and making decisions in her work as a Private Detective.
Reed thinks of creative solutions for defending a client in court.
Vincenzo attends college for many years and earns a juris doctor degree.
Shameka watches for unusual activities and signs of danger as she guards a bank building.
Teddy is a Lifeguard who uses his strength to pull a person out of the water.

Answers

Answer:

2,5,6

Explanation:

Ami,shameka,teddy

Answer:

2,5,6

Explanation:

A company purchases a piece of machinery. This machinery is now the company's _____.

A. asset
B. liability
c. equity
D. capital

Answers

When a company purchases a piece of machinery, the machinery becomes the company's A. asset.

What is an asset?

An asset is a resource owned or controlled by a business or an economic entity, which produces value or more resources.

Assets can be classified into three classes, and they generally fall into the following categories:

CurrentNon-currentPhysicalIntangibleOperatingNon-operating.

Thus, the machinery does not become a liability, equity, or capital but an asset.

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Rodrigo wanted to buy his wife a pearl necklace for her birthday. Murphy's Jewelry had a necklace he liked for $139, but he bought the same necklace at Pearls for Her. This pearl necklace was originally $173.75, but was on sale for 20% off, which reduced the price to $139. He was very pleased with his bargain. Rodrigo is subject to:

Answers

Answer:

a framing bias.

Explanation:

given data

necklace he liked = $139

pearl necklace originally = $173.75

sale for = 20% off

reduced the price = $139

solution

Rodrigo is subject to readymade bias. This bias refers to how people’s decisions affect situations, words, or settings. Although both stores have the same price, Pearl’s own stores create a relative factor It showed a high base price and a 20% discount, which made Rodrigo feel like he was making a deal, so he was more inclined to buy the necklace and not at the Murphy jewelry store.

What impact will higher wages have on the labor force participation of women? 

Answers

Young black women with college degrees had the highest lifetime incomes but lower labor force participation rates.

In comparison to men, women have fewer opportunities to make money globally. Women are less likely to actively search for work or do paid labor. Compared to 80% of men, only slightly more than 50% of women in the world work. People's labor force involvement varies depending on demographic parameters such sex, birth year, education, marital status, and the presence of young children at home. Low female labor force participation in India is a complex socioeconomic phenomenon caused by factors like rural-urban migration, patriarchal attitudes, and an imbalance in supply and demand. Wages Increase for Men and Women When More Women Work. based on data from 250 U.S. cities over 30 years. The greatest major economic shift during the previous century was probably the rise of women in the paid employment.

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Please help will mark brainliest

Please help will mark brainliest

Answers

Answer:

first b

second b

third a

Explanation:

Answer:

for the first one is b

and the second one is b

lastly last one is C

if im correct yq

Which elements do you think need to go in a fire prevention plan?
O Means of reporting fires and other emergencies

O Evacuation procedures and emergency escape route assignments

O Procedures for employees who remain to operate critical plant operations before they evacuate

O Vacation schedules for all employees

O Accounting for all employees after an emergency evacuation has been completed

O Rescue and medical duties for employees performing them

O Names or job titles of persons who can be contacted
Locations of supply closets

Answers

Answer:

I. Means of reporting fires and other emergencies.

II. Evacuation procedures and emergency escape route assignments.

III. Procedures for employees who remain to operate critical plant operations before they evacuate.

IV. Accounting for all employees after an emergency evacuation has been completed.

V. Rescue and medical duties for employees performing them.

VI. Names or job titles of persons who can be contacted.

Explanation:

Firefighting can be defined as a strategic approach or technique which typically involves the process of attempting to prevent and control the spread of an unwanted fire in buildings, vehicles or any other location (place).

Basically, the professionals or experts who are saddled with the responsibility of preventing or controlling this unwanted fire are known as fire fighters.

A fire prevention plan can be defined as a strategic framework or model which comprises of all the necessary actions to take in order to prevent fire in a particular location.

The elements that would need to go in a fire prevention plan includes;

I. Means of reporting fires and other emergencies.

II. Evacuation procedures and emergency escape route assignments.

III. Procedures for employees who remain to operate critical plant operations before they evacuate.

IV. Accounting for all employees after an emergency evacuation has been completed.

V. Rescue and medical duties for employees performing them.

VI. Names or job titles of persons who can be contacted.

Answer:

1,2,3,5,6,7

Explanation:

OSHA

aldi is a no-frills grocery chain. it sells grocery staples right out of crates and boxes. by controlling expenses, aldi customers can expect to save 30 to 50 percent compared to kroger customers. the supermarket chain's emphasis on maintaining its cost competitive advantage means the company's top management is often concentrating on its _______strategy.

Answers

The correct answer is: pricing

The supermarket chain's emphasis on maintaining its cost competitive advantage means the company's top management is often concentrating on its pricing strategy.

Pricing is defined as the amount of money you charge for your products, but understanding it requires much more than that. Indicators to potential customers about how much you value your brand, product, and customers are baked into your pricing. This decides if a customer will be willing to purchase the product or not. As such, it should be calculated precisely.

Pricing strategies are the processes and methodologies that businesses use to determine the prices for their goods and services. If pricing is the amount you charge for your goods and services, product pricing strategy is how you determine that amount.

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In a game of pool, the white cue ball hits the #5 ball and stops, while the #5 ball moves away with the same velocity as the cue ball had originally. Both balls have the same mass. This type of collision is-

Answers

This type of collision is an example of an elastic collision.

In an elastic collision, the total kinetic energy of the system is conserved, and the objects bounce off each other with no loss of energy due to deformation or other factors.

Kinetic energy is a type of energy that an object possesses by virtue of its motion. It is defined as the energy that a moving object has due to its motion and is dependent on the object's mass and velocity.

In this case, the #5 ball moves away with the same velocity as the cue ball had originally, indicating that the two balls had an elastic collision.

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At what annual rate would the following have to be invested?
$1,758, to grow to $97,803, in 39 years. Round the answer to two
decimal places in percentage form.

Answers

The investment would need to be invested at an annual rate of approximately 5.04% to grow from $1,758 to $97,803 in 39 years.

To determine the annual rate at which the investment would need to grow, we can use the compound interest formula:

Future Value = Present Value * (1 + r)^n

Where Future Value is the desired amount, Present Value is the initial investment, r is the annual interest rate, and n is the number of years.

In this case, the Present Value is $1,758, the Future Value is $97,803, and the number of years is 39.

Rearranging the formula, we have:

(1 + r)^n = Future Value / Present Value

Substituting the given values:

(1 + r)^39 = $97,803 / $1,758

To solve for (1 + r), we can take the 39th root of both sides:

1 + r = (Future Value / Present Value)^(1/n)

1 + r = ($97,803 / $1,758)^(1/39)

1 + r ≈ 1.1225^(1/39)

1 + r ≈ 1.0504

Subtracting 1 from both sides:

r ≈ 0.0504

Converting the decimal to a percentage, the annual rate would need to be approximately 5.04%.

Therefore, the investment would need to be invested at an annual rate of approximately 5.04% to grow from $1,758 to $97,803 in 39 years.

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Is it better to work for a credit union or bank?.

Answers

Working at bank is Better than in credit union.

Credit unions typically function better for persons who might have a difficult financial history because of their member-focused orientation.

What is Credit Union?Credit unions might be interested in just that. See, credit unions typically limit membership to individuals who satisfy certain requirements, such as living in a particular county or working in a given industry. They are a little more upscale. Nevertheless, there are significant differences in exclusivity amongst credit unions. While credit unions may offer some or all of those items, they frequently fall short of what banks offer. In actuality, only about  40% of credit unions provide credit cards. In general, credit unions offer better interest rates than banks do. Credit unions typically charge greater interest rates on deposit accounts than they do on loans and other forms of financing. As a result, you'll spend less on borrowing.

Hence Working at bank is Better than in credit union.

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Working at bank is Better than in credit union.

What is Credit Union?

Credit unions might be keen on that specifically. You see, credit unions often only allow people who meet certain criteria to join, such as living in a specific county or working in a specific field. They are slightly more affluent. Even yet, there are big variations in exclusivity amongst credit unions. Even while credit unions may provide some or all of such services, their offerings usually fall short of those of banks. In reality, credit cards are only offered by around 40% of credit unions. In general, banks charge higher interest rates than do credit unions. Interest rates on deposit accounts are often higher at credit unions than on loans and other types of financing. You'll spend less on borrowing as a result.

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alex measured the length of an item to be 3.9 cm. the actual length is 3.5 cm what is alex percent error ?

Answers

Answer:

11.42 %

Explanation:

The formula for calculating percentage error

percentage error = observed value - actual value x 100

     actual value

Percentage error =    3.9- 3.5  x 100

    3.5

Percentage error = 0.4  x 100

                             3.5

Percentage error =0.1142 x 100

Percentage error = 11.42 %

how do our normative positions affect the choices we make individually and society

Answers

Our normative positions affect the choices we make by affecting

Who to voteHow to treat people The time and the period to marry.

What are normative positions?

These are the ways that people are able to come up with new ideas as well as new positions.

It teaches of the various necessary channels that may help one to effect out of the box thinking.

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A trademark for clothing brand for weddings, matric dances or special events

Answers

To establish a trademark for a clothing brand catering to weddings, matric dances, or special events, it is essential to follow the proper legal procedures. The first step would be to conduct a thorough **trademark search** to ensure the proposed brand name or logo is unique and not already in use by another company in a similar industry. Once confirmed, you can proceed with filing a **trademark application** with the appropriate intellectual property office in your jurisdiction, providing a clear description of your products and services. It is also advisable to seek legal assistance to navigate the intricacies of the trademark registration process, ensuring proper protection of your brand.

When applying for a trademark, it is crucial to emphasize the distinctive aspects of your clothing brand. This can include **keywords** that convey the essence of your products, such as "elegant," "luxurious," "occasion wear," or "special event attire." Developing a strong and memorable brand identity will help differentiate your clothing line and attract your target audience. Remember, the trademark registration process can take time, so it's essential to begin early to secure the exclusive rights to your brand name and logo.

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Define Red Gross Society.​

Answers

Answer: The Indian Red Cross Society is a voluntary humanitarian organization to protect human life and health based in India.

Explanation: It is part of the International Red Cross and Red Crescent Movement, and so shares the Fundamental Principles of the International Red Cross and Red Crescent Movement.

What is your best asset out of the following: Communication Skills, Determination, Self-Motivation, or Problem Solving and why? Explain.
FIRST ANSWER GETS BRAINLIEST

Answers

Answer:

determination

Explanation:

cause i won't stop until i reach my goal.

What is the function of a Manager?

Answers

A manager is responsible for ensuring that the organization's goals are met and that the organization is operating effectively and efficiently. They must have strong leadership skills, effective communication skills, and the ability to motivate and inspire others to achieve their best.

The function of a manager varies depending on the organization, industry, and level of management. However, some common functions of a manager include:

Planning: A manager is responsible for setting goals, developing strategies, and creating plans to achieve those goals. This involves analyzing data, forecasting future needs, and anticipating potential obstacles.

Organizing: A manager is responsible for organizing the resources needed to achieve the goals of the organization. This includes assigning tasks, delegating responsibilities, and coordinating activities.

Staffing: A manager is responsible for recruiting, selecting, training, and developing employees. They are also responsible for creating a positive work environment and motivating employees to perform at their best.

Directing: A manager is responsible for guiding and directing the work of employees. This involves setting performance standards, providing feedback, and coaching employees to improve their skills and performance.

Controlling: A manager is responsible for monitoring performance and taking corrective action when necessary. This involves setting performance targets, measuring progress, and making adjustments to ensure that goals are met.

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Sunland Co.'s trial balance at Dec. 31 shows:
1) Supplies $8,720
2) Supplies Expense $0
On Dec. 31, there are $2,180 of supplies on hand. Prepare the adjusting entries at Dec. 31

Answers

Sunland Co.'s trial balance at Dec. 31 shows: 1) Supplies $8,720 2) Supplies Expense $0. On December 31, there are $2,180 of supplies on hand. Supplies Expense $8,720 (D) Supplies 6,540 (C)

Supplies expense in accounting refers to the cost of a collection of goods that the company used during a specific reporting period to operate. Staff members may use these items regularly to complete their daily tasks. For example, an accountant might consider ink cartridges for the office printer as a supplies expense.

Staff members typically use supplies faster than long-term investments like equipment, so companies often stock supplies regularly. Before a staff member uses an item, an accountant may consider it an asset. On December 31, there are $2,180 of supplies on hand. Supplies Expense $8,720 (D) Supplies 6,540 (C)

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5.what specific decisions might the individuals you identified in the previous question make based at least partly on gaap-based financial statements?

Answers

Invest in additional inventory, adjust the company's dividend policy, adjust their budgeting might the specific decisions based at least partly on gap-based financial statements.

1. The CFO may decide to invest in additional inventory to meet customer demand based on the current cash flow, the income statement and balance sheet.

2. The Board of Directors may decide to adjust the company's dividend policy based on the income statement and balance sheet.

3. The company's Auditor may decide to review the company's internal controls and processes based on the notes to the financial statements.

4. The Executive Team may decide to adjust their budgeting and forecasting based on the income statement and balance sheet.

5. The CEO may decide to increase the company's borrowing capacity based on the cash flow statement.

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strategic, tactical, and operational are the ____.

Answers

Strategic, tactical, and operational are the three ranges of planning in a company.

Strategic making plans involve setting the general path and lengthy-term dreams of the business enterprise. It makes a specialty of the huge photograph and involves choices that shape the organization's future. Strategic planning considers elements including market traits, opposition, and organizational abilities to increase strategies for increase, marketplace positioning, and competitive benefit.

Tactical planning takes place at a more intermediate level. It entails translating strategic goals into precise moves and plans. Tactical plans are designed to attain specific goals and goals within a shorter time frame, normally one to a few years. This level of making plans includes departmental or functional plans that align with the general strategic route.

Operational planning is the everyday planning and control of sources to execute tactical plans. It involves putting specific objectives, allocating assets, and coordinating sports to the operational degree. Operational plans consciousness on brief-time period moves, frequently inside a time frame of weeks or months, and make certain that the necessary responsibilities are executed efficiently to acquire the desired effects.

Together, these 3 stages of planning shape a hierarchy where strategic making plans units the overall direction, tactical making plans translates it into actionable plans, and operational making plans executes the plans on a daily foundation. This hierarchy ensures alignment and coherence among the business enterprise's long-term vision and its daily operations, allowing the powerful and green success of desires.

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Strategic, tactical, and operational are terms used in business to describe different levels of decision-making and planning within an organization. Strategic decisions are long-term and focus on setting the overall direction and goals of the organization. Tactical decisions are more short-term and involve implementing the strategies set by top-level management. Operational decisions are day-to-day decisions focused on the execution of tasks and processes.

In the field of business, strategic, tactical, and operational are terms used to describe different levels of decision-making and planning within an organization. These terms are often used in the context of management and refer to the various approaches and perspectives taken by managers at different levels of the organization.

Strategic decisions are long-term in nature and involve setting the overall direction and goals of the organization. These decisions are typically made by top-level executives and focus on the organization's mission, vision, and competitive advantage. Strategic decisions often involve analyzing market trends, assessing the competitive landscape, and identifying opportunities for growth.

Tactical decisions are more short-term in nature and involve implementing the strategies set by top-level management. These decisions are made by middle-level managers and focus on specific actions and initiatives that contribute to the achievement of strategic goals. Tactical decisions often involve resource allocation, project management, and coordination of activities within different departments.

Operational decisions are day-to-day decisions made by front-line managers and employees. These decisions are focused on the execution of tasks and processes necessary for the organization to function effectively. Operational decisions often involve managing resources, solving problems, and ensuring the smooth operation of the organization's activities.

Understanding the differences between strategic, tactical, and operational concepts is crucial for effective management and decision-making within an organization.

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adam smith's research focused on determining the best way to distribute a fixed amount of resources, rather than on how to create more wealth.
a.true
b.false

Answers

The given statement "adam smith's research focused on determining the best way to distribute a fixed amount of resources, rather than on how to create more wealth." is false because his focus was on economic growth

Adam Smith's research and writings, particularly in his influential book "The Wealth of Nations," were centered around the creation of wealth rather than the distribution of a fixed amount of resources. Smith is often regarded as the father of modern economics and a key figure in the development of classical economics.

Smith's main focus was on understanding the factors that contribute to economic growth, productivity, and the overall prosperity of nations. He argued that nations could increase their wealth through specialization, division of labor, free trade, and the operation of market forces.

Smith emphasized the importance of individual self-interest, competition, and the invisible hand of the market in driving economic progress and societal well-being.

While Smith did touch upon the issue of resource distribution, his primary concern was with promoting economic growth and the expansion of wealth rather than the allocation of existing resources. His ideas have had a significant impact on economic theory and have shaped many aspects of modern capitalism.

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who is elon musk......​

Answers

Answer:

Elon Musk FRS an entrepreneur and business magnate. He is the founder, CEO, and Chief Engineer at SpaceX; early stage investor, CEO, and Product Architect of Tesla, Inc.; founder of The Boring Company; and co-founder of Neuralink and OpenAI. A centibillionaire, Musk is one of the richest people in the world.

Agribusiness developed as a result of a desire for more environmentally friendly agricultural practices. a desire for more environmentally friendly agricultural practices. increased demand for specialty food products. increased demand for specialty food products. a growing shortage of arable land. a growing shortage of arable land. declining numbers of farmers.

Answers

Answer:

declining numbers of farmers

Explanation:

Agribusiness is defined as an industry that is concerned with economic activities related to farming from the farming practices to the final product that gets to the consumer.

Activities like chemical production, breeding, crop production, farm machinery, marketing, and distribution of inputs.

In the agricultural space as a decline in the number of farmers occurred it became necessary for businesses to commercialise various stages of the agricultural value chain.

This resulted in more availablity of required products and services that farmers need to operate. With this support the number of farmers is now growing.

For example in contract farming companies provide the farmer with needed inputs as a loan.

At harvest produce from the farm is used to repay the loan.

This empowers the farmer to keep producing.

Franklin corporation issues $97,000, 8%, 5-year bonds on January 1, for $101,370. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is

Answers

Answer:

$3,006

Explanation:

Bond issue = $97,000

Interest rate = 8%

Bond value sold = $101,370

Time period 5 years

N.B The premium will have to be to be discounted from the interest expense because Franklin corporation sold the bond at a value higher than the face value i.e premium value.

Therefore;

Coupon = $97,000 × 8% × 1/2

= $3,880

Amortization of bond premium = ($101,370 - $97,000) /5 years period

= $4,370/5

= $874

Total interest expense

= $3,880 - $874

= $3,006

To meet customer demand, a company must produce a variety of products. In what scenario would having a single overall model make more sense, and in what scenario would breaking it up into multiple smaller models make more sense?

Answers

Having a Single Overall Model: When the company produces standardized products with minimal variations. Breaking it up into Multiple Smaller Models: When there are diverse customer preferences, market segmentation, localization requirements, or a need for product differentiation.

Having a Single Overall Model:

1. Standardized Products: When the company produces products that are highly standardized and have minimal variations, it may make more sense to have a single overall model.

Breaking it up into Multiple Smaller Models:

1. Diverse Customer Preferences: When the customer demand is highly diverse, with varying preferences and requirements, breaking up the product line into multiple smaller models can be beneficial.

2. Market Segmentation: If the company operates in different market segments with distinct demands, developing multiple smaller models tailored to each segment can be advantageous.

3. Localization and Regional Requirements: When there are significant regional variations or specific localization requirements, using multiple smaller models can be more effective.

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Please help me answer this question
If the M1 money supply is $1.8 million and the monetary base is
$1.5 million, what would the money multiplier be?
M1 = MB x m
A. 0.67
B.1.00
C.1.2
D.2.00

Answers

The money multiplier in this scenario is 1.2. This means that for every $1 increase in the monetary base, the money supply will increase by $1.2. Option C is the correct answer.

The money multiplier represents the relationship between the monetary base (MB) and the money supply (M1). It shows how much the money supply can increase based on a given change in the monetary base.

The formula to calculate the money multiplier is:

Money Multiplier (m) = M1 / MB

In this case, the M1 money supply is $1.8 million, and the monetary base is $1.5 million. Plugging these values into the formula, we get:

Money Multiplier = 1.8 million / 1.5 million

Simplifying the calculation, we find:

Money Multiplier = 1.2

Therefore, Option C is the correct answer.

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The interest rate for an auto loan is actually 8% instead of 4%. Will this increase or decrease the demand for new cars? Why?

Answers

The increase in interest rate on auto loans would decrease the demand for new cars. This is because the cost of the auto loans have increased and this would discourage people from buying new cars.

What is the impact of the change in interest rate?

Auto loans and new cars can be described as complement goods. Complement goods are goods that are used together. Most people can finance the purchase of new cars by themselves so they rely on auto loans.

When the interest rate on auto loans increase, the cost of borrowing increases. This discourages people from using auto loans. This would lead to a decrease in the demand for both auto loans and new cars. If shown on a graph, the demand curve for auto loans and new cars would shift to the left.

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TRUE OR FALSE: A mathematics professor at a university would fall under both the Education and Training career cluster and the STEM career cluster.

Answers

Answer is : True
Explanation: none

What is TRUE about the prevalence of diversity in the modern workplace?


Diversity in the workplace has continued to increase.


Diversity in the workplace has continued to decrease.


Diversity in the workplace has shown no increase or decrease.


There is no data to track diversity in the workplace.

Answers

In summary correct option for this question is Diversity in the workplace has continued to increase.

Why is it?

There has been a growing recognition among organizations of the importance of diversity and inclusion in the workplace. With increased awareness, companies have made efforts to increase the representation of diverse individuals among their employees.

This has resulted in a trend towards increasing diversity in the workplace over the past few decades. Diversity in the workplace refers to the representation of people from different backgrounds, including race, ethnicity, gender, age, sexual orientation, religion, and more.

Having a diverse workforce can lead to many benefits, including increased creativity, innovation, and problem-solving abilities, as well as greater employee engagement and job satisfaction

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Explain the different sources of business ideas​

Answers

Answer:

Hobby.

Complaints.

Exhibitions.

Experience.

Brainstorming.

Surveys.

Mass media etc…

Explanation:

1. HOBBY:

An activity you do when you’re not working.

Do you know that you can make money from whatever it is you like or enjoy doing? All you have to do is to identify the things you do most often especially when you’re free, evaluate them and act. (Just have a quiet time and reflect on how to make money from what you enjoy doing).

2. COMPLAINTS:

Expressing unhappiness.

Critically evaluate the following statements…

“I wish there was…”

“If only there were a product that could…”

“If only there were services that could…”

See Also: How to Generate Business Ideas

Most of these come up maybe when a customer is not satisfied with a product/service that he or she has tried. Your role here is to put those complaints into consideration then generate ideas to solve such problems because from what you heard above, there is a problem that needs a solution.

3. EXHIBITION:

A demonstration of a particular skill or craft.

Attending exhibition and trade fairs regularly will help you discover new products or services and give you an opportunity to meet with manufacturers, sales representatives, wholesalers, distributors, etc… They can help you with information on getting started or might need your services.

4. EXPERIENCE:

Knowledge or skill gained through been involved in or exposed to something over a period of time.

Don’t look down on any skill or training you learned or passed through because over half of the ideas of successful businesses come from the experience in the work. The background of a potential entrepreneur plays a crucial role in the decision to go into the business as well as the type of venture to be created. Your skills and experience are your most important resources, therefore, be productive and capitalize on them.

See Also: Entrepreneur - Practice of Entrepreneurship (Summary)

5. BRAINSTORMING:

This is a way of making a group of people all think about something at the same time.

Often, in order to solve a problem or to create good ideas. It usually starts with a question or problem statement and each idea leads to one or more additional ideas, resulting in a good number.

Ensure you don’t criticize or judge the ideas of others.

Consider all ideas even those that seem to be wild or crazy.

The greater the number of ideas, the better.

Combine and improve upon the idea of others.

6. SURVEY:

To look at or consider something in a general or very broadway.

This has to do with an investigation on the opinions, behavior, etc… of a particular group of people which is usually done by asking them questions. Such a survey can be or might be conducted formally or informally by talking to people, usually using a questionnaire or through interviews and, or through observation.

See Also: How to Generate Business Ideas

7. MASS MEDIA:

This is a great source of information and news such as newspapers, magazines, radio, the internet and television.

They reach and influence a large number of people from the advertisements and offers and even information you derive from the mass media, you can come up with ideas to work on.

Other Questions
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