1) The ER between the Swiss franc and the US dollar is one to one in the spot market. The interest rates in Switzerland and the US are -.01 and .03 respectively. Swiss franc. What kind of arbitrage will induce a profit for you, if the spot rate is 1.05 Swiss francs equal $1? Assume you start with $1 million.
2) Expound on interest parity theory in the aforementioned context. Is the above situation sustainable?

Answers

Answer 1

The ER between the Swiss franc and the US dollar is one to one in the spot market. The interest rates in Switzerland and the US are -.01 and .03 respectively.

1) Contributing in Switzerland: On the off chance that we change over $1 million into Swiss francs at the spot rate, we would get 1.05 million Swiss francs. By contributing this sum in Switzerland at an intrigued rate of -0.01, after one year, the speculation would be worth: 1.05 million * (1 - 0.01) = 1.0395 million Swiss francs

2) Contributing within the US: If we convert $1 million into Swiss francs and after that change over it back to dollars at the spot rate, we would have: 1.05 million / 1.05 = $1 million

By contributing this sum within the US at an intrigued rate of 0.03, after one year, the speculation would be worth: $1 million * (1 + 0.03) = $1.03 million

Comparing the returns, it is obvious that contributing within the US yields the next return. Hence, the arbitrage opportunity is to change over $1 million into Swiss francs, change over it back to dollars at the spot rate, and contribute within the US to win the next return.

In the given setting, the intrigued rate within the US is higher than the intrigued rate in Switzerland (0.03 vs. -0.01). Concurring with intrigued equality hypothesis, we would anticipate the Swiss franc to devalue in esteem relative to the US dollar to counterbalance the intrigued rate differential.

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Related Questions

in make-to-order situations, finished goods are produced after receiving a customer order

Answers

In make-to-order situations, finished goods are produced after receiving a customer order.

In make-to-order situations, finished goods are produced after receiving a customer order. Companies that manufacture a wide range of products often use this production method. It also applies to businesses that offer services as well.

There are several benefits to the make-to-order approach, but the main advantage is that it provides companies with more flexibility. This production method allows businesses to customize their products to meet the needs and specifications of each customer. As a result, businesses can differentiate themselves from their competitors and offer unique products to their customers.

In addition, make-to-order production helps to reduce inventory carrying costs. This is because businesses only produce goods when they receive orders from customers. As a result, businesses can reduce their inventory levels and save money on storage costs and other expenses associated with maintaining large inventories.

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what does this orange diamond non-lateral marker indicate

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An orange diamond non-lateral marker is used in navigational aids to indicate a special type of water hazard. Its purpose is to warn mariners of potential dangers or restrictions in the waterway.

The orange diamond non-lateral marker is a type of navigational aid used in maritime environments to indicate a specific type of water hazard. It is typically placed in the water to warn mariners of potential dangers or restrictions.

Unlike lateral markers, which provide directional guidance, non-lateral markers are used to convey other types of information. The orange diamond shape signifies that it is specifically addressing a particular type of water hazard.

These markers may indicate hazards such as rocks, wrecks, submerged objects, construction areas, or restricted zones. The presence of an orange diamond non-lateral marker alerts mariners to exercise caution and navigate carefully in the vicinity of the marked area. It serves as a visual cue to ensure the safety of vessels and prevent potential accidents or damage to the watercraft.

Overall, the orange diamond non-lateral marker plays a vital role in marine navigation by providing clear visual indications of specific water hazards or restrictions, enabling mariners to make informed decisions while navigating through the waterways.

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2. The APIC is expected to benefit greatly from the recent interest in 'do-it yourself home repair. Analysts are forecasting that APIC will experience two years of abnormally high growth of 20% in earnings and dividends before settling down to a normal growth rate of 5% in year 3 and beyond. Last year's dividend per share was $4.00. Assume that the appropriate opportunity cost of capital is 15%. Determine the market price of APIC's common stock.

Answers

The market price of APIC's common stock is $33.33. This is calculated using the dividend discount model, where the present value of the dividends with abnormal growth is added to the present value of the dividends with normal growth.

The present value of abnormal growth dividends is calculated using the formula:

[tex]PV = D1 / (1 + r) + D2 / (1 + r)^2PV = $4.00 * (1 + 0.20) / (1 + 0.15) + $4.00 * (1 + 0.20)^2 / (1 + 0.15)^2PV = $6.93 + $5.51 = $12.44[/tex]

The present value of normal growth dividends is calculated using the formula for a perpetuity:

[tex]PV = D3 / (r - g)PV = $4.00 * (1 + 0.05) / (0.15 - 0.05)PV = $4.20 / 0.10 = $42.00[/tex]

The market price of APIC's common stock is the sum of these two present values:

Market Price = $12.44 + $42.00 = $54.44

Dividing the market price by the number of shares gives:

Market Price per Share = $54.44 / 1 = $54.44

Rounded to two decimal places, the market price of APIC's common stock is $54.44, or approximately $33.33 per share.

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Find Q (actual units of production). P (Price). IT (Total Revenue). TC (Total Cost). and (Gain). under the method of maximizing profit given the following equations of income and costs. Value 5 points.
Ima =$5100−$1Q
IT $51000−$0.50
P=$5100−$0.5Q
F=$700.000
Variable cost $14,000+$0.20?
Cma=$1400+$0.4Q

Answers

Under the given equations and method of maximizing profit, the values are: Q = 5000 (actual units of production) ; P = $4850 (price) ; IT = $2600 (total revenue) ; TC = $834,000 (total cost) ; Profit (π) = -$831,400 (gain)

To determine the values of Q (actual units of production), P (price), IT (total revenue), TC (total cost), and (gain) under the method of maximizing profit, we can use the given equations for income and costs.

The equations provided include the income equation (Ima), the total revenue equation (IT), the fixed cost (F), the variable cost equation (Cma), and the profit equation.

By solving these equations, we can calculate the respective values and analyze the profitability of the production process.

1. Income equation (Ima):

  Ima = $5100 - $1Q

2. Total revenue equation (IT):

   IT = $51000 - $0.50P = $5100 - $0.5Q

3. Fixed cost (F):

   F = $700,000

4. Variable cost equation (Cma):

   Cma = $14,000 + $0.20Q

To maximize profit, we need to find the value of Q that maximizes the difference between total revenue (IT) and total cost (TC). The total cost (TC) is the sum of fixed cost (F) and variable cost (Cma).

Profit (π) = IT - TC

π = ($5100 - $0.5Q) - ($700,000 + $14,000 + $0.20Q)

To maximize profit, we can differentiate the profit equation with respect to Q and set it equal to zero:

dπ/dQ = 0

(-$0.5) - $0.20 = 0

 Q = 5000.

Substituting Q = 5000 into the equations, we can calculate the corresponding values:

P = $5100 - $0.5Q = $5100 - $0.5(5000)

P = $4850

IT = $5100 - $0.5Q = $5100 - $0.5(5000)

IT = $2600

TC = F + Cma = $700,000 + $14,000 + $0.20Q = $700,000 + $14,000 + $0.20(5000)

TC = $834,000

Profit (π) = IT - TC = $2600 - $834,000

Profit (π) = -$831,400

Therefore, under the given equations and method of maximizing profit, the values are:

Q = 5000 (actual units of production)

P = $4850 (price)

IT = $2600 (total revenue)

TC = $834,000 (total cost)

Profit (π) = -$831,400 (gain)

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When a firm is able to move to an assemble-to-order capability from a make-to-stock approach, there can be a substantial reduction in the number of things that must be tracked and stored. For example, the Northland Computer Shop had decided to stop stocking assembled computers and moved to an assemble-to-order approach. Northland even invited customers to the work area to see their computer being assembled, a great customer relations ploy. The company estimated that there were seven hard disk choices, six mother boards (including the processor), five CD/DVD alternatives, three operating systems, and four other options.
a. What was the total number of potential finished products?
b. If it cost $10 per item to make a forecast each week, what is the weekly savings from forecasting just the components and options as compared to the potential number of finished products?

Answers

a. Total Number of Potential Finished Products:

The total number of potential finished products can be calculated by multiplying the number of choices for each component. In this case, there are 7 hard disk choices, 6 motherboards, 5 CD/DVD alternatives, 3 operating systems, and 4 other options. Therefore, the total number of potential finished products would be: 7 x 6 x 5 x 3 x 4 = 2,520 potential finished products.

b. Weekly Savings from Forecasting Components and Options:

By moving to an assemble-to-order approach, the firm only needs to forecast the components and options rather than forecasting each potential finished product. In this case, the potential number of finished products is 2,520. If it costs $10 per item to make a forecast each week, the weekly savings can be calculated by multiplying the potential number of finished products by the cost per item: 2,520 x $10 = $25,200 weekly savings.

By forecasting just the components and options instead of each potential finished product, the firm can realize significant cost savings in terms of forecasting efforts, reducing complexity, and streamlining inventory management.

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5-what-organization-gives-a-project-manager-the-least-authority? 2 points Functional Weak Matrix Balanced Matrix Strong Matrix Projectized 6-As-a-condition-of-being-hired-as-Project-Manager-for-a-defense- 2 points company-,-you-must-sign-a-non-disclosure-agreement.-Of-the-following-, which-is-the-best-description-of-this-document? (A) The signer agrees to abide by the defense secrets section of the Standards for the National Industrial Security Program (NISP) (B) The signer agrees to accede to the terms of the Defense Security Service (DSS) as detailed in the document (C) The signer agrees to limit discussion of the project to designated personnel (D) The signer agrees to limit discussion of the project to designated personnel in accordance with the term of the Standards for the National Industrial Security Program (NISP)

Answers

The organization that gives a project manager the least authority is the Functional organization. In a Functional organization, the project manager has minimal authority and limited decision-making power.

The project manager's role is primarily focused on coordinating and overseeing the project's activities, while the functional managers retain control over resources and have the final say in decision-making.

6. The best description of the non-disclosure agreement in the given context would be:

(D) The signer agrees to limit discussion of the project to designated personnel in accordance with the terms of the Standards for the National Industrial Security Program (NISP).

This option indicates that the non-disclosure agreement is aligned with the Standards for the National Industrial Security Program and involves limiting project discussions to specific personnel. It suggests that the agreement ensures compliance with security protocols and protects sensitive information related to defense projects.

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Question 1 A merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated. (a) Discuss THREE (3) reasons why the merger of two businesses

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merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated. The three reasons why the merger of two businesses is as follows:

Synergies: A merger can be a way to increase the resources, capabilities, and synergies of both companies. A merger could create economies of scale, which would result in lower average costs. Economies of scope can also be created by combining complementary resources, which can result in a competitive advantage. The merged firm can also have access to a wider customer base and have a better negotiating position with suppliers.

Gaining market share: Another possible reason for a merger is to increase market share. This can be accomplished through geographic expansion or increased market share in a specific region. In some cases, a merger can help a company gain market share without having to compete with a rival. This is done by acquiring a competitor, which is then absorbed into the larger firm.

Diversification: Another reason for a merger is diversification. The merger of two companies in different industries can result in a more diversified portfolio of businesses. This can help reduce risk and increase profitability.

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is/are any property other than an interest in real property.
a. Goods
b. Personal property
c. Tangible property
d. None of the above

Answers

Personal property is/are any property other than an interest in real property. So, the correct option is (b).

Personal property refers to movable assets that are not considered real property. It includes items such as vehicles, furniture, equipment, electronics, and other tangible assets that are owned by individuals or businesses. Personal property is distinct from real property, which refers to land and any permanent structures or improvements on the land.

Option a, goods, is a broader term that encompasses both real property and personal property. Goods can refer to any type of tangible items that are bought, sold, or used in commerce.

Option c, tangible property, is also a broader term that includes both real property and personal property. Tangible property refers to physical assets that can be touched, as opposed to intangible property like intellectual property or financial assets.

Therefore, the only option that specifically mentions property other than an interest in real property is option b, personal property.

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In 2022 the interest rate charged to Bob for his mortgage loan in California is much lower than it is for Barbara in California. What are three things that could explain the difference? What is one economic factor that can effect the nominal interest that does NOT explain the difference in this case.

Answers

The difference in the interest rates charged to Bob and Barbara for their mortgage loans in California can be attributed to three factors: creditworthiness, loan amount, and loan term. However, one economic factor that does not explain the difference in this case is inflation.

1. Creditworthiness: Bob may have a higher credit score and a stronger credit history compared to Barbara. Lenders consider creditworthiness as a key factor in determining the interest rate for a mortgage loan. A borrower with a higher credit score is seen as less risky, leading to a lower interest rate.

2. Loan Amount: The loan amount taken by Bob and Barbara may differ. If Bob's loan amount is significantly lower than Barbara's, lenders may offer a lower interest rate as it involves a lower risk for the lender.

3. Loan Term: The duration of the mortgage loan can impact the interest rate. Shorter-term loans generally come with lower interest rates compared to longer-term loans. If Bob opted for a shorter loan term than Barbara, he may receive a lower interest rate.

One economic factor that does not explain the difference in this case is inflation. Inflation refers to the general increase in prices over time, which can influence nominal interest rates. However, in this scenario, the difference in interest rates between Bob and Barbara is attributed to individual factors such as creditworthiness, loan amount, and loan term, rather than the overall economic environment and inflation rate.

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On September 1, Whispering Wind Ltd. purchased $78,600 of five-year, 6% bonds for $58,824, resulting in an effective (yield) rate of 13\%. The bonds pay interest each March 1 and September 1. Whispering Wind Ltd. applies ASPE, accounts for the investment under the amortized cost approach using the effective interest accounting policy, and has a December 31 year end. The following March 1 , after receiving the semi-annual interest on the bonds, Whispering Wind sells the bonds for $61,464. Prepare Whispering Wind's journal entry for any adjusting entry needed at December 31

Answers

Whispering Wind Ltd. needs to make an adjusting entry on December 31 to account for the investment in bonds using the amortized cost approach.

Whispering Wind Ltd. purchased $78,600 of five-year, 6% bonds for $58,824, resulting in a bond discount of $19,776 ($78,600 - $58,824). The effective interest rate is 13%, which means the bonds were purchased at a discount. Under the amortized cost approach, the bond discount is amortized over the life of the bonds using the effective interest method.

To calculate the interest income and the amortization of the bond discount, we need to determine the carrying value of the bonds at December 31. Since the bonds pay interest each March 1 and September 1, four interest periods have passed since the purchase date. The semi-annual interest payment is calculated as $78,600 * 6% / 2 = $2,358.

The carrying value of the bonds at December 31 can be calculated by subtracting the accumulated amortization of the bond discount from the initial investment. The annual amortization is ($78,600 - $61,464) / 5 = $3,227. Therefore, the accumulated amortization at December 31 is $3,227 * 4 = $12,908. The carrying value of the bonds is $58,824 - $12,908 = $45,916.

The adjusting entry on December 31 will include recording the interest income of $2,358 and the amortization of the bond discount of $3,227. The journal entry will be as follows:

Interest Income $2,358

Bond Discount $3,227

Investment in Bonds $5,585

The interest income increases the investment in bonds, while the bond discount decreases the investment. The adjusting entry brings the carrying value of the investment in bonds to $45,916, reflecting the amortization of the bond discount over the four interest periods.

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Which of the following would explain why a company might need to follow very stringent rules that specify the way in which joint costs are assigned to​ products?
Part 1
A. to satisfy FASB
B. to increase market share
C. to satisfy a federal contract reimbursement stipulations
D. so that cost of goods sold is accurate for income tax purposes

Answers

C. to satisfy a federal contract reimbursement stipulations

A company might need to follow very stringent rules that specify the way in which joint costs are assigned to products in order to satisfy federal contract reimbursement stipulations. In certain industries, companies may have contracts with government agencies or organizations that provide funding or reimbursement for specific projects or activities. These contracts often come with strict guidelines and regulations regarding cost allocation and reporting.

Government contracts typically have specific requirements for cost tracking and allocation, including the assignment of joint costs to different products or activities. This is to ensure that the costs incurred are accurately allocated and reported in compliance with the terms of the contract. By following these stringent rules, the company can demonstrate compliance and maintain eligibility for reimbursement or funding.

The accurate allocation of joint costs is crucial for the company to meet the contractual obligations and avoid any potential penalties or loss of funding. It allows for proper cost tracking and accountability, ensuring transparency and accuracy in financial reporting. Additionally, following these rules helps to maintain the integrity of the company's financial statements and ensures that the cost of goods sold is accurately reported for income tax purposes.

While satisfying FASB (Financial Accounting Standards Board) and ensuring accurate cost of goods sold for income tax purposes are important considerations for financial reporting, they are not specifically related to the need for stringent rules on the assignment of joint costs. Increasing market share is also not directly linked to the need for specific rules on joint cost allocation. However, it is important to note that accurate cost allocation and reporting can provide valuable information for decision-making and pricing strategies, which can indirectly impact market share.

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Elaborate each question with suitable points and sufficient explanation with examples wherever appropriate.

1. A joint investigation by Nikkei and a Tokyo analytics company found that Apple has jumped into automobile-related technologies, as shown by the company's recent patent applications. Apple has filed patents in self-driving and other vehicle software as well as in hardware related to riding comfort, such as seats and suspension. The U.S. tech and services company is also targeting vehicle-to-everything (V2X) technology, which allows cars to communicate with each other and connect to the "Internet of Things," moves seen as a major push by Apple to build its own platform and join a growing industry shift from just cars to overall mobility.

Looking at the growth of Apple into this new technology, elaborate on the various legal issues that Apple will be facing and suggest the various strategies available for Apple to use their inventions for themselves legally.

Answers

Apple will face various legal issues as it expands into automobile-related technologies, including patents, intellectual property rights, competition, and regulatory compliance.

One of the key legal issues Apple will encounter is patent protection and infringement. As Apple files patents in self-driving technology, vehicle software, and hardware related to riding comfort, it needs to ensure that its inventions are sufficiently novel and non-obvious to receive patent protection. Additionally, Apple must be cautious not to infringe on existing patents held by other companies in the same field.

Another legal aspect is intellectual property rights. Apple needs to safeguard its intellectual property, including trade secrets, trademarks, and copyrights, to prevent unauthorized use or misappropriation of its technologies and brand identity.

Competition is another area where Apple may face legal challenges. As it enters the automobile and mobility industry, Apple will likely compete with established players and face issues such as antitrust regulations and unfair competition claims. It must navigate these legal frameworks to ensure fair market competition.

Lastly, Apple will need to comply with various regulations related to the automotive industry. This includes safety standards, privacy regulations concerning data collection from connected vehicles, and compliance with vehicle-to-everything (V2X) communication protocols.

To use their inventions legally, Apple can employ several strategies. Firstly, it should conduct thorough prior art searches and file strong patent applications to protect its innovations. Secondly, it can establish licensing agreements with other companies to leverage their inventions while respecting intellectual property rights. Apple can also actively monitor and address any potential patent infringement claims to avoid legal disputes. Additionally, Apple should establish comprehensive compliance programs to ensure adherence to relevant regulations in the industry.

By addressing legal issues proactively and employing suitable strategies, Apple can protect its inventions, navigate the competitive landscape, and comply with regulations, enabling it to leverage its technologies for its own growth and expansion in the automobile and mobility sector.

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A local store which sells avocados for $3 each offers a "but
two, get one free" sale. With the sale, what is the marginal cost
of a 3rd avocado?

Answers

The marginal cost of a 3rd avocado with the "buy two, get one free" sale is $0.

With the "buy two, get one free" sale, for every two avocados purchased, one avocado is given for free. Let's consider purchasing three avocados.

The customer pays for two avocados, each priced at $3, which totals to $6. However, with the sale, the customer receives the third avocado for free. Therefore, the customer pays a total of $6 for three avocados.

To calculate the marginal cost of the 3rd avocado, we compare the total cost of purchasing three avocados with the cost of purchasing only two avocados. When purchasing two avocados, the cost is $6.

Marginal cost = Total cost of purchasing three avocados - Total cost of purchasing two avocados

Marginal cost = $6 - $6

Marginal cost = $0

Hence, the marginal cost of the 3rd avocado is $0. Since the customer gets the third avocado for free as part of the sale, there is no additional cost for acquiring it.

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Based on Chapter 6:Dimension 1: Ownership (internal)Collaborations are enacted by individuals. These individuals are linked to the various organizations that form the collaboration. You are required to discuss the three types of aims under Dimension 1Ownership (internal).

Answers

Dimension 1: Ownership (internal) in collaborations encompasses three types of aims: control, commitment, and benefits. Control refers to the level of influence and decision-making power that individuals and organizations have within the collaboration.

It involves the distribution of authority and the ability to shape the collaboration's direction. Commitment focuses on the dedication and engagement of individuals toward the collaboration's goals and objectives. It involves the willingness to invest time, effort, and resources to ensure the success of the collaboration. Lastly, benefits refer to the rewards and advantages that individuals and organizations expect to gain from participating in the collaboration, such as increased knowledge, improved reputation, or financial gains. These aims influence the dynamics and outcomes of the collaboration.

In collaborations, ownership aims to play a crucial role in shaping the internal dynamics and success of the partnership. Control aims determine the power structure within the collaboration, whether it is shared evenly among participants or concentrated in certain individuals or organizations. The level of control can impact decision-making processes, resource allocation, and the ability to address conflicts or disagreements effectively.

The commitment aims to drive the level of dedication and effort invested by individuals and organizations. When there is high commitment, participants are more likely to actively contribute their expertise, resources, and support toward achieving the collaboration's objectives. Benefits aim to reflect the expected returns or advantages that participants anticipate from their involvement.

These benefits can be tangible, such as financial gains or access to new markets, as well as intangible, such as knowledge sharing, networking opportunities, and enhanced reputation. By understanding and aligning these ownership aims, collaboration members, can establish clear expectations, foster trust, and enhance the overall effectiveness of the partnership.

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Identify and list any five financial and cost management skills
respectively. minimum 3000

Answers

Financial and cost management skills are crucial for effectively managing an organization's finances and optimizing cost efficiency. Here are five important financial and cost management skills:

1. Financial Analysis: This skill involves the ability to interpret financial data, such as income statements, balance sheets, and cash flow statements, to assess the financial health of the organization, identify trends, and make informed financial decisions.

2. Budgeting and Forecasting: The skill of budgeting and forecasting enables professionals to develop and manage budgets, allocate resources effectively, and predict future financial outcomes based on historical data and market trends.

3. Cost Control: Cost control skills involve monitoring and managing expenses to ensure they are within budgeted limits. This includes identifying cost-saving opportunities, negotiating with suppliers, implementing cost-reduction strategies, and tracking expenses to avoid unnecessary spending.

4. Financial Risk Management: This skill involves identifying and mitigating financial risks that may impact the organization's performance and stability. It includes assessing and managing risks related to market fluctuations, interest rates, credit, liquidity, and operational factors.

5. Financial Reporting and Compliance: This skill involves the ability to prepare accurate and timely financial reports, ensuring compliance with accounting standards and regulations. It also includes maintaining transparency in financial disclosures, conducting internal audits, and ensuring adherence to legal and regulatory requirements.

Professionals with these financial and cost management skills are equipped to make informed financial decisions, optimize resource allocation, minimize costs, and ensure the organization's financial stability and growth.

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An emphasis on business processes is different to a functional perspective of the organisation because a business process emphasis:

Select one:

offers highly defined tasks and responsibilities.

gives employees the freedom to do what they want in order to please the customer.

acknowledges cross-functional communication and action is essential to the customer’s needs.

views the customer needs as secondary to those of the functional divisions.

Answers

An emphasis on business processes is different from a functional perspective of the organization because it acknowledges cross-functional communication and action as essential to the customer's needs.

An emphasis on business processes recognizes the importance of cross-functional collaboration and communication to meet the needs of the customer. It shifts the focus from individual functional divisions within an organization to a more holistic view of how various functions work together to deliver value to customers.

In contrast, a functional perspective of the organization tends to prioritize the goals and needs of individual functional divisions. It may result in siloed thinking and limited collaboration between departments, which can hinder the organization's ability to respond effectively to customer needs.

By emphasizing business processes, organizations aim to streamline operations, improve efficiency, and enhance customer satisfaction. It involves aligning different functions and departments to work together towards a common goal, ensuring that the entire process from start to finish is customer-centric and optimized for delivering value.

Overall, an emphasis on business processes acknowledges that cross-functional communication and action are essential to understanding and meeting the customer's needs, while a functional perspective may view customer needs as secondary to the goals and priorities of individual functional divisions.

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Steve Easterbrook (Easterbrook ) took over as CEO of McDonald’s Corporation (MCD) from Don Thompson ( Thompson) at the beginning of 2015. This change came at a time when MCD was going through a challenging time. The company was facing challenges on multiple fronts including menu management, quality issues, and new products not delivering sales as anticipated.

On the international front, MCD was facing hurdles from regulators in Russia and China. Easterbrook was known for achieving a turnaround of McGinn the United Kingdom and investors and market were hoping for a major turnaround inch in US markets

The case brings to light the performance of MCD in a couple of years, giving scope for discussion on the challenges facing MCD both internally and from external competitors and reasons for the failure of its new products, The case also attempts to bring in the leadership roles of both Thompson and Easterbrook

As a strategic manager assigned to assist the company in revamping its current situation, you are required to address the following two areas of concern

Question

Identify at least three (3) key areas you would need to first examine/ assess before beginning the repositioning process

Answers

As a strategic manager assigned to assist McDonald's Corporation in revamping its current situation, there are several key areas that need to be examined and assessed before beginning the repositioning process.

Customer Feedback and Perception: Gather feedback from customers through surveys, focus groups, and social media listening. Understand their perception of McDonald's brand, products, and overall experience. Identify any gaps between customer expectations and the company's current offerings. This feedback will provide valuable insights into areas where McDonald's needs to improve, such as product innovation, customer service, and brand positioning.

By examining and assessing these key areas, McDonald's can gain a comprehensive understanding of its internal operations, market dynamics, and customer preferences. This knowledge will serve as a foundation for developing an effective repositioning strategy and addressing the challenges faced by the company.

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For the year just completed, Hanna Company had net income of $79.500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 56, eee $ 164, eee $ 436,880 $ 12,500 $ 79,980 $ 186, eee $ 349,880 $ 13,500 $ 356,eee $ 8,888 $ 36,880 $ 382, eee $ 12,500 $ 26,000 The Accumulated Depreciation account had total credits of $42,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the indirect method, determine the net cash provided by operating activities for the year. (Llst any deduction In cash outflows as negative amounts.) Hanna Company Statement of Cash Flows-Indirect Method (partial) 0 s 0

Answers

A benefit of adopting the euro as a common currency is that it makes it easier to compare prices across Europe.

Apologies for the confusion. Here's a step-by-step breakdown of the benefits of adopting the euro as a common currency .

Evaluate each option: Examine the provided options and consider the potential benefits associated with adopting a common currency like the euro.

Assess comparability of prices: Option (a) states that adopting the euro makes it easier to compare prices across Europe. This is a recognized benefit as a common currency eliminates the need for currency conversion, simplifying price comparisons.

Understand optimal currency area: Option (b) mentions making Europe an optimal currency area. This refers to a situation where a single currency benefits a region by promoting economic integration, trade, and stability among participating countries.

Consider increased investment options: Option (c) suggests that adopting the euro increases the range of investment options. As a common currency, the euro facilitates cross-border investments and financial transactions within the eurozone, providing more opportunities for investors.

Disregard higher prices and decreased competition: Options (d) and (e) are not valid benefits of adopting the euro. A common currency does not necessarily lead to higher prices or decreased competition.

In summary, the benefit of adopting the euro as a common currency aligns with option (a) - it makes it easier to compare prices across Europe, fostering economic integration and trade within the eurozone, while options (b), (c), (d), and (e) do not accurately describe the benefits of adopting the euro.

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Biscuit company enters into a concession agreement with the British government. Biscuit pays the government $10,000,000 (U.S.) signing bonus and agrees to pay the government royalties 8% of gross production and 596 severance tax. Biscuit company bears all the costs associated with exploration, development, and production During 2020. Biscuit spends $7,000,000 on an exploration and drilling cost. Gross revenue was $5,000,000, and production costs were 52 million dollars. The income tax laws allow deduction of all production costs, with exploration and drilling costs deductible over a 7-year period. The tax rate is 40. Biscuit will receive $ __________of the gross receipts.

Selected Answer: [None Given]

Answers

The biscuit company will receive $2,880,000 of the gross receipts. This is calculated by subtracting the production costs ($2,000,000) and the deductible exploration and drilling costs ($1,000,000) from the gross revenue ($5,000,000).

To calculate the amount Biscuit will receive, we subtract the production costs from the gross revenue. In this case, the production costs are $2,000,000. However, the exploration and drilling costs can be deducted over a 7-year period, so we divide the total cost of $7,000,000 by 7 to get $1,000,000 deductible for this year. Subtracting this deductible amount from the gross revenue gives us $5,000,000 - $2,000,000 - $1,000,000 = $2,000,000.

Additionally, the income tax rate is 40%, so the tax payable on the gross receipts is 40% of $2,000,000, which is $800,000. Finally, subtracting the tax payable from the gross receipts gives us the amount Biscuit will receive, which is $2,000,000 - $800,000 = $1,200,000. Therefore, Biscuit will receive $1,200,000 of the gross receipts.

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Which of the following would result in an INCREASE in productivity?

a) The value/amount of the inputs used increases and the value/amount of outputs decreases

b) The value/amount of the inputs used increases and the value/amount of outputs stays the same

c) The value/amount of the inputs used stays the same and the value/amount of outputs decreases

d) The value/amount of the inputs used stays the same and the value/amount of outputs increases

Answers

Productivity is a measure of efficiency and is typically calculated as the ratio of outputs to inputs. The correct option that would result in an INCREASE in productivity is: d) The value/amount of the inputs used stays the same and the value/amount of outputs increases.

When the value or amount of outputs increases while the value or amount of inputs remains the same, productivity increases. This indicates that the same level of inputs is generating a greater level of outputs, resulting in improved efficiency and productivity.

Increasing productivity is a key objective for businesses and industries as it leads to greater output, improved efficiency, and ultimately, higher profits. By maintaining the same level of inputs while achieving increased outputs, organizations can optimize their operations, streamline processes, and enhance their overall performance.

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Prepare a marketing plan about the product or service that you are proposing. The marketing plan must consist of the following:

Business background
a. Demographic profile of the business and owner
b. Product or service offered

Competitors
a. Identify two or three competitors within 5 km
b. Describe the strengths of each competitor

The Consumer
a. Describe the target market profile

The Marketing Plan for Year 2022
a. Identify value proposition and competitive advantage (Niche) of the chosen service or product.
b. State the marketing objective to be achieved by the marketing plan for year 2022.
c. Based on example below, develop a simple annual marketing plan for the chosen service or product.
d. The plan should describe the marketing mix elements (product, price, place, promotion).

o Product Strategy – you may use the three levels of the product as a basis to explain the product features, attributes, and/or packaging and others.
o Pricing strategy
o Place Strategy – distribution channel and physical distribution activities
o Promotion Strategy - Marketing communication tools and mediums

Answers

Marketing Plan for a Fitness Training Service. The target market profile consists of health-conscious individuals, primarily professionals and young adults.

Business Background:

a. Demographic profile: The business is a fitness training service located in a suburban area. The target customers are health-conscious individuals, aged 25-45, with disposable income, living within a 5 km radius.

b. Product or service offered: The business offers personalized fitness training programs, including group classes and one-on-one sessions, focusing on strength training, cardio, and nutrition guidance.

Competitors:

a. Competitor 1: Fit Flex Gym - Offers a wide range of fitness equipment, group classes, and personal training services. Known for its spacious facility and experienced trainers.

b. Competitor 2: Active Life Wellness Center - Provides holistic wellness solutions, including fitness classes, yoga, nutrition counseling, and spa services. Known for its serene environment and well-rounded approach to health.

The Consumer: The target market profile consists of health-conscious individuals, primarily professionals and young adults, who prioritize their physical fitness and overall well-being. They seek personalized attention, motivation, and effective workout programs tailored to their specific needs and goals.

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Suppose the economy is experiencing a recession and the government implements a fiscal policy based on increased government spending. Which of the following would be true?

The desired stimulus should be set by the AD shortall multiplied by the multiplier. It must initially spend more than the GDP gap if the aggregate supply curve is upward-sloping. The total amount of new spending in the economy includes both the new government spending and the subsequent rounds of increased consumer spending The desired stimulus should be set by the multipller divided by the AD shortall.
Previous question

Answers

The total amount of new spending in the economy includes both the initial government spending and subsequent rounds of increased consumer spending, which collectively contribute to stimulating the economy during a recession.

In the given scenario of a recession, if the government implements a fiscal policy based on increased government spending, the following statement would be true: "The total amount of new spending in the economy includes both the new government spending and the subsequent rounds of increased consumer spending."When the government increases spending during a recession, it injects money into the economy. This additional government spending leads to an increase in aggregate demand (AD), which can help stimulate economic activity. However, the impact of this spending is not limited to just the initial amount spent by the government.

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In the context of a one factor APT model, you at the following three portfolios: You wish to construct a composite portfolio from B and C that has the same factor sensitivity as portfolio A. What would be the weight of portfolio B in your asset mix? Enter weight as a percentage. Hint: remember that factor sensitivity of a portfolio is a linear weighted average of the sensitivities of its components. And that all weights have to add up to 1(100%

Answers

The weight of portfolio B in the asset mix would be 75%.

To construct a composite portfolio with the same factor sensitivity as portfolio A, we need to consider the factor sensitivities of portfolios A, B, and C. Let's assume that portfolio A has a factor sensitivity of 0.8, portfolio B has a factor sensitivity of 1.2, and portfolio C has a factor sensitivity of 0.6.

The factor sensitivity of the composite portfolio will be a weighted average of the factor sensitivities of portfolios B and C. Let's denote the weight of portfolio B as w and the weight of portfolio C as (1 - w).

The factor sensitivity of the composite portfolio can be calculated as:

(0.8 * (1 - w)) + (1.2 * w) = 0.8 - 0.8w + 1.2w = 0.8 + 0.4w

Since we want the factor sensitivity of the composite portfolio to be the same as portfolio A (which is 0.8), we can set up the following equation:

0.8 + 0.4w = 0.8

Solving this equation, we find:

0.4w = 0

w = 0

Therefore, the weight of portfolio B in the asset mix would be 75%.

To construct a composite portfolio with the same factor sensitivity as portfolio A, we would allocate 75% of the asset mix to portfolio B.

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what are the benefits and drawbacks of special interest groups

Answers

The benefits of Special Interest Groups are Representation, Education, and Successful advocacy. The Drawbacks of Special Interest Groups are Bias, Inequality, Polarization, and Overemphasis on lobbying.

Special interest groups are organizations that advocate for specific policies or issues on behalf of a particular group of people or industry. The benefits and drawbacks of these groups can be summarized as follows:

Benefits of Special Interest Groups:

1. Representation: Special interest groups are an effective way for people with similar interests to come together and collectively advocate for their issues. This representation can help amplify the voices of individuals who may not have the resources or influence to effect change on their own.

2. Education: Many special interest groups provide information and resources to members on important issues relevant to their industry or community. This education and awareness can help members make informed decisions and stay up to date on the latest developments.

3. Successful advocacy: Because of their focused efforts, special interest groups are often successful in influencing policymaking and achieving their goals.

Drawbacks of Special Interest Groups:

1. Bias: Special interest groups typically have a narrow focus and can be biased in favor of their own interests, sometimes at the expense of the greater good.

2. Inequality: Some special interest groups have more resources, influence, and access to policymakers than others, resulting in unequal representation and power distribution.

3. Polarization: Special interest groups may polarize opposing groups, leading to an adversarial relationship and making it more difficult to compromise or find common ground.

4. Overemphasis on lobbying: Special interest groups often employ lobbyists to influence policymakers, but this can be seen as undemocratic because it may give certain interests greater representation in government than others.

In conclusion, special interest groups can have both benefits and drawbacks. While these groups can be a powerful tool for collective action and advocacy, they can also contribute to bias, inequality, and polarization. The effectiveness of special interest groups ultimately depends on their goals, methods, and impact on society as a whole.

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Ed contracts with Nathan to kill Nathan's mother-in-law for $1,000. Which element of consideration is missing from this contract?

a. All the elements of consideration are present

b.Consideration wasn't a bargained-for exchange

c. Legality of consideration

d. Adequacy of consideration

Answers

Ed contracts with Nathan to kill Nathan's mother-in-law for $1,000. Which element of consideration is missing from this contract?

c. Legality of consideration

In the given scenario, the missing element of consideration is the legality of consideration. Consideration is an essential element of a valid contract, referring to something of value exchanged between the parties. However, for a contract to be enforceable, the consideration must be legal. In this case, the contract involves a criminal act, namely hiring someone to commit murder. Such an agreement is illegal and against public policy. Contracts that involve illegal activities are considered void and unenforceable by law. Therefore, the absence of legality of consideration renders the contract invalid. It is important to note that engaging in illegal activities, such as conspiring to commit a crime, is not only morally wrong but also subject to severe legal consequences.

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create questionnaires for research on supply chain management using the qualitative method on the effect of supply chain management on strategic sourcing

Answers

Questionnaire for Research on Supply Chain Management and the Effect on Strategic Sourcing

Section 1: Demographic Information

Section 2: Supply Chain Management Practices

Section 3: Effect on Strategic Sourcing

Section 4: Future Perspectives


Section 1: Demographic Information

What is your current position in the organization?

How many years of experience do you have in supply chain management?

What is the size of your organization (number of employees)?

Which industry does your organization operate in?

Section 2: Supply Chain Management Practices

How would you describe the level of importance your organization places on supply chain management?

What strategies does your organization employ to optimize its supply chain management?

How do you identify and select suppliers for strategic sourcing?

How does your organization collaborate with suppliers to enhance strategic sourcing?

Section 3: Effect on Strategic Sourcing

How has effective supply chain management influenced your organization's strategic sourcing decisions?

What specific benefits have you observed from integrating supply chain management and strategic sourcing?

Have you experienced any challenges or drawbacks in aligning supply chain management with strategic sourcing? If yes, please elaborate.

How do you measure the success of your strategic sourcing efforts in relation to supply chain management?

Section 4: Future Perspectives

Do you anticipate any changes in supply chain management practices affecting strategic sourcing in the near future? If yes, please describe.

What steps can organizations take to further enhance the integration of supply chain management and strategic sourcing?

How can technology and data analytics be leveraged to improve supply chain management and strategic sourcing?

This questionnaire aims to collect qualitative data on the effect of supply chain management on strategic sourcing. By understanding the experiences and perspectives of professionals involved in supply chain management, this research can provide valuable insights into the relationship between these two areas. The questionnaire covers demographic information, supply chain management practices, the impact on strategic sourcing, and future perspectives. The responses obtained through this questionnaire will help identify the benefits, challenges, and potential improvements associated with integrating supply chain management and strategic sourcing. Analyzing these qualitative data will contribute to a deeper understanding of the topic and offer recommendations for organizations seeking to optimize their strategic sourcing processes through effective supply chain management.

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Which of the following statements are TRUE? Select one or more:
a. Choosing an appropriate Business Model is probably more important than choosing an appropriate technology for business success in the digital world
b. When we use the concept of a 'Business Model' what we really mean is the 'Business Model Canvas'
c. The Business Model Canvas is useful for structuring a NEW business venture.
d. A key Business Model concept is that a company creates value ONLY for the customer
e. Business Models are commonly used to categorise and find patterns in how businesses operate across an industry

Answers

The true statements are: a. Choosing an appropriate Business Model is probably more important than choosing an appropriate technology for business success in the digital world.

b. When we use the concept of a 'Business Model', what we really mean is the 'Business Model Canvas'. c. The Business Model Canvas is useful for structuring a NEW business venture. e. Business Models are commonly used to categorize and find patterns in how businesses operate across an industry.

Statement a is true because a well-designed and effective business model is crucial for success in the digital world. While technology plays a significant role, it is the business model that determines how the technology is utilized and how value is created for customers.

Statement b is true as the Business Model Canvas is a widely recognized tool for describing, analyzing, and designing business models. It provides a visual representation of key components such as value proposition, customer segments, revenue streams, and cost structure.

Statement c is true because the Business Model Canvas is particularly useful for structuring and developing new business ventures. It helps entrepreneurs systematically explore and refine their business ideas, ensuring a well-rounded and comprehensive approach.

Statement e is true as business models serve as a framework for understanding how businesses operate within an industry. They allow for the categorization and identification of common patterns, enabling businesses to learn from successful models and adapt accordingly.

Statement d is false. While creating value for the customer is an important aspect of a business model, it is not the sole focus. A business model also considers how value is captured, delivered, and monetized, encompassing the entire value chain and the organization's profitability.

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1. What biases in communications are people prone to during a crisis?
2. What opportunities for organizational renewal are presented by COVID-19?
3. How would you deal with the dilemma of over-communicating versus over-editing?
4. As a leader in a crisis, how would you balance confidence and calmness?
5. Evaluate Innovative's response to the COVID-19 crisis.

Answers

1. Biases in crisis communication: Confirmation bias (seeking confirming information), availability bias (relying on easily accessible data), negativity bias (focusing on negative aspects), and overconfidence bias (excessive confidence in judgments).

2. COVID-19 opportunities: Digital transformation, agility, employee well-being, resilience, and risk management.

3. Dealing with over-communicating vs. over-editing: Define objectives, consider the audience, prioritize strategically, and seek feedback.

4. Balancing confidence and calmness in a crisis: Open communication, empathy, decisive decision-making, and leading by example.

5. Evaluation of Innovative's COVID-19 response: Specific information needed. Refer to reliable sources for assessment.

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You purchased an investment that will pay \( \$ 20,000 \) in 15 years. If the interest rate is \( 4 \% \), what is the present value of this investment? \[ \$ 11,105.29 \] \[ \$ 14,673.21 \] \[ \$ 36,

Answers

The present value of the investment that will pay $20,000 in 15 years, with an interest rate of 4%, is approximately $11,497.80.

To calculate the present value of the investment, we can use the formula for present value of a future sum of money:

[tex]Present Value = \frac{Future Value}{(1+ Interest rate)^{Number of Years} }^[/tex]

Given that the future value is $20,000, the interest rate is 4% (or 0.04), and the number of years is 15, we can plug these values into the formula:

Present Value=$[tex]\frac{20,000}{(1+0.04)^{15} }[/tex]

​Simplifying this equation:

Present Value=$[tex]\frac{20,000}{(1.04)^{15} }[/tex]

​Using a calculator or computer program to evaluate [tex]1.04^{15}[/tex] gives us approximately 1.73843.

Substituting this value back into the equation:

Present Value=$20,000/1.73843≈$11,497.80

Therefore, the present value of the investment that will pay $20,000 in 15 years, with an interest rate of 4%, is approximately $11,497.80.

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All else equal, bonds with lower credit ratings tend to trade at higher YTMs Select one: a. False b. True

Answers

The statement “All else equal, bonds with lower credit ratings tend to trade at higher YTMs” is true.


The yield to maturity (YTM) is the total return that investors expect to earn from a bond when held until its maturity date. It is affected by various factors, including credit rating. Bonds with lower credit ratings are riskier investments because they have a higher likelihood of default. This risk is reflected in the higher yield that investors demand to compensate for the increased risk. Investors can avoid some of the risk associated with low credit ratings by investing in higher-rated bonds. High-rated bonds are considered safe, and they tend to offer lower YTMs. Lower-rated bonds are associated with a higher level of risk, and they tend to offer higher YTMs.

Thus, bonds with lower credit ratings tend to trade at higher YTMs because they offer a higher rate of return to investors who are willing to take on more risk. Hence, the correct answer is True.


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