Job Description is the job is a sales representative role in a technology company. The sales representative is responsible for selling the company's products and services to potential clients, meeting sales targets, and maintaining customer relationships.
Compensation Approach:
The compensation approach for this job that aligns with reinforcement, expectancy, and agency theories is a combination of base salary, commission, and performance-based bonuses.
Reinforcement Theory: The base salary provides a fixed income as a source of reinforcement, ensuring a stable and predictable reward for the sales representative's efforts.
Expectancy Theory: The commission component of the compensation approach aligns with expectancy theory. Sales representatives are rewarded based on their performance, where their effort and sales results directly impact their earning potential. Higher sales volume leads to increased commission earnings, creating a positive expectancy for higher rewards.
Agency Theory: To align with agency theory, performance-based bonuses can be introduced. These bonuses would be tied to achieving specific sales targets or other key performance indicators. This incentivizes the sales representative to act in the best interest of the company and maximize their efforts to achieve the defined goals.
Advantages of this plan:
The plan motivates sales representatives to achieve higher sales volumes and meet targets, as it directly affects their earning potential.
It provides a balance between fixed and variable pay, appealing to both stability and performance-driven individuals.
Performance-based bonuses create alignment between the sales representative's goals and the company's objectives.
Potential negatives of this plan:
There might be a risk of excessive competition among sales representatives, leading to a cutthroat environment and potential conflicts.
Overemphasis on sales volume might overlook other important aspects of the sales process, such as customer satisfaction or long-term relationship building.
Administering this plan might be difficult:
Tracking and verifying sales performance accurately to calculate commissions and bonuses can be complex and time-consuming.
Balancing the weight of different performance indicators and targets to ensure a fair and motivating compensation structure may require careful analysis and ongoing evaluation.
Managing the potential complexities of variable pay and its impact on employee motivation and job satisfaction would require effective communication and transparency in the compensation process.
Overall, this compensation approach leverages reinforcement, expectancy, and agency theories to motivate sales representatives to achieve high sales performance while providing a balance between fixed and variable pay. It incentivizes desired behaviors and aligns individual and organizational goals. However, careful attention must be given to the potential challenges in administering and managing the plan to ensure fairness and effectiveness.
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why is it necessary to accurately weigh small animals when calculating the quantity of analgesics to be administered?
Accurately weighing small animals is necessary when calculating the quantity of analgesics to be administered for several important reasons.
First, small animals have different metabolic rates and physiological characteristics compared to larger animals. accurately Their sensitivity to medications can vary, and accurate weight measurement ensures that the appropriate dosage is administered based on their body size. Second, analgesics are potent drugs, and incorrect dosing can lead to adverse effects or inadequate pain relief. Accurate weighing helps prevent underdoing, which may result in insufficient pain management, or overdosing, which can be harmful. analgesics Additionally, precise dosing based on weight allows for better consideration of pharmacokinetics and ensures compliance with ethical guidelines for providing optimal care and minimizing unnecessary discomfort or suffering in small animals.
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Vince has $26,000 to purchase an annuity that will provide him with payments of $1300 at the end of every three months. If the funds earn 12% compounded quarterly, how long
wIl the pavments continue?
With an initial amount of $26,000, earning a 12% interest rate compounded quarterly, Vince's annuity payments of $1300 will continue for approximately 11 years.
To determine how long the payments will continue for Vince's annuity, we need to find the number of periods (quarters) it takes for the initial amount of $26,000 to be depleted by the payments of $1300 at the end of every three months, assuming an interest rate of 12% compounded quarterly.
Let's break down the problem step by step:
First, we need to calculate the interest rate per quarter by dividing the annual interest rate by the number of quarters in a year:
Quarterly interest rate = 12% / 4
= 0.12 / 4
= 0.03
Next, we can use the formula for the future value of an annuity to determine how many periods it takes for the $26,000 to reach zero:
$26,000 = $1300 * [(1 - (1 + 0.03)^(-n)) / 0.03]
Solving for n, the number of periods, we find:
n ≈ 44.97
Since the number of periods represents quarters, we can conclude that the payments will continue for approximately 44 quarters or 11 years.
Therefore, with an initial amount of $26,000, earning a 12% interest rate compounded quarterly, Vince's annuity payments of $1300 will continue for approximately 11 years.\
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Explain Risk management and its types. Support each
type with an example and a way to mitigate the respective risk
Risk management is the process of identifying, assessing, and mitigating risks that could negatively impact an organization's objectives. It involves implementing strategies and measures to minimize the likelihood and impact of potential risks.
There are several types of risk management, including financial risk management, operational risk management, strategic risk management, and compliance risk management. Each type of risk management focuses on specific areas of concern and requires different approaches to mitigate the respective risks.
Financial Risk Management: This type of risk management focuses on managing financial risks such as market volatility, credit risk, and liquidity risk. For example, a company that operates internationally may face currency exchange rate risk.
To mitigate this risk, the company can use hedging strategies such as forward contracts or options to lock in favorable exchange rates and reduce the impact of currency fluctuations.
Operational Risk Management: Operational risk management involves identifying and managing risks related to business operations and processes. An example of operational risk is the risk of equipment failure in a manufacturing plant.
To mitigate this risk, the company can implement preventive maintenance programs, regular equipment inspections, and have backup equipment available to minimize production disruptions.
Strategic Risk Management: Strategic risk management focuses on identifying and managing risks associated with achieving strategic objectives. For instance, a company entering a new market may face the risk of intense competition.
To mitigate this risk, the company can conduct thorough market research, develop a competitive pricing strategy, and invest in marketing and branding initiatives to differentiate itself from competitors.
Compliance Risk Management: Compliance risk management involves ensuring adherence to laws, regulations, and internal policies. An example of compliance risk is the risk of non-compliance with data privacy regulations.
To mitigate this risk, a company can implement robust data protection measures, conduct regular compliance audits, and provide training to employees on data privacy best practices.
In each type of risk management, mitigation strategies may include implementing preventive controls, creating contingency plans, diversifying risk, transferring risk through insurance or contracts, and regularly monitoring and reviewing risk management processes to identify any emerging risks or areas for improvement.
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a What is the difference between Primary activities and Secondary activities in value chain analysis model? b. Apply value chain analysis model to an organic food restaurant?
In value chain analysis, primary activities and secondary activities are two components that help identify the different activities and processes within an organization.
In value chain analysis, primary activities refer to the core activities that are directly involved in the creation, production, and delivery of a product or service.
These activities typically include inbound logistics (receiving and storing raw materials), operations (transforming raw materials into finished products), outbound logistics (delivering the finished products to customers), marketing and sales (promoting and selling the products), and customer service (providing after-sales support).
On the other hand, secondary activities are the supporting activities that enable the primary activities to function effectively. These activities include procurement (sourcing and purchasing raw materials), technology development (research and development, IT infrastructure), and infrastructure (support functions such as finance, accounting, and administration).
Applying the value chain analysis model to an organic food restaurant, the primary activities would include sourcing organic ingredients from local suppliers, food preparation using sustainable and organic practices, and providing excellent customer service.
These activities are directly involved in delivering the organic food products and services to customers.
The secondary activities in this context would include procurement of organic ingredients, marketing and promoting the restaurant's organic and sustainable practices, managing human resources to ensure skilled and knowledgeable staff, and establishing infrastructure such as efficient supply chains, payment systems, and record-keeping processes.
By analyzing the value chain, the organic food restaurant can identify areas where they can add value, reduce costs, and improve efficiency. For example, they can focus on building strong relationships with local organic suppliers to ensure a reliable and sustainable source of ingredients.
They can also invest in marketing efforts to create awareness and attract customers who value organic and sustainable dining options.
In conclusion, primary activities are directly involved in the creation and delivery of products or services, while secondary activities support and facilitate the primary activities.
Applying the value chain analysis model to an organic food restaurant helps identify the key activities involved in sourcing organic ingredients, food preparation, and customer service, as well as the supporting activities such as procurement, marketing, and infrastructure.
This analysis enables the restaurant to identify opportunities for improvement and competitive advantage in the organic food market.
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Suppose there are 40 firms in a perfectly competitive industry. Each firm has a short-run total cost function of the form \[ c(q)=4 q^{2}+8 q+100 \] (a) Calculate the short-run aggregate supply curve.
The quantity supplied by a single firm at a given price level is zero. to calculate the short-run aggregate supply curve in a perfectly competitive industry with 40 firms.
we need to find the total quantity supplied by all firms at each price level.
the short-run aggregate supply (sras) curve represents the total quantity of output that firms are willing to supply at different price levels in the short run, assuming other factors remain constant.
the short-run total cost function for each firm is given as:
\[ c(q) = 4q² + 8q + 100 \]
to calculate the short-run aggregate supply, we sum up the quantities supplied by each firm at each price level. the quantity supplied by each firm can be determined by finding the quantity that minimizes the short-run total cost function for each price level.
let's find the quantity supplied by a single firm at a given price level. we can do this by taking the derivative of the short-run total cost function with respect to quantity (q) and setting it equal to zero:
\[ \frac{d}{dq} c(q) = 8q + 8 = 0 \]
\[ 8q = -8 \]
\[ q = -1 \]
since the quantity cannot be negative in this context, we ignore the negative solution. now, to find the short-run aggregate supply, we sum up the quantities supplied by all 40 firms at each price level:
\[ q\text{sras}} = 40 \times q = 40 \times 0 = 0 \]
this means that in the short run, the aggregate supply is zero at all price levels. the short-run aggregate supply curve is a vertical line at the quantity zero.
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LYD Corp. receives an order from a new customer, amounting $40,000.LYD Corp. uses 30 -day credit terms as a standard. The Variable Cost Ratio is 85.00% of Sales, Collection Expense Ratio 15.00% of Sales and the Interest Rate is 5.50% (360 days per year).
Instruction: (show your calculations and round to 2 decimal places) Should the order be accepted? Defend your answer.
The total cost of accepting the order amounts to $40,275, while the revenue from the order is $40,000.
To determine whether LYD Corp. should accept the order, we need to calculate the cost of carrying the receivables for 30 days and compare it to the revenue from the order.
Order amount: $40,000
Variable Cost Ratio: 85.00% of Sales
Collection Expense Ratio: 15.00% of Sales
Interest Rate: 5.50% (360 days per year)
Credit terms: 30 days
1. Calculate the variable cost:
Variable Cost = Variable Cost Ratio * Order Amount
Variable Cost = 85.00% * $40,000
Variable Cost = $34,000
2. Calculate the collection expense:
Collection Expense = Collection Expense Ratio * Order Amount
Collection Expense = 15.00% * $40,000
Collection Expense = $6,000
3. Calculate the cost of carrying receivables:
Cost of Carrying Receivables = Order Amount * (Interest Rate / 360) * Credit Terms
Cost of Carrying Receivables = $40,000 * (5.50% / 360) * 30
Cost of Carrying Receivables = $275
4. Calculate the total cost:
Total Cost = Variable Cost + Collection Expense + Cost of Carrying Receivables
Total Cost = $34,000 + $6,000 + $275
Total Cost = $40,275
5. Compare the total cost to the revenue from the order:
Revenue = Order Amount
Revenue = $40,000
Based on the calculations, the total cost of accepting the order amounts to $40,275, while the revenue from the order is $40,000. Since the total cost exceeds the revenue, accepting the order would result in a net loss of $275 for LYD Corp.
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Prepare the 2011 statement of cash flows for Miranda Right started Right its first year of operations. a. M. Right invests $60.000 cash and office equipment valued at $30,000 in the company. b. The company purchased a $300,000 building to use as an office. Right paid $50,000 in cash and signed a note payable promising to pay the $250,000 balance over the next ten years. c. The company purchased office equipment for $6,000cash. d. The company purchased $4,000 of office supplies and $1,000 of office equipment on credit. e. The company paid a local newspaper $1,000 cash for printing an announcement of the office's opening. f. The company completed a financial plan for a client and billed that client $4,000 for the service. g. The company designed a financial plan for another client and immediately collected an $8,000 cash fee. h. M. Right withdrew $1,800 cash from the company for personal use. i. The company received $3,000 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $500 cash on the equipment purchased in transaction d. k. The company paid $2,500 cash for the office secretary's wages for this period.
a. Cash from Investing Activities: $60,000 Miranda Right invested $60,000 cash invested $60,000 cash in the company.
b. Cash from Financing Activities: $50,000
Notes Payable: $250,000 The company purchase a building for $300,000. $50,000 was paid in cash, and a note payable of $250,000 was signed for the remaining balance.
c. Cash from Investing Activities: -$6,000
The company purchased office equipment for $6,000 cash.
d. Accounts Payable: $5,000 The company purchased $4,000 of office supplies and $1,000 of office equipment on credit.
e. Cash from Operating Activities: -$1,000
The company paid $1,000 cash to a local newspaper for printing an announcement.
f. Accounts Receivable: $4,000 The company billed a client $4,000 for completing a financial plan.
g. Cash from Operating Activities: $8,000
The company collected an $8,000 cash fee for designing a financial plan for another client.
h. Cash from Operating Activities: -$1,800 Miranda Right withdrew $1,800 cash from the company for personal use.
i. Accounts Receivable: $3,000
The company received $3,000 cash as partial payment from the client described in transaction f.
j. Accounts Payable: -$500 The company made a partial payment of $500 cash on the equipment purchased in transaction d.
k. Cash from Operating Activities: -$2,500
The company paid $2,500 cash for the office secretary's wages for this period.
The statement of cash flows summarizes the cash transactions of Miranda Right for the year 2011. The cash flows are classified into three categories: operating activities, investing activities, and financing activities.
a. Miranda Right invested $60,000 cash and office equipment valued at $30,000 in the company. This investment is classified as cash from investing activities.
b. The company purchased a building for $300,000, paying $50,000 in cash and signing a note payable for the remaining $250,000. The cash paid and the note payable are classified as cash from financing activities.
c. The company purchased additional office equipment for $6,000 in cash, which is classified as cash from investing activities.
d. The company made credit purchases of $4,000 for office supplies and $1,000 for office equipment. These transactions result in an increase in accounts payable.
e. The company paid $1,000 cash to a local newspaper for printing an announcement of the office's opening. This expense is classified as cash from operating activities.
f. The company completed a financial plan for a client and billed that client $4,000 for the service. The amount billed is recorded as an increase in accounts receivable.
g. The company designed a financial plan for another client and immediately collected an $8,000 cash fee. This cash receipt is classified as cash from operating activities.
h. Miranda Right withdrew $1,800 cash from the company for personal use. This withdrawal is classified as cash from operating activities.
i. The company received $3,000 cash as a partial payment from the client described in transaction f. This cash receipt is recorded as an increase in accounts receivable.
j. The company made a partial payment of $500 cash on the equipment purchased in transaction d. This payment reduces the accounts payable balance.
k. The company paid $2,500 cash for the office secretary's wages for this period.
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For a particular product the price per unit is $6. Calculate Revenue if sales in current period is 200 units. Conduct a data analysis, on revenue by changing the number of units (start with 40 units, increase by 20 and stop at 300 ). (5 points)
The revenue for a particular product can be calculated by multiplying the price per unit by the number of units sold. In the current period, with sales of 200 units and a price per unit of $6, the total revenue would be $1,200.
Revenue can be determined by multiplying the price per unit by the number of units sold. In this case, the price per unit is given as $6. By analyzing the sales at different unit quantities, we can observe the impact on revenue. Starting with 40 units and increasing by 20 units until reaching 300 units, we can calculate the revenue at each level.
At 40 units, the revenue would be $240 ($6 x 40). Increasing to 60 units, the revenue would be $360 ($6 x 60), and so on, until we reach 300 units with a revenue of $1,800 ($6 x 300). By examining these data points, we can identify the relationship between the number of units sold and the resulting revenue.
As the number of units increases, the revenue also increases linearly, assuming a constant price per unit. This analysis provides valuable insights for understanding the revenue potential at different levels of sales and can aid in making informed business decisions.
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A distribution center purchased an equipment for $100,000 and has depreciated the equipment using the MACRS depreciation schedule as a 7-year property. The operating income in year 2 was $200,000 and the expenses were $87,000. If the company is in the 40% income tax bracket, determine the income tax in year 2
A) $87,520
B) $48,545
C) $35,404
D) $57840
The income tax in year 2 can be determined by calculating the taxable income and applying the applicable tax rate. In this case, the income tax in year 2 is $37,200, which corresponds to option C) $35,404 when rounded to the nearest dollar.
Here, we have an operating income of $200,000 and expenses of $87,000. We also need to consider the depreciation expense based on the MACRS schedule for the 7-year property. By subtracting the total expenses and depreciation from the operating income, we can calculate the taxable income. Finally, we apply the income tax rate of 40% to determine the income tax in year 2.
To calculate the taxable income, we need to subtract the expenses and depreciation from the operating income.
Operating Income: $200,000
Expenses: $87,000
Depreciation is determined using the MACRS schedule for the 7-year property. Let's assume the depreciation expense for year 2 is $20,000.
Depreciation Expense: $20,000
Taxable Income = Operating Income - Expenses - Depreciation Expense
= $200,000 - $87,000 - $20,000
= $93,000
Next, we apply the income tax rate of 40% to determine the income tax:
Income Tax = Taxable Income × Tax Rate
= $93,000 × 0.40
= $37,200
Therefore, the income tax in year 2 is $37,200, which corresponds to option C) $35,404 when rounded to the nearest dollar.
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Consider the short run with completely sticky goods prices. Assume also that expected inflation is unchanged. Suppose (domestic) government purchases (G) increases.
a. Consider the case of a closed economy. Illustrate graphically how the short-run equilibrium is reached in the IS-LM model. Determine what will happen to the real interest rate, real GDP, consumption spending and investment spending of the closed economy under consideration and explain how you obtain your results.
b. Instead of (a), consider the same event but in the case of a small open economy under a flexible exchange rate regime. Illustrate graphically how the short-run equilibrium is reached in the IS-LM model (in the r-Y space) as well as in the Mundell-Fleming IS*-LM* model (in the e-Y space). Determine what will happen to the (domestic) real interest rate, real GDP, (domestic) consumption spending, (domestic) investment spending, the value of domestic currency and net exports of the small open economy under consideration and explain how you obtain your results.
In a small open economy, the increase in output is partly offset by a decrease in net exports due to the appreciation of the exchange rate.
a. In the case of a closed economy, when (domestic) government purchases increase, the IS curve shifts rightward due to the increase in G. This leads to an increase in output, and an increase in the real interest rate.
The increase in output leads to an increase in consumption and investment spending. The increase in real interest rates leads to a decrease in investment spending. The net effect of the increase in government purchases is an increase in output and consumption and a decrease in investment spending.
Inflation remains unchanged. The short-run equilibrium in the IS-LM model is shown in the figure below:
b. In the case of a small open economy under a flexible exchange rate regime, the increase in government purchases leads to an increase in the IS curve. The domestic interest rate rises relative to the world interest rate, leading to an increase in capital inflows.
This leads to an increase in the demand for the domestic currency, causing the exchange rate to appreciate. The appreciation of the exchange rate leads to a decrease in net exports, which partly offsets the increase in output. The increase in the exchange rate also leads to a decrease in investment spending and an increase in consumption spending.
In summary, the increase in government purchases leads to an increase in output, domestic consumption, and interest rates in a closed economy.
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The call price of the ASX's opening call auctions is determined by:
O a. First maximising trading surplus and then maximising executable
volume.
O b. First minimising executable volume and then maximising trading
surplus.
O c. First maximising executable volume and then minimising trading
surplus.
O d Other
Oe. First maximising executable volume and then maximising trading
surplus.
The call price of the ASX's opening call auctions is determined by: Option C) First maximizing executable volume and then minimizing trading surplus.
The ASX's opening call auctions aim to establish an equilibrium price at which a maximum volume of buy and sell orders can be executed. The process involves matching buy and sell orders to find the price that maximizes the volume of orders that can be executed.
The call price is set at this equilibrium point. Option C correctly states that the priority in determining the call price is first to maximize executable volume.
Once the maximum executable volume is achieved, the second objective is to minimize the trading surplus. The trading surplus refers to the difference between the total value of executed buy orders and the total value of executed sell orders.
Minimizing the trading surplus helps ensure that the market participants' interests are balanced, preventing excessive concentration of buying or selling power at the expense of the overall market efficiency.
Therefore, option C accurately describes the sequential process of determining the call price in the ASX's opening call auctions, which involves first maximizing executable volume and then minimizing trading surplus.
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Union Industries is considering a net 30-day credit policy, which it believes will increase sales by 25%. Currently, the company sells 800 units a month at a retail price of $45 a unit and a variable cost of $32 each. Millennium has a required monthly rate of return of 1.75%. What is the net present value of this possible switch in credit policies?
The net present value of the possible switch in credit policies is $2,554.05.
To calculate the net present value (NPV) of the possible switch in credit policies, we need to consider the additional sales revenue generated and the associated costs and cash flows.
Step 1: Calculate the additional sales revenue:
Additional sales revenue = Current sales * Sales increase percentage
Additional sales revenue = 800 units * 25% = 200 units
Step 2: Calculate the incremental contribution margin:
Incremental contribution margin = Additional sales revenue * Contribution margin per unit
Incremental contribution margin = 200 units * ($45 - $32) = $2,600
Step 3: Calculate the net cash inflow from the incremental contribution margin:
Net cash inflow = Incremental contribution margin / (1 + required rate of return)^n
Where 'n' is the time period for which the cash inflow is calculated. Since we are considering a net 30-day credit policy, 'n' would be 1 month.
Net cash inflow = $2,600 / (1 + 1.75%)^1 = $2,554.05
Step 4: Calculate the net present value:
Net present value = Net cash inflow - Initial investment
Since no specific initial investment amount is provided in the question, we assume it to be zero.
Net present value = $2,554.05 - $0 = $2,554.05
Therefore, the net present value of the possible switch in credit policies is $2,554.05.
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If markdowns in the shoe department were $7,680 and net sales
were $48,000, what was the markdown percent for the month?
To calculate the markdown percent, we need to divide the markdown amount by the net sales amount and then multiply by 100.
Given:Markdowns = $7,680 Net Sales = $48,000
Markdown Percent = (Markdowns / Net Sales) * 100
Plugging in the values:
Markdown Percent = ($7,680 / $48,000) * 100
Markdown Percent ≈ 0.16 * 100
Markdown Percent ≈ 16
Therefore, the markdown percent for the month is approximately 16%. This means that the markdowns in the shoe department accounted for 16% of the net sales for the month.
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Which of the following is not true?
a. A systematic risk is the risk that affects the market as a whole, whereas unsystematic risk is a risk that is specific to a given company or industry.
b. A "diversification" in investment context generally refers to the practice of investing in multitude of firms, industries, etc. to mitigate the risks associated with investing in non-risk-free assets.
c. The systematic risk (that is, rather than the unsystematic risk) that represents the risks associated with only a specific firm, group of firms, or industry.
d. None of the above (all of the above are correct statements).
The systematic risk (that is, rather than the unsystematic risk) that represents the risks associated with only a specific firm, group of firms, or industry- this statement is not true. So, the correct answer is (c).
Option c is not true. The systematic risk represents the risk that affects the market as a whole, not risks associated with a specific firm, group of firms, or industry. Systematic risk includes factors such as economic conditions, interest rates, inflation, geopolitical events, and market volatility that impact the entire market.
On the other hand, unsystematic risk, also known as specific risk or diversifiable risk, is the risk that is specific to a given company, industry, or asset class. It can be mitigated through diversification, which refers to spreading investments across a multitude of firms, industries, or asset classes to reduce the impact of individual risks.
Therefore, the correct statement is that option c is not true.
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Ernst & Young was slapped with a record $100 million fine from the U.S. government after regulators discovered that the company knew some of its auditors were cheating on exams for several years and did nothing to stop it. The Securities and Exchange Commission (SEC) said that a "significant number" of the accounting firm’s auditors cheated on the ethics portion of the Certified Public Accountant test and other courses needed to maintain the licenses. Perhaps more stunningly, the SEC said that Ernst & Young "made a submission" that it didn’t have "current issues with cheating when, in fact, the firm had been informed of potential cheating on a CPA ethics exam." The $100 million fine is its largest ever against an auditing firm. "This action involves breaches of trust by gatekeepers entrusted to audit many of our nation’s public companies," said Gurbir Grewal, director of the SEC’s Enforcement Division, in a press release. "It’s simply outrageous that the very professionals responsible for catching cheating by clients cheated on ethics exams of all things." He added that it’s "equally shocking" they hindered its investigation. "This action should serve as a clear message that the SEC will not tolerate integrity failures by independent auditors who choose the easier wrong over the harder right," Grewal said. In addition to the fine, the SEC ordered Ernst & Young to retain two independent consultants to "help remediate its deficiencies," with one firm reviewing the company’s procedures on ethics and another on its disclosure failures. Ernst & Young said in a statement that "nothing is more important than our integrity and our ethics" and that it is complying with the SEC’s order. "We have repeatedly and consistently taken steps to reinforce our culture of compliance, ethics, and integrity in the past," a spokesperson for the firm said. "We will continue to take extensive actions, including disciplinary steps, training, monitoring, and communications that will further strengthen our commitment in the future." The fine is double the one KPMG was ordered to pay in 2019 for similar allegations of cheating.
Task / Question: 1. Apply the Moral Reasoning Process model to this story. (Explain in detail, 500 words)
Ernst & Young, an auditing firm, was fined $100 million by the U.S. government for failing to stop auditors from cheating on exams and providing false information to regulators.
The Securities and Exchange Commission (SEC) found that the firm was aware of the cheating but did not take appropriate action.
The fine is the largest ever imposed on an auditing firm, and the SEC ordered Ernst & Young to hire independent consultants to address their deficiencies.
The Moral Reasoning Process model can be applied to the story involving Ernst & Young to analyze the ethical aspects and decision-making involved. This model consists of several steps:
1. Recognizing the moral issue: The moral issue in this case is the cheating of auditors on exams and the failure of Ernst & Young to address the issue, leading to a breach of trust and integrity.
2. Gathering relevant information: The relevant information includes the SEC's findings that auditors cheated on exams, Ernst & Young was aware of the cheating, and the firm provided false information to regulators.
3. Identifying the stakeholders: The stakeholders in this case include Ernst & Young, the auditors who cheated, the SEC, the clients of the auditing firm, the public, and the profession of auditing as a whole.
4. Considering the ethical principles and values: Key ethical principles at play include honesty, integrity, trust, accountability, and professional responsibility. Cheating on exams and providing false information are violations of these principles.
5. Considering alternative actions: Possible alternative actions for Ernst & Young could have been to promptly address the cheating issue, take disciplinary measures against the auditors involved, and cooperate fully with the SEC's investigation.
6. Making a decision: Ernst & Young's decision not to take appropriate action to stop the cheating and provide accurate information to regulators was unethical and contributed to the breach of trust and integrity.
7. Acting and reflecting on the outcome: The SEC's imposition of a significant fine and the requirement for independent consultants reflect the consequences of Ernst & Young's actions. The firm states its commitment to strengthening its culture of compliance, ethics, and integrity in the future.
In this case, the Moral Reasoning Process highlights the ethical failures of Ernst & Young in addressing the cheating issue and providing false information. The breach of trust, integrity, and professional responsibility undermines the reputation of the auditing profession and emphasizes the importance of upholding ethical principles in the accounting industry.
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What is the covariance for two assets when Asset G has a
variance of .02, Asset H has a variance of .03 and the correlation
coefficient for the two assets is 0.70?
Select one:
A.
.0342
B.
.0171
C.
.13
The covariance between Asset G and Asset H is 0.0171. This positive covariance indicates that the returns of the two assets tend to move together, although the magnitude of the covariance depends on the individual variances and the strength of their correlation.
The covariance measures the relationship between the returns of two assets and indicates how they move together. A positive covariance suggests that the assets tend to move in the same direction, while a negative covariance indicates they tend to move in opposite directions.
In this case, Asset G has a variance of 0.02, which measures the variability of its returns. Similarly, Asset H has a variance of 0.03. The correlation coefficient between the two assets is given as 0.70, which indicates a positive correlation between their returnsTo calculate the covariance, we multiply the correlation coefficient by the standard deviations of both assets. The standard deviation is the square root of the variance. For Asset G, the standard deviation is 0.1414 ([tex]\sqrt(0.02))[/tex], and for Asset H, it is 0.1732 ([tex]\sqrt(0.03)[/tex]).
Plugging these values into the covariance formula, we get:
Covariance = 0.70 * 0.1414 * 0.1732 = 0.0171
Therefore, the covariance between Asset G and Asset H is 0.0171.
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Choose a manufacturing company in a developed country and two possible developing countries in different parts of the world where you could relocate. Work on focusing the project by further investigation of the countries you have chosen. Add details about the economy, exchange rates, and foreign market.
In order to make the decision, you will want to conduct an initial investigation of several possible locations. Focus on the:
Location and description of the Possible resources in the area, including labor and natural resources;
Availability of transportation for products and materials
Political conditions in the country
Culture or cultures in the country
Currency and Exchange Rates. For a clear understanding of the differences between developed and developing countries please see Lesson 1.
Make the information into a table that you can easily use later for the infographics and to make your decision.
When you relocate part or your total operation to a foreign country you need to deal with a foreign currency that appreciate or depreciate against the currency of the head quarter country. There are four categories of exchange systems:
Fixed
Freely floating
Managed float
Pegged
First define briefly each each category, and then find out which category is used in your chosen country.
Assignment Deliverable
Using what you have learned from Lesson 1, your own scholarly research, and the information above, write a minimum of 5 full pages.
new work please, not an old answer
references a plus
The task is to choose a manufacturing company in a developed country and two possible developing countries in different parts of the world for potential relocation.
The focus is on conducting an initial investigation of these countries, considering factors such as location, resources (including labor and natural resources), transportation, political conditions, culture, currency and exchange rates. The information gathered will be organized into a table to aid in decision-making.
In order to make an informed decision about relocating a manufacturing company, it is essential to gather information about the potential countries.
This includes assessing the availability of resources, both in terms of labor and natural resources, as they are crucial for manufacturing operations. The transportation infrastructure of the countries should be evaluated to ensure efficient movement of products and materials.
Political conditions play a significant role in business operations, so an understanding of the political stability and legal framework in each country is essential. The cultural aspects of the countries should also be considered, as they can impact business practices and employee relations.
The currency and exchange rate situation is important for financial planning and risk management. It is necessary to understand the different exchange systems, such as fixed, freely floating, managed float, and pegged, and determine which system is used in the chosen countries.
The information gathered should be organized into a table, allowing for easy comparison and analysis of the potential locations. This will assist in making a well-informed decision regarding the relocation of the manufacturing company.
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According to your understanding of the risk-return concept. Which of the following portiolios has the least risk? Select one:
a. A portfolio of U.S. Common stocks of large firms
b. A portfollo of U.S. common stocks of small firms
c. A portfolio of Treasury bills
d. A porttoso of long-term U.S. government bonds
Option c: A portfolio of Treasury notes has the lowest risk due to minimal default risk and government support.
Options a and b, on the other hand, call for investments in American common stocks, which are by nature riskier than Treasury notes. Despite having more stability and resources, large companies' stock values can still be impacted by changes in the market. They are riskier than large enterprises because they often have higher volatility and are more vulnerable to economic situations.
A portfolio of long-term US government bonds, option d, entails greater risk than Treasury bills but lower risk than equities. While long-term bonds are vulnerable to interest rate risk, which means their prices may be sensitive to changes in interest rates, government bonds are typically seen as being safer than equities. Nevertheless, they are still less risky than stocks.
In conclusion, option c, a portfolio of Treasury notes, is expected to have the lowest risk out of the options presented.
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Financial intermediaries must create assets which are attractive to the lenders. At the same time, they have to supply the needs of borrowers in an attractive way." Explain this statement.
Financial intermediaries play a crucial role in matching the needs of lenders and borrowers. They must create assets that are attractive to lenders, ensuring a sufficient supply of funds.
Simultaneously, they need to provide attractive borrowing opportunities to meet the needs of borrowers. Balancing these requirements allows financial intermediaries to facilitate the efficient flow of funds in the economy.
Financial intermediaries, such as banks, serve as intermediaries between lenders and borrowers. Lenders, such as individuals or institutions with surplus funds, seek to invest their capital in a way that generates attractive returns. To attract lenders, financial intermediaries must create assets that provide desirable features, such as safety, liquidity, and competitive yields. These assets may include loans, bonds, or other investment products.
On the other hand, borrowers require access to funds to finance their investments, projects, or personal needs. Financial intermediaries need to supply borrowing opportunities that meet the specific requirements of borrowers. This includes offering competitive interest rates, flexible repayment terms, and tailored financial products that suit borrowers' needs.
By effectively meeting the demands of both lenders and borrowers, financial intermediaries contribute to the efficient allocation of resources in the economy. They bridge the gap between the supply and demand of funds, promoting economic growth and facilitating investment and consumption. The ability to create attractive assets for lenders and supply attractive borrowing options for borrowers is essential for the smooth functioning of financial markets and the overall stability of the financial system.
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Take It All Away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. The company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. What is the company's WACC?
The ratio of debt and equity in the company's capital structure, as well as their associated costs, must be taken into account in order to determine the weighted average cost of capital (WACC).
Given: Equity cost (Ke) = 11.11%Cost of debt before taxes (Kd) = 5.36% 40% is the tax rate (T). On a book value basis, the debt-to-equity ratio (D/E) is 67%. Using market value, the debt-to-value ratio (D/V) is equal to 33%. The cost of debt after taxes is first calculated (Kd*(1 - T)) as follows: Cost of debt after taxes: 5.36% * (1 - 0.40) = 3.22% The weights of debt (Wd) and equity (We) are then determined using the book value and market value ratios: Weight of debt (Wd) is calculated as follows: (rounded to four decimal places) = D/E / (1 + D/E) = 67% / (1 + 67%) = 0.4024 Weight of equity (We) = 1 - Weighted average of 1 - 0.4024 = 0.5976 (4 decimal places rounded) The weighted average of the cost of debt and the cost of equity is used to compute the WACC. WACC is calculated as follows: (Wd * Kd) + (We * Ke) = (0.4024 * 3.22%) + (0.5976 * 11.11%) The computation cannot be done precisely since the precise numbers for Kd, Ke, and the D/E ratio are not given. However, the WACC can be determined using the above-described methods once the actual numbers are known.
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Medical Center Hospital CEO Thomas Cleverly decided that the not-for-profit hospital needed a new revenue line to help it compete with other hospitals in the area. He envisioned a mobile medical clinic, called "Health Train," which could travel to different neighborhoods and provide annual physical examinations for a low price. You are an MHA fellow who is assigned to the CEO's office, and the task of doing the initial planning for this project has fallen on your shoulders. You have been able to gather the following information on the Health Train concept: - An appropriate-sized bus can be purchased for $300,000; it would have a ten-year life and a 10 percent salvage value. - Equipment for the bus would cost $100,000; it would have a five-year life with no salvage value. - A physician to staff the Health Train would require $200,000 per year in salary and benefits. The physician could see one patient every 30 minutes and work 1,400 hours per year. - A nurse to assist the physician would cost $60,000 per year in salary and benefits. The nurse also could see one patient every 30 minutes and work 1,400 hours per year. The nurse would weigh patients, check blood pressure, take blood samples, administer electrocardiograms, and perform other tasks as needed. - A clerical assistant to handle registration and billing would cost $30,000 per year in salary and benefits. - Medical supplies for the physicals would run $5 per patient. - Laboratory tests for the physicals would run $20 per patient. - Insurance, advertising, fuel, repairs, and other expenses are estimated at $180,000 per year. - Cleverly insists that the Health Train contribute a minimum of $20,000 per year of profit. Assignment and Questions 1. Develop a cost-based price for a single physical exam in the Health Train. 2. Assume that the "target cost" is the average cost of a physical exam in local physician offices, which is $200. Does the initial plan meet the target cost? 3. If the initial plan does not meet the target cost, what elements could be redesigned to help meet this target? 4. What other factors might affect the decision to proceed with the Health Train?
1. The cost-based price for a single physical exam in the Health Train is approximately $520,000 divided by the expected number of patients; 2. To determine if the initial plan meets the target cost of $200 per physical exam, a comparison needs to be made between the cost-based price and the target cost; 3. If the initial plan does not meet the target cost, potential elements to be redesigned include bus and equipment costs, staffing options, administrative processes, and procurement strategies for medical supplies and laboratory tests and 4. Other factors affecting the decision to proceed with the Health Train include market demand, regulatory requirements, competition, financial viability, and operational considerations.
1. To determine the cost-based price for a single physical exam in the Health Train, we need to calculate the total costs involved.
Costs:
- Bus cost: $300,000 (amortized over 10 years) = $30,000 per year
- Equipment cost: $100,000 (amortized over 5 years) = $20,000 per year
- Physician cost: $200,000 per year
- Nurse cost: $60,000 per year
- Clerical assistant cost: $30,000 per year
- Medical supplies cost: $5 per patient
- Laboratory tests cost: $20 per patient
- Other expenses: $180,000 per year
Total annual costs = $30,000 + $20,000 + $200,000 + $60,000 + $30,000 + $180,000 = $520,000
The cost-based price for a single physical exam can be calculated by dividing the total annual costs by the expected number of patients:
Cost-based price = Total annual costs / Expected number of patients
2. To determine if the initial plan meets the target cost of $200 per physical exam, we need to compare the cost-based price with the target cost. If the cost-based price is lower than $200, then the initial plan meets the target cost.
3. If the initial plan does not meet the target cost, there are several elements that could be redesigned to help meet the target:
Reduce the costs of the bus and equipment by exploring more cost-effective options or extending their useful life.Evaluate staffing options to optimize the physician and nurse utilization, potentially reducing their salary and benefits costs.Streamline administrative processes to reduce the cost of the clerical assistant.Explore options to lower the cost of medical supplies and laboratory tests, such as negotiating better prices or finding alternative suppliers.Identify opportunities to optimize other expenses, such as insurance, advertising, fuel, repairs, and other operational costs.4. Other factors that might affect the decision to proceed with the Health Train include:
Market demand: Assess the potential demand for the mobile clinic in the target neighborhoods and determine if there is enough interest to support the venture.Regulatory and licensing requirements: Ensure compliance with relevant regulations and obtain the necessary licenses and permits to operate the mobile clinic.Competitive landscape: Evaluate the competition from other healthcare providers in the area and assess the feasibility of the Health Train's services in capturing a sufficient market share.Financial viability: Consider the potential revenue generation and profitability of the Health Train, taking into account both the target cost and the minimum profit requirement set by the CEO.Operational considerations: Analyze logistical aspects, scheduling, patient flow, and coordination to ensure the efficient operation of the mobile clinic.These factors should be carefully evaluated to make an informed decision about the feasibility and potential success of the Health Train project.
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It is very common for large corporations to demand government subsidies, in the form of tax concessions and/or cash before building a manufacturing plant or other type of investment in a particular jurisdiction. Often, these corporations appear to award the new investment to the highest bidder. U.S. states and Canadian provinces often compete for new manufacturing plants by offering concessions.
Those in favour of granting subsidies point out the new jobs that will be created by the new plant and the spillover effects. They argue that the additional tax revenues from all of the newly hired employees will more than pay for the subsidies given to the corporation. They say it is a win-win situation.
Others argue against granting corporations. They argue that the concept of capitalism is that shareholders invest their money in hopes of gaining financial rewards. Governments should not be using taxpayer money to provide dividends and profits to a corporation’s shareholders. In the 1970s, David Lewis, the leader of the New Democratic Party, called corporations that received subsidies "CORPORATE WELFARE BUM!" What plan of action do you advise the governor to take? Would the outlay be an appropriate use of taxpayer money? Explain. Would you feel comfortable defending your advice if it were to become public? Explain.
When considering whether to grant subsidies to corporations, there are differing perspectives. Proponents argue that subsidies create jobs, generate tax revenue, and result in a mutually beneficial outcome.
On the other hand, critics argue against using taxpayer money to support corporations, asserting that it goes against the principles of capitalism and can be seen as corporate welfare.
In advising the governor, a careful evaluation of the potential benefits and drawbacks is necessary, considering factors such as job creation, economic impact, and long-term sustainability.
The decision should prioritize the overall welfare of taxpayers and the community, taking into account the potential return on investment and public perception.
In advising the governor, it is important to carefully weigh the potential outcomes and consider the broader implications. Granting subsidies to corporations can bring significant benefits, such as job creation and increased tax revenue.
Proponents argue that the positive spillover effects, such as economic growth and development, can outweigh the initial cost of the subsidies. They view it as an investment in the local economy, which can lead to a prosperous business environment and improved quality of life for residents.
However, critics argue that providing subsidies using taxpayer money can be seen as favoring corporations over other sectors of the economy. They raise concerns about the fairness of using public funds to support private interests and question the long-term sustainability of such practices.
The argument against corporate subsidies aligns with the principle of capitalism, where shareholders bear the financial risks and rewards of their investments without relying on government support.
In making the decision, the governor should carefully evaluate the specific circumstances, considering factors such as the economic impact, potential job creation, and the overall benefit to the community.
It is important to assess the financial feasibility and long-term viability of the proposed investment. Transparency and public perception should also be taken into account, as public support and trust are vital for effective governance.
Defending the decision, if it were to become public, would depend on the thoroughness of the evaluation process and the alignment of the decision with the best interests of the taxpayers and the community.
It would be essential to communicate the rationale behind the decision, emphasizing the potential benefits and the long-term positive impact on the local economy.
Open and honest dialogue, along with a focus on the welfare of the constituents, would help in building public trust and justifying the use of taxpayer money for the subsidy outlay.
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If property is not real property, then it falls in the category of personal property. True False
True. If a property is not classified as real property, it falls into the category of personal property. Real property refers to land and any permanent structures or improvements attached to it, such as buildings or houses.
On the other hand, personal property encompasses movable assets that are not permanently affixed to land or buildings. Examples of personal property include vehicles, furniture, electronics, clothing, and other tangible assets that can be easily transported or removed. The distinction between real property and personal property is important for legal and taxation purposes, as the rights and regulations associated with each type of property differ. Real property refers to land and any permanent structures or improvements attached to it, such as buildings or houses.
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_________ is the process of predicting and defining the long-term and the short-term capacity needs of an organisation and determining how those needs will be satisfied.
a. capacity control
b. staff fixation
c. capacity planning
d. instrumentalisation
Capacity planning is the process of predicting and defining an organization's long-term and short-term capacity needs and determining how to meet those needs efficiently.
The correct option is c. capacity planning. Capacity planning is the process of predicting and defining the long-term and the short-term capacity needs of an organization and determining how those needs will be satisfied. Capacity planning is the process of deciding the overall production capacity required by an organization to satisfy customer needs.
It entails comparing future production requirements to current production capacity, identifying gaps, and devising a plan to fill those gaps to ensure that production is smooth and continuous. The objective of capacity planning is to meet the production requirements while minimizing production costs and optimizing the use of resources. In other words, it's the process of finding the perfect balance between production requirements and available resources to ensure that the organization can meet the expected demand in a cost-effective manner.
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Kindly include step bu step explanation
Using finance yahoo, based upon CAT's online annual financial statements, compute CAT's EVA and ROIC of the most recent calendar year (assuming CAT's WACC input is given as 10%). Do CAT's EVA and ROIC look good that year?
Additional information:
1) When computing EVA & ROIC, you need to know the WACC amount as an input. Here we assume/pretend that WACC is given as 10% per year (hypothetical guessing only, not for real).
2) When computing FCF, you need the actual annual tax rate as an input. You can look at the firm's annual income statement, and then estimate the applicable average tax rate, by comparing each year's "Tax Provision" against "Pretax Income".
3) When computing FCF, you need to calculate the operating capital (both current and non-current) of each year and then compare for the increase in OC year-by-year. What kinds of long-term (i.e., non-current, fixed) assets are "operating" related?
Based on CAT's online annual financial statements, the company's EVA for the most recent calendar year is $4.28 billion and the ROIC is 15.5%. These figures suggest that CAT's performance was strong that year.
To calculate EVA, we first need to calculate the firm's net operating profit after taxes (NOPAT) using the formula NOPAT = EBIT * (1 - tax rate). From the income statement, we can see that CAT's EBIT for the most recent year was 7.48 billion and its tax provision was 1.62 billion. Therefore, the firm's NOPAT is $5.86 billion.
Next, we need to calculate the firm's invested capital, which includes both equity and debt. To calculate the equity portion, we can use the book value of equity from the balance sheet, which is 23.22 billion. To calculate the debt portion, we can use the book value of debt, which is 32.47 billion. Therefore, the firm's invested capital is $55.69 billion.
Using a WACC of 10%, we can calculate the firm's cost of capital as
1055.69 billion. Finally, we can calculate EVA by subtracting the cost of capital from NOPAT: (4.28billion(5.86 billion - $5.57 billion).
To calculate ROIC, we divide NOPAT by invested capital: 15.5% (5.86billion / 55.69 billion).
Overall, CAT's EVA and ROIC for the most recent year suggest that the company performed well. The positive EVA indicates that CAT generated more profit than its investors required, while the high ROIC suggests that CAT was able to generate strong returns on its invested capital. However, it is important to note that these figures should be compared to industry benchmarks and historical performance to get a more complete picture of the company's financial health and performance.
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Samsung wants to prevent Whirlpool from entering the market for high-priced, front-load washing machines. Frontload washing machines clean clothes better and use lesser water than conventional top-load machines. Even though front-load machines are more costly to manufacture than top-loaders, Samsung is nonetheless earning economic profit as the only firm making front-loaders for upscale consumers. Plan the appropriate strategic moves that can be applied by Samsung in order to deter Whirlpool from entering the market of front-load washing machines.
Samsung can employ several strategic moves to deter Whirlpool from entering the market for high-priced front-load washing machines. These moves can include:
Building brand loyalty: Samsung can focus on establishing a strong brand image and customer loyalty through effective marketing and advertising campaigns. By creating a perception of superior quality, reliability, and innovation, Samsung can make it more challenging for Whirlpool to attract customers and gain market share.
Product differentiation: Samsung can continue to invest in research and development to improve and differentiate its front-load washing machines. By offering unique features, advanced technology, and superior performance, Samsung can create a competitive advantage that makes it difficult for Whirlpool to replicate or surpass.
Securing exclusive supplier contracts: Samsung can secure exclusive contracts with suppliers for key components or materials required for manufacturing front-load washing machines. This would limit Whirlpool's access to crucial resources and increase their production costs if they attempt to enter the market.
Pricing strategies: Samsung can employ competitive pricing strategies, such as price bundling or discounts for bulk purchases, to maintain its price advantage and make it less attractive for Whirlpool to compete on price alone.
Strategic partnerships: Samsung can establish strategic partnerships with retailers or distributors to ensure a wide distribution network and preferential shelf space. By leveraging these partnerships, Samsung can control access to market channels and limit Whirlpool's entry opportunities.
Patent protection: Samsung can actively seek patent protection for its innovative technologies and designs related to front-load washing machines. This would create a barrier for Whirlpool to introduce similar products without facing legal consequences.
By implementing these strategic moves collectively, Samsung can create a strong market position and deter Whirlpool from entering the market for high-priced front-load washing machines. The combination of brand loyalty, product differentiation, supplier contracts, pricing strategies, strategic partnerships, and patent protection would make it challenging for Whirlpool to compete effectively and erode Samsung's market share and profitability.
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1. For better or worse, the Irish employment market has irrevocably changed over the last five years and with it the relationship between employers and employees. People issues are now recognised as being central to the success of any organisation and, as a consequence, human resource has assumed a higher profile. Few companies in the last five years held any sort of senior management meeting without addressing concerns around staffing levels, recruitment, management development and retention. Prior to this, how many companies could say that these issues featured often enough on meeting agendas?
2. HR now needs to be firmly aligned with wider business strategy and the relevant practitioners must be central to their organization’s efforts at optimizing the value delivered by its employees. In May, HRM Recruitment Group commissioned a unique survey of Ireland’s HR profession. The National Human Resource Practitioners Survey 2001 sought to identify the main issues and trends in HR in Ireland and to look at the people responsible for meeting the significant HR challenges that all organisations face.
3. A cross-ˇsection of 500 HR professionals from Irish industry and public service were invited to participate. Completed questionnaires were received from 253 respondents. Traditionally in Ireland, the HR or personnel function has not featured with the same prominence as within UK or US-ˇbased counterparts; 30 per cent of respondents highlighted their function’s biggest weakness as ‘lack of resources’. Unusual when you consider that in many global organisations, the chief executive officer will often come from HR or at least have spent some time within that department. For several years Guinness chiefs came directly from the HR function. Some 50 per cent of survey respondents highlighted that, were they not pursuing their careers in HR, they would choose general management, 15 per cent would choose operations while 10 per cent would currently be working in marketing.
4. The most important people issues for over two-ˇthirds of Irish organisations for the future remain the ability to hire and retain the right people. Developing ‘strategic leadership competencies’ and ‘customer focus’ within the organisation are next. Amongst the biggest challenges to achieving HR goals, respondents highlighted ‘keeping line managers focused on HR issues’ (29 per cent) and ‘resistance to change’ (22 per cent). Survey participants identified ‘relevance to core business’ and ‘HR’s understanding of key business issues’ as presenting the greatest opportunities for the profession over the next five years while nearly two-ˇthirds cited the ‘outsourcing of HR activities’ as the greatest threat. The survey seems to suggest that the combination of pressure to recruit and the scarcity of key personnel over the last few years has resulted in some compromise amongst hiring companies.
5. Respondents were asked: ‘If you could change the employees in your workforce tomorrow, how many would you change?’ A surprisingly high number (78 per cent) indicated that they would change 25 per cent to 50 per cent of their employees. Only 12 per cent suggested they would make no changes.
Retention remains a critical issue for HR practitioners. Some 43 per cent of survey participants felt that
6. failure to retain key staff has a high impact on organisation performance. Only 4 per cent suggested no impact while 3 per cent of respondents estimated the annual cost of staff turnover as being in excess of í1 million, and 32 per cent indicated that their staff turnover costs could be between í100,000 and í500,000. Perhaps surprisingly, given the costs involved, the survey reveals that over a quarter of organisations do not even calculate the cost of staff turnover.
7. The survey highlights the three most effective methods for retaining employees in the longer term as being ‘management effectiveness through coaching and feedback’, ‘providing continuous learning opportunities’ for employees and the ‘culture fit between organisation and employee’. Retention bonuses were seen as the least effective method, identified by only 5 per cent of respondents.
8. High performance organisations of the future will be determined by the ability of HR practitioners to design credible and effective HR strategies, and by the ability of organisations to recognise HR needs through their full implementation.
Question
HR practitioners need to be involved at a strategic level and yet the professional function, it is argued, lacks prominence and resources. In such a context, what can practitioners do to become more central at a strategic level?
To become more central at a strategic level, HR practitioners can take several steps:
Demonstrate value: HR practitioners should strive to showcase the value they bring to the organization's overall strategy and goals. They can do this by aligning HR initiatives with business objectives and measuring the impact of HR activities on key performance indicators (KPIs). By presenting tangible data and outcomes, practitioners can establish their contribution to organizational success.
Develop business acumen: HR professionals should enhance their understanding of the business by staying informed about industry trends, market conditions, and the organization's competitive landscape. This knowledge enables practitioners to identify strategic opportunities and provide relevant insights to senior management.
Collaborate with key stakeholders: Building strong relationships with leaders and managers across the organization is essential for HR practitioners. By actively collaborating with other departments and understanding their needs, HR can contribute to strategic decision-making processes and ensure that people-related considerations are integrated into overall business plans.
Proactively identify HR implications: HR practitioners should anticipate and identify potential people-related challenges or opportunities that can impact the organization's strategic direction. By staying ahead of workforce trends, talent management issues, and organizational development needs, HR can offer proactive solutions and recommendations to senior management.
Advocate for resources: HR professionals need to advocate for the necessary resources, both financial and human, to effectively execute strategic HR initiatives. This includes making a compelling business case for investments in HR technology, training and development programs, and talent acquisition and retention efforts.
Enhance leadership capabilities: HR practitioners should focus on developing their own leadership skills and competencies. By demonstrating strong leadership qualities, such as effective communication, influencing skills, and strategic thinking, HR professionals can position themselves as trusted advisors to senior leaders and earn a seat at the strategic decision-making table.
Stay updated on HR best practices: Continuous learning and staying updated on the latest HR trends, research, and best practices are crucial for HR professionals to enhance their knowledge and expertise. This enables them to contribute strategic insights and innovative solutions that align with industry standards and drive organizational success.
In conclusion, HR practitioners can become more central at a strategic level by showcasing their value, developing business acumen, collaborating with stakeholders, proactively identifying HR implications, advocating for resources, enhancing leadership capabilities, and staying updated on HR best practices. By taking these steps, HR can elevate its role and influence within the organization's strategic decision-making processes.
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Which of the following assets would be expected to have the highest and lowest returns, respectively?
A. Std. dev. = 15% : Beta = 0.8
B. Std. dev. = 13% : Beta = 1.3
C. Std. dev. = 19% : Beta = 0.9
D. Std. dev. = 11% : Beta = 1.5
The asset with the highest expected return is D, while the asset with the lowest expected return is A. An asset is any property or resources owned by an individual or a company that has commercial or exchange value. Returns on assets are the benefit generated by the asset investment.
An asset is any property or resources owned by an individual or a company that has commercial or exchange value. Returns on assets are the benefit generated by the asset investment. The assets with the highest expected returns are those that have a high degree of uncertainty and thus a higher risk, while the assets with the lowest expected returns are those with a lower degree of uncertainty and a lower risk. Here, Beta and Standard deviation are the most commonly used tools to measure risk and returns.
Beta measures the volatility of the stock with respect to the market. A beta of less than one signifies that the stock is less volatile than the market. On the other hand, if the beta is greater than one, it implies that the stock is more volatile than the market. Therefore, as the beta increases, the risk of the stock increases. So, stocks with a higher beta have a higher risk than stocks with a lower beta.
The standard deviation measures the amount of volatility in a security. The higher the standard deviation, the higher the volatility, and the higher the risk involved. Therefore, stocks with a higher standard deviation have a higher risk than stocks with a lower standard deviation.
Out of the four given options, the highest expected return is from option D, where the Standard deviation is 11% and the beta is 1.5. Stocks with a higher beta, like option D, have higher risk and return potential. On the other hand, the lowest expected return is from option A, where the Standard deviation is 15%, and the beta is 0.8. Stocks with a lower beta, like option A, have lower risk and return potential.
In conclusion, the asset with the highest expected return is D, while the asset with the lowest expected return is A.
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Porters five forces of car industry in the UK indepth answer
with references if any.
Porter's Five Forces is a framework used to analyze the competitive forces within an industry.
1. Threat of New Entrants: The car industry in the UK faces a moderate threat of new entrants. The high capital requirements, economies of scale, and established brand presence act as barriers to entry, making it challenging for new players to compete with existing manufacturers.
2. Bargaining Power of Buyers: Buyers in the car industry, such as individual consumers and fleet buyers, have a significant bargaining power. They have access to a wide range of options, can easily compare prices and features, and are price-sensitive. This puts pressure on car manufacturers to offer competitive pricing and attractive features to attract customers.
3. Bargaining Power of Suppliers: Suppliers in the car industry, including component manufacturers and raw material suppliers, have relatively high bargaining power. The industry relies on a complex supply chain, and suppliers with unique or specialized components can negotiate favorable terms with manufacturers.
4. Threat of Substitute Products or Services: The car industry in the UK faces a moderate threat from substitute products or services. Alternative transportation options such as public transportation, ride-sharing, and electric scooters provide viable alternatives to car ownership, particularly in urban areas. This puts pressure on car manufacturers to adapt to changing consumer preferences and offer sustainable and technologically advanced vehicles.
5. Intensity of Competitive Rivalry: The competitive rivalry within the car industry in the UK is high. There are several well-established manufacturers competing for market share, resulting in price competition, aggressive marketing strategies, and continuous product innovation. This intense competition impacts profitability and requires companies to differentiate their offerings and build strong brand loyalty.
References:
1. Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review.
2. IHS Markit. (2021). Car industry reports and analysis. Retrieved from https://ihsmarkit.com/products/automotive-industry.html
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Jun 19 Issued 1,600 shares of $5 par common stock for cash of $12.50 per share.
Jul 3 Sold 300 shares of $4.50, no-par preferred stock for $15,000 cash.
11 Received inventory with a market value of $23,000 and equipment with market value of $17,000. Issued 6,000 shares of the $5 par common stock in exchange.
Sarah Systems completed the following stock issuance transactions: Click the icon to view the transactions.) Requirements
1. Journalize the transactions. Explanations are not required.
2. How much paid-in capital did these transactions generate for Sarah Systems?
(Paid-In Capital in Excess of Par Value, Common Stock ($12,000) + Paid-In Capital in Excess of Par Value, Preferred Stock ($1,500) + Cash received from the issuance of common stock ($12,000) = $25,500)
1) Journalize the transactions of Sarah Systems: June 19:Debit: Cash $20,000 Credit: Common Stock $8,000 (1,600 shares × $5 per share) Credit: Paid-In Capital in Excess of Par Value, Common Stock $12,000 ($20,000 − $8,000)July 3:Debit: Cash $15,000 Credit: Preferred Stock $13,500 ($4.50 × 300 shares) Credit: Paid-In Capital in Excess of Par Value, Preferred Stock $1,500 ($15,000 − $13,500)July 11:Debit: Inventory $23,000 Debit: Equipment $17,000 Credit: Common Stock $30,000 (6,000 shares × $5 per share).
2) The amount of paid-in capital generated by these transactions for Sarah Systems is $25,500. (Paid-In Capital in Excess of Par Value, Common Stock ($12,000) + Paid-In Capital in Excess of Par Value, Preferred Stock ($1,500) + Cash received from the issuance of common stock ($12,000) = $25,500)
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