## You have a friend who is thinking of starting up a hairdressing business from home. He can charge £25 for each customer visit, and it takes about half an hour to style a customer’s hair. He thinks that he can work for five hours a day, five days per week, fifty weeks a year. He has worked out that his consumable costs will be about £5 per customer, but he will have to lay out £9,000 on capital equipment, which he thinks will have a working life of about three years. He wants to make at least £200 a week and believes he should also be able to set aside another £100 as a contribution to repairing damages to carpets and fittings. He is very enthusiastic about his plan because he has a friend who has a similar business. She says that 70% of her takings are pure profit. Calculate your friend’s weekly break-even volume for three cases: Meeting costs, Making his required cash surplus, and Making his surplus plus a contribution to repairs. Determine what changes (if any) he would need to make to match his friend’s profitability rate.

Opening an establishment described in terms of the economic challenge may seem profitable. By doing the calculations, one can conclude that the annual net profit of this business is about 16000 £, and the weekly revenue exceeds 500 £. According to the terms of this task, the earning opportunity is...

## What factors should be considered before making an investment in a company, and how does the expected internal rate of return impact the decision-making process?

A company should make this investment if the optimization is operational, necessary for development, and is not highly risky. These calculations do not take into account depreciation or associated costs associated with this asset: it is expected that all of them will be covered in the amount of £8,000 per...

## Franchising is widely used in the casual dining and fast food industry, yet Starbucks is quite successful with a large number of company stores. In 2016 Starbucks had more than 7,800 company-owned stores in the US…how do u explain this difference? Is Starbucks bucking the trend of other food-service stores, or is something else going on?

Most restaurants use the franchise model as a method of expansion, however, Starbucks operates on a different business model. Starbucks’ expansion strategy is not based on the franchise model as it believes that by operating company-owned stores, it maintains the company culture and achieves greater control of operations. Goh indicates...

## When Walmart decided to incorporate grocery stores into some locations and created ‘supercenters’, was this a business-level strategy of differentiation or corporate strategy diversification? Why?

Walmart’s decision to incorporate grocery stores in some locations creating supercenters is a corporate strategy diversification. It targets the operations of the company while expanding its reach to consumers. Corporate-level strategies seek to specify approaches that a company can adopt to gain a competitive advantage over its competitors. As a...

## Is the business sector facing a major risk due to climate change/crisis?

The business sector always faces serious risks due to climate change. Moreover, it must be emphasized that the potential danger can manifest itself in different directions. For example, sharp warming or cooling leads to a decrease in the quality and quantity of fabric produced. Emissions, whether of an androgenic or...

## Considering a typical value chain of a fashion brand and in light of the case, discuss the various sources of business risks related to climate change/crisis in the fashion industry.

It must be emphasized that the prospects for the fast fashion industry are strongly influenced by the sustainability of water resources. The fact is that one of the potential environmental threats to humanity is the pollution of the world’s oceans, as well as fresh waters. Although the fact itself will...

## Talia owns the largest producer of ice cream in Easteros. She currently relies on several small manufacturers to produce the packaging for her products. She has contracts with each of her manufacturers and has quarterly meetings with them to discuss business for the next quarter. Other than this interaction, she has little oversight over their work. Over the last year, Talia’s business has boomed, and she is wondering whether she should begin packaging her product in-house. Write a brief recommendation to Talia, highlighting the costs and benefits of vertical versus horizontal integration.

Vertical integration should be understood as a situation where the company combines the key stages of production into a single one, but not in the context of one stage. Upstream integration has previously been supplied to it by other firms. In case the firm is involved in product processing or...

## Explain how one would adopt the standard business plan as a strategic document.

A strategic business plan analyzes and answers the needs of a company’s customers in a competitive market. Therefore, it would be time for the entrepreneur to adopt a business plan as a strategic document rather than prepare an entirely different document to serve the same purpose. The entrepreneur would embrace...

## Explain how networks have contributed to the growth of Rent-A-Drum Company.

The capacity of a firm to acquire new customers and extend its customer base is based on the organization’s ability to network. Interactions between Gys Louw and the enormous number of networks he had in Namibia positively impacted his new business. He discovered that he could generate opportunities not just...

## Rent-A-Drum has a lot of vehicles (fixed assets). Identify the major issues related to the acquisition of physical resources.

Lack of physical resources may require hiring professional individuals, which may be challenging in some areas. Human resources shortage to carry out the necessary activities has resulted in their inability to be put to use due to the situation. Because of this, the company may suffer increased expenditures due to...

## In 2010, the Rent-A-Drum company erected a material recovery facility. Explain the different sources where the company could have obtained the finances to build such a large facility.

Commercial banks give access to asset finance to most business organizations. Both parties benefit; the bank gains interest, while the organization gets funded by the bank. Governments such as the U.S. give some lending institutions the power to finance start-up businesses by subsidizing loan interests. Local governments support small businesses...

## What is Amazon’s business model? What is Amazon’s most profitable division? How does the company benefit from double-sided network effects and its cash conversion cycle (CCC)?

Amazon’s business model is a platform model where the core model has several business units within such as Prime and the advertising business which are intricately tied. Amazon’s most profitable division is the online store segment which allows sellers and buyers to meet. The company benefits from the fees and...

## Disrupters in hospitality. What are they? How are they affecting customer service and customer relationships in the hospitality industry? How will they change the future of hospitality and hospitality brands?

With the rapidly changing nature of technologies, there is also a change in customers’ expectations and needs. Online platforms, devices, and markets are crucial tools for shaping customer service and customer relationships in the hospitality industry. These tools are also can be viewed as disrupters in hospitality as they hinder...

## What is your plan of action for addressing the situation at J&J?

The situation at J&J is pretty challenging to be solved. Restoring the successful position of the company in the market is practically impossible. As far as Weldon comprehends the decrease in quality, the most vital aim for the company is to re-establish high-qualitative production. In order to do so, the...

## What factors led to the product recalls at McNeil?

The first factor leading to the product recalls at McNeil is the decision to hire less experienced members of the quality control department. Workers were focused on increasing the volumes of production. Thus, the quality was severely damaged, causing a considerable number of working process errors and provoking various recalls....

## Discuss the implementation of the triple bottom line concept in Dolls&Walls company.

The triple bottom line concept is used in economics to describe the CSR practices and the general approaches to the stakeholder performed by the organizations. According to this concept, organizations should consider the interests of both shareholders and stakeholders of the company. The latter are the employees, customers, communities, and...

## Describe the differences between Boudieu’s objectified, embodied, and institutionalized cultural capital. Explain how he explains that exchanging culture for social capital or for economic capital and vice versa reproduces rather than challenges systems of social inequality.

Bourdieu categorized cultural capital into three sub-categories that included embodied, objectified, and institutionalized forms of cultural capital. These forms are different in the sense that embodied capital is a form of cultural capital, involving the acquisition of knowledge and skills through the forms of education and socialization. On the other...

## Lobsters: Why is it essential for Maine Coast Company to export its product? Could the company survive without international expansion? What were the implications of Donald Trump’s trade war with China? How did tariffs imposed by China force Maine Coast Company to choose a new strategic direction?

The company gains the majority of its profits from exporting its product – lobsters. Maine Coast Company is an experienced actor in the industry and realizes the global tendencies in terms of demand for its production. Lobsters are extremely popular in foreign countries that have limited access to marine resources...

## What are some of the remedies that companies like NBC can use to recover from a breach of contract and how can they prevent such violations in the future?

A breach can be described as a voluntary denial or violation of an agreement between parties. To achieve the required goals, companies such as NBC rely on organized interactions between workers. Such interactions may depend on various factors, such as individual goals and motives. In 2000, Friends was one of...

## Discuss the stock market crash of 2008.

September 2008 marked the beginning of an acute phase of the financial crisis. An important event that should be included in the timeline for that month is the crash of the stock market on September 29. It caused a significant impact on the financial industry and economy as a whole,...

## Explain the organizational structure and the key functions of the WTO.

The World Trade Organization (WTO) is a global organization that oversees trade between nations. It ensures that member countries adhere to the rules and regulations for free trade established by the organization, brokers and helps negotiate trade deals between the states, settles arising disputes, and reviews national trade policies. It...

## Discuss how Adam Smith and David Ricardo turned the conversation and demonstrated that trade is a positive-sum game. How has the neo-mercantilist approach viewed trade?

Adam Smith argued that every country has an absolute advantage and can produce goods that other countries cannot. Specialization in the production of goods should be the priority, as countries can engage in trade to acquire goods they cannot efficiently produce. Trade of different goods can benefit countries, as they...

## Briefly describe the two components of strategic trade policy.

Strategic trade policy has two main components that explain why certain policies should be undertaken to affect the outcome of interactions between different firms. The first component argues that government intervention in business matters can positively affect the country by raising national income. Thus, governments should seek to subsidize promising...

## From a management perspective why do you think budgets are so important and give an example, that relates specifically to your major, of how you will use budgets in your field.

Budget is important as it provides managers with the available resources to work. Knowing how much you have is crucial because you can plan what to do and how. For example, as my major is business administration, I need to know the specific number of resources with which I can...

## Why is it illegal to trade on insider information? Provide an example in your own words.

Insider trading on the stock exchange is the manipulation of the issuer’s securities based on information that is closed to a wide range of people. In other words, the insider knows something significant about the company and makes a sale or purchase of assets depending on the nature of the...

## Describe buying on margin. Provide an example in your own words.

Margin is defined as the number of the funds pledged in the brokerage account, which is taken as an insurance deposit when borrowing money for participating in trading activities. An initial and minimum margin may appear on the market. The initial margin is the collateral for a new trade. It...

## Describe the differences among the following three types of orders: market, limit, and stop loss. Provide examples of each in your own words.

A market order is the choice of investors when speed is more important than cost. A market order should be used when an instant buy at the nearest available price is essential. This type of order has the highest probability of being executed; however, due to the increased possibility of...

## Define producer-driven vs buyer-driven commodity chain.

A producer-driven commodity chain is a type of commodity chain where producers of goods or services have control over the providers of raw materials as well as distributors. It is common in such technology-intensive industries as automobile, computer, machinery, and aircraft manufacturing. A buyer-driven commodity chain is a type of...

## Define formal and informal institutional frameworks.

Formal institutional framework refers to the rules and regulations established by the official entity in a certain place or region. It includes governmental decisions concerning tax rates, labor safety, health requirements, and subsidies and fines, to name a few. The informal institutional framework refers to the actors’ behavior in the...

## State the reasons for allocating support department costs to the operating department. What are its various methods? Provide numerical examples of any two methods and discuss how these methods could be used to allocate these costs.

The services of support units can be distributed using three methods: direct, incremental, and the method of distribution of mutual branches. The costs of the service departments are shared between the operations ones because they exist to support them. Maintenance divisions help several production departments simultaneously, and accountants must allocate...

## Please evaluate the investment philosophy of Warren Buffet. On which points do you agree and disagree with him?

In my opinion, Warren Buffet’s philosophy appears highly reasonable and explicit. The primary message of his philosophy is consciousness in actions: investors should be realistic, competent, and patient and plan their business ahead. I feel related to Buffet’s notion of “the lost opportunity”, a comparison of “an investment opportunity against...

## The Marker Maker product recently experienced an unexpected surge in demand and the supply chain’s agility was credited with helping to meet the crisis. We have discussed four ways to classify operational inventories by how they are created. Regarding the ways managers can use these inventories to satisfy demand, explain how Crayola can achieve the flexibility to adjust to unexpected demand surges.

Crayola built additional capacity in China to match the expected aggregate demand rise, but the company formed closer supplier networks to handle customers’ short-term needs and wants. Crayola’s fortunes in emerging global markets such as China will be determined by distribution network administration and proper measurement and judgment. The organization...

## Explain how both independent and dependent demand items are present at Crayola.

Crayola’s dependent concern items are natural resources and work-in-process stocks, which are required to create the various items in the organization’s inventory. Independent variables in Crayola are pigment, paraffin wax, creosote, earth, parchment, ink, board, and polyethylene are among the raw resources provided for the scenario. Colored pencils and marker...

## Consider the pressures for small vs. large inventories. Which situation does Crayola seem to fit, and why?

Cost of money, stockpile, and cost management are considerations for small stock, as are evaluations, preservation, and shrinking, which do not have much pressure. The weights for large inventory have a greater impact on Crayola because it has an 800,000-square-foot storehouse and needs enough manufactured products to serve 3,600 Walmarts...

## Calculate the index of segregation and explain its meaning. Compare the meaning of an index of 0.40 with indexes of 1.00 and 0. As applied to gender has the index changed significantly over time?

Assume that the occupational distribution of males and females is as follows: Occupation Male Female E 60% 5% F 20 5 G 10 40 H 10 50 The index of discrimination is calculated by: It is (0.5) [|60-5|+|20-5|+|10-40|+|10-50|= (0.5) [140] =70 or0.7s. Therefore, the segregation index is 70% or 0.7....

## In Becker’s taste for discrimination model, what is the meaning of the discrimination coefficient d? If the monetary value of d is, say, S6 for a given white employer, will that employer hire African-American or white workers if their actual wage rates are \$16 and \$20, respectively? Explain. In Becker’s model what effect would a decrease in the supply of African-American labor have on the African-American to white wage ratio and the employment of African-American workers? Use the model to explain the economic effects of an increase in employer prejudice. What are the basic public policy implications of this model?

To a greater extent, the discriminating coefficient or d refers to the strength of personal taste for discrimination. In that case, racial discrimination is higher when d has a higher value. In this case, the monetary value of d is \$6, and the wage rate of African-American employees is \$16,...

## Free international trade contributes to the global fight on poverty. Discuss.

Free international trade reduces barriers to imports and exports between countries, which goes a long way in eradicating poverty. Removal of the restrictions on trade means that populations can get access to vital goods, which helps improve their quality of life. When there are no restrictions to trade, the farmers...

## Foreign direct investment is a form of investment which benefits all stakeholders. Discuss.

Foreign direct investment occurs when a company takes a controlling interest in a business entity located in another country. This company becomes involved in the day-to-day undertaking of the new venture, which proves to be advantageous to the stakeholders. A country can develop economically due to foreign direct investment because...

## What is the purpose of a business plan, and what should it communicate to investors?

A business plan (BP) is an essential step between getting the idea and developing a real service or product to sell; thus, its purpose is for owners to assess the risks and strategize all stages. Moreover, BP is crucial for identifying what recourses are needed and crafting a successful pitch...

## If you were about to launch a new business, would you write your business plan from scratch or use a software program to do it? What are the pros and cons of each method?

How a business plan will be developed depends on the initial idea, market niche, competitiveness, production, financial, and resources necessary to launch a company or make its first sales. Furthermore, a strategy might be straightforward or have sophisticated steps with multiple stakeholders involved. Any business plan can be developed from...

## Which category of proposal, solicited or unsolicited, is more likely to succeed, and why?

Business and marketing proposals can be segmented into solicited and unsolicited, depending on their relation to a client’s demand. Indeed, the first type is based on a verbal request for a product or service with features adapted to specific needs. Unsolicited proposals address a business owner’s or entrepreneur’s initiative and...

## Discuss the role of government policies in supply and demand.

Governments across the world rely on various strategies and policies to control or dictate the stability of the microenvironment. The issuance of guidelines is a practice that tends to influence people’s purchasing decisions and the overall percentage of inputs. The government can decide to increase valid added tax (VAT) for...

## Describe elasticity and apply it to current economic circumstances.

Market forces influence the major attributes of macroeconomics, such as demand, price, and supply. Analysts apply the concept of elasticity to measure the overall change percentage of a given variable depending on another. The concept of elasticity is significantly helpful for measuring the influence of changes in the economy on...

## Explain the market forces that affect supply and demand.

Economists rely on the supply-demand curve to identify or calculate the equilibrium price. Mankiw argues that the existing relationship between the two aspects helps markets to remain stable and support the process of price determination. The market is characterized by numerous factors that tend to have significant impacts on both...

## What are the main differences between the macroenvironment and the competitive environment?

Although microenvironment and competitive environment are both terms that refer to external factors and agents, they serve different purposes in the analysis. Macroenvironment is common for all the market players; hence, the competitive environment acts within the macroenvironment. All companies are affected by the global economic recession or by restrictions...

## What are the most important forces in the macroenvironment facing companies today?

Macroenvironment refers to general trends and processes that affect the world and the company. For example, economic crisis or inflation factors refer to the macroeconomic environment. Other areas include technology, laws and regulations, and demographics. The company cannot affect either of those areas, but it should adapt to the changes...

## Explain the following concepts from business continuity planning. For each concept you should provide an illustrative example from the IT system in the case study. The answers must be in your own words; reproducing text verbatim from the module materials is not acceptable. Minimum Business Continuity Objective (MBCO). The time durations: Maximum Tolerable Period of Disruption (MTPD); Recovery Time Objective (RTO) and Recovery Point Objective (RPO). Explain some of the considerations that go into determining appropriate values for these time durations, and suggest values that might be appropriate for the IT system in the case study.

Minimum business continuity objective is a planning initiative that focuses on establishing standard operative procedures demonstrating the least leveled conditions fostering sustainable growth and development. An excellent example is establishing a data centre hub in Ireland with a profound mapping concerning the approaches to utilize in the generation of adequate...

## Look at the labels of the items of clothing that you are wearing right now. Your shirt may have been made in Thailand, your slacks in India, your shoes in Brazil, and your glasses in Korea. Pick up the items on your desk and look for their country of origin. Perhaps look in your pantry at food product labels as well. Please: Find 20 items from 20 different countries. List the items and the countries in which they were manufactured. Research and note any correlation between the country and the raw materials used to make the product. Discuss what you have learned about global business through this exercise today.

For this assignment, I have examined the clothes and other items I had around the house more closely. As part of my inspection, I have noted their countries of origin. After a brief period of walking around the house and checking, the results are as follows: An Apple tablet manufactured...

## “What is of the greatest importance in war, is extraordinary speed: One cannot afford to neglect opportunity.” Explain how you believe this quote can be applied to the economy and globalization in business.

This phrase makes a deep reference to the high competition in business today. Any competition introduces a competitive effect similar to military action when two or more powers try to demonstrate that they deserve the best. Many authors, including in popular business literature, use the metaphor of war to describe...

## Compare and evaluate the growth and development policies of your country against international benchmarks.

Openness to Trade Strong regional and international ties have benefitted the Caribbean economy substantially. Because of the sheer expanse of several islands, it is nearly difficult for any Caribbean nation to provide all of life’s essentials for its residents and factories. The British Independent Nation of Montserrat has a lot...

## Explain how authorities can use fiscal policy to smooth out business cycles. Substantiate your answer with the aid of examples from a country of your choice.

Financial markets in which GDP expands or declines regularly are known as an economic boom. The AS-AD platforms allow us comprehends how variations in combined buyers and sellers result in an improvement or drop in GDP, allowing us to forecast a boom or bust cycle. To accomplish business cycles and...

## Analyze the composition and features of business cycles.

The industry is growing, and consumer sentiment is increasing through an enlargement. Businesses take advantage of the opportunity to develop, and as a result, incomes and expenditure rise. Customers are more inclined to make significant purchases, even though it may take some time for them to fully recover from the...

## With the aid of suitable diagrams, illustrate how supply and demand analysis can explain changes in price and output of tea when a substitute good (coffee) is introduced in the market, ceteris paribus.

Tea and coffee are auxiliary produce, signifying they may stand in for one another. An upsurge or fall in tea expenses will lead to an intensification or decrease in coffee consumption, respectively. In the figure below, when the price of tea increases from P₁ to P2, people would consume less...

## How would you apply a business model framework to MoviePass? Visualize this in a diagram to show the links between all the critical elements of MoviePass’ business model. Identify weaknesses and strengths of the MoviePass business model and provide ideas for improvement.

A business model means a multi-step plan for the company that is aimed to ensure stable growth and ultimate profits. The strategy of applying the business model is appropriate for the case of MoviePass. In its structure, there should be several integral principles and values: advertisement, network effect, flat-rate pricing,...

## Capturing network effects from all sides of their platform is a critical objective for all platform business operators. Provide creative recommendations for MoviePass to ensure efficient and effective capture of network effects from platform partners.

MoviePass’s success highly depends on the number of subscribers that it will attract. Without a big base of users, this platform will definitely fail because it would be impossible to pay theaters for movie tickets. This phenomenon is widespread in business model research and is called the network effect. It...

## MoviePass operates a multi-sided platform business model. Identify key issues that MoviePass needs to address when developing its business model. In identifying the key issues, including critical assumptions and key metrics to ensure the viability of their business model.

Multi-sided platform business model means that the company has to include the wishes and demands of different sides of the business functioning. This business model utilizes the efforts and creativity of a number of contributors. In such arrangements, “business opportunity emerges for a multi-sided platform when distinct groups of economic...

## Briefly describe one benefit and one shortcoming of the globalized food system. In your answer, highlight how the different stakeholders in the system are impacted.

The primary aspect of globalization is the internationalization in sharing agriculture and production practices, and hence an advantage. Child malnutrition is at an all-time minimum and continues to fall, which may be ascribed to worldwide food and agriculture industrial improvement. While this industrialization procedure undoubtedly varies significantly by geography and...

## Imagine you are a member of a special committee that has been given the mandate to review the animal food production and meatpacking industry and making recommendations for improving how meat is produced in the US: i. Briefly describe one issue with industrial animal food production that you would ask the committee to address in the recommendations. ii. Briefly describe one recommendation your committee should make for improving the working conditions in the meat packing industry.

In the recommendations, the committee should understand that the global average surface temperature has steadily evolved during the last 50 years. Heat stress decreases livestock feed consumption and productivity, impairs their immunological functioning, and induces a catabolic condition. For instance, growing environmental conditions from 0 to 33 degrees Fahrenheit significantly...

## Using specific examples, briefly explain one benefit and one shortcoming/drawback of organic food production as an alternative to industrial agriculture.

An organic product is a food that is either fresh or manufactured using organic agricultural techniques. Organic food is produced without using chemical additives, such as fertilizers and pesticides manufactured by humans, and is free of genetic modification. They include fresh fruits and vegetables, lean meats, milk items, and processed...

## Giving specific examples, briefly explain two ways in which consolidation and vertical integration have impacted the way food is produced and marketed in the US.

Businesses are constantly on the lookout for bids to minimize expenses and maintain control over the effectiveness of their commodities and services. Vertical integration and consolidation happen when a corporation achieves competitiveness by integrating several manufacturing logistics segments. Vertical integration and concentration eliminate the intermediary procedures and uncertainty between the...

## Consider the big picture of our American economy, with health care being an important part of it. How does the large share of American gross domestic product (GDP) that we spend on health care each year impact our nation’s economy overall? What other areas of our economy may currently be suffering because of so much medical spending? In your view, can America continue to spend this much money on health care without sacrificing the quality of American life in other areas? Why or why not? Please support your position.

As outlined throughout this assignment, the US spends an enormous amount of money on its healthcare system. More than 19% of the country’s GDP is used to support the present healthcare system, putting significant strain on many parts of society. First, such a large portion of the yearly earnings being...

## Technology has had a significant impact on a wide variety of jobs. Discuss one way that technological change has impacted work and working conditions.

Technology has impacted job variety widely together with working conditions. The impact made by technology in workplaces has been positive and negative. My point of choice in a discussion concerning technology’s impact is promoting digitalization. In workplaces, digitalization has brought both positive and negative impacts at work. Due to mechanization,...

## Co-operatives and trade unions are both seen as ways of achieving some level of industrial democracy. How do they differ in the way they promote industrial democracy?

Industrial democracy is an arrangement that workers set in the Workplace to help them make decisions and share responsibilities and power in the Workplace. Workers participate in decision-making by being involved in participative management organization design in which they are listened to. Workers also share authority by being involved in...

## “The principal purpose of the cash budget is to see how much cash the company will have in the bank at the end of the year”. Do you agree? Explain.

It is incorrect to assume that the cash budget aims to see what amount of cash the company holds at the end of the year. A cash budget is typically performed each month, with the budget period being a quarter or half of a year. This budget is a forecast...

## How can budgeting assist a company in planning its workforce staffing levels?

When the organization establishes its budget, it usually incorporates budgetary control, which involves designating funds for various operations in such a way as to prevent shortages in one area or overflow of money in another. This way, budgeting can assist a company in planning its workforce staffing levels by identifying...

## What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution must be exercised in their use?

A self-imposed budget is a type of budget created with the complete involvement and support of all levels of management. There are several advantages of a self-imposed budget for all areas of the organization. For example, due to the involvement of employees from all levels, it is possible to establish...

## What is meant by the term responsibility accounting?

Responsibility accounting refers to a managerial accounting framework in which accountability is set depending on the extent of responsibility assigned. In this respect, each manager is responsible only for a specific area, and they can control it to a certain extent. This way, institutions can use this type of accounting...

## Discuss some of the major benefits to be gained from budgeting.

Budgeting plays a vital role in business operations and has multiple advantages. Among the advantages gained from budgeting are the thorough identification of aims, goals, or possible impediments and the ability to communicate strategies. Thus, while focusing on the current allocation of finances, budgeting allows for planning and setting objectives...

## What is a budget? What is budgetary control?

Budget and budgetary control are intertwined, one referring to a plan and another to the implementation. A budget refers to a comprehensive quantitative plan for attaining and utilizing funds and resources over a fixed timeframe in the future. Budgetary control refers to the utilization of finances to control the operations...

## What are the 3 most important things you learned from the “IOUSA” video?

The “IOUSA” is an American documentary that explores the country’s shocking fiscal condition and provides ways through which the government can avoid national economic disasters. The documentary, released in 2008, focuses on the shape and the impact of the national debt in the United States. The three most important things...

## Is the reporting that is done in the general fund consistent with the basis of accounting being followed?

The report in the general fund is consistent with the modified accrual basis of accounting being followed. Expenses are acknowledged in the accounting duration in which a fund obligation is incurred, quantifiable, and anticipated to be paid within twelve months after the end of the fiscal period in which the...

## Give a description of the current assets and current liabilities and determine whether the difference between current assets and current liabilities gave the entity enough working capital.

Resources that may be utilized or converted into cash within a year include current assets, such as cash and its equivalents, inventories, and receivables, accounts payable, and marketable securities. Similarly, currently owing money to a corporation includes accounts payable, short-term loans, and accumulated costs. These obligations are required for payment...

## Were there any activities that were profitable and explain the reasons that they were profitable?

Some other activities are deemed profitable, including business-type activities, including sanitation, water/sewer, and transportation. They are all under the company’s operating tasks to increase their cashflows, whereby the people pay bills, which is a form of income to the City of Jackson. The company has investing activities and financing activities,...

## Do you believe that, “living at the level of marginal utility”, would affect our economy in a negative way? Fully explain the reasoning for your view.

Singer’s suggestion certainly had a purely philanthropic underlying explanation, but living at the level of marginal utility may harm our economy. I think that it is true not because citizens’ life satisfaction may drop due to fewer gadgets purchased, but because it may damage various spheres of the nation’s life....

## What is the difference between commodity money and fiat money?

Fiat money is a legal claim whose properties are backed by the law and cannot be exchanged for any other commodity. On the other hand, commodity money extracts its value from the commodity it is made. Unlike fiat money, it can be redeemed for any given commodity. Additionally, fiat money...

## Discuss the deficiency in control over a risk of material misstatement.

When determining the relevant key considerations when evaluating the severity of a deficiency in a control that directly addresses a risk of material misstatement, the auditor must follow paragraph 25 of the AS 2110. Paragraph 25 states that “if the auditor identifies a control deficiency in the company’s control environment,...

## Discuss the confirmations in a financial statement audit.

When determining if confirmations are required to be used in a financial statement audit, the auditor must follow paragraphs 5, 7, 15 of the AU Section 330. Paragraph 5 states that “the auditor uses the audit risk assessment in determining the audit procedures to be applied, including whether they should...

## Discuss the additional audit evidence regarding controls operating during the roll-forward period.

When formulating the relevant key considerations in determining what additional audit evidence to obtain about controls operating during the roll-forward period are, the auditor must follow paragraph 56 of the Audit Standard AS 2201. Paragraph 56 states that there are four factors that determine what additional evidence is needed. First,...

## Discuss the relevant key considerations for professional skepticism.

When formulating a definition of professional skepticism, the auditor must follow paragraphs 7-9 of the Audit Standard AS 1015. Paragraph 7 states that “professional skepticism is an attitude that includes a questioning mind and a critical assessment of audit evidence”. It implies that there are many variables in auditing, which...

## What steps would you recommend to raise the incomes of those living in poverty, and what pitfalls or difficulties would the nation be likely to encounter in trying to help them?

Addressing the phenomenon of the increasing numbers of individuals suffering from poverty is a crucial complication for the American government. A beneficial solution could be improving access to educational facilities and programs for children from underprivileged families, which could help young citizens secure better financial standing. However, the suggested learning...

## In view of the increasing concentration of the U.S. business sector into ever-fewer numbers of giant corporations, a) is this growing concentration an economic problem; and b) what specific actions would you recommend to reduce economic concentration?

The increasing concentration of the American business sector into fewer giant corporations is an economic problem because it decreases competition. Corporations control significant market segments, making it impossible for small businesses to compete with them on equal terms. Moreover, giant corporations are often monopolists in their economic sector, which leads...

## Consider an example of an ethical organization and answer the following questions: What is the nature of the organization? What activity or practice leads you to consider that organization ethical? What ethical theory or principle did you apply to determine if it was ethical? Be sure to include the source of your information and focus on current organizations rather than past cases.

TOMS’s nature of the organization relies on the One for One® model, which entails giving away one pair of shoes for every pair being purchased in order to support broader initiatives and programs aimed at health, education, and community development. The organization is considered ethical because while providing an excellent...

## Read Chapter 4 of “Perspectives: An Open Introduction to Cultural Anthropology” by Brown, McIlwraith, and González. Use 1 key term from Chapter 4 Key Terms. State why you find this key term interesting. Reflect on how this key term connects to your life or community.

I find the term Agriculture interesting because, unlike industry, the technological process in agriculture is closely related to nature, where land acts as the main means of production. The economic process of reproduction is intertwined with the natural process of growth and development of living organisms developing based on biological...

## How might decision-making differ for a risky versus an ambiguous situation?

Risk and ambiguity are both terms used in contemporary decision-making, leadership, and business processes. Risk is typically described as a potentially negative outcome that might occur, the incidence of which can be more or less predicted and understood. Ambiguity, on the other hand, refers to events and situations where the...

## In the video “Cash Flow Statement” Tony Bell mentions an easy way to determine whether the indirect or direct method is used in developing the Statement of Cash Flows. What does he say this is? Conduct your own research and list two companies that use either the indirect method or the direct method.

The success of an organization greatly relies on the effectiveness of keeping appropriate records in the accounting and finance departments. A good and elaborate book of accounting enables the organization to identify a true and fair statement of its financial position. One of the most significant books of accounting within...

## Discuss the current economic status of France.

France is one of the leading economic forces in Europe, but it currently faces many financial challenges. Even though the country has shown a decent return on its ETF, MSCI, during the last 12 months, its macroeconomic indicators are not so positive. In particular, the country’s fiscal balance is -9.2...

## Research the Republican and Democratic Parties’ stances on national security budget spending. Conduct research and briefly report your findings.

Issues concerning national security budget spending are critical for homeland security in the US. The budgetary allocation of financial resources to the relevant departments and agencies, including the Department of Homeland Security (DHS), continues to receive a bipartisan approach. Democrats and Republicans view the entire process of allocating financial resources...

## Since there are literally hundreds of sources, select the definition of “Budget” that you feel best fits your research interest area supported by scholarly evidence for your decision. In detail, explain how budgeting is applied and why it relates to your research area.

Budgeting provides effective ways of managing scarce financial resources within organizational settings. A budget describes the financial plan for future activities. It entails the process of preparing detailed projections of future amounts. The majority of business organizations use operational and capital budgeting in computing their financial resources. Based on the...

## Can a “Budget” be used as a measurement tool to gauge individual leadership or management? How? Why or why not?

Budgets are essential tools for evaluating the effectiveness of leadership and management within an organizational setting. Adherence to best practices in accounting and budget preparation allows corporate leaders and managers to determine various aspects of business operations and their alignment with the set organizational goals and objectives. Evidence from preliminary...

## Where did the concept of budget or budgeting begin; local, county, state, or federal? Research, then analyze your data for your response.

The US government’s budget system provides the means for the president and Congress to deliberate on major expenditures, including the sources of raising such financial resources. The decisions associated with the budget have significant implications concerning the country’s running, including various sectors and departments—the budgeting process in the US began...

## Discuss what the statement means: “Public budgeting involves the selection of ends and the means to reach those ends.” Include the major characteristics of public budgeting vs. private sector budgeting, and describe the role of information in budgetary decision-making.

Usually, public budgeting entails the selection of ends and the selection of means to reach those ends. It implies the division of society’s economic and financial resources between the public and private sectors and the allocation of such resources among the competing needs in the public sector. The private sector...

## Describe the relative sizes of the private and public sectors in the U.S.; the historical growth of local, state, and federal governments and the reasons for that growth; and the purposes of government expenditures with the sources of revenue used by these three main levels of government.

Private and public sectors in the US have undergone tremendous growth over the years. Private business entities produce most of the goods and services and are approximately two-thirds of the US total economic output. About one-third of the economy is through the contributions of the government sector. According to a...

## Research and determine what type of government exists in the municipality you reside in. Once you have determined the type of local government, provide an outline of the budget process, including department allocations for the law enforcement and Office of Emergency Management (OEM) organizational units.

The US has different forms of municipal governments. The main types include council-manager, mayor-council, commission, town meeting, and representative town meeting. Many types of budgeting approaches are available in municipalities. The budgeting process is inevitable and critical in ensuring the prudent utilization of financial resources while providing essential services to...

## Explain what capital structure theory best describes the following situation. A CEO decides to borrow \$50,000 in new debt, and the share prices rise dramatically. He then decides to sell half of his own personal shares, and when this is reported in the Wall Street Journal, the share prices drop dramatically in value.

According to the traditional approach to capital structure, the cost of debt is always lower than the cost of equity due to the tax shield, which will ultimately lead to an increase in the enterprise value and EPS. However, the increase in debt will also lead to increased risks, which...

## Explain what capital structure theory best describes the following situation. The corporate tax rate rises from 35% to 45%, and the XYZ Corporation decides to issue more debt. A year later, bankruptcy laws are changed to become much stricter and costlier. XYZ then decides to pay back half of its debt.

The situation is best explained by the pecking order theory, which introduces the imbalance of information. According to this theory, information asymmetry bears the financial cost. Since the CEO is perceived as an insider, the fact that he sold his shares demonstrated that the information asymmetry existed. Therefore, the cost...

## Explain what capital structure theory best describes the following situation. A CEO named Joe Bigwig is known for living large with very expensive cars and a huge mansion. Joe is seeking a large loan from a bank to finance some new projects for his corporation. However, the bank becomes concerned when they find out that he recently used company funds to buy a brand-new company jet and also scheduled numerous business trips to Hawaii and stayed in five-star hotels. The bank tells Joe he will receive the loan only if he agrees to scale back on his personal expenses and not give himself or any other executives a raise until the loan is paid back.

This situation is best described by the idea of financial distress introduced in the trade-off model. According to this theory, the value of a levered firm is equal to the value of an unleveled firm plus the present value of a tax shield minus the value of bankruptcy. Since the...

## Why is an investment policy statement important?

An investment policy is intended to communicate the goals that a client has in terms of investing alongside any strategies that will guide the process of managing the portfolio. A good investment policy statement (IPS) is important because it provides a crucial tool to keep clients focused on their stated...

## Some investors believe that international investing introduces additional risks. Discuss these risks and how they can affect your return. Give an example.

International investments have become popular because they can help US investors spread their risks among foreign companies in addition to national markets. It can also enable taking advantage of the possible growth in some global economies, especially in emerging markets. However, international investments present unique risks, such as issues accessing...

## Provide a brief overview of the business, markets, products, and scope of operations of the Google company.

Google is a company that operates in the Internet search and information technology industries. The company’s markets include a global community of Internet users and globally-based organizations that use its features for corporate purposes. The products that Google produces and offers to its target markets include an array of software-based...

## Which of the 5 ‘most commonly used strategic approaches’ best describes the Google company’s current strategic actions? Briefly justify your answer.

Google’s current strategic actions might be best described by a broad differentiation strategy approach. Google seeks to dominate the Internet search segment of the industry and competes with other search engine companies to provide the best service to customers. In addition, the company aims to expand its operations to hardware...