Managerial Finance – Problem Review Set – Capital Structure and Leverage

Managerial Finance – Problem Review Set – Capital Structure and Leverage

Question

Managerial Finance – Problem Review Set – Capital Structure and Leverage

1)

If a firm utilizes debt financing, an X% decline in earnings before interest and taxes (EBIT) will result in a decline in earnings per share that is larger than X.

a.

True

b.

False

2)

Firm A has a higher degree of business risk than Firm B. Firm A can offset this by using less financial leverage. Therefore, the variability of both firms' expected EBITs could actually be identical.

a.

True

b.

False

3)

It is possible that two firms could have identical financial and operating leverage, yet have different degrees of risk as measured by the variability of EPS.

a.

True

b.

False

4)

Which of the following events is likely to encourage a company to raise its target debt ratio, other things held constant?

a.

An increase in the corporate tax rate.

b.

An increase in the personal tax rate.

c.

An increase in the company’s operating leverage.

d.

The Federal Reserve tightens interest rates in an effort to fight inflation.

e.

The company's stock price hits a new high.

5)

The firm’s target capital structure should be consistent with which of the following statements?

a.

Maximize the earnings per share (EPS).

b.

Minimize the cost of debt (rd).

c.

Obtain the highest possible bond rating.

d.

Minimize the cost of equity (rs).

e.

Minimize the weighted average cost of capital (WACC).

6)

Which of the following statements is CORRECT? As a firm increases the operating leverage used to produce a given quantity of output, this will

a.

normally lead to an increase in its fixed assets turnover ratio.

b.

normally lead to a decrease in its business risk.

c.

normally lead to a decrease in the standard deviation of its expected EBIT.

d.

normally lead to a decrease in the variability of its expected EPS.

e.

normally lead to a reduction in its fixed assets turnover ratio.

7)

Reynolds Resorts is currently 100% equity financed. The CFO is considering a recapitalization plan under which the firm would issue long-term debt with a yield of 9% and use the proceeds to repurchase common stock. The recapitalization would not change the company’s total assets, nor would it affect the firm’s basic earning power, which is currently 15%. The CFO believes that this recapitalization would reduce the WACC and increase stock price. Which of the following would also be likely to occur if the company goes ahead with the recapitalization plan?

a.

The company’s net income would increase.

b.

The company’s earnings per share would decline.

c.

The company’s cost of equity would increase.

d.

The company’s ROA would increase.

e.

The company’s ROE would decline.

8)

Vu Enterprises expects to have the following data during the coming year. What is Vu's expected ROE?

Assets

$200,000

Interest rate

8%

D/A

65%

Tax rate

40%

EBIT

$25,000

a.

12.51%

b.

13.14%

c.

13.80%

d.

14.49%

e.

15.21%

9)

Ang Enterprises has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. What would Ang's beta be if it used no debt, i.e., what is its unlevered beta?

a.

0.64

b.

0.67

c.

0.71

d.

0.75

e.

0.79

10)

Firms HD and LD are identical except for their level of debt and the interest rates they pay on debt--HD has more debt and pays a higher interest rate on that debt. Based on the data given below, what is the difference between the two firms' ROEs?

Applicable to Both Firms

Firm HD's Data

Firm LD's Data

Assets

$200

Debt ratio

50%

Debt ratio

30%

EBIT

$40

Interest rate

12%

Interest rate

10%

Tax rate

35%

a.

2.18%

b.

2.29%

c.

2.41%

d.

2.54%

e.

2.66%

11)

Michaely Inc. is an all-equity firm with 200,000 shares outstanding. It has $2,000,000 of EBIT, which is expected to remain constant in the future. The company pays out all of its earnings, so earnings per share (EPS) equal dividends per shares (DPS). Its tax rate is 40%.

The company is considering issuing $5,000,000 of 10.0% bonds and using the proceeds to repurchase stock. The risk-free rate is 6.5%, the market risk premium is 5.0%, and the beta is currently 0.90, but the CFO believes beta would rise to 1.10 if the recapitalization occurs.

Assuming that the shares can be repurchased at the price that existed prior to the recapitalization, what would the price be following the recapitalization?

a.

$65.77

b.

$69.23

c.

$72.69

d.

$76.33

e.

$80.14

12)

The MM model is the same as the Miller model, but with zero corporate taxes.

a. True

b. False

13)

The major contribution of the Miller model is that it demonstrates that

a. personal taxes increase the value of using corporate debt.

b. personal taxes decrease the value of using corporate debt.

c. financial distress and agency costs reduce the value of using corporate debt.

d. equity costs increase with financial leverage.

e. debt costs increase with financial leverage.

14)

Which of the following statements concerning capital structure theory is NOT CORRECT?

a. The major contribution of Miller's theory is that it demonstrates that personal taxes decrease the value of using corporate debt.

b. Under MM with zero taxes, financial leverage has no effect on a firm’s value.

c. Under MM with corporate taxes, the value of a levered firm exceeds the value of the unlevered firm by the product of the tax rate times the market value dollar amount of debt.

d. Under MM with corporate taxes, rs increases with leverage, and this increase exactly offsets the tax benefits of debt financing.

e. Under MM with corporate taxes, the effect of business risk is automatically incorporated because rsL is a function of rsU.

15)

The Kimberly Corporation is a zero growth firm with an expected EBIT of $100,000 and a corporate tax rate of 30%. Kimberly uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%.

. What is the value of the firm according to MM with corporate taxes?

a. $475,875

b. $528,750

c. $587,500

d. $646,250

e. $710,875

. What is the firm's cost of equity?

a. 21.0%

b. 23.3%

c. 25.9%

d. 28.8%

e. 32.0%

. Assume that the firm's gain from leverage according to the Miller model is $126,667. If the effective personal tax rate on stock income is TS = 20%, what is the implied personal tax rate on debt income?

a. 16.4%

b. 18.2%

c. 20.2%

d. 22.5%

e. 25.0%



general business data bank

general business data bank

Question

21. According to behavioral learning theory, internalization is a result of ________________.

a. empathy

b. identification

c. cognitive judgments

d. reinforcements and punishments

22. One way to sustain internalization is through _____.

a. avoidance conditioning

b. operant conditioning

c. reward conditioning

d. punishment

23. Joelle, a 6-year old, really wants to eat a cookie out of the cookie jar. However she remembers how mad her mother got at her when she ate a cookie right before dinner last week and she starts to feel anxiety. In the end, Joelle decides not to eat the cookie because she knows it is wrong. This is an example of __________.

a. operant conditioning

b. reward conditioning

c. avoidance conditioning

d. anxiety conditioning

24. Every day Johnny watches Tally get in trouble when she rides her bike further than their mother allows them to go. Johnny really wants to go around the corner when riding his bike but he knows his mother will be angry and that he will get in trouble, so he stops at the corner and turns back towards their house on his bike. This is an example of __________________.

a. observation of models

b. cognitive schemes

c. help giving behaviors

d. punishment

25. According to social learning theory, learning the moral code occurs largely through which of the following?

a. observation and imitation

b. cognitive schemes

c. help giving behaviors

d. guilt and shame

26. Samantha, who is 5 years old, is watching TV and sees a boy tell his mother a lie. Nothing bad happens to the boy. According to social learning theory, she is likely to conclude that __________.

a. lying is all right

b. lying is morally wrong

c. lying is a violation of one’s social contract

d. lying is acceptable as long as it does not disrupt the authority relations in the family

27. Piaget described the major transition in moral development from heteronomous to__________ morality.

a. sensitive

b. representational

c. egocentric

d. autonomous

28. When children see rules as a product of cooperative agreements, they are said to have achieved a level of _________________ morality.

a. schematic

b. heteronomous

c. autonomous

d. overt

29. According to cognitive learning theory, an important aspect of moral behavior is _____________.

a. one’s identification with a loving parent

b. whether one believes the behavior would be observed and punished

c. whether one understands that morality is a product of a social contract

d. whether one has been punished by spanking or loss of privileges

,

30. According to cognitive developmental theory, advances in moral reasoning occur when a child has to reconcile new views about basic moral concepts with existing views about what is right or wrong. This process is called __________.

a. social convention

b. empathy

c. conventional morality

d. equilibration

31. Lawrence Kohlberg expanded on Piaget's theory by developing a theory of stages of moral judgment. Children of the early-school-age period (4 to 6) are most likely to be at which level?

a. preconventional

b. conventional

c. postconventional

d. unconventional

32. When a person decides whether something is morally right or wrong based on how individuals in positions of authority view it, the person is said to be at which level of moral reasoning?

a. preconventional

b. conventional

c. postconventional

d. unconventional

33. Which of the following statements about stage 6 moral reasoning in Kohlberg's model is most accurate?

a. Most adults function at stage 6 reasoning.

b. At stage 6, decisions about justice are based on whether the behavior upholds or violates the laws of society.

c. Stage 6 reasoning requires the development of a set of universal ethical principles that apply across time and culture.

d. None of these.

34. Martin Luther King, who fought for civil rights of minorities and underrepresented groups, displayed what level of morality according to Kohlberg’s theory?

a. preconventional

b. conventional

c. postconventional

d. unconventional

35. Research with early-school-age children suggests that their moral reasoning focuses on ______________.

a. upholding a social contract

b. conforming to the opinions of legitimate authorities

c. universal ethical principles

d. consequences of their behavior

36. What type of early childhood educational environment can promote more autonomous, flexible moral reasoning in young children?

a. Make sure rules are clearly stated at the beginning of the school year.

b. Punish children quickly and not overly severely when they break rules.

c. Involve children in rule making and teach them strategies to help resolve conflicts.

d. Make sure parents and teachers agree about what behaviors are wrong and how to correct these behaviors.

37. Which of the following is an example of a social convention transgression as compared to a moral transgression?

a. failing to knock on the door before entering a room

b. telling a lie

c. stealing notes from another student

d. destroying another child's gloves and mittens

38. According to psychoanalytic theory, a strong morality (superego) results from ______________.

a. empathy

b. parental identification

c. strong id impulses

d. defense mechanisms

39. Several of Freud's ideas about moral development have been shown to be incorrect. What is one of these ideas?

a. Males would have a weaker superego than females.

b. Identification with the mother has a greater role to play in moral development than identification with the father.

c. Parents who use harsh punishment to restrict a child's impulses will produce children with a stronger superego.

d. The superego develops in infancy.


40. The new psychoanalytic perspective on moral development has revised Freud's original thinking in what way?

a. Moral development is seen as emerging earlier than Freud thought, in the context of the first close, emotional bonds with a caregiver.

b. Moral development is viewed as almost entirely cognitive; the role of emotion is much less than Freud thought.

c. Morality is now considered primarily a new series of defense mechanisms against anxiety.

d. Morality is seen as developing after latency, during the reawakening of Oedipal and Electra fantasies that accompany puberty.

MKT 498 Final Exam

MKT 498 Final Exam

Question

Complete

the Final Examination (50 questions in True/False, Multiple Choice, and Multiple Select format).

Multiple Choice and Multiple Select Questions

1 The foundation of an IMC plan includes which of the following elements? (Check all that apply)

2 A system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings is called ________.

3 Which of the following are elements of the communication process? (Check all that apply)

4 The people who control the flow of information to members of a buying center in an organization are known as:

5 Xerox offers a color printer that sells for $1,200, which they want to market to businesses. As the marketing manager for Xerox printers, you want to select an advertising medium that has a long exposure time and that can attract and retain a prospective customer’s attention, and you have a budget of $20 million. Which advertising medium would you select that best meets your criteria?

6 A joint venture of two or more brands into a new product or service is called:

7 The most common form of “noise” in marketing communications is:

8 All of the following are public relations functions EXCEPT:

9 Effective ________ refers to the number of times a target audience must be exposed to an advertising message in a specified period of time in order to achieve a particular objective, while effective ________ is the percentage of an audience that must be exposed to a particular advertising message during a certain period in order to achieve a specific objective.

10 Which of the following are ways to segment consumer markets? (Check all that apply)

11 Which of the following are ways to segment business markets? (Check all that apply)

12 The steps in writing a marketing plan include all of the following EXCEPT:

13 Creating a customer-focused value proposition so that the company’s offering and image occupies a distinctive place in the minds of a target market is the marketing activity called ________.

14 Change in the macro environment is a primary basis for market opportunities. Which of the following are forces in the macro environment? (Check all that apply)

15 When a company sells the same product in different countries but maintains the same basic message in each country, this is called ________.

16 The goal of branding is:

17 The three main components of advertising are:

18 Which of the following statements about having a direct sales force is true? (Check all that apply)

19 Which of the following are effective ways to establish a communications budget? (Check all that apply)

a. Spend as much as the competition does

20 Creating a perception in the consumer’s mind regarding the nature of a company and its products relative to the competition is called ________.

21 All of the following are components of a corporate image EXCEPT:

22 A situation in which consumers believe that many brands offer the same set of attributes, which results in consumers purchasing from a group of accepted brands rather than one specific brand, is called ________.

23 A formal agreement between the retailer and the manufacturer to undertake a cooperative promotional effort is called a ________.

24 Strongly held beliefs about various topics or concepts which lead to the judgments that guide personal behavior are called

25 The buyer’s behavior is influenced by four major factors: cultural, social, personal, and psychological. The customer’s motivation, learning, perception, beliefs, and attitudes would fall into the ________ category.

26 Steps that a marketer can take to build brand equity and recognition include all of the following EXCEPT:

27 All of the following could be a marketing communication objective EXCEPT:

28 A set of businesses or a group of individual consumers with distinct characteristics that are similar in nature is called a ________.

29 All of the following are ways to evaluate the effectiveness of advertisements EXCEPT:

30 Rewards given as contest prizes to brokers, retail salespeople, retail stores, wholesalers, or agents, are called ________.

31 All of the following are recent trends in the consumer buying environment that have affected consumers’ purchasing patterns EXCEPT:

32 All of the following are recent trends in the business-to-business buying environment that have affected companies’ purchasing patterns EXCEPT:

32 All of the following are recent trends in the business-to-business buying environment that have affected companies’ purchasing patterns EXCEPT

True or False Questions

33 “Communication” can be defined as transmitting, receiving, and processing information.

34 The acronym “GIMC” stands for Generally Integrated Marketing Channels.

35 An IMC campaign is possible only for large businesses that have the large budgets necessary to implement the strategies, and is not possible for small or start-up businesses.

36 Approximately 10% of all promotional dollars are spent on elements other than advertising.

37 The 80/20 rule states that 80% of a company’s profits come from 20% of its customers, which is why it is important for marketers to maximize customer lifetime value.

38 Organizations should attempt to match their product or service attributes closely to the consumers’ attitudes, rather than trying to change the consumers’ attitudes.

39 A company’s image in the U.S. is not important when expanding internationally because customers in other countries have not yet been exposed to the company.

40 The term “prospecting” when applied to personal selling means to establish and maintain relationships with key customers.

41 Although B2B marketers are increasingly using other advertising media, trade journals and business magazines still remain an effective method of reaching specific target markets.

42 Internet service providers, commerce sites like eBay and Amazon, and search engines like Google are all examples of brick-and-click companies.

43 Reinforcing or rejuvenating a current image that is consistent with the view of consumers is easier to accomplish than changing a well-established image.

44 Two steps in the process of personal selling are determining which products the company should sell and overcoming the objections of prospective buyers.

45 Advertising via direct mail provides opportunities for marketers to measure the lifetime value of a customer and answer customers’ product-related questions.

46 When firms sell virtually the same goods or services to both consumers (B2C) and businesses (B2B), they are practicing what is called co-branding.

47 Negotiation is the preferred strategy in personal selling whenever a “zone of disagreement” exists.

48 When appraising promotional opportunities in global markets, marketing managers should examine the same criteria that they use to analyze promotional opportunities in domestic market segments.

49 The idea of “mass market” advertising may be outdated due to the many types of new media people utilize today.

50 When using e-marketing, it is preferable to make it difficult for consumers to unsubscribe so that you can continue to have opportunities to build a relationship with those consumers.

Kaplan GB530 Unit 5 assignments

Kaplan GB530 Unit 5 assignments

Question

DEVELOPING

A

MARKETING PLAN:

A Template for

Analysis and Strategy

This template is designed for the analysis and planning phases of marketing strategy development. You mustresearch and understand the product and/or organization before using this document. By working through the first half of the template, you will develop a comprehensive customer, competitor, organizational and environmental analysis. This sets the stage for an effective strategy planning discussion. Remember: Strategy is often inaccurate until the analysis phase is satisfactorily completed. The rest of the document is designed for the actual strategy development phase of marketing planning and should be used only after the analysis is complete. By working through these pages you will develop a comprehensive plan for a successful business and marketing strategy.

OUTLINE:

I. Executive Summary

II. Action Plan

III. External Forces

IV. Internal Factors and SWOT Analysis

V. Marketing Goals and Objectives

VI. Marketing Strategy and Objectives

VII. Financial Projections

I. EXECUTIVE SUMMARY.

(done last – two page summary of entire project; use persuasive language to “sell” ideas to a potential investment banker).

II. ACTION PLAN

  1. What is it, precisely, that you hope to accomplish. (who, what, where, when, why and how)
  2. History of your idea.
  3. Your qualifications and those of your partner(s), if any.
  4. Why should investors trust you?
  5. What is your timeline.

III. EXTERNAL FORCES

Answer these five questions first:

1. Economic Growth and Stability – How do economic factors affect this market, product and our customers? Consider factors that are relevant (recession, prosperity, employment level, interest rates, inflation rate, median family income, stock market performance, etc…)

2. Political Trends and Legal and Regulatory Factors – What governmental issues affect our product, industry, and customers? Are there elections, legislative proposals, or legal issues that will affect our strategies? How?

3. Technology Issues - What are the technology trends that are affecting this industry and product? How has technology affected our customers, competitors and operations?

4. Cultural Trends - What general attitudes, beliefs, and values are affecting this industry and product? How does our product and industry fit with cultural issues of concern to our customers and non-customers?

5. Corporate Citizenship Expectations – How do norms and obligations expected in the business context and relationships affect our industry, customers, and products? Consider employee and consumer rights, environmental issues, and community concerns.

Then analyze competitors and customers, as follows.

COMPETITOR ANALYSIS (who are your primary competitors?)

A. Four Levels of Competition

1. Brand Competition (involves products of the same type; very similar attributes)

2. Product Competition (relates to products in same general category)

3. Generic Competition (fulfills same general need/want)

4. Total Budget Competition (competes for same consumer dollar)

Product

Similarities to your product

Differences from your product

Competitive edge over your product

Deficiencies relative to your product

Positioning of the competitor

Pricing Strategies

Promotion Strategies

Placement/Distribution Strategies

CUSTOMER ANALYSIS (who is going to buy what you’re selling?)

1. Who are they? (demographics, socioeconomics, geographic location, buyers vs. users, current and potential customers)

2. What will they do with your product or service? (product benefits, product uses, complementary products, heavy vs. light users)

3. Where will they buy? (physical location, type of store, type of distribution channel)

4. When will they buy? (seasonality, emergency situation, family life cycle, process, budget cycle, effect of promotional strategy)

5. Why and how will they buy? (motivations, attitudes, psychographics, customer value, payment methods, problem solving methods, individual or group decision-making)

6. Why will your potential customers not buy? (not aware, don’t like, wrong marketing mix, etc…)

7. Will they buy again? Tell me why.

IV. INTERNAL FACTORS AND SWOT ANALYSIS

Capabilities Analysis (what are your own capabilities in the following categories?)

1. To Conceive and Design

2. To Actually Produce

3. To Market

4. To Manage

5. To Finance

6. What is Your Will and Intensity to Succeed?

SWOT ANALYSIS (of yourself)

A. Strengths

B. Weaknesses

C. Opportunities

D. Threats

V. MARKETING GOALS AND OBJECTIVES

(Goals and objectives are defined by customer needs and organizational needs and thus, result from a thorough analysis. Goals are broad, inspirational statements. Objectives focus on results and are stated with a time frame in mind. Both should be achievable, use resources wisely, but also stretch the organization and its people to a higher level.)

What are your goals? (product and service quality, brand image, customer attitudes and opinions, social performance etc.) Usually stated inqualitative terms.

What are your objectives? (market share, # of customers, # of units delivered/sold, # of prospects reached, # of prospects converted to customers, profits, other measures) Usually stated in quantitative terms.

VI. MARKETING STRATEGY AND OBJECTIVES

  1. Target Market Segment/Customer Group for this Strategy

  1. Benefits Sought by this Target Market Segment/Customer Group

  1. Basic Theme and Focus of the Marketing Strategy

  1. Specific Elements of the Marketing Strategy (Marketing Mix)

Product Strategy

a. Recommendations for Product(s) (how does product help reach marketing objectives?)

b. Recommendations on Tangible and Intangible Elements of Product

c. Brand, Packaging, Warranty/Guarantee, Returns/Allowance Elements

Pricing Strategy

a. Actual Value and Pricing Policy (how does price help reach marketing objectives?)

b. Environmental influences on pricing policy (what affects this price?)

c. Competitor actions/reactions to pricing policy

Placement and Distribution Strategy

a. Distribution Outlets/Retailer Activities (how does this help reach marketing objectives?)

Promotion and Integrated Marketing Communications Strategy

a. Theme of campaign(s) (To communicate what? How does it support the marketing strategy and help reach marketing objectives?)

b. Personal Selling Activities (person to person activities that support marketing strategy)

c. Advertising Activities (paid-for mass communications that support marketing strategy)

d. Sales Promotion Activities (customer and employee incentives that support marketing strategy)

e. Public Relations/Publicity Activities (non-paid mass communications that support marketing strategy)

f. Packaging Activities (if applicable)

Ash INF340 discussions

Ash INF340 discussions

Question

Week 1

Discussion1

Building a System

Selecting Software Why is it important to use systems analysis and design methodologies when building a system? Why not just build the system in whatever way seems to be “quick and easy”? What value is provided by using an “engineering” approach? Also, Give a specific example of an organization (not one listed in the book) that does a good job of this and why. Respond to at least two of your classmates’ postings.



Review the criteria for selecting off-the-shelf software presented in this chapter. Use your experience and imagination and describe other criteria that are, or might be used to select off-the-shelf software in the real world. For each new criterion, explain how its use might be functional (i.e., it is useful to use this criterion…), dysfunctional, or both. Respond to at least two of your classmates’ postings.


Week 2



Managing Projects

Take a tour of FastTrack Schedule 9's top features. See how you can use the leading easy-to-use project management software for planning, tracking, and visualizing project goals on a Mac or PC.

For your discussion question, explain how three features of the FastTrack Schedule 9’s features will help you manage information systems projects. Be specific in relating the feature to the systems tasks you would want to achieve with it. Respond to at least two of your classmates’ postings.



Cost-Benefit Analysis

Imagine that you are interviewing for a job when the interviewer asks you which cost-benefit analysis technique is best for assessing a project’s economic feasibility. What would your response be? Respond to at least two of your classmates’ postings.


Week 3


Business Processes

When conducting a business process re-engineering study, what should you look for when trying to identify business processes for change? Why? Give a specific example. Respond to at least two of your classmates’ postings.



Disruptive Technologies

What are disruptive technologies and how do they enable organizations to change their business processes radically? Give a specific example. Respond to at least two of your classmates’ postings.


Week 4


Diagramming Tools

Discuss the importance of diagramming tools for process modeling. Without such tools, what would analysts do to model diagrams? Respond to at least two of your classmates’ postings.


System Development Approaches

Select one of the system development approaches (structured, information, engineering, and object-oriented) and give an example of a business process or problem that would use that approach. Provide supporting rationale. Respond to at least two of your classmates’ postings.


Week 5


Alternative Solutions

How do analysts generate alternative solutions to information systems problems? Respond to at least two of your classmates’ postings.


Evaluation of Learning

List three things you learned from this class and how you will apply them. In addition, list three things you learned from your learning community of peer learners and the instructor. Respond to at least two of your classmates’ postings

Ash INF340 full course (all assignments+ discussions)

Ash INF340 full course (all assignments+ discussions)

Question

Hoosier Burger Case:Part 1.

Read the Hoosier Burger scenario on page 28 in Chapter 1 of the text and address the following in a 1 to 3 page APA style paper:

a. Apply the SDLC approach to Hoosier Burger.

b. Using the Hoosier Burger scenario, identify an example of each system characteristic.

c. Decompose Hoosier Burger into its major subsystems.

d. Briefly summarize the approaches to systems development discussed in this chapter. Which approach do you feel should be used by Hoosier Burger?

Hoosier Burger Case: Part 2.

Read the Hoosier Burger scenario on page 128 in Chapter 4 of the text and address the following in a 1 to 3 page APA style paper:

a. How was the Hoosier Burger project identified and selected? What focus will the new system have?

b. Identify the Hoosier Burger project’s scope.

c. Using the six feasibility factors presented in the chapter, assess the Hoosier Burger project’s feasibility.

d. Using Figure 3-8 as a guide, develop a Project Scope Statement for the Hoosier Burger Project.

Hoosier Burger Case: Part 3.

Read the Hoosier Burger scenario on page 161 in Chapter 5 ofthe text and address the following in a 1 to 3 page APA style paper:

a. Assume you are preparing the customer satisfaction questionnaire. What types of questions would you include? Prepare five questions that you would ask.

b. What types of questions would you ask the waiters? What types of questions would you ask the cooks? Prepare five questions that you would ask each group.

c. What types of documents are you likely to obtain for further study? What types of documents will most likely not be available? Why?

d. What modern requirements determination methods are appropriate for this project?

Hoosier Burger Case: Part 4.

Read the Hoosier Burger scenario on page 199 in Chapter 6 of the text and address the following (you only need to complete parts a through c) in a 1 to 3 page APA style paper:

a. Modify the Hoosier Burger context-level data-flow diagram (Figure 6-4) to reflect the changes mentioned in the case.

b. Modify Hoosier Burger’s level-0 diagram (Figure 6-5) to reflect the changes mentioned in the case.

c. Prepare level-1 diagrams to reflect the changes mentioned in the case.

Hoosier Burger Case: Part 5.

Read the Hoosier Burger scenario on page 242 in Chapter 7 ofthe text and address the following in a 1 to 3 page APA style paper:

a. Based on the information provided in the case scenario, what entities will Hoosier Burger need to storeinformation about?

b. For the entities identified in part a, identify a set of attributes for each entity.

c. Specify an identifier for each entity. What rules did you apply when selecting the identifier?

d. Modify Figure 7-10 to reflect the addition of these new entities. Be sure to specify the cardinalities for each relationship.

INF 340 Final Paper (Hoosier Burger Case Analysis)

Using your weekly analyses of the Hoosier Burger Case that serve as the focus of the written assignments in the course, construct a 6-8 page final case analysis paper.

Focus of the Final Paper

Compile the weekly assignment responses into one cohesive paper that addresses the key issues and questions posed in the case scenarios. Make sure you have a new introduction and new conclusion that supports the entire paper as developed. The paper will be the summation of your research and recommendations for Hoosier Burger. Be specific with examples and supporting rationale. Cite any sources used in your analysis.

Writing the Final Paper

The Final Paper:

Must be six to eight double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide.

Must include a cover page that includes:

- Title of paper

- Student’s name

- Course name and number

- Instructor’s name

- Date submitted

-Must include an introductory paragraph with a succinct thesis statement.

Must address the topic of the paper with critical thought.

-Must conclude with a restatement of the thesis and a conclusion paragraph.

-Must use APA style as outlined in the approved APA style guide to document all sources.

-Must include, on the final page, a Reference Page that is completed according to APA style as outlined in the approved APA style guide


Week 1

Discussion1

Building a System

Selecting Software Why is it important to use systems analysis and design methodologies when building a system? Why not just build the system in whatever way seems to be “quick and easy”? What value is provided by using an “engineering” approach? Also, Give a specific example of an organization (not one listed in the book) that does a good job of this and why. Respond to at least two of your classmates’ postings.



Review the criteria for selecting off-the-shelf software presented in this chapter. Use your experience and imagination and describe other criteria that are, or might be used to select off-the-shelf software in the real world. For each new criterion, explain how its use might be functional (i.e., it is useful to use this criterion…), dysfunctional, or both. Respond to at least two of your classmates’ postings.


Week 2



Managing Projects

Take a tour of FastTrack Schedule 9's top features. See how you can use the leading easy-to-use project management software for planning, tracking, and visualizing project goals on a Mac or PC.

For your discussion question, explain how three features of the FastTrack Schedule 9’s features will help you manage information systems projects. Be specific in relating the feature to the systems tasks you would want to achieve with it. Respond to at least two of your classmates’ postings.



Cost-Benefit Analysis

Imagine that you are interviewing for a job when the interviewer asks you which cost-benefit analysis technique is best for assessing a project’s economic feasibility. What would your response be? Respond to at least two of your classmates’ postings.


Week 3


Business Processes

When conducting a business process re-engineering study, what should you look for when trying to identify business processes for change? Why? Give a specific example. Respond to at least two of your classmates’ postings.



Disruptive Technologies

What are disruptive technologies and how do they enable organizations to change their business processes radically? Give a specific example. Respond to at least two of your classmates’ postings.


Week 4


Diagramming Tools

Discuss the importance of diagramming tools for process modeling. Without such tools, what would analysts do to model diagrams? Respond to at least two of your classmates’ postings.


System Development Approaches

Select one of the system development approaches (structured, information, engineering, and object-oriented) and give an example of a business process or problem that would use that approach. Provide supporting rationale. Respond to at least two of your classmates’ postings.


Week 5


Alternative Solutions

How do analysts generate alternative solutions to information systems problems? Respond to at least two of your classmates’ postings.


Evaluation of Learning

List three things you learned from this class and how you will apply them. In addition, list three things you learned from your learning community of peer learners and the instructor. Respond to at least two of your classmates’ postings.

general business data bank

general business data bank

Question

1. Which of the following statements about Southwest Airlines is false?

a. The firm's competitive advantage is low cost.

b. The firm spends more on recruitment and training than any other airline.

c. The firm's human resource strategy treats employees like customers.

d. Southwest Airlines practiced employee empowerment earlier than most firms.

e. Southwest Airline's low-cost practices have led to high levels of customer complaints.

/

2. Which of the following best describes mutual commitmentin an organization?

a. an instance in which management is committed to the employees and the employees are committed to management

b. both management and the employees are committed to the same objective

c. both management and the employees are committed, but to different objectives

d. management obtains the commitment of the employees to a stated objective

e. both management and the employees can rely on each other

/

3. Mutual trust is

a. when management and the employees trust each other

b. reflected in reasonable, documented employment policies, honestly and equitably implemented to the satisfaction of both management and the employees

c. when management has gained the trust of the employees

d. when management recognizes that the employees are competent, motivated people both able and willing to perform at the level required to produce a quality product

e. when management and the employees both agree on the objectives

/

4. The objective of a human resource strategy is to

a. produce the demand forecast at lowest labor cost

b. match employment levels with demand

c. achieve a reasonable quality of work life at low cost

d. manage labor and design jobs so people are effectively and efficiently utilized

e. all of the above

/

5. The two most basic policies associated with employment stability are

a. job enrichment and job enlargement

b. employment for life and guaranteed minimum wage

c. follow demand exactly and hold employment constant

d. incentive plans and piece-rate plans

e. none of the above

/

6. Four of the components of job design are

a. employment stability, work schedules, work sampling, motivation, and incentive systems

b. job specialization, job expansion, psychological components, and self-directed teams

c. labor specialization and enrichment, motivation and incentive systems, employment stability, and work sampling

d. ergonomics and work methods, method time measurement, work schedules, and incentive systems

e. labor specialization, time studies, work sampling, and pre-determined time standards

/

7. Job rotation is an example of

a. job enrichment

b. job scheduling

c. job training

d. job enlargement

e. job incentive

/

8. The behavioral approach to job design that involves giving the worker a larger portion of the total task is

a. job enlargement

b. job enrichment

c. job enhancement

d. job rotation

e. job involvement

/

9. When a worker has a say in the work methods that he/she wishes to utilize, his/her job is characterized by

a. skill variety

b. job identity

c. job significance

d. feedback

e. autonomy

/

10. Which of the following terms implies an increase in responsibility and control?

a. job rotation

b. job enrichment

c. job re-design

d. job enlargement

e. job satisfaction

/

11. Which of the following statements describes job rotation?

a. The job contains a larger number of similar tasks.

b. The job includes some planning and control necessary for job accomplishment.

c. The operator works on different shifts on a regular basis.

d. The operator's schedule is flexible.

e. The operator is allowed to move, for example, from one type of CNC machine to the other.

/

12. The difference between job enrichmentand job enlargement is that

a. enlarged jobs involve vertical expansion, while enriched jobs involve horizontal expansion

b. enriched jobs enable an employee to do a number of boring jobs instead of just one

c. job enlargement is more psychologically satisfying than job enrichment

d. job enrichment is suitable for all employees, whereas job enlargement is not

e. enriched jobs involve vertical expansion, while enlarged jobs involve horizontal expansion

/

13. A job characterized by _______ allows a worker to use his/her dexterity, physical strength, and skills to do his/her work.

a. feedback

b. skill variety

c. job identity

d. job significance

e. autonomy

/

14. When a worker obtains clear and timely information about his/her performance, his/her job is characterized by

a. feedback

b. skill variety

c. job identity

d. job significance

e. autonomy

/

15. Which of the following is not a limitation of job expansion?

a. higher capital cost

b. higher wage rates

c. smaller labor pool

d. increased accident rates

e. All of the above are limitations of job expansion.

/

16. Management and labor share the labor cost reductions in which of these compensation schemes?

a. bonus system

b. quota system

c. Scantron plan

d. Scanlon plan

e. measured day work plan

/

general business data bank

general business data bank

Question

1. The nature of management is to cope with ____________________ and far-reaching challenges.

ANS:

2. ____________________ is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.

ANS:

3. ____________________ is concerned with defining goals for future organizational performance.

ANS:

4. ____________________ involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization.

ANS:

5. The management function that involves the use of influence to motivate employees to achieve the organization's goals is referred to as ____________________.

ANS:

6. ____________________ is the management function concerned with monitoring employees' activities, keeping the organization on track toward its goals, and making corrections as needed.

ANS:

7. A social entity that is goal directed and deliberately structured is called a(n) ____________________.

ANS:

8. The degree to which the organization achieves a stated goal is called ____________________.

ANS:

9. Organizational ____________________ refers to the amount of resources used to achieve an organizational goal.

ANS:

10. Conceptual skills are especially important for ____________________ managers.

ANS:

11. ____________________ skills refers to the manager's ability to work with and through other people and to work effectively as a group member.

ANS:

12. The individual performer is a(n) ____________________; whereas, the manager has to be a(n) ____________________.

ANS: ;

13. In the ____________________ role, managers seek and receive information, scan periodicals and reports, and maintain personal contacts.

ANS:

14. In the ____________________ role, managers initiate improvement projects, identify new ideas, and delegate idea responsibility to others.

ANS:

15. A(n) ____________________ would be responsible for performing ceremonial and symbolic duties such as greeting visitors and signing legal documents.

Misc. Finance MCQs

Misc. Finance MCQs

Question


1. Bread Corporation is a C corporation with earnings of $100,000. It paid $20,000 in dividends to its sole shareholder, Gerald. Gerald also owns 100% of Butter, an S corporation. Butter had net taxable income of $80,000 and made a $15,000 distribution to Gerald. What income will Gerald report from Bread and Butter’s activities?
A) $35,000
B) $95,000
C) $100,000
D) $180,000


2. Jerry transfers two assets to a corporation as part of a Sec. 351 exchange. The first asset has an adjusted basis of $70,000 and a FMV of $50,000. The second asset has an adjusted basis of $70,000 and a FMV of $150,000. The FMV of the stock received is $180,000 and he also receives $20,000 cash. The realized and recognized gain on the second asset is
A) $80,000 realized; $20,000 recognized.
B) $80,000 realized; $15,000 recognized.
C) $20,000 realized; $10,000 recognized.
D) $10,000 realized; $10,000 recognized.

3. Henry transfers property with an adjusted basis of $95,000 and a FMV of $100,000 to a newly formed corporation in a Sec. 351 exchange. Henry receives stock with a FMV of $85,000 and a short-term note with a $15,000 FMV. Henry's basis in the stock is
A) $100,000.
B) $95,000.
C) $90,000.
D) $85,000.

4. Lynn transfers land having a $50,000 adjusted basis, an $80,000 FMV and $10,000 cash to Allied Corporation in exchange for 100% of Allied's stock. The corporation assumes the $70,000 mortgage on the land. Which of the following statements is correct?
A) Lynn recognizes no gain and the stock basis is $60,000.
B) Lynn recognizes $10,000 gain and the stock basis is $60,000.
C) Lynn recognizes no gain and the stock basis is $50,000.
D) Lynn recognizes $10,000 gain and the stock basis is zero.

5. Super Corporation gives a painting to a museum for public display on August 6. The painting was purchased on April 3 of the same year for $20,000 and is worth $30,000 at the date of gift. Also, Super accrues a charitable contribution on December 30 and pays the $12,000 contribution on February 1 of the next year. Super Corporation is a calendar-year corporation that uses the accrual method of accounting. Before considering the 10% limitation rule, the maximum deduction for the current year is
A) $12,000.
B) $20,000.
C) $30,000.
D) $32,000.

6. Richards Corporation has taxable income of $280,000 calculated before the charitable contribution deduction and before its dividends-received deduction of $34,000. Richards makes cash contributions of $35,000 to charitable organizations. What is Richards Corporation's charitable contribution deduction for the current year?
A) $24,600
B) $28,000
C) $31,400
D) $35,000

7. Island Corporation has the following income and expense items for the year.Gross receipts from sales $60,000 Dividends received from 15%-owned domestic corporation 40,000 Expenses connected with sales 30,000 The taxable income of Island Corporation is
A) $100,000.
B) $70,000.
C) $47,000.
D) $42,000.

8. Money Corporation has the following income and expenses for the tax year.Gross profit on sales $200,000 Expenses 700,000 Dividends received from less-than-20%-owned domestic corporations 20,000 What is Money's net operating loss?
A) $494,000
B) $480,000
C) $520,000
D) $220,000

9. Foggy Corporation has regular taxable income of $1,200,000. It has $250,000 of interest income on private activity bonds and $100,000 of interest on City of New Orleans bonds. How much is Foggy’s preadjustment AMTI?
A) $1,200,000
B) 1,350,000
C) $1,450,000
D) $1,550,000

10. Identify which of the following statements is false.
A) Tax-exempt interest on certain private activity bonds may be taxed under the alternative minimum tax.
B) Tax preference items and adjustments may either increase or decrease taxable income to obtain AMTI.
C) Depending on the date an asset is placed in service, depreciation may be an adjustment to taxable income or a tax preference item for alternative minimum tax purposes.
D) Different depreciation rules are used when computing taxable income and alternative minimum taxable income.

11. Mountaineer, Inc. has the following results: Regular corporate tax liability $400,000Taxable income 2,000,000Preferences 500,000Adjustments (200,000)What is the amount of the alternative minimum tax?
A) $0
B) $60,000
C) $100,000
D) None of the above.

general business data bank

general business data bank

Question

1. In today's world, every manager needs to think locally.

ANS:

2. Business has become a unified, global field as trade barriers fall, communication becomes faster and cheaper, and consumer tastes converge.

ANS:

3. The second stage in the process of globalization is the international stage, where the company usually adopts a multidomestic approach.

ANS:

4. An example of global outsourcing is seen when Gap, Inc. uses low-cost Caribbean labor to cheaply produce its clothing, and then finishes off and sells its clothing in the United States.

ANS:

5. With exporting, the corporation transfers its products for sale and its production facilities in foreign countries.

ANS:

6. Seeking cheaper sources of materials or labor offshore is called offshoring.

ANS:

7. Countertrade is the barter of products for products rather than the sale of products for currency.

ANS:

8. An estimated 55 percent of world trade is countertrade.

ANS:

9. When Harbor Trades, a Korean-based company, makes resources including technology, managerial skills, and patent and trademark rights available to Nano Technologies, a Russian company whereby allowing Nano to make products similar to CBA, it is engaging in a countertrade agreement.

ANS:

10. Outsourcing is perhaps the most widespread approach to international involvement in China and India.

ANS:

11. Infrastructure management is the management of business operations conducted in more than one country.

ANS:

12. The basic management functions of planning, organizing, leading, and controlling are the same whether a company operates domestically or internationally.

ANS:

13. The sub-divisions of the international environment are the economic, the sociocultural, and the legal-political environments.

ANS:

14. Some economic environments of business include resource and product markets, language, religion, and per capita income.

ANS:

15. A country's physical facilities that support economic activities make up its infrastructure.

ANS:

16. The criterion traditionally used to classify countries as developed or developing is per capita income.

ANS:

17. LDCs are less developed countries and tend to be found in the Southern Hemisphere including Africa, Asia and South America.

ANS:

18. Because of cheap labor, most international business firms are headquartered in the less developed countries of Asia and South America.

ANS:

19. Market risk is defined as the risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.

ANS:

20. The countries experiencing political stability face the greatest threat of violence.

ANS: