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Explain the concept of the multiplier

Explain the concept of the multiplier

Question
	

a.Explain the concept of the multiplier, and explain the role of the marginal propensity to consume in determining the size of the multiplier.


b.Explain how the size of the multiplier will change when one brings in the role of the marginal tax rate.


c.Using the concepts in parts a and b above, calculate the slope of the AE curve and the size of the multiplier if MPC = 0.75. Then, calculate the revised slope of the AE curve and the multiplier when you know that the imports and the marginal tax rate will reduce the slope of the AE curve by another 0.30.

Need 4 Marketing Questions Answered

Need 4 Marketing Questions Answered

Question
	

1. Describe how the four Ps of marketing relate to the four Cs
of customers.















2. What is a
brand audit? Why is it done?






3. Define
internal marketing, external marketing, and interactive marketing in terms of a
dog grooming service.









4. Marketing implementation is the process that
turns marketing plans into action assignments and ensures that such assignments
are executed in a manner that accomplishes the plan’s stated objectives. What
are the four sets of skills identified by Bonoma for implementing marketing
programs?.
	
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The three elements of the theories of motivation include all EXCEPT

The three elements of the theories of motivation include all EXCEPT

Question
	
Question 2 of 20 5.0 Points
The three elements of the theories of motivation include all EXCEPT:



A. direction.


B. frequency.


C. intensity.


D. persistence.




Question 3 of 20 5.0 Points
Peter Deutsch is a sales manager for an industrial products firm. He is responsible for 20 salespeople - most of whom have been with the company ten years or more. A particular concern for Mr. Deutsch is how to help his salespeople to self-actualize. In terms of Maslow’s Need Theory, which of the following approaches would be most appropriate to bring about sales force self-actualization?



A. Provide a balances package of fringe benefits for the salespeople.


B. Call regular sales meetings, make frequent telephone calls to individual salespeople, visit salespeople in the field, and distribute a newsletter.


C. Provide promotional opportunities and public recognition for superior achievements.


D. Provide creative work experience, freedom, advanced education courses, and self-development workshops as well as greater job control for the salespeople.




Question 4 of 20 5.0 Points
As contrasted with hygiene factors, a sales manager might use which of the following as “motivators?”



A. Increase salaries of all salespeople.


B. Improve the working conditions for salespeople, e.g., upgrade their automobiles and the quality of technical equipment available to them.


C. Assign salespeople to new, more challenging tasks such as opening new accounts or selling new product categories.


D. Provide each salesperson with a spacious office and an unlimited expense account when handling company business.




Question 5 of 20 5.0 Points
__________ refer to those rewards controlled by managers and customers (e.g., pay, bonuses, and promotions).



A. Intrinsic rewards


B. Positive reinforcement


C. Extrinsic rewards


D. Behavior modification




Question 6 of 20 5.0 Points
When salespeople achieve or surpass a specified sales quota, they are often given a monetary bonus and/or special recognition to reward them for their performance as well as to motivate them to continue. This is/These are known as:



A. recognition.


B. intrinsic rewards.


C. non-financial incentives.


D. an incentive program.




Question 7 of 20 5.0 Points
Which of the following sales contest objectives is matched correctly with an appropriate reward?



A. Stimulate more orders – prize for placing quota of displays


B. Secure prospects – prizes for greatest sales from formerly dead accounts


C. Increase sales orders – prizes to all who make quota of calls and demonstrations


D. Build higher unit sales – prizes to those who maintain best sales record for selling entire line during specified time




Question 8 of 20 5.0 Points
__________ sales meetings are considered the backbone of the communication system and usually give salespeople the greatest support.



A. Local


B. Regional


C. National


D. International




Question 9 of 20 5.0 Points
__________ is exemplified by salespeople identifying with and internalizing the company’s values and goals and desire to stay a viable member of the organization.



A. Job satisfaction


B. Organizational commitment


C. Job commitment


D. Organizational climate




Question 10 of 20 5.0 Points
The maturity/maintenance stage is characterized by the affected employee’s:



A. disengagement from work.


B. searching for a comfortable position.


C. seeking stabilization in occupation.


D. greater commitment to the firm.




Question 11 of 20 5.0 Points
In examining the effect of various compensation plans on company profits, a seminal study identified several types of salespeople. __________ allocate their time according to a personally determined ratio of work and leisure that is not influenced by opportunities for increased earnings.



A. Trade-offers


B. Money-oriented individuals


C. Satisfiers


D. Creatures of habit




Question 12 of 20 5.0 Points
With regard to compensation systems, which one of the following statements is INCORRECT?



A. Reward preferences and reward levels, and managers’, subordinates’, and superiors’ perceptions of the adequacy of their rewards are known to differ.


B. There is reward equality at successive hierarchical levels.


C. Compensation and perks tend to increase at the higher levels of a corporation, creating status and power differences.


D. The importance employees assign to rewards differs according to their changing needs, career stage, and organizational level.




Question 13 of 20 5.0 Points
The first step in developing the compensation plan for a sales force is to:



A. develop the compensation mix.


B. establish specific objectives.


C. prepare job descriptions.


D. determine general levels of compensation.




Question 14 of 20 5.0 Points
The fourth step in developing the compensation plan for a sales force is to:



A. develop the compensation mix.


B. establish specific objectives.


C. prepare job descriptions.


D. determine general levels of compensation.




Question 15 of 20 5.0 Points
Which of the following compensation plans is most frequently used by the aerospace, petroleum, and chemical industries, where service and engineering skills are particularly important to customers?



A. Salary plus incentive


B. Straight salary


C. Straight commission


D. Combination




Question 16 of 20 5.0 Points
Combination compensation plans are the most flexible of all approaches and fit a variety of conditions. __________ plans are best when management wants to get high sales without sacrificing customer service.



A. Salary plus commission


B. Salary plus bonus


C. Salary plus commission plus bonus


D. Commission plus bonus




Question 17 of 20 5.0 Points
Which of the following trends in sales compensation focuses on customer satisfaction and relationship building?



A. Signing bonuses


B. CSBI


C. Tying sales compensation to productivity


D. Blending sales-oriented goals with organizational goals




Question 18 of 20 5.0 Points
Developing a sales manager’s compensation plan is challenging because:



A. the sales manager’s responsibility is neither purely sales nor purely management.


B. they continually strive for long-term sales, yet must also meet short-term goals.


C. their compensation should be based on yearly sales performance.


D. their compensation is based on a single functional area of the company.




Question 19 of 20 5.0 Points
Alan Farber is a top-notch sales representative for an industrial products company in the Midwest. He is reimbursed for expenses up to 4 percent of his net sales, and receives a bonus for keeping selling expenses below 4 percent of net sales. Which of the following basic reimbursement plans is Mr. Farber’s company using?



A. Unlimited reimbursement plan


B. Limited reimbursement plan


C. Combination reimbursement plan


D. Negative reimbursement plan




Question 20 of 20 5.0 Points
Which of the following is an advantage of limited reimbursement plans?



A. Salespeople feel the sales manager lacks trust in their making selling expenditures.


B. It restricts exceptional expenses which might gain or save a customer.


C. It tempts salespeople to switch reporting of expenditures from one time period to another to avoid going over the expense limits.


D. It makes salespeople reduce expense-account padding.

Finance Misc. MCQs

Finance Misc. MCQs

Question
	

1. To insure against potential losses that result from adverse changes in exchange rates, Trader's Paradise should use currency ________. (Points : 5) 
conversion
speculation
hedging
arbitrage



2. ________ involves using taxes and government spending to influence the money supply indirectly. (Points : 5) 
Monetary policy
Domestic policy
The law of one price
Fiscal policy



3. Purchasing power parity is better at predicting ________ exchange rates. (Points : 5) 
European
short-term
spot
long-term



4. A contract between the exporter and shipper that specifies merchandise destination and shipping costs is called a ________. (Points : 5) 
draft
bill of lading
letter of credit
bill of exchange



5. Which of these is the relative ability of two countries' currencies to buy the same "basket" of goods in those two countries? (Points : 5) 
Fisher effect
Law of one price
Purchasing power parity
Cross rates



6. The likelihood that a society will undergo political changes that negatively affect local business activity is known as ________. (Points : 5) 
business risk
investment risk
political risk
production risk



7. Which of the following is NOT a method of export/import financing (Points : 5) 
Documentary collection
Letter of credit
Buyback
Open account



8. When the U.S. government lowers taxes, this is an example of ________. (Points : 5) 
fiscal policy
monetary policy
domestic policy
the law of one price



9. In countries with high illiteracy rates, a(n) ________ should not be used to collect information. (Points : 5) 
personal interview
observation of behavior
written survey
group interview



10. A promotional strategy designed to create buyer demand that will encourage channel members to stock a company's product is called a(n) ________. (Points : 5) 
pull strategy
end distribution strategy
push strategy
up-channel strategy



11. Which of the following is an example of a legal force that might influence a site location decision? (Points : 5) 
Strong work ethic
Strict environmental regulations
Qualified workforce
Liquidity problems



12. When a government buys its own securities on the open market, (Points : 5) 
tax rates decline
the money supply increases
the nation's productivity increases
it encourages FDI outflow



13. A distribution channel in which a manufacturer grants the right to sell its products to only one or a limited number of resellers is called a(n) ________. (Points : 5) 
intensive channel
push strategy channel
exclusive channel
pull strategy channel



14. In which type of joint venture do the parties choose to invest together in downstream business activities? (Points : 5) 
Backward integration
Multistage
Forward integration
Buyback



15. Which of the following financing methods entails the greatest risk for importers? (Points : 5) 
Documentary collection
Advance payment
Letter of credit
Open account



16. Manufacturers of products that are commonly sold through department and grocery stores often use a(n) ________. (Points : 5) 
pull strategy
exclusive channel strategy
push strategy
value chain strategy



17. The process of sending messages about products to target markets is called ________. (Points : 5) 
promotion mix
distribution policy
value density
marketing communication



18. Developing a market-potential indicator for an emerging market is useful to companies considering ________ . (Points : 5) 
exporting
licensing
joint ventures
wholly owned subsidiaries



19. The process of obtaining information that already exists within the company or that can be obtained from outside sources is called ________. (Points : 5) 
secondary market research
logistics management
primary market research
invalid market research



20. The market consisting of all stocks bought and sold outside the issuer's home country is called the ________. (Points : 5) 
Eurocurrency market
international equity market
foreign exchange market
international bond market

Finance Multiple Questions

Finance Multiple Questions

Question
	
Question: 
Consider the following potential investment, which has the same risk as the firm’s other projects: 
Time Cash Flow 
0 -$95,000 
1 $20,000 
2 $24,000 
3 $24,000 
4 $24,000 
5 $24,000 
6 $32,000 
a) What are the investment’s payback period, IRR, and NPV, assuming the firm’s WACC is 10%. 
b) If the firm requires a payback period of less than 5 years, should this project be accepted? Be sure to justify your choice. 
c) Based on the IRR and NPV rules, should this project be accepted? Be sure to justify your choice. 
d) Which of the decision rules (payback, NPV, or IRR) do you think is the best rule for a firm to use when evaluating projects? Be sure to justify your choice. 

a) What are the investment’s payback period, IRR, and NPV, assuming the firm’s WACC is 10%. 
b) If the firm requires a payback period of less than 5 years, should this project be accepted? Be sure to justify your choice. 
c) Based on the IRR and NPV rules, should this project be accepted? Be sure to justify your choice. 
d) Which of the decision rules (payback, NPV, or IRR) do you think is the best rule for a firm to use when evaluating projects? Be sure to justify your choice.


Question: 
A firm believes it can generate an additional $250,000 per year in revenues for the next 5 years if it replaces existing equipment with new equipment that costs $240,000. The firm expects to be able to sell the new equipment when it is finished using it (after 5 years) 10,000. The existing equipment has a book value of $20,000 and a market value of $12,000. Variable costs are expected to total 70% of revenue. The additional sales will require an initial investment in net working capital of $15,000, which is expected to be recovered at the end of the project (after 5 years). Assume the firm uses straight line depreciation. The firm’s marginal tax rate is 30%. and its weighted-average cost of capital is 10%. 
a) What is the required initial investment (at t = 0)? 
b) At what discount rate will this project break even?
c) Should the firm purchase the new equipment? Be sure to justify your recommendation. 


Question #3 
Your company is interested in having a new facility constructed. The contractor expects that it will take approximately 3 years to complete the building. The contractor has offered you three payment plans for the building. They are as follows: 

Time Plan 1 Plan 2 Plan 3 
Today $100,000 $820,000 $500,000 
1 year from now $1,100,000 $820,000 $- 
2 years from now $1,100,000 $820,000 $1,400,000 
3 years from now $1,100,000 $820,000 $1,400,000 

a) The CFO of your company has asked you to provide recommendation concerning which payment plan to accept.What is your recommendation? Assume your weighted-average cost of capital is 10%. 
b) Besides cost, what other factors should you take into consideration when deciding which payment plan to accept?


Question #4
a) List and describe four potential problems with a “traditional” overhead allocation system.
b) List and describe four “red flags” that may indicate you should consider revising your overhead allocation system.

Abercrombie & Fitch has more than 1,125 stores in the United States

Abercrombie & Fitch has more than 1,125 stores in the United States

Question
	
Abercrombie & Fitch has more than 1,125 stores in the United States, Canada and the U.K. The company was established in 1892 and is well known as a supplier rugged, high-quality outdoor gear. Excerpts from the company’s annual report for the fiscal year ended January 31, 2009. Are in exhibit 9 (see attached). Abercrombie and Fitch paid cash dividends of $.70 per common share in fiscal 2009, and an average of 86.816 million shares were outstanding during the year. Assume that Abercrombie & Fitch has no stock options or convertible securities. The company’s market price on January 31, 2009, was $17.85 per share.




Compute the following financial ratios for fiscal year 2009.


1. Current ratio


2. Total debt equity


3. Gross profit rate


4. Return on sales


5. Return on stockholder’s equity


6. Earnings per share


7. Price earnings


8. Dividend yield


9. Dividend payout

Triguero’s_Classification

Triguero’s_Classification

Question
	The following items
appeared in the accounting records of Triguero's, a retail music store that
also sponsors concerts. Classify each of the items as an asset, liability;
revenue; or expense from the company's viewpoint. Also indicate the normal
account balance of each item.



a. Amounts paid to a mall for rent. 

b. Amounts to be paid in 10 days to suppliers. 

c. A new fax machine purchased for office use. 

d. Land held as an investment. 

e. Amounts due from customers. 

f. Daily sales of merchandise sold. 

g. Promotional costs to publicize a concert. 

h. A long-term loan owed to Citizens Bank. 

i. The albums, tapes, and CDs held for sale to
customers.

KAYAKS, INC._Manufacturing Budget

KAYAKS, INC._Manufacturing Budget

Question
	

KAYAKS, INC.

Balance Sheet

December 31, 2011



ASSETS

Cash-------$ 52,000

Accounts receivable----1,200,000

Raw materials inventory* ---120,000

Finished goods inventory** -----287,500

Plant assets, net of accumulated

Depreciation -----------2,135,000

Total Assets -----$ 3,794,500





LIABILITIES

Accounts payable ----$ 131,000

STOCKHOLDERS’EQUITY Common Stock---1,600,000

Retained Earnings ------2,063,500

Total Liabilities & SE -----$ 3,794,500

use in preparing the budget for 2012:



*40,000 pounds **1,000 kayaks



The following additional data is available for use in preparing the budget for 2012:



Cash collections (all sales are on account):

Collected in the quarter of sale------------40%

Collected in the quarter after sale---------60%

(Bad debts are negligible and can be ignored)

Cash disbursements for raw materials (all purchases are on account):

Cash paid in the quarter of purchase----70%

Cash paid in the quarter after purchase -----30%

Desired quarterly ending Raw materials inventory----40% of next quarter’s production needs.

Desired quarterly ending Finished goods inventory------ 10% of next quarter’s sales

Budgeted sales:

1st quarter 2012 ------------------------------------10,000 kayaks

2nd quarter 2012 ------------------------------------15,000 kayaks

3rd quarter 2012 ------------------------------------16,000 kayaks

4th quarter 2012 ------------------------------------14,000 kayaks

1st quarter 2013------------------------------------10,000 kayaks

2nd quarter 2013 ------------------------------------12,000 kayaks

Anticipated equipment purchases:

1st quarter 2012 ------------------------------------$30,000

2nd quarter 2012 ------------------------------------$0

3rd quarter 2012 ------------------------------------$0

4th quarter 2012 ------------------------------------$150,000

Quarterly dividends to be paid each quarter in 2012 ----$4,000

Expected sales price per unit ---------$400



Standard cost data:

Direct materials ----------10 pounds per kayak @ $3 per pound

Direct labor----------10 hours per kayak @ $20 per hour

Variable manufacturing overhead-----$5 per direct labor hour

Fixed manufacturing overhead (includes $9,000 depreciation)--- $103,125 per quarter

Variable selling expenses------------$25 per kayak

Fixed selling and administrative expenses:

Insurance -----------------------------------$45,000 per quarter

Sales salaries -------------------------------$30,000 per quarter

Depreciation --------------------------------$6,000 per quarter

Income tax rate -----------------------------30%

Estimated income tax payments planned in 2012:

1st quarter ------------------------------------$0

2nd quarter------------------------------------$50,000

3rd quarter------------------------------------$400,000

4th quarter ------------------------------------$500,000



Kayak’s desires to have a minimum cash balance at the end of each quarter of $50,000. In order to maintain this minimum balance, They may borrow from its bank in $10,000 increments with an interest rate of 6%. Money is borrowed at the beginning of the quarter in which a shortage is expected. Repayments of all or a portion of the principle (plus accrued interest on the amount being repaid) are made at the end of any quarter in which the cash balance exceeds the required minimum.



Requirements:

1.Use the above information to prepare the following components of the master budget:

a. Sales budget with a schedule of expected cash collections for each quarter and the year as a whole

b. Production budget for each quarter and the year as a whole

c. Direct materials purchases budget with a schedule of expected cash disbursements for materials for

i. each quarter and the year as a whole

d. Direct labor budget for each quarter and the year as a whole

e. Manufacturing overhead budget with expected cash disbursements for each quarter and the year as

i. a whole

f. Ending finished goods inventory budget for the year

g. Selling and administrative expense budget with expected cash disbursements for each quarter and

i. the year as a whole

h. Cash budget for each quarter and the year as a whole

i. Budgeted income statement for the year

j. Budgeted balance sheet for the end of the year