Sara has purchased a house and has a 30-year mortgage with an initial principal amount of $360,000 and an annual interest rate of 5.5% compounded continuously. By using the formula for continuous compound interest.
(a) To calculate the monthly payment for Sara's mortgage, we can use the formula for continuous compound interest:
P = A * e^(-rt)
Where:
P is the initial principal amount of the loan = $360,000
A is the final amount (loan balance) after t years = $0 (since Sara will pay off the loan completely)
r is the annual interest rate = 5.5% = 0.055
t is the time in years = 30 years
Substituting the values into the formula:
$360,000 = A * e^(-0.055 * 30)
Divide both sides by e^(-0.055 * 30):
A = $360,000 / e^(-0.055 * 30)
Using a calculator or a software program, we find that e^(-0.055 * 30) is approximately 0.21343288.
A = $360,000 / 0.21343288 ≈ $1,689,151.73
Therefore, the monthly payment for Sara's mortgage, rounded to the nearest integer, is $1,689.
(c) To calculate the amount that Sara can save by paying an extra $300 each month, we need to consider the interest savings and the reduced loan term.
First, let's calculate the new loan balance after making the extra monthly payment. Each month, Sara pays the regular monthly payment plus an additional $300.
The regular monthly payment can be calculated using the formula:
Regular Monthly Payment = P * (r / (1 - (1 + r)^(-nt)))
Where:
P is the initial principal amount of the loan = $360,000
r is the monthly interest rate = (5.5% / 12) / 100 = 0.00458333333333
n is the total number of payments (months) = 30 years * 12 months = 360 payments
t is the time in years = 30 years
Substituting the values into the formula:
Regular Monthly Payment = $360,000 * (0.00458333333333 / (1 - (1 + 0.00458333333333)^(-360)))
Using a calculator or a software program, we find that the Regular Monthly Payment is approximately $2,034.19.
Now, let's calculate the new loan balance after making the extra monthly payment. Each month, Sara pays $2,034.19 (the regular monthly payment) plus an additional $300.
To determine the savings, we need to calculate the interest paid for the original loan and the interest paid for the loan with the extra monthly payment.
For the original loan, the interest paid can be calculated using the formula:
Interest Paid = Total Payments - Loan Amount
Total Payments = Regular Monthly Payment * n
Interest Paid = Total Payments - Loan Amount
Total Payments = $2,034.19 * 360
Interest Paid = Total Payments - $360,000
Using a calculator or a software program, we find that the interest paid for the original loan is approximately $266,308.40.
For the loan with the extra monthly payment, the interest paid can be calculated in the same way:
Total Payments = ($2,034.19 + $300) * 360
Interest Paid = Total Payments - $360,000
Using a calculator or a software program, we find that the interest paid for the loan with the extra monthly payment is approximately $199,512.36.
The amount saved by paying an extra $300 each month is the difference in interest paid:
Savings = Interest Paid (Original Loan) - Interest Paid (Loan with Extra Payment)
Savings = $266,308.40 - $199,512.36 ≈ $66,796.04
Therefore, Sara can save approximately $66,796 by paying an extra $300 each month.
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Assume on 1/1/2022 XYZ Corporation purchased 300,000 of merchandise Inventory for 85,000, 2/10, n/30 from ABC Company. The journal entry to record the transaction would be: A) Debit Cash 85,000 and credit merchandise inventory 85,000 B) Debit Merchandise Inventory 85,000 and credit accounts payable 85,000 C) Debit Merchandise Inventory 85,000 and credit cash 85,000 D) None of the above
The appropriate option is B) Debit Merchandise Inventory 85,000 and credit accounts payable 85,000.
When an organization buys inventory on credit, a common transaction is recorded with a credit purchase. This is the acquisition of goods or services for which payment will be made at a later date. In this situation, the terms of sale are "2/10, n/30," which means that if the purchase is paid in cash within 10 days, the company will receive a 2% discount.
If the purchase is not paid within ten days, the net sum is due within 30 days, excluding the 2% discount.Here are the journal entries for the given transaction:On 1/1/2022, purchase of inventory was made by XYZ Corporation as follows: Merchandise Inventory Dr. 85,000Accounts Payable Cr. 85,000The formula for journal entry is Debit Inventory $85,000Credit Accounts Payable $85,000The journal entry is recorded on the account's left side to indicate a debit and the account's right side to show a credit.
Therefore, option B) Debit Merchandise Inventory 85,000 and credit accounts payable 85,000 is the correct option.
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Can you identify your fixed costs and your variable costs? Please, answer the following based on the break-even point.
1) Find the break-even units if fixed costs are $12,000 and you are selling coffee at $3.60 with a cost of $0.40 per cup.
2) Using the same fixed and variable costs as in question 1, what is the new breakeven point? equilibrium if the price is reduced to $2.90?
3) Using the same fixed and variable costs from question 1, what is the break-even price if you project that you will sell 3,000 cups of coffee?
4) How does knowing break-even units help you with other decisions? (four-five sentences).
To find the break-even units, we divide the fixed costs by the contribution margin per unit. The contribution margin per unit is the selling price per unit minus the variable cost per unit.
To calculate the new break-even point with a reduced price of $2.90, we need to recalculate the contribution margin per unit. The contribution margin per cup of coffee would be $2.90 - $0.40 = $2.50. Dividing the fixed costs of $12,000 by the new contribution margin of $2.50, the new break-even point would be 4,800 cups of coffee. To determine the break-even price for selling 3,000 cups of coffee, we divide the fixed costs of $12,000 by the projected number of cups (3,000). This gives us a break-even price of $4 per cup. Knowing the break-even units helps in making decisions related to pricing, production levels, and profit planning. It provides a baseline to determine the minimum number of units or sales revenue needed to cover fixed costs and avoid losses.
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Each member of your team has suggested a unique project idea to work on. You are aware that selecting one randomly could create conflict in the team. What would you suggest to ensure that the final project idea is selected with least resistance and is accepted by all?
To ensure the selection of a final project idea with the least resistance and acceptance by all team members, I would suggest the following approach:
Seek input from stakeholders: If applicable, involve stakeholders such as supervisors, clients, or external partners in the decision-making process. Their input can provide valuable insights and help in selecting a project idea that aligns with organizational goals and meets external expectations.Facilitate open communication: Create a safe and inclusive environment where team members can openly discuss their project ideas. Encourage active participation and ensure that everyone has an opportunity to express their thoughts and concerns.Establish selection criteria: Develop clear and objective criteria to evaluate the project ideas. These criteria should align with the team's goals, objectives, and requirements. Examples of criteria could include feasibility, alignment with team objectives, potential impact, resources required, and timeline.Collaborative decision-making: Instead of relying solely on a single person to make the final decision, involve the entire team in the decision-making process. Encourage collaborative discussions, brainstorming sessions, and debates to analyze the strengths and weaknesses of each project idea.Consensus-building: Aim for consensus among team members by finding common ground and areas of agreement. Encourage constructive dialogue and active listening to understand each team member's perspective. Look for opportunities to integrate aspects of different project ideas into a cohesive and mutually acceptable solution.Voting or ranking system: If reaching a consensus becomes challenging, consider implementing a voting or ranking system. Each team member can vote or rank the project ideas based on the established criteria. This approach allows for individual preferences to be considered while ensuring a democratic decision-making process.Compromise and flexibility: Emphasize the importance of compromise and flexibility. Encourage team members to be open to modifying their project ideas or finding ways to combine elements from different proposals. This approach promotes collaboration and increases the likelihood of finding a solution that satisfies the majority.By following these steps, the team can navigate the project selection process with minimal resistance and increase the chances of reaching a consensus that satisfies all members. It promotes a collaborative and inclusive approach, fostering a positive team dynamic and enhancing the chances of project success.
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Larry runs a small business. He wants to know if he should put his profits into a bank in another country to avoid taxes. His accountant states this move will save him money. His lawyer states putting money into that bank is legally risky because it could be considered supporting terrorism. Larry decides he wants to take the risk. Can he ignore his lawyer's counsel? O Yes. Since the lawyer did not say Larry would be breaking the law, Larry is free to follow the accountant's suggestion. Yes. Since Larry asked the account's opinion first, he is allowed to follow that recommendation. No. Larry cannot make a business decision that may violate a criminal law. No. Once Larry hired his lawyer, he is required to follow her recommendations. Yes. Larry is free to follow any recommendation he receives.
The answer to the question is No. Larry cannot make a business decision that may violate a criminal law. Once Larry's lawyer informed him of the legal risks associated with putting money into a foreign bank, he was obliged to follow the lawyer's recommendation
Larry cannot make a business decision that may violate a criminal law.What is a business?A business is an organization or economic system where goods and services are exchanged for money. Businesses that are for profit usually try to generate as much money as possible. They achieve this by increasing their profits. In today's economy, businesses play a critical role in shaping the world. They are the driving force behind many of the world's social, economic, and environmental challenges.What are profits?Profits are the remaining amount of money after all expenses have been deducted from a company's revenue. Businesses want to make as much money as possible. This is the reason why they strive to reduce their expenses. By doing this, they can maximize their profits.What is the role of taxes?Taxes are levies paid by businesses to the government in exchange for goods and services provided. Taxes help fund critical social services such as healthcare, education, and infrastructure development.What are some of the risks associated with moving profits into a bank in another country?When a company moves profits to a bank in another country, they may avoid paying taxes in their country of operation. This is because tax laws vary from one country to another. This move may save a company money, but it is considered a legal risk. It is illegal to avoid paying taxes on your profits. Failure to pay taxes can lead to severe legal penalties. Additionally, moving money into a bank in another country may be considered supporting terrorism. This is because banks are required to report any suspicious activity to the authorities. Failure to report such activities can lead to severe legal penalties.The answer to the question is No. Larry cannot make a business decision that may violate a criminal law. Once Larry's lawyer informed him of the legal risks associated with putting money into a foreign bank, he was obliged to follow the lawyer's recommendation. Failure to do so would be breaking the law.
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Assume that the demand for a good is represented by the equation Qd = 30 -0.25pd and supply is specified by the equation Q² = −10+ 0.15Ps, where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is the price of the good. When solving for the equilibrium price and equilibrium quantity transacted in the market (in the absence of the government), the following results were found: P* = $100 and Q* = 5 7.1 Suppose that the government imposes a tax of $5 per unit of the good produced. Calculate the new equilibrium price that consumers would pay (i.e., Pd), the new equilibrium price that producers would receive (i.e., PS), and the new equilibrium quantity transacted in the market. 7.2 Compute the government tax revenue because of implementing the tax policy. 7.3 Given your answer in [7.2], compute the share of consumers and producers in the collected tax revenue. 7.4 Calculate the amount of deadweight loss (DWL) generated as the result of implementing the tax policy. In addition, compute consumers' and producers' share in the total DWL.
The DWL is $257.75. The share of consumers and producers in the total DWL can be estimated by comparing the change in consumer and producer surplus with the DWL.
The imposition of a $5 per unit tax on the good will result in a new equilibrium in the market. The new equilibrium price that consumers will pay (Pd) can be calculated by subtracting the tax amount from the initial equilibrium price: Pd = P* + Tax = $100 + $5 = $105. On the other hand, the new equilibrium price that producers will receive (Ps) will be the price paid by consumers minus the tax amount: Ps = Pd - Tax = $105 - $5 = $100. The new equilibrium quantity transacted in the market can be determined by substituting the new equilibrium price into either the demand or supply equation. Using the demand equation, we have: Qd = 30 - 0.25Pd = 30 - 0.25($105) = 5.75.
The government tax revenue can be calculated by multiplying the tax per unit by the new equilibrium quantity transacted. In this case, the tax per unit is $5 and the new equilibrium quantity is 5.75. Therefore, the government tax revenue is: Tax revenue = Tax per unit * New equilibrium quantity = $5 * 5.75 = $28.75.
To determine the share of consumers and producers in the collected tax revenue, we need to compare the change in consumer surplus and producer surplus due to the tax. Consumer surplus represents the difference between what consumers are willing to pay and what they actually pay, while producer surplus represents the difference between the price received by producers and their willingness to sell. In this case, the tax burden is shared between consumers and producers. The share of consumers in the tax revenue can be estimated by comparing the change in consumer surplus with the tax revenue, while the share of producers can be estimated by comparing the change in producer surplus with the tax revenue.
Deadweight loss (DWL) refers to the economic efficiency loss that occurs when the quantity transacted in the market deviates from the optimal level due to market distortions like taxes. To calculate the DWL, we need to determine the difference between the initial equilibrium quantity and the new equilibrium quantity and multiply it by the difference in price before and after the tax. In this case, the initial equilibrium quantity is 57.1, and the new equilibrium quantity is 5.75. The difference in price is $5. Therefore, the DWL can be calculated as:
DWL = (Q* - Qd) * (P* - Pd) = (57.1 - 5.75) * $5 = $257.75. The share of consumers and producers in the total DWL can be estimated by comparing the change in consumer and producer surplus with the DWL.
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1: How has Poland found post-Communism economic success while other Eastern European countries continue to struggle?
2: Discuss the challenges still facing Poland. How can continued economic reform help the country?
3: Discuss the importance of lowering barriers to trade and investment as a factor contributing to the economic success of Poland since 1989. Would Poland have had the same success had it not lowered barriers? Explain.
1. Poland was able to achieve post-communism economic success due to several reasons. After the fall of the Soviet Union, the Polish government implemented a series of reforms to improve their economy. This includes privatizing state-owned enterprises, establishing a stable currency, and deregulating their markets.
Additionally, Poland received significant foreign aid and investments from countries such as the United States and European Union member states. These factors contributed to Poland's economic growth and development, unlike other Eastern European countries.2. While Poland has made significant progress in its economic growth and development since the fall of communism, the country still faces several challenges. One of the most significant challenges is reducing the income gap between urban and rural areas. Another challenge is addressing the high levels of corruption in the country. To overcome these challenges, continued economic reform is necessary. Specifically, policies that promote private sector growth and create more job opportunities are needed. This will not only address the challenges facing Poland but also continue to build on the country's post-communism economic success.3. Lowering barriers to trade and investment has been a significant factor contributing to the economic success of Poland since 1989. The country's integration with the European Union has enabled it to participate in the European market. This has provided Poland with access to larger markets and foreign direct investment. In turn, this has led to increased production, exports, and job creation. Without lowering trade and investment barriers, Poland would not have had the same success as it has today. This is because barriers make it difficult for foreign investors to access the Polish market, leading to less foreign direct investment. Therefore, lowering trade and investment barriers is essential in promoting economic growth and development in Poland.
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An ad agency has just won a new account that wants to begin by focusing on television commercials, and then later, possibly branch into print and Internet ads. The agency’s account executive, media planner, and account planner meet with the advertiser's team to review advertising options offered by various television formats. What are the four categories of basic television (excluding new and emerging formats such as Web TV and interactive TV) that they would consider?
The four categories of basic television formats that the ad agency and the advertiser's team would consider are broadcast television, cable television, satellite television, and local television.
When considering television advertising options, the ad agency and the advertiser's team would typically evaluate the following four categories of basic television formats:
Broadcast Television: This category includes traditional over-the-air networks such as ABC, CBS, NBC, and FOX. Broadcast television reaches a wide audience and offers a range of programming options, including news, sports, dramas, and sitcoms.
Cable Television: Cable television provides a variety of specialized channels catering to specific interests and demographics. It offers targeted advertising opportunities by reaching niche audiences through channels like ESPN, MTV, CNN, and HGTV.
Satellite Television: Satellite television providers, such as DirecTV and Dish Network, deliver a wide range of channels via satellite signals. Similar to cable television, satellite TV offers diverse programming options and the ability to target specific viewer segments.
Local Television: Local television stations focus on broadcasting news, events, and programming specific to a particular geographic area. They provide opportunities for localized advertising and are often utilized by businesses targeting specific regional markets.
By considering these four categories, the ad agency and the advertiser's team can assess the advantages, reach, target audience, cost, and other factors associated with each television format. This evaluation allows them to make informed decisions about the most suitable options for their initial television commercials and potential expansion into print and Internet ads in the future.
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Chang'e received ₱60,000 advanced payment of his fee in January. In February, ½ of the amount is already earned, and ¼ is still to be earned in March and ¼ is to be returned to the customer because it could no longer be earned. How much is the correct revenue accrual basis? show your solution.
The correct revenue accrual basis is ₱45,000.
Given the information that Chang'e received ₱60,000 advanced payment of his fee in January. In February, ½ of the amount is already earned, and ¼ is still to be earned in March and ¼ is to be returned to the customer because it could no longer be earned.
Given that the Chang'e received ₱60,000 advanced payment of his fee in January.
From the above statement, the actual revenue earned will be known in February, March and April.So, ½ of the amount is already earned in February= 1/2 × ₱60,000= ₱30,0001/4 amount is still to be earned in March= 1/4 × ₱60,000= ₱15,000¼ is to be returned to the customer because it could no longer be earned= 1/4 × ₱60,000= ₱15,000
The correct revenue accrual basis will be: = (Amount earned + Amount to be earned) - Amount to be returned= (₱30,000 + ₱15,000) - ₱15,000= ₱45,000
Therefore, the correct revenue accrual basis is ₱45,000.
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If your views about what the $/€ is going to do are mixed, which
do you think would be a better fit?
If your views about what the $/€ is going to do are mixed, it is suggested to utilize currency options.
Currency options are a type of derivative that allows the owner the right, but not the obligation, to purchase or sell a specific currency at a specific exchange rate on or before a specific date. Using currency options would allow an individual to hedge against the risk of exchange rate movements.
Therefore, in conclusion, if someone has mixed views about what the $/€ is going to do, utilizing currency options could be a better fit for them. This is because it can help to mitigate the risk of exchange rate fluctuations, which can be quite unpredictable and volatile. Also, the main answer is to utilize currency options, which can help to safeguard one's investments and provide peace of mind.
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"Grexit, Brexit, Trump, referenda, and the rise of populism in the European Union. 2016 was an uncertain and turbulent year in terms of political risk. For companies and investors, existing economic trends suddenly became less certain. Political risk is a term that is not regularly encountered in the risk frameworks of financial institutions. However, unexpected changes in policies could significantly impact existing business models. A hotly debated topic is to what extent the development of digitalization and policies of globalization have contributed to the emerging political risk in Western democracies, and how companies could anticipate such risk. (Source by Articles of The Impact of Digitalization and Globalization on Political Risk) Based on the statement above, explain FIVE (5) strategies to manage political risk.
Managing political risk is crucial for companies and investors operating in an uncertain and volatile political landscape.
Here are five strategies that can be employed to manage political risk effectively:
1. Diversification of operations: Companies can reduce their exposure to political risk by diversifying their operations across different countries. By operating in multiple jurisdictions, they can mitigate the impact of political changes in any one particular country.
2. Government relations and lobbying: Building strong relationships with government officials and policymakers can help companies navigate political risks. Engaging in proactive lobbying and advocacy efforts can also influence policy decisions and mitigate adverse effects on business operations.
3. Risk assessment and monitoring: Regularly assessing and monitoring political risks is essential for proactive management. Companies should analyze political landscapes, track policy developments, and stay informed about geopolitical trends that may impact their business environment.
4. Contingency planning: Developing contingency plans and scenario analysis can help companies prepare for potential political disruptions. Identifying alternative supply chains, diversifying customer bases, and securing political risk insurance are examples of contingency measures that can minimize potential disruptions.
5. Stakeholder engagement and corporate social responsibility: Engaging with stakeholders, including local communities, civil society, and non-governmental organizations, can help build trust and goodwill. Adopting responsible business practices and demonstrating social responsibility can enhance a company's reputation and mitigate political risks.
These strategies aim to enhance a company's ability to navigate and adapt to political risks. By diversifying operations, building relationships, monitoring risks, planning for contingencies, and engaging stakeholders, companies can better manage political uncertainties and safeguard their business interests.
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Range of stakeholders are investigated and are considered for their sustainable and ethical business outcomes as well as indigenous issues in business. Discuss who these stakeholders are and how this stakeholders view may be used to benefit indigenous Australians.
The stakeholders considered for their sustainable and ethical business outcomes, as well as indigenous issues in business, may include employees, customers, investors/shareholders, suppliers, local communities, government entities, and indigenous communities themselves. Their views can be used to benefit indigenous Australians by incorporating their perspectives, needs, and aspirations into business practices, fostering economic empowerment, promoting cultural sensitivity, and supporting sustainable development initiatives that benefit indigenous communities.
When investigating stakeholders for sustainable and ethical business outcomes and indigenous issues, it is crucial to consider a wide range of groups. Employees play a vital role as they can advocate for fair and inclusive practices within the organization. Customers can influence business decisions through their purchasing power, and their preferences for sustainable and ethical products can drive positive change.
Investors and shareholders have the ability to shape the direction of a company by advocating for socially responsible practices and considering the impact of business operations on indigenous communities. Suppliers can contribute by implementing sustainable supply chain practices and supporting indigenous-owned businesses.
Local communities and government entities play significant roles in creating an enabling environment for sustainable and ethical business practices. Their involvement can ensure that business activities consider the social, economic, and environmental well-being of indigenous communities.
By incorporating the views of these stakeholders, businesses can develop strategies that align with the values and aspirations of indigenous Australians. This may involve engaging with indigenous communities directly, consulting them on business decisions, respecting their cultural heritage, and creating opportunities for indigenous employment and entrepreneurship. It also means addressing historical injustices and promoting economic self-determination to support long-term positive outcomes for indigenous Australians.
Considering the perspectives of various stakeholders and incorporating their views into business practices can lead to meaningful benefits for indigenous Australians. By embracing sustainability, ethics, and inclusivity, businesses can contribute to economic empowerment, cultural preservation, and sustainable development that supports indigenous communities' aspirations and well-being. Collaboration between businesses, stakeholders, and indigenous communities is essential for creating a more equitable and inclusive business landscape.
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If we change our credit terms by increasing the discount, we would expect the ACP to
Accounts payable collection period (ACP) is a financial ratio that calculates the average number of days it takes a company to pay off its accounts payable. It's also known as the average payment period. When a company adjusts its credit terms by increasing discounts, it typically leads to a reduction in the ACP.
The Accounts payable collection period (ACP) is calculated by dividing accounts payable by average daily credit purchases. It indicates the company's capability to make prompt payments. It also indicates whether the company is taking advantage of credit periods or paying its creditors early, which may indicate a cash shortage.
A longer collection period could indicate an ineffective credit and collections policy or a poor credit standing. A shorter period, on the other hand, could indicate that the business has good relationships with its creditors. ACP can be lowered by increasing the discount percentage. This would encourage customers to pay their bills more quickly, which would shorten the payment period.
ACP is a valuable tool for keeping track of the company's liquidity. A lower ACP is preferred because it means the company can pay its bills more quickly. In general, businesses strive to keep their ACP as short as feasible.
The accounts payable collection period, as a financial ratio, helps in determining the effectiveness of a company's credit and collections policy.
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A collage showing the relationship between primary,secondary and tertiary sectors
A collage is a work of art made up of different pieces of materials like photographs, magazine clippings, and other things. The primary, secondary, and tertiary sectors are the three sectors that are essential for economic growth. The primary sector includes those activities that involve the production of raw materials, such as farming, mining, and fishing.
Secondary sector refers to the production and manufacturing of raw materials and their conversion into finished products. It includes activities like construction and the manufacturing of electronics and machinery. The tertiary sector is made up of activities that provide services to both the primary and secondary sectors, as well as individuals.
It includes activities like healthcare, education, transportation, and retail services. The relationship between the three sectors is that the primary sector provides raw materials to the secondary sector, which then manufactures them into finished goods.
The tertiary sector then provides services to both the primary and secondary sectors as well as to individuals. Therefore, the primary, secondary, and tertiary sectors are all interconnected and necessary for the economic growth of any country or region.
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Please do any of the following question
4. In relation to maintenance cost, answer the following questions:
a. Describe the difference between capital cost and operational cost. Provide an example for each.
b. List and describe the significant general ledger line items for an operating budget.
5. Define the three maintenance philosophies and how they are incorporated within the maintenance regime:
a. Breakdown
b. Preventive
c . Predictive
Difference between capital cost and operational cost:Capital costs are expenses incurred in the purchase, development, and enhancement of long-term property, plant, and equipment.
Capital expenses are significant costs that must be paid upfront, and they are typically depreciated over time. They are also one-time expenditures made to improve or expand a company's capacity. An example of a capital cost is a $1,000,000 machine that is expected to last ten years.
Operational costs, also known as recurring costs, are those incurred during a company's regular operations. This expense category encompasses all costs that are not included in capital expenses. Operational expenses are recurring, and they include costs such as salaries, utilities, and maintenance.
An example of an operational cost is the daily wages paid to a machine operator.4b. Significant general ledger line items for an operating budget are:-Salaries and Wages-Utilities and Rent-Insurance-Maintenance-Taxes6. Three maintenance philosophies and how they are incorporated within the maintenance regime are as follows:-Breakdown Maintenance: Breakdown maintenance is a philosophy that necessitates repairing an asset or equipment after it has failed. This philosophy is frequently utilized when the cost of preventive maintenance is too high or when an asset is infrequently utilized.
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In order to pass the _______________, a defined benefit plan must benefit at least 50 employees, or, in companies with fewer employees, or the greater of 40 percent of all employees or 2 employees.
A. minimum participation test
B. minimum benefit test
C. employee participation test
D. employee benefit test
The correct option is Minimum Participation Test. In order to pass the minimum participation test, a defined benefit plan must benefit at least 50 employees, or, in companies with fewer employees.
A defined benefit plan is a retirement benefit plan wherein the benefit is calculated based on a formula, usually involving the employee's salary history and years of service. In order to pass the minimum participation test, a defined benefit plan must benefit at least 50 employees, or, in companies with fewer employees, or greater than 40 percent of all employees or 2 employees. The purpose of the minimum participation test is to ensure that a large proportion of the workforce is benefiting from the plan. The test is conducted annually, and a plan that fails the minimum participation test can lose its tax-qualified status and become ineligible for tax benefits for the employer and employees.
If a defined benefit plan fails the minimum participation test, the employer may need to either increase the plan's benefits, increase the number of participating employees, or terminate the plan. However, before taking any of these actions, employers should consult with plan administrators, accountants, and legal counsel to ensure that they are in compliance with legal requirements.
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Canada Corporation began 2021 with retained earnings of $210 million. Revenues during the year were $520 million, and expenses totaled $360 million. Canada declared dividends of $59 million. What was the company's ending balance of retained earnings?
Retained earnings of Canada Corporation can be calculated by adding the beginning retained earnings to the net income or subtracting the total dividends paid to shareholders.
Here is the calculation for ending balance of retained earnings. Balance of retained earnings = Beginning retained earnings + Net income - Dividends paid in the current year From the given data : Beginning retained earnings = $210 million Revenues = $520 million Expenses = $360 million Dividends = $59 million Net income = Revenues - Expenses Net income = $520 million - $360 million Net income = $160 million Therefore, Balance of retained earnings = $210 million + $160 million - $59 million= $311 million. Hence, the ending balance of retained earnings for Canada Corporation is $311 million.
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There are two competing spas in town that offer 1-hour massages, pedicures, and manicures at the following prices. Massage Perdicure Manicure
Calm Retreat [$70 $30 $251] Lotus Spa [$90 $36 $27] a) If Janet takes her friend to the Lotus Spa and has 4 manicures done, how much will it cost? [DOK 3: 3 marks] b) What is the difference in the price between a massage at the Lotus Spa and one at the Calm Retreat? [DOK 3:3 marks]
A massage at the Lotus Spa costs $20 more than one at the Calm Retreat, and Janet will have to pay $108 for 4 manicures there.
Spas Massage Pedicure Manicure
Calm Retreat $70 $30 $251
Lotus Spa $90 $36 $27
Required to calculate: a. If Janet takes her friend to the Lotus Spa and has 4 manicures done, how much will it cost?
b. What is the difference in the price between a massage at the Lotus Spa and one at the Calm Retreat?
a)
Price of a manicure at the Lotus Spa: $27
Quantity of manicures: 4
Cost of 4 manicures at the Lotus Spa = Price of a manicure * Quantity of manicures
Cost of 4 manicures at the Lotus Spa = $27 * 4 = $108
b)
Price of a massage at the Lotus Spa: $90
Price of a massage at the Calm Retreat: $70
The difference in price = Price of a massage at the Lotus Spa - Price of a massage at the Calm Retreat
Difference in price = $90 - $70 = $20
Therefore, the difference in price between a massage at the Lotus Spa and one at the Calm Retreat is $20 and it will cost Janet $108 for 4 manicures at the Lotus Spa.
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Conventional organizations have historically organized workers together for purposes of communications and Center for Digital Economy Research Stern School of Business Working Paper IS-93-48 coordination. In contrast to physical presence, IT design variables allow for virtual organization structure.
Organizations have traditionally created unions for the sake of interaction and coordination, whereas virtual organizational arrangements are facilitated by IT design variables rather than physical presence. Through IT design variables, a virtual organization is a company or firm where geographically dispersed workers have electronic and network connections.
By the use of modern technological resources, IT design variables enable a virtual organizational structure to be established that is independent of location and time.
The trend in modern organizations is to replace conventional workplace structures with virtual ones, where geographically dispersed workers can connect electronically and collaborate over the Internet. IT design variables have enabled virtual organizations to be built, allowing workers to be positioned wherever they want and still communicate with their colleagues around the world. These design factors are software-dependent, such as email, video conferencing, mobile devices, the Internet, and other technological resources.Virtual organizations have several advantages over traditional organizational structures, including decreased expenses, fewer working hours, and fewer facilities and resources required. Additionally, virtual organizations will have expanded, non-geographic access to new talent markets. As a result, virtual organizational systems are becoming increasingly prevalent in the modern-day business world. However, there are also some limitations to the virtual organizations, including a lack of social bonding and the formation of common organizational cultures. This may lead to workers feeling alienated from their colleagues, leading to morale and productivity declines.
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The net price of an article is $79.84. To the nearest cent, what is the list price if a discount of 23% was allowed? OA. $64.91 OB. $102.52 OC. $103.69 OD. $117.41 OE. $116.09 SCOCO
To find the list price, we need to reverse-calculate it based on the given discount and net price.
Let's denote the list price as x. We know that a discount of 23% was applied, so the net price is 100% - 23% = 77% of the list price.
Mathematically, we can represent this as:
0.77x = $79.84
To find x, we divide both sides of the equation by 0.77:
x = $79.84 / 0.77
Now let's calculate the value of x:
x ≈ $103.64
To the nearest cent, the list price is approximately $103.69.
Therefore, the correct option is OC. $103.69.
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explain at least 3 companies apple,Samsung tesla that successfully implemented six sigma. What are the main results? (Summarize your answers within one page of A4 paper) please answer the questions as soon as possible
Apple, Samsung, and Tesla are some of the leading tech companies that have successfully implemented Six Sigma in their operations. Here are some of the ways that these companies have benefitted from Six Sigma implementation:
Apple Inc.
Apple is a well-known brand that has an impressive track record of implementing Six Sigma in its manufacturing processes. The company has a dedicated team that focuses on implementing Six Sigma principles, which has led to the improvement of production quality and the reduction of waste.
Some of the results that Apple has achieved through Six Sigma implementation include improved customer satisfaction, reduced costs, and an increase in revenue. In addition, Apple has been able to achieve a competitive advantage over other tech companies by using Six Sigma to improve its operations.
Samsung
Samsung is another company that has successfully implemented Six Sigma in its operations. The company has been able to reduce its defects by 30% after implementing Six Sigma, which has led to increased customer satisfaction.
In addition, Samsung has also been able to reduce its production cycle times, which has enabled the company to launch new products faster than its competitors. This has helped the company to maintain its position as a leader in the tech industry.
Tesla
Tesla is a company that is well-known for its innovative products and its commitment to quality. The company has implemented Six Sigma in its manufacturing processes, which has helped it to reduce defects and improve production efficiency.
Some of the benefits that Tesla has achieved through Six Sigma implementation include reduced costs, improved customer satisfaction, and an increase in revenue. In addition, Tesla has been able to maintain its position as a leader in the electric vehicle market by using Six Sigma to continuously improve its products and processes.
In summary, Apple, Samsung, and Tesla are some of the leading tech companies that have successfully implemented Six Sigma in their operations. Through Six Sigma implementation, these companies have been able to achieve various benefits such as improved customer satisfaction, reduced costs, and an increase in revenue.
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98) Assume that a company manufactures numerous component parts, one of which is called Part A. The company’s absorption costing system indicates that it costs $23.00 to make one unit of Part A as shown below:
98) Assume that a company manufactures numerous component parts, one of which is called Part A. The company’s absorption costing system indicates that it costs $23.00 to make one unit of Part A as shown below:
Direct materials $ 10.00
Direct labor 6.00
Variable overhead 2.00
Fixed overhead 5.00
Total absorption cost per unit $ 23.00 The company is trying to decide between two alternatives:
Alternative 1: Continue making 80,000 units of Part A per year using its existing equipment at the unit cost shown above. The equipment used to make this part does not wear out through use and it has no resale value.
Alternative 2: Replace the existing equipment with a new piece of equipment that the company would rent for $152,000 per year. The new piece of equipment would be used to make 80,000 units per year and it would reduce Part A’s direct labor cost per unit by 20% and its variable overhead per unit by 30%. The direct materials cost per unit will remain constant.
What is the financial advantage or (disadvantage) of renting the new piece of equipment? Multiple Choice
$(4,080)
$(8,000)
$(8,160)
$(2,080)
ANSWER: The financial advantage of renting the new piece of equipment is $(8,160).
Under the existing equipment, the cost to manufacture Part A is $23 per unit, including $10 direct material cost, $6 direct labor cost, $2 variable overhead, and $5 fixed overhead.
Alternative 1: Under the existing equipment, the cost to manufacture 80,000 units of Part A is:$23 x 80,000 = $1,840,000
Alternative 2: Using the new equipment, the direct labor cost per unit is reduced by 20% and variable overhead cost per unit is reduced by 30%. The direct material cost per unit will remain the same. The total cost to manufacture
Part A using the new equipment is:$10 (Direct Material) + $4.80 (80% of Direct Labor $6) + $1.40 (70% of Variable overhead $2) + $5 (Fixed overhead) = $21.20. Thus, the total cost to manufacture 80,000 units of Part A using the new equipment is:$21.20 x 80,000 = $1,696,000. The cost advantage of renting the new piece of equipment is computed by subtracting the total cost of the existing equipment from the total cost of the new equipment. The total cost advantage of renting the new piece of equipment is:$1,840,000 - $1,696,000 = $144,000. Subtracting the annual rental cost of the new equipment from the cost advantage yields the financial advantage of renting the new piece of equipment: $144,000 - $152,000 = $(8,160). Thus, the financial advantage of renting the new piece of equipment is $(8,160).
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Positive action is the only way to ensure an increase in diversity. Discuss". Critically assess this statement, illustrating it with a practical example. 500 words
Positive action can be defined as any action that is taken to increase the representation of individuals who belong to a group that is underrepresented in a specific field or industry. These actions can include measures such as targeted recruitment efforts, the creation of diversity training programs, and the implementation of affirmative action policies.
Some argue that positive action is the only way to ensure an increase in diversity, while others claim that it is ineffective or even harmful. In this essay, we will critically assess this statement and provide a practical example to illustrate the points made. There are several arguments that support the idea that positive action is the only way to ensure an increase in diversity.
One of the main arguments is that traditional recruitment methods often fail to attract candidates from diverse backgrounds. This is because many individuals from underrepresented groups may not have access to the same educational or professional opportunities as their counterparts from more privileged backgrounds. As a result, they may not be aware of the job openings or may not feel qualified to apply for them. Positive action can help to address this issue by actively seeking out candidates from underrepresented groups and providing them with the necessary training and support to succeed. Another argument in favor of positive action is that it helps to create a more inclusive workplace culture. By actively promoting diversity and inclusion, organizations can help to reduce bias and discrimination in the workplace. This can lead to a more positive work environment, better employee retention rates, and increased productivity and innovation. Despite these benefits, there are also arguments against the use of positive action. One of the main criticisms is that it can lead to reverse discrimination. This occurs when individuals who belong to underrepresented groups are given preferential treatment over other candidates, even if they are not the most qualified for the position. This can create resentment and division within the workplace, and can also undermine the effectiveness of positive action measures. Another argument against positive action is that it can be ineffective. Some critics claim that positive action policies do not address the root causes of discrimination and inequality. For example, if an organization only focuses on increasing the number of employees from underrepresented groups without addressing issues such as pay equity or bias in promotion decisions, then positive action may not be effective in achieving long-term diversity goals. In conclusion, positive action can be an effective way to increase diversity in the workplace, but it is not the only solution. To be successful, positive action measures must be implemented in a thoughtful and strategic way, taking into account the unique needs and challenges of each organization. A practical example of positive action can be seen in the tech industry, where many companies have implemented diversity and inclusion programs to attract and retain talent from underrepresented groups. For example, Intel has set a goal of achieving full representation of women and underrepresented minorities in its workforce by 2020. To achieve this goal, the company has implemented a variety of programs, such as unconscious bias training for employees, targeted recruiting efforts, and partnerships with organizations that support underrepresented groups. By taking these positive actions, Intel hopes to create a more diverse and inclusive workplace culture that benefits both its employees and the company as a whole.
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OsCorp can borrow at 5% or LIBOR + 0.1% OsCorp prefers floating-rate borrowing LexCorp can borrow at 6% or LIBOR + 0.6% LexCorp prefers fixed-rate borrowing You work for Roxxon designing swaps. Design a swap that will net Roxxon a profit of 0.20% and be equally attractive to both OsCorp and LexCorp
To design a swap that will net Roxxon a profit of 0.20% and be equally attractive to both OsCorp and LexCorp, the following steps can be taken:
Step 1: Determine the borrowing rates for OsCorp and LexCorp at both the fixed and floating rates. At the fixed rate, OsCorp can borrow at 5%, while LexCorp can borrow at 6%. At the floating rate, OsCorp can borrow at LIBOR + 0.1%, while LexCorp can borrow at LIBOR + 0.6%.
Step 2: Create a hypothetical swap. To do so, consider that OsCorp will pay Roxxon a fixed rate of 6% while LexCorp will pay Roxxon a floating rate of LIBOR + 0.3%.
Step 3: Determine how much each corporation will have to pay Roxxon. For OsCorp, they would be paying 6%, which is 1% higher than what they would be paying for fixed-rate borrowing from Roxxon. LexCorp, on the other hand, would be paying 0.3% more than the LIBOR rate. However, this rate is 0.3% less than what they would be paying for fixed-rate borrowing from Roxxon.
Step 4: Determine the net amount that Roxxon will receive. Roxxon will receive 6% from OsCorp and LIBOR + 0.3% from LexCorp. Since LIBOR + 0.3% is equal to 6% - 0.2%, this will result in Roxxon receiving the same amount of money from both corporations. Therefore, the swap will be equally attractive to both corporations, and Roxxon will receive a profit of 0.2%.
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A firm's fiscal year starts on February 1, 2026 and ends on Jan 31, 2027. You are journalizing on March 10, 2026 a bank adjustment dated March 7, 2026 What is your Transaction date? a. Mar 01, 2026. b. Mar 07, 2026. c. Mar 10, 2026. d. Jan 31, 2027
In this case, since the fiscal year starts on February 1, 2026, and ends on January 31, 2027, the transaction date for journalizing on March 10, 2026, would be the same as the date of the bank adjustment, which is March 7, 2026. Therefore, the Transaction date would be: b. Mar 07, 2026.
Journalizing is the process of recording business transactions in the general journal. It involves identifying the accounts affected by the transaction, determining the debit and credit amounts, and recording the details in the journal. The journal entry typically includes the date of the transaction, the accounts debited and credited, and a brief description of the transaction.
Here's an example of a journal entry:
Date: March 10, 2026
Account: Cash
Account Number: 101
Debit: $1,000
Account: Sales Revenue
Account Number: 401
Credit: $1,000
Description: Record cash sales for the day.
In this example, the transaction is recorded on March 10, 2026, and involves the accounts "Cash" and "Sales Revenue." The cash account is debited with $1,000, representing an increase in cash, while the sales revenue account is credited with $1,000, representing the revenue earned from the sales.
Journalizing is an important step in the accounting cycle as it provides a chronological record of all business transactions, which is then used to prepare financial statements and analyze the financial performance of a company.
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why is ""expanding the pie"" an effective way of negotiating collaboratively?
Expanding the pie is an effective way of negotiating collaboratively because it helps in creating more value and finding win-win solutions that are beneficial to both parties. When two parties negotiate, they may have a limited understanding of the possibilities or the range of issues that can be negotiated
. Expanding the pie helps in generating more possibilities, resources, and options that can be negotiated, leading to mutual benefits and more significant outcomes.What is expanding the pie in negotiation?Expanding the pie in negotiations means creating more value or increasing the size of the available resources that can be shared.
Expanding the pie allows for a more creative approach to problem-solving as parties can look for opportunities to create value that was not there before. This can be done in many ways, including looking for new sources of revenue, identifying complementary interests, or combining the strengths of both parties to create synergy.Expanding the pie technique is different from the distributive negotiation in that it prioritizes the interests of both parties involved and focuses on creating value. In distributive negotiation, there is a limited amount of resources, and each party tries to maximize their share of the resources. In expanding the pie, the focus is on creating more resources and maximizing the benefits for both parties.How is expanding the pie beneficial in negotiation?Expanding the pie technique benefits negotiation in the following ways:It helps to build and strengthen relationships
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Van, who is 59, was born on 1 July 1956. He has $1,100,000 in his superannuation fund, consisting of $300,000 in non-concessional contributions. He has decided it is about time to begin receiving his superannuation benefits and wants to take a lump sum to pay off his mortgage, buy a new car and pay some debts. The amount he needs is about $430,000. Whatever remains in superannuation after payment of the lump sum he would like to commence an income stream.
Van should carefully examine his options to ensure that he selects the correct one for his future.
Van, who is 59, has $1,100,000 in his superannuation fund, with $300,000 in non-concessional contributions. He intends to start collecting his superannuation benefits and requires a lump sum of roughly $430,000 to pay off his mortgage, purchase a new vehicle, and pay off any other outstanding debts.
The remainder of his superannuation account balance will be put towards an income stream.What Van needs to do is to carefully evaluate his superannuation account to ensure that taking a lump sum is the most advantageous strategy for his future. Van may also need to consider obtaining financial advice to better comprehend the impact of any withdrawals he makes from his account.
It's also a good idea to seek expert guidance on the different sorts of income streams available to him after receiving his lump sum.Van has a few options when it comes to his superannuation fund. He can withdraw all of his money as a lump sum or choose to withdraw a portion of his account balance as a lump sum and leave the remainder in his account to generate an income stream.
After Van takes out the $430,000 lump sum, the remaining $770,000 of his account balance will be invested to generate income. An income stream will provide Van with a regular income stream, allowing him to maintain his standard of living in retirement. Van should carefully examine his options to ensure that he selects the correct one for his future.
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"Your Cleaning Team" is a company that provides house cleaning services in major urban and suburban areas. Marketers at Your Clear Team developed a short, humorous video promoting the company's services and hope that customers who see the video will be so entertained that they will pass it on to their friends and colleagues. The marketers at Your Cleaning Team are using. a. a marketing website b. viral marketing c. content sponsorship d. C2B marketing e. rich media ads
The marketers at Your Cleaning Team are using viral marketing, as they aim to create a humorous video that entertains customers and encourages them to share it with their friends and colleagues.
Viral marketing refers to a marketing strategy that relies on creating content that is highly shareable and has the potential to spread rapidly among a large audience through social sharing. In this case, the marketers at Your Cleaning Team developed a humorous video with the intention of entertaining customers.
By making the video entertaining and shareable, they hope that customers will pass it on to their friends and colleagues, thereby increasing brand awareness and potentially attracting new customers. Viral marketing leverages the power of social networks and word-of-mouth to amplify the reach of the marketing message, making it a suitable strategy for Your Cleaning Team's promotional efforts.
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Jim has $1,650 saved today. He wants to buy a different vehicle
as soon as he has $3,200 saved. How long does Jim have to wait to
get his vehicle if he earns 7.5% compounded annually?
Jim will have to wait approximately 11 years to save enough money to buy the vehicle. This calculation takes into account an annual interest rate of 7.5% compounded annually.
To determine how long Jim has to wait to reach his savings goal, we can use the concept of compound interest. Compound interest is calculated by applying the interest rate to the initial amount and accumulated interest over a specific period. In this case, Jim has $1,650 and wants to reach $3,200, which means he needs to save an additional $1,550.
With a compounded interest rate of 7.5% annually, we can calculate the growth of Jim's savings over time. The formula for compound interest is A = P(1 + r/n)^(nt), where A represents the final amount, P is the initial amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Plugging in the given values, we have A = $1,650(1 + 0.075/1)^(1*t) = $3,200. Simplifying this equation, we get (1 + 0.075)^(t) = 3,200/1,650. Taking the natural logarithm of both sides to solve for t, we have t = ln(3,200/1,650) / ln(1.075). Using a calculator, we find that t is approximately 11 years.
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Unrest and canned products recall cost KOO owner Tiger Brands over R700 million. July was a tough... Unrest and canned products recall cost KOO owner Tiger Brands over R700 million. July was a tough month for food producer Tiger Brands, which suffered a R100 million in stock loss due to unrest in parts of Gauteng and KwaZulu-Natal, coupled with an additional R647 million loss following a major recall of some of its canned products. The unrest started following the arrest of former president Jacob Zuma for disregarding the Constitutional Court by refusing to appear before the State Capture Inquiry, but morphed into waves of violence and looting, potentially wiping R50 billion off South Africa's GDP. Tiger Brands' properties were looted and destroyed in the violence. This incident was shortly followed by the recall of 20 million KOO and Hugo’s canned vegetable products due to potential defects in the cans. In a trading update on Tuesday, the company, whose brands also include Jungle Oats, Oros and Purity said it lost hundreds of millions because of both events. This affected its earnings and resulted in an impact of 318 cents per share. The company is due to release its results for the year ended 30 September, by the 19th of November 2021. Tiger Brands said its headline earnings per share (HEPS) from total operations for the year are likely to increase between 15% and 25% compared to 2020. And it anticipates that its earnings per share from total operations will grow by 80% to 90%, more than the 612 cents growth it saw in 2020. "The increase in HEPS from total operations was primarily due to the losses recorded in Value Added Meat Products (Vamp) in FY2020 compared to a small profit in the year ended 30 September 2021". In 2020, Tiger Brands sold its Vamp business, made up of the Enterprise brand, to Silver Blade Abattoir, a subsidiary of Country Bird Holdings. Tiger Brands added that, its headline earnings per share from continuing operations are expected to be 5% to 15% lower than the 1 196 cents reported in 2020. While its earnings per share from continuing operations are likely to increase between 15% and 25% for the year.
QUESTION 1
1.1 In light of the extract provided, describe the types of risks that Tiger brands has been exposed to and reflect on the potential impacts of these risks to the company. (20 marks)
1.2 As an external stakeholder, do you think there is anything that Tiger Brands could have done in minimizing or eliminating the R700 million loss? Justify your response with relevant examples. (20 marks)
QUESTION 2 [20 Marks]
Using relevant examples, critically discuss the pros and cons of managing risks among organisations.
QUESTION 3 [20 Marks] "Risk management operates on a set of principles; ISO 31000 includes a detailed account of these principles and how these are essential in managing risks. PACED is considered an approach depicting the principles of risk management that are based on the idea that risk is something that can be identified and controlled In light of the statement provided, critically discuss the FIVE (5) principles of risk management and how they can be easily applied by organisations.
QUESTION 5 [20 Marks]
You have been requested to spearhead the risk management department of a newly opened enterprise. Critically evaluate the models that you would consider in identifying risks.
1.1 In light of the extract provided, Tiger Brands has been exposed to several types of risks:
a) Operational Risk: The unrest and looting resulted in the loss of stock and destruction of properties, causing significant financial impact. The recall of canned products due to potential defects further added to the company's losses.
b) Reputational Risk: The incidents of looting and product recall can damage Tiger Brands' reputation among consumers, leading to a loss of trust and potential decline in sales.
c) Financial Risk: The R700 million loss incurred by Tiger Brands due to the unrest and product recall has a direct financial impact on the company's earnings and profitability.
d) Supply Chain Risk: The disruption caused by the unrest and looting can affect the company's supply chain, leading to difficulties in sourcing raw materials, manufacturing, and distribution.
The potential impacts of these risks to Tiger Brands include reduced profitability, decreased market share, tarnished brand reputation, and operational challenges in resuming normal business operations.
1.2 As an external stakeholder, there are several measures Tiger Brands could have taken to minimize or eliminate the R700 million loss:
a) Risk Assessment and Mitigation: Conducting a comprehensive risk assessment to identify potential risks and implementing appropriate risk mitigation strategies such as strengthening security measures, improving product quality control, and diversifying supply chain sources.
b) Crisis Management and Response: Developing a robust crisis management plan to effectively respond to unforeseen events, including clear communication strategies, collaboration with relevant authorities, and prompt action to mitigate the impact of the unrest and product recall.
c) Insurance Coverage: Adequate insurance coverage could have helped mitigate the financial losses incurred by Tiger Brands, providing compensation for damaged properties, lost stock, and potential liabilities arising from the product recall.
d) Strengthening Stakeholder Relationships: Building strong relationships with stakeholders, including customers, suppliers, and local communities, can help in managing crises more effectively and mitigating potential risks through collaborative efforts and support.
Overall, proactive risk management strategies, effective crisis response, and strong stakeholder relationships could have helped Tiger Brands minimize the R700 million loss and mitigate the impacts of the risks they faced.
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A linear programming formulation is below.
Maximize 120T + 80C
Subject to:
3T + 2C ≤ 200
2T + 2C ≤ 180
T + C ≤ 40
-2T + C ≥ 0
-6T + C ≤ 0
C, T ≥ 0
Which of the below options is a correct statement regarding the ratio of T to C?
The correct Linear programming statement regarding the ratio of T to C is that it should be less than or equal to 1/2 for the maximum value of the objective function to be achieved.
The linear programming formulation has a constraint that limits the ratio of T to C to be less than or equal to 0.6. This means that the maximum value of the objective function (maximizing 120T + 80C) will be achieved when the ratio of T to C is exactly 0.6 or less.
3T + 2C ≤ 200
2T + 2C ≤ 180
T + C ≤ 40
-2T + C ≥ 0
-6T + C ≤ 0
We can solve these constraints to find the feasible region and identify any restrictions on the ratio of T to C.
By rearranging the first constraint, we get:
3T ≤ 200 - 2C
T ≤ (200 - 2C) / 3
Similarly, rearranging the second constraint:
T ≤ (180 - 2C) / 2
T ≤ 90 - C
The third constraint does not provide any specific restriction on the ratio of T to C.
Now, let's analyze the last two constraints:
-2T + C ≥ 0
C ≥ 2T
-6T + C ≤ 0
C ≤ 6T
Combining these constraints, we can deduce that the ratio of T to C must satisfy the condition:
T / C ≤ 1/2
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