Shapiro: Chapter 2: Capital-Budgeting Principles and Techniques QUESTIONS 1. a. What is the relationship between accounting income and economic profit? Answer: Accounting income is calculated by taking revenues and subtracting all cash and non-cash expenses (such as depreciation). Accounting income also often recognizes losses for tax purposes as well‚ even though the economic loss may have taken place at another time. Economic profit is the sum of the present values of all the cash flows
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ANSWERS TO CONCEPT CHECKS‚ FINANCIAL PLANNING PROBLEMS AND QUESTIONS‚ AND CASES CONCEPT CHECK ANSWERS Concept Check 1-1 (p. 7) 1. What personal and economic factors commonly affect personal financial decisions? Personal financial decisions are affected by personal factors such as income‚ household size‚ age‚ and personal value. Economic factors that affect personal finance include global business activities‚ inflation‚ and interest rates. 2. For each of the following situations‚ indicate if
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ANSWERS TO END-OF-CHAPTER 16 QUESTIONS 16-1 The U.S. dollar. The primary reason for using the dollar was that it provided a relatively stable benchmark‚ and it was accepted universally for transactions. 16-2 Under the fixed exchange rate system‚ the fluctuations were limited to +1 percent and -1 percent. Under the floating exchange rate system‚ there are no agreed-upon limits. Currently‚ the 12 countries making up the EMU have their national currencies fixed to the euro; however‚ the
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customers‚ and suppliers. 2. Secondary Stakeholders: The secondary stakeholders of a firm are other societal groups that are affected by the activities of the firm. They include consumer groups‚ special interest groups‚ environmental groups‚ and society at large. B. As organizations become more global‚ their stakeholder base becomes wider and more diverse. III. Social Responsibility. A. Corporate Social Responsibility: The interaction between business and the social environment in
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Q1. What are the ethical and legal issues? A1. The ethical issue is that Kent has made a game that has both a lot of violence and nudity in it. He knows that the game would be marketing sex‚ violence‚ and gambling; and he knows that all three are bad to be imbedded into a teenagers mind. When he talks to Brad about these at first he does not understand why Kent has changed his mind about this game that will make the company lots of money. Then some legal issues come into play when Brad decided
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Legal Environment of Business Chapter 2 Assignment Questions for Review and Discussion 5. Statutory laws are passed by either the state or federal legislature. Federal statues must be signed by the president of the United States While‚ state statues must be signed by the governor. Statutory law must be followed by everyone unless considered un-constitutional by the Supreme Court. 7. Common laws are similar to morals. When there are no laws or statues that relate specifically to a case‚ the
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expected‚ and progress and performance can be accurately measured. Colleagues depend on one another in order to receive inputs and provide outputs‚ the work standard for employees needs to be consistently good to enable the business to function efficiently. 2. Explain the purpose of taking on new challenges and being able to adapt to change at work. Good businesses constantly improve and adapt to new technologies and challenges. Sometimes this change can happen suddenly and
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------------------------------------------------- Emerging Trends in Supply Chain Management in India ------------------------------------------------- (E-BUSINESS AND THE SUPPLY CHAIN MANAGEMENT) For The Fourth National Conference on Innovative strategies: Emerging India in Global Scenario Rahul Sharma Department of Management Sumandeep Vidyapeeth Piparia. Vadodara. - 391760 Contact No. +91 99248 49142 Email: rahul.shams@gmail.com Abstract With an increased competition in the marketplace
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MBA 570 Homework Questions Chapter 1 and 2 Chapter 1 (1-20) Mysti Farris (See problem 1-19) is considering raising the selling price of each cue to $50 instead of $40. If this is done while the costs remain the same‚ what would the new breakeven point be? What would the total revenue be at this breakeven point? (Given in problem 1-19: fc of 2400 and vc of 25) (1-21) Mysi Farris (see problem 1-19) believes that there is a high probability that 120 pool cues can be sold if the selling price
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000) + b 1.00 = -2 + b +2 +2 3 = b y = (-1/20‚000)x + 3 p = (-1/20‚000)q +3 This is the demand equation Revenue = q((-1/20‚000)q + 3) Revenue(q) = (-1/20‚000)q^2 + 3q This is the revenue function What is the increase in revenue as sales change from 20‚000 to 20‚001 hamburgers? Revenue (q) = (-1/20‚000)q^2 + 3q Revenue (20‚000) = (-1/20‚000)(20‚000)^2 + 3(20‚000) Revenue = $40‚000 Revenue (q) = (-1/20‚000)q^2 + 3q Revenue (20‚001) = (-1/20‚001)(20‚001)^2 + 3(20‚001) Revenue
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