a) Which accounting standards or Generally Accepted Accounting Principles (GAAP) are used in preparing the financial statements of the company (International‚ local or US GAAP standards)? Where did you find that information? For our accounting analysis we found the key accounting policies and related them to our identified key success factors. McDonald’s most important factors include consolidation‚ financial statement estimates‚ revenue recognition‚ advertising costs‚ compensation from stocks
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knowing whether management is doing their best for them‚ but they may not be very concerned so long as they receive what they consider to be a satisfactory return on their investment‚ hence the term “satisfice.” Q6: Discuss the meaning of the term “principle-agent problem.” Why does this problem exist? The principal-agent problem arises when management’s objectives are contrary to the objectives of stockholders. For example‚ management may be more interested in revenue growth or in maximizing their
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MICROECONOMICS Project Summer 2012 An overview Facebook was realized on February 4‚ 2004 by an American computer programmer and Internet entrepreneur- Mark Elliot Zuckerberg. Facebook has said it will be valued at up to $96bn (£59bn) when it sells shares to investors this month in a record-breaking flotation. The first investment from Peter Thiel was $500‚000 into Facebook. Facebook has minted four billionaires: Mark Zuckerberg‚ Dustin Moskovitz‚ Eduardo Saverin and Sean Parker. The 27-year-old
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MICROECONOMICS Prices of Onion (Deshi and Indian) go up due to shortage of supply 1. Introduction: Microeconomic theory is perhaps the most important course in all economics and business programs. I am just trying to discuss about the role of theory or models in microeconomics‚ discuss the basic methodology of economics‚ and distinguish between positive and normative analysis. Our main target in this assignment is to write an essay about microeconomics related topic which is published by the
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however is not as cut and dry as it may sound‚ for humans are fickle and finicky by nature. The study of economics and be divided into microeconomics and macroeconomics. Macroeconomics is the study of the entire economy in a society. It takes into consideration the rate of inflation‚ business cycles‚ business growth and the rate of unemployment. Microeconomics is the study of individuals and how their choices influence the flow of the economy. For example‚ the price of gas in California is about
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macroeconomists talks about things like inflation‚ what the target interest rate should be‚ what influences employment and unemployment (Kay‚ 2010). Microeconomics studies the decision of consumers and firms with respect to allocation of resources of goods and services. Consumers makes consumption decisions and firms make production decisions. Microeconomics focuses on how individuals‚ households‚ and organizations make their decisions to distribute resources that are limited‚ typically in a market
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UNIT 3 Microeconomics MULTIPLE-CHOICE SAMPLE QUESTIONS Sample Multiple-Choice Questions Circletheletterofeachcorrectanswer. 1. True statements about the theory of the firm in the short run and long run include which of the following? I. All input costs are fixed in the short run. II. All input costs are variable in the long run. III. At least one input price is fixed in the short run. (A) I only (B) II only (C) III only (D) I and II only (E) II and III only 3. Whichofthefollowingstatementsabouta
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Market Competition Robert McGill BA 201 Microeconomics 4 April 2011 Market Competition 1. Fill in the table below. Assume TC stands for Total Cost‚ TFC as Total Fixed Cost‚ TVC as Total Variable Cost‚ ATC as Average Total Cost‚ AFC as Average Fixed Cost‚ AVC as Average Variable Cost‚ and MC as Marginal Cost. TC TFC TVC ATC AFC AVC MC Units of Output 0 20 20 0 0 0 0 0 1 21 20 1 21 20 1 1 2 24 20 4 12 10 2 3 3 32 20 12 10.67 6.67 4 8 4 48 20 28 12 5 7 16 5 75 20 55 12
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ECON 2020 A Mid-Term Examination I - SOLUTIONS Instructor: Derek Olmstead Note: Non-programmable calculators permitted Summer 2012 Duration: 105 minutes Total marks: 20 points Part A: Short-answer questions [3 points each] Note: Use diagrams and/or equations to explain your answer. I. Explain the difference between diminishing total returns to labour and diminishing marginal returns to labour. Diminishing returns to labour means that an increase in the number of labour units
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Introduction to Microeconomics - Midterm Exam 2 Spring Semester - 2014 Chapter 7: Consumers‚ Producers‚ and the Efficiency of Markets 1. Consumer Surplus a. Willingness to Pay i. A buyer’s maximum price they are willing to pay ii. measures how much that buyer values the good iii. Consumer Surplus: the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. 1. consumer surplus measure the benefit buyers receive from participating in a market b. Using The Demand
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