Problem Set Seven Solutions Chapter 9 1. Two car manufacturers‚ Saab and Volvo‚ have fixed costs of $1 billion and constant marginal costs of $10‚000 per car. If Saab produces 50‚000 cars per year and Volvo produces 200‚000‚ calculate the average fixed cost and average total cost for each company. On the basis of these costs‚ which company’s market share should grow in relative terms? Answer: Average total cost is average fixed cost plus marginal cost: ATC = FC/Q + MC. Volvo’s average fixed cost
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Proactive Fraud Auditing End of Chapter 4 in Albrecht FRAUD DETECTION Recognizing the Symptoms of Fraud Identify Risk Exposures Proactively Look for Symptoms & Exposures 1 2 Actg 537 Identify Fraud Symptoms for Each Exposure 3 4 Investigate Identified Symptoms Symptoms of Fraud What are some irregularities in source documents to look for? Missing Documents Payee Names & Addresses = Employee “Stale Items” on Bank Items” Reconciliation Excessive Voids or Credits
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Examinations — good or bad ? "Examinations" - This is a word that causes sleepless nights‚ a word can change a cheerful person into a nervous wreck. So‚ what are examinations‚ and how can they be any good? An examination can be defined as a detailed inspection or analysis of an object or person. For example‚ an engineer will examine a structure‚ like a bridge‚ to see if it is safe. A doctor may conduct a medical examination to gauge whether a patient is healthy. In the school context‚
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Motives for the cheats The motives for fraud are clear‚ it’s a financial crime. People can not pay the bills. They figure stealing from an insurance company which is big and greedy is no great moral wrong and no one will miss the money. However‚ even if the company is big and greedy it is still wrong. How people get caught by an insurance company Fraud units at insurance companies are experts. But the reason people get caught are for obvious reason. People make stupid mistakes. However‚ as a word
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Assignment – Digital Economy For MBA Contents Page 1. Introduction 3 2. Findings / Analysis 4 2.1 Introduction to e-Supply Chain 4 2.2 Problems of e-Supply Chain 5 2.3 Solutions to e-Supply Chain problems using technology 7 3. Conclusion 9 4. References / Bibliography 10 1. Introduction The use of effective and efficient supply chain has its advantages. However‚ in order to deploy an effective and efficient supply chain‚ it is necessary to coordinate the flow of material‚ information
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A supremely gifted and versatile German artist of the Renaissance period‚ Albrecht Dürer (1471–1528) was born in the Franconian city of Nuremberg‚ one of the strongest artistic and commercial centers in Europe during the fifteenth and sixteenth centuries. He was a brilliant painter‚ draftsman‚ and writer‚ though his first and probably greatest artistic impact was in the medium of printmaking. Dürer apprenticed with his father‚ who was a goldsmith‚ and with the local painter Michael Wolgemut‚ whose
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promoting viable and effective future markets and protecting investors against abusive trade practices and fraud. Both these agencies play a role in inspecting the trade losses in the case of JPMorgan Chase. While SEC is entitled to investigate the suitability and entirety of JPMorgan Chase financial‚ Chairman Mary Schapiro states that this agency ’s investigation is limited. Unfortunate to this case‚ the faulty trade happened in divisions of the banking that aren ’t subject to SEC regulation. To create
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SOLUTIONS Financial Management Seminar + Homework‚ Week 5 1. Starware Software was founded last year to develop software for gaming applications. Initially‚ the founder invested $800‚000 and received 8 million shares of stock. Starware now needs to raise a second round of capital‚ and it has identified an interested venture capitalist. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed. a. How many shares must the venture capitalist
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22. Project NPV Hindustan Motors has been producing its Ambassador car in India since 1948. As the company’s website explains‚ the Ambassador’s “dependability‚ spaciousness‚ and comfort factor have made it the most preferred car for generations of Indians.” Hindustan is now considering producing the car in China. This will involve an initial investment of RMB 4 billion.14 The plant will start production after one year. It is expected to last for five years and have a salvage value at the end of
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What is air pollution? "Let’s go out for a breath of fresh air" is an often-heard phrase‚ but how many of us realize that this has become irrelevant in today’s world? The quality of air in our cities is anything but fresh. Air pollution is a serious problem in our society these days. We need to take action to help prevent air pollution before it is to late. To help prevent air pollution are; we could run cars on water or batteries which are environmentally safe or even car pool more‚ ban aerosol cans
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