Questions and Answers of Future of Business

Is Ray Kinsella an entrepreneur or a small-business owner? Explain your answer.The chapter explores various types of entrepreneurs. Assuming that Ray is in fact an entrepreneur,
6 How does the Small Bus?
4 What are the advantage of small businesses?
4 Why does managing a small challenges for the owner?
3 What are the first steps to take if you are starting your
2 Which characte contribute to the US economy
1 Why do people become are the different types of
Is it worth paying more for organic products so that small family farmers can continue to focus on environmentally conscious and socially responsible farming? Why is this important?
What effect has it had on the American cultural landscape?
Describe how the Organic Valley Farming Cooperative has impacted America’s small farmers.
Why is the cooperative form of business organization appropriate for Organic Valley?
6. Inc. magazine (http://www.inc.com) has many franchising articles in its section on Buying and Selling a Business. They offer insights into how franchisors and franchisees can better manage their
5. Select three franchises that interest you. Research them at sites such as the Franchise Handbook Online (http://www.franchise1.com), Entrepreneur magazine’s Franchise
4. Go to http://www.entrepreneur.com/franchises/buyingafranchise/franchisebasics/article70494.html. In the article, “Are You Suited to Be a Franchisee?” at Entrepreneur’s FranchiseZone, take
3. The Federal Trade Commission is the government agency that monitors and regulates franchises. Visit the FTC site (http://www.ftc.gov) and explore the links to its resources on franchising,
2. Research how to form a corporation and LLC in your state using search engines to find relevant sites. Here are two to get you started: http://www.incorporate.com and http://www.usa-corporate.com.
1. Consult Entrepreneur.com’s Business Structure page at http://www.entrepreneur.com/startupbasics/businessstructure/archive166108.html. There, you can read articles about S corporations and LLCs.
4. What is your long-term vision for the business—its size, life span, financial commitment, etc.?
3. How will you divide responsibilities—from long-range planning to daily operations? Who will handle such tasks as marketing, sales, accounting, customer service?
1. Why do you want a partner?
As a small-business owner, consider some strategies to ensure an appropriate work–life balance for your employees.
Many small-business owners expect their employees to be as committed and to work as hard as they do. How would you avoid falling into that trap while still demanding the best from your workers?
5 Why are mergers and acquisitions to a acquisitions important to a company's overall growth? What current trends. business organizations of the future00?
4. What makes franchising an appropriate form of organization for some types of business, and why does it continue to grow in importance?
3 What other options for business organization does a company have in addition to sole proprietorships, partnerships, and corporations?
2 What and the advantages of operating as a partnership, and what downside risks should partners consider? sou does the corporate structure provide advantages and disadvantages to a company, and what
1 What are the advantages and disadvantages of the sole proprietorship form of business organization?
(Appendixes12) Why does the accountant make an entry to record uncollectible account expense in the period of sale rather than in the period in which an account is determined to be uncollectible? LO25
(Appendixes12) Describe the documents that underlie the typical accounting system for sales. Give an example of a failure of internal control that might occur if these documents were not properly
(Appendixes12) Why do readers of financial statements prefer the separate disclosure of gross sales revenue and sales returns and allowances to the disclosure of a single net sales revenue amount?
(Appendixes2) What are sales allowances? How do sales allowances differ from sales discounts? LO22
(Appendixes2) What are sales returns? Why do sales returns occur? LO86
(Appendixes2) What are trade discounts and quantity discounts? From an accounting viewpoint, how does the effect of trade and quantity discounts on selling (or invoice) price differ from the effect
(Appendixes2) What is a sales discount? How can sales discounts be recorded? LO9
(Appendixes2) Be familiar with management's responsibilities for reporting on internal control under Section 404 of the Sarbanes-Oxley Act. LO8
What unique philosophy and features have helped Nordstrom survive and thrive for more than 100 years in the notoriously difficult world of department store retailing?
What impact is Nordstrom’s new media player likely to have on customer demographics and sales?
What risks are there to this strategy?
Why did Nordstrom take the dramatic step of designing a branded entertainment channel?
5. How would you spend the national budget if you were president? Here’s your chance to find out how your ideas would affect the federal budget. The National Budget Simulator, at
4. What’s the latest economic news? Go to the ABC News site’s Business section (http://abcnews.go.com/business/). Read the various articles. Prepare a summary of what you learned and use it to
3. Use the Bureau of Labor Statistics site, http://stat.bls.gov, to determine the current trends in GDP growth, unemployment, and inflation. What do these trends tell you about the level of business
2. Go to either the Red Herring (http://www.redherring.com) or Wired (http://www.wired.com)site and research technology trends. Compile a list of three trends that sound most promising to you and
1. The Bureau of Labor Statistics compiles demographic data. Visit its site, http://www.bls.gov/bls/demographics.htm, and describe the different types of information it provides. What kinds of
6. As a manufacturer of in-line roller skates, you are questioning your pricing policies. You note that over the past five years, the CPI increased an average of 3 percent per year, but the price of
5. What are the latest actions the federal government has taken to manage the economy? Has it used monetary policy or fiscal policy to achieve its macroeconomic goals? Summarize your findings. Choose
4. Team Activity Create two teams of four people each. Have one side choose a communist economy and the other capitalism. Debate the proposition that “capitalism/a command economy is good for
3. If a friend claimed, “Economics is all theory and not very practical,” how might you counter this claim? Share your rationale with the class. (Interpersonal, Information)
2. Team Activity Form seven teams. Each team is responsible for one of the sectors of the external business environment discussed in the chapter (economic, political/legal, demographic, social,
1. Select a not-for-profit organization whose mission interests you. What are the organization’s objectives? What resources does it need to achieve those goals? Select a for-profit business that
3. The government spends more on public transportation, and individuals spend less on private transportation?
2. The government spends more on public education, and individuals spend less on private education.
1. The government spends more on public libraries, and individuals buy fewer books at bookstores.
What is meant by “green products“? If only a few firms sell green products, isn’t it basically just a way to sell more goods and only have a tiny effect on the environment?
Should multinational companies boycott all palm oil produced in Indonesia?
Go to the woot.com Web site. What are some things that you see that may contribute to the firm’s success?
There are now more than a hundred “deal-a-day”Web sites. Currently there are no deal-a-day sites for luggage, personal-care items, tools, or office supplies. Which category, if any, would make a
Do you think that w00t has a viable long-term business model?
What trend in the business environment is most likely on display within this film clip?
What elements of the business environment most likely play a part in this case and why?
What is the nature of Miles Massey’s business, and what factors of production are at play here?
7 What are the four types of market structure? of Which trends are reshaping the business, micro-, and macroeconomic environments and competitive arena?
6 What are the basic microeconomic concepts of demand and supply, and how do they establish prices?
5 How does the government fiscal policy to achieve its macroeconomic goals?
4. How do economic growth, full employment, price stability, and inflation indicate a nation's economic health?
3 What are the primary features of the world's economic systems, and how are the three sectors of the U.S. economy linked?
2 What are the sectors of the business environment, and how do changes in them influence business decisions?
1. How do businesses and not- for-profit organizations help create our standard of living?
15 Is the basis for physically-delivered commodities usually expected to be negative or positive? Explain your answer. What is the position for financial instruments such as bonds?
14 What is contango and backwardation?
13 On 19 January 2006 we observe the following:Settlement date 20 January 2006 Futures price 115.07 UK gilt 8% 2015 price 132.31 Conversion factor 1.146 092 8 Repo rate 4.58%With regard to the Mar06
12 Discuss the relative merits of analysing the CTD bond using the net basis method against the IRR method.
11 A long bond futures contract matures in 56 days, and its current price is 107.55. The price of the cheapest-to-deliver is 129.875, and it has a coupon of 9% and accrued interest of 79 days
10 A junior trader feels that there are some arbitrage opportunities available in the basis, which is net positive for the cheapest-to-deliver bond, if he puts on a strategy of long futures versus
9 We wish to determine by how much the yield of a deliverable bond would have to change in order for it to become the cheapest-to-deliver bond. How could we do this?
8 Consider the following market data, with price for UK gilts and the LIFFE long gilt contract. Gilts pay semi-annual coupon on an act/act basis.Conversion factor UKT 5.75% 7 Dec 2009 £102.732 8
7 The first day of trading of a new futures contract is about to commence. What is the fair price of the contract?
6 Will there be any change in the current cheapest-todeliver bond if there is a parallel shift in the yield curve of 50 basis points?
5 The terms of the LIFFE long gilt contract state that delivery may take place on any day during the delivery month. On 30 May 1999 the yield on the cheapest-to-deliver gilt is 5.716% while the repo
4 Assess the following market information and determine if there is an arbitrage opportunity available for undertaking a basis trade:Bond coupon: 8.875%Maturity: December 2003 Price: 102.71 Accrued
3 Assume that the cheapest-to-deliver bond for a futures contract has a coupon of 6% and has precisely 9 years to maturity. Its price is 103.5625. If its conversion factor is 0.901 235 64, what is
2 A bond desk puts on an arbitrage trade consisting of a long cash and short futures position. What risks does this trade expose the desk to?
1 The gilt future is trading at 114.55. Which of the following gilts is the cheapest-to-deliver?Bond Price Conversion factor 9% 2008 130.718 8 1.140 715 5 7% 2007 116.375 1.016 526 6 8% 2009 125.437
A trader enters into a short forward contract on 100 million yen. The forward exchange rate is $\$ 0.0090$ per yen. How much does the trader gain or lose if the exchange rate at the end of the
On May 8, 2013, as indicated in Table 1.2, the spot offer price of Google stock is $\$ 871.37$ and the offer price of a call option with a strike price of $\$ 880$ and a maturity date of
A US company knows it will have to pay 3 million euros in three months. The current exchange rate is 1.3500 dollars per euro. Discuss how forward and options contracts can be used by the company to
The price of gold is currently $\$ 1,400$ per ounce. The forward price for delivery in 1 year is $\$ 1,500$ per ounce. An arbitrageur can borrow money at $4 \%$ per annum. What should the
Describe how foreign currency options can be used for hedging in the situation considered in Section 1.7 so that (a) ImportCo is guaranteed that its exchange rate will be less than 1.5700, and (b)
Suppose that in September 2015 a company takes a long position in a contract on May 2016 crude oil futures. It closes out its position in March 2016. The futures price (per barrel) is $\$ 88.30$
A trader buys two July futures contracts on orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 160 cents per pound, the initial margin is $\$ 6,000$ per
Suppose that, on October 24, 2015, a company sells one April 2016 live cattle futures contract. It closes out its position on January 21, 2016. The futures price (per pound) is 121.20 cents when it
It is July 2014. A mining company has just discovered a small deposit of gold. It will take 6 months to construct the mine. The gold will then be extracted on a more or less continuous basis for 1
Trader A enters into futures contracts to buy 1 million euros for 1.3 million dollars in three months. Trader B enters in a forward contract to do the same thing. The exchange rate (dollars per euro)
One orange juice futures contract is on 15,000 pounds of frozen concentrate. Suppose that in September 2014 a company sells a March 2016 orange juice futures contract for 120 cents per pound. In
The author's website (www.rotman.utoronto.ca/ hull/data) contains daily closing prices for crude oil and gold futures contracts. You are required to download the data for crude oil and answer the
A company wishes to hedge its exposure to a new fuel whose price changes have a 0.6 correlation with gasoline futures price changes. The company will lose $\$ 1$ million for each 1 cent increase in
It is now October 2014. A company anticipates that it will purchase 1 million pounds of copper in each of February 2015, August 2015, February 2016, and August 2016. The company has decided to use
Suppose that 9 -month and 12 -month LIBOR rates are $2 \%$ and $2.3 \%$, respectively. What is the forward LIBOR rate for the period between 9 months and 12 months? What is the value of an FRA
It is January 9, 2015. The price of a Treasury bond with a $12 \%$ coupon that matures on October 12, 2030, is quoted as 102-07. What is the cash price?
It is May 5, 2014. The quoted price of a government bond with a $12 \%$ coupon that matures on July 27, 2024, is $110-17$. What is the cash price?

Showing 500 - 600 of 907