Respond to all, thanks

You have been hired to advise the executive team of a construction and engineering firm on risk matters. On the first week of work, you had to answer a broad range of questions on risk management. To address those, you had to remember some of the practical lessons from your studies at SUSS.

Mrs. Loo, the Chief Operations Officer, has asked you to prioritise five (5) different risks:

(i) A possible billing dispute with a local developer over a serious $ amount (ii) An unlikely accident on one of the sites endangering the lives of the neighbourhood

(iii) A routine rise in foreign workers' wages, which will affect the profit margin by 0.03%

(iv) The final adoption of a new law forcing construction firms to contribute 5% of their profit to an environmental preservation fund (v) A projected 50% decline in long-term demand for office space, which represents 90%

of the firm's revenues

Analyse the different risks by plotting them on a risk matrix.

(a)

(10 marks)

Mr. Rao, the Chief Financial Officer, is thinking to hedge the firm's interest rate risk on the market and would like to understand the workings of forward and futures markets.

(b) Compare briefly the pros and cons of forwards and futures in risk management terms.

(5 marks)

Mrs. Patel, the Chief Communications Officer, has to provide an assessment of the Singapore construction sector risk profile to potential investors coming from Sydney, Australia.

(c) Distinguish at least one (1) strength, one (1) weakness, one (1) opportunity and one (1) threat for Singapore construction industry players by using the PESTEL framework.

Robert is a design engineer employed by ZMX Consulting Environmental Engineering (ZMX-CEE) firm. His supervisor, Ir. Richard, instructed Robert to collect samples on the contents of drums located within the compound of a factory belongs to a client. Based on Robert's past experience, it is his opinion that analysis of the sample would most likely determine that the drum contents would be classified as hazardous waste. If the material is hazardous waste, Robert knows that certain steps would legally have to be taken to transport and properly dispose of the drum including notifying the proper federal and state authorities. Robert asks his supervisor, Ir. Richard what to do with the samples. Ir. Richard tells Robert only to document the existence of the samples. Robert is then told by Ir. Richard that since the client does other business with the firm (ZMX CEE), Ir. Richard will just tell the client where the drums are located but do nothing else. Thereafter, Ir. Richard informs the client of the presence of drums containing "questionable material" and suggests that they be removed. The client contacts another firm and has the material removed. Identify THREE (3) most relevant BEM codes of professional conduct applicable in this case.

a) Indicate true or false to the following statements (no explanations needed): i) Diversification is a sensible reason for mergers because it is cheaper for corporations to diversify their business portfolios than for investors to diversify their portfolios. ii) Agency costs arise from the senior management's inability to control shareholders. [5 marks each; 10 marks] b) Suppose the total value of the firm is 150 million. The firm's debt-equity ratio is 0.5, and the interest rate (before tax) on its debt is 4 percent, while its cost of equity is 12 percent. The effective corporate tax rate is 25 percent. By assuming that the Modigliani-Miller Theorem with corporate taxes holds, answer the following questions. i) What is the value of equity of the firm? ii) What is the after-tax WACC (weighted average cost of capital) of the firm? [5 marks each;

Aftron is a very famous US company producing auto spare parts. They produce parts on large scale and sells all over the country. Most of the US car manufacturing industries place orders with them in advance for the various auto parts. For these advance bookings, companies make payments for the pre booking of delivery of parts. Aftron are known for their efficiency and reliability among the business communities. One-day news breaks out for the default of Aftron. The news turned out as a shock for the auto industries. There seems to be multiple reasons for the default. In such a situation it is hard to blame someone for the failure. Investors are assuming that the financial statements fail to present the performance of the company. The disclosures are insufficient in highlighting the key assumptions and judgements made when estimating the fair value of assets. The management of the company blames the financial team and internal control system. The financial team are unable to provide realistic calculations to the management and does not follow the correct practices. a. In your opinion, what information could be presented by the company to cover up their flaws? Being an internal control officer, what strategy you would follow to investigate the internally generated failures? (5 Marks) b. What suggestions would you like to provide to the management to make themselves aware of the company's activities in order to save the Aftron from such happenings in the future.

15 If marginal benefit is greater than marginal cost, a rational choice involves: a. More of the activity. b. Less of the activity. c. No more of the activity. d. More or less, depending on the benefits of other activities. 16 A student chooses to study because the marginal benefit is greater than the cost. a. average b. total c. marginal d. expected 17 Periods of less than full employment correspond to: a. Points outside the production possibility curve. b. Points inside the production possibility curve. c. Points on the production possibility curve. d. Either points inside or outside the production possibility curve. 18 The circular flow of goods and incomes shows the relationship between: a. Income and money. b. Wages and salaries. c. Goods and services. d. Firms and households. 19 In a free market system, the amount of goods and services that any one household gets depends upon its: a. Income. b. Wage and interest income. c. Wealth. d. Income and wealth. 20 In a planned or command economy, all the economic decisions are taken by the: a. Consumers. b. Workers. c. Government. d. Voters.

The word that comes from the Greek word for "one who manages a household is a. Market. b. Consumer. c. Producer. d. Economy. 2 Economics deals primarily with the concept of a. Scarcity. b. Poverty. c. Change. d. Power. 3 Which of the following is NOT included in the decisions that every society must make? a. what goods will be produced b. who will produce goods c. what determines consumer preferences d. who will consume the goods 4 In a market economy, characterized by Capitalism, there is full interference by the State in the economic activities of consumers and producers. (a)True (b) False 5 In a market system of economy, there is no harmony between individual interests and interests of the community. (a)True (b) False 6 Efficiency is the relation between returns and cost. (a)True (b) False 7 The subject matter of macro -economic includes the theory of income and employment at an individual level. (a)True (b) False 8 Rational decision results infor the employees. a. Division of work. b. Centralization. c. Discipline. d. Motivation

Texon is a company that designs sensing devices for automobile air bags. Matthew, a recently licensed professional engineer, was hired to work in the quality control department. About 8 weeks after starting work, he was asked to sign off on the design of testing procedures, protocols, and standards in which Matthew was directly involved, but about which he remained uncertain, due both to his lack of experience in this technical area and also because of his inability to fully interpret the preliminary testing results. Matthew consulted with other technical professionals involved in the preliminary test design process and could not determine to his satisfaction whether the proposed design was adequate. Matthew told his manager that he would not feel comfortable signing off on the test design; and, since he was relatively inexperienced with Texcon's procedures, protocols, and standards, asked that he not be required to sign off as requested. Charles, Matthew's manager and not an engineer, kept applying pressure on Matthew to sign off on the design. Eventually, Matthew decided that he wished neither to violate his principles by doing something that he thought was wrong, nor become involved in a battle in which his career could certainly be major casualty. What are Matthew's ethical obligations under the circumstances? (5 marks) a) b) Discuss the ethical dilemma faced by Matthew. Support your answer by stating Three (3) most relevant BEM codes of professional conduct applicable in this case.

) OMEGA is a public listed company. Management is considering how the company should raise 20 million of finance which is required for an expansion that will be undertaken during the current year to 31 December 2018. OMEGA is particularly concerned about how stakeholders (including potential shareholders) are likely to react to its financial statements for the year to 31 December 2018. Due to market fluctuations, present forecasts by analyst suggest that OMEGA's earnings per share may be worse than market expectations. Mr Ken Brown, OMEGA's Finance Director, is in favour of raising the additional finance by issuing a convertible loan. He has suggested that the interest rate on the loan should be 6%. Currently, the market rate of this type of loan is 10%; so, the propose rate of interest is far below the market value. In order to make share price attractive to potential investors, the terms of the loan conversion into an equity would be very favourable to compensate for the low interest rate. (i) Explain why the Finance Director believes the above scheme may favourably improve OMEGA's earnings per share and gearing. (8 marks) (ii) Describe how the requirements of IAS 33 Earnings per Share is intended to prevent the above effects. (7 marks) (b) Explain why it is useful to disclose the EPS calculated on a diluted basis in addition to the basic earning pers share basis.

Texon is a company that designs sensing devices for automobile air bags. Matthew, a recently licensed professional engineer, was hired to work in the quality control department. About 8 weeks after starting work, he was asked to sign off on the design of testing procedures, protocols, and standards in which Matthew was directly involved, but about which he remained uncertain, due both to his lack of experience in this technical area and also because of his inability to fully interpret the preliminary testing results. Matthew consulted with other technical professionals involved in the preliminary test design process and could not determine to his satisfaction whether the proposed design was adequate. Matthew told his manager that he would not feel comfortable signing off on the test design; and, since he was relatively inexperienced with Texcon's procedures, protocols, and standards, asked that he not be required to sign off as requested. Charles, Matthew's manager and not an engineer, kept applying pressure on Matthew to sign off on the design. Eventually, Matthew decided that he wished neither to violate his principles by doing something that he thought was wrong, nor become involved in a battle in which his career could certainly be major casualty. What are Matthew's ethical obligations under the circumstances? (5 marks) Discuss the ethical dilemma faced by Matthew. Support your answer by stating Three (3) most relevant BEM codes of professional conduct applicable in this case.

Planning for any event requires a forecast of the future. In sustainability, this includes forecasting future availability of scarce resources, pollution trends and future levels of pollutants, and innovations that will impact sustainability practices, even issues of climate change. For example, numerous forecasting techniques are used to scientifically predict the effects of climate change. These forecasts impact the plans that are made by policymakers and organizations, and how money and resources are allocated to mitigate risks. An example might be PepsiCo's development of plastic bottle made exclusively from recycled material. We may want to forecast the likelihood of success for this new product and the timing of it reaching the market, as this would significantly alter sustainability practices. Companies in the plastics industry would be interested in that forecast to prepare for such a change. Forecasting is critical to sustainability, as it lets us peek into the future. It is especially important in predicting energy trends, availability of resources, technological innovation and the economy and identifying driving forces that will shape change. Questions: The case study above, critically considers breakthrough innovations in sustainability that is linked with forecasting and can change the way we do business. Give one real example with explanation representing forecasting and sustainability in an organization.

1. Credit analyst John Adams is considering a $1,000 order from a new customer. The cost of filling the order is $950. John estimates collection costs are $20. The customer will pay in 60 days. If the appropriate cost of capital is 18%, what is the NPV of extending credit to the new customer? 2. A credit analyst has received a $10,000 order from a new customer. The cost of filling the order (i.e., COGS) is $8,000 and collection costs are $200. The credit analyst notes that the COGS will be paid immediately. Further, it is assumed that the customer will repay the trade credit obligation in 60 days. It is also assumed that the collection costs will be incurred in 60 days. If the appropriate discount rate is 8%, what is the NPV of extending credit to the new customer? 3. A credit analyst has receiveda $20,000 order from a new customer. The cost of filling the order (i.e., COGS) is $19,100 and collection costs are $500. The credit analyst notes that the COGS will be paid immediately. Further, it is assumed that the customer will repay the trade credit obligation in 90 days. It is also assumed that the collection costs will be incurred in 90 days. If the appropriate discount rate is 10%, what is the NPV of extending credit to the new customer?

You have been hired as a new Chief Executive Officer (CEO) for the troubled convenience store chain, 7-Eleven. A recent Four Corners (a television program) investigation into its unethical practices created public outrage. There was evidence of exploitative practices within some of the company's stores. Franchisees paid many of their staff as little as $10 an hour before tax, which was less than half the legal minimum wage of $24 an hour - not including penalty rates for working nights, weekends or public holidays. Young, foreign workers on restricted visas were most likely to receive these low wages. Forced to work longer hours to earn enough money to survive, if workers complained about their salary or conditions, managers threatened to tell authorities that they were working in breach of their visa entitlements. The scandal saw the resignations of the chairman, Russ Withers, and chief executive officer, Warren Wilmot. As a new CEO, you face a massive task of promoting ethical behaviours among managers, fostering ethical organisational culture and restoring the company's reputation. 56. Describe what you will do, as a CEO, to foster a more ethical organisational culture in 7-Eleven. 57. Which managerial role(s) described by Henry Mintzberg will you adopt and what will you do as a part of this role (these roles) to restore the broken reputation of 7-Eleven?

After graduating from La Trobe University, you were recruited by Bundoora Technology as a Business Analyst. Bundoora Technology is an aspiring company committed to innovation and efficiency. They are keen to implement innovative ideas through a transparent process for organisational effectiveness and efficiency. They have a progressive group of employees; responsible and open-minded to changes while expecting equitable and transparent organisational policies. Bundoora Technology, however, is very concerned about the low performance levels of some of its employees. An internal investigation identified that some employees lack motivation due to no clear targets and objectives. The investigation also revealed that employee performance and reward system/policies of the organisation were not linked. As you have successfully completed the subject Organisational Behaviour, you were assigned to support the management to make an informed decision to help employees to get motivated at Bundoora Technology. For this purpose, you are required to identify a motivation theory and propose strategies to improve employee performance. You also need to identify the ideal conflict resolution style and design a communication strategy for Bundoora Technology to implement the suggested changes. Following questions are prepared to assist you in this assignment, please answer all questions: QUESTION 1 List and explain three motivation theories that you have studied as part of the subject Organisational Behaviour that could be most useful to help employees in Bundoora Technology to get motivated.

Your friend Mr. Fawad has recently joined a multinational company as an Asst. Manager. He has observed his Manager indulging into taking bribe at times. Mr. Fawad overheard on the phone his manager leaking company's private information with the competitors. Fawad's promotion can be decided only by this Manager. If Mr. Fawad doesn't keep him happy, he will have to forget his promotion. If new Manager comes, Fawad's promotion will be postponed for a very long time till he satisfies that new Manager.

Answer the following questions:

a. What is Mr. Fawad's ethical dilemma in this case? (2 marks)

b. What will you do if you are in Fawad's situation? Why? (2 marks)

c. Discuss one ethical dilemma that you have faced in your life.

You are a fresh analyst hired by the CFO of a small to midsized company. She is aware of the fact you wrote a paper of Financial Statement analysis and wants to check your financial knowledge as well as common sense: There are two firms, A and B. A is a healthy, well-funded and profitable firm. B, on the other hand, is cash starved, facing potential (but not yet) bankruptcy. She has information about the following classes of ratios for both firms: Liquidity, Asset Management, Debt Management, Profitability and Market Value Ratios. She said to you," I don't have time to look at all these ratios, I would like you to rank order three classes of ratios in each case (One ranking for firm A and another ranking for firm B) based on the particular situation each firm is in (healthy vs. failing). I understand that the two sets could be quite different. I would like you to explain why you choose that particular rank ordering in each case. While ranking, you may simply indicate the class of ratios (for example, profitability), rather than a specific ratio within that class, such as Return on Assets (ROA)."

Area 7: Marketing

Please answer the following questions in a succinct and concise manner. Each answer should yield about 3-5 sentences.

19. In terms of pricing, what are the characteristics of skimming strategies?

20. Why is commercialization the most expensive and riskiest stage in the new product development process?

21. A new sandwich shop has opened just off campus and would like the university students to visit the shop whenever they are hungry. What is the best type of sales promotion to use to reach them and why?

no half work