Corporate Business Ethics and Social Responsibility

Question: Examine about the Corporate Business Ethics and Social Responsibility. Answer: Presentation: The most mainstream web search tool that the world uses on regular premise is Google, which has risen as the most beneficial web organization on the planet (Google.com 2017). Google has made numerous items, for example, you tube, Android, Google Glass Google Plus and Google wallet. Google is right now confronting the issue concerning the protection strategy and utilization of the individual data of the clients. There are many hazard and moral issues looked by Google and it needs address on consistent premise. In the innovation business, Google has consistently the moral direct. In spite of this, Google has been blamed for having a piano mentality towards the security strategy. It has been blamed for disregarding the clients security. Different protection issues looked by Google has brought down the trust of the clients and trust is fundamental for the clients in making association with the organization. Google has confronted difficulties concerning the protection in spite of the sele ction of various methodologies in dealing with the security. There is a need to address the moral and the security issues looked by the organization while keeping up its productivity (Hartman et al. 2014). It isn't satisfactory with respect to the global, for example, Google to handbag gainfulness without taking into accounts the necessities of its workers, customers, networks and condition. Conversation: The systems taken by Google are expanded due to the wide cluster of the items gave. Partners of Google originates from various gatherings and they are affected by the changed business of the association. They incorporate clients, representatives, financial specialists, publicists, networks and government. Clients are considered the most critical as far as the impact on the firm. Google has program and strategies that tends to the enthusiasm of all gathering of partners. The system of the organization is to concentrate on the clients and this prompted well known and helpful items that are gainful to the client, financial specialists and clients and along these lines making the business beneficial (Grant 2016). The approach of versatile innovation and web has empower the association, for example, Google to serve the necessities of its partners. It has the duty to guarantee that the privileges of the partners are ensured. All the procedures are expected to improve the notoriety and the believability among the partners. In social duty, Google has made incredible steps and there has consistently been opportunity to get better (Crane et al. 2013). Google has taken a few activities to serve the current investors by offering differentiated items. The partners of the organization have been believed to be existing in the various kinds the various gatherings that are working in changed organizations. A portion of the partners gatherings of the organization have been found as far as clients, workers, Governments, financial specialists, clients, networks, promoters and different clients. Google has taken a few activities identified with the usage of the Corporate Social Responsibilities (Khan et al. 2013). The most basic partners incorporate the clients of Googles web index and Chrome. Subsequently, organization has taken a few activities to offer consistent assistance in the related territory. In a few different occurrences the advancements identified with the related improvement identified with the partners has been found as far as the persistent turns of events, which are being made in these stages. The workers of the organization are viewed as the second most significant need for the organization. It has been seen that the representatives are in tried as far as accepting of satisfactory degree of pay and compensating experience for the organization. The pay system set by Google apparently is higher regarding the other leaving programming organizations. It has been additionally observed that the organization is mindful giving more significant compensations and impetuses to the workers. A portion of the activities taken by Google for the representatives are found regarding creating systems, which will offer fun working conditions. The laborers are given the adaptability to work out, appreciate sharing thoughts and mess around. The primary set of principles has been believed to be provided by Google Supplier Code of Conduct which has been believed to consider factors, for example, wellbeing and security of the representatives (Meyer 2015). It has been likewise observed that from the year 2004, Google began to consider the financial specialists a significant type of partners of the Google. Henceforth, it has been seen the organization can devise procedure, which has guaranteed the held intrigue do the investors of the organization. The persistent offices gave by the RD group of the organization have had the option to guarantee that the organization can expand the value of the items and apply the equivalent for the benefit of the organization (Morris et al. 2014). Government is likewise observed as a significant type of partners of the gathering. It has been seen that organization gets a few help from the administration in type of the assortment of the information identified with the land and spatial data. It has been additionally observed that the Government apparently is keen on guaranteeing Googles administrative consistence (Kuenkel, Petra and Andrew 2015). These partners of the organization are believed to be making a significant stride as far as endorsing Googles business activities in their separate wards. The organization has been additionally observed to serve different clients to improve the fame of the item and improving the general market reach. Along these lines, it has had the option to add to the organizations administrations (Baumann-Pauly et al. 2015). It is conceivable to improve the lives and increase the trust of partners if the Google discover approaches to make sure about the private data structure the clients with the goal that it isn't freely spread. Google ought to make a few secure records of the data they have assembled with the end goal of assurance. Any data that recognizes the clients and which should be imparted to the pariah or the outsiders must have assent of the partners. Google needs to take some extra methodologies in securing the protection of the clients on the grounds that satisfying the goals of the partners is some of the time at the expense of the data of the clients. Such data are utilized to tailor the notice and this data ought to be imparted to the outcasts with the assent of the clients. Google can regard security and still keep up its productivity yet the skirmish of the clients protection are something that the Google needs to manage for quite a while. So as to keep up the benefit, Google depends on following alongside some different exercises to keep up its productivity. Google utilize the data produced from the following for modifying the administrations to the individual clients. Google has continually refreshed the protection strategy of Google so it would be wise to conform to the necessities and needs of the clients with regards to their private data. Google patched up their security strategy in the year 2012 by joining the data assembled from the diverse Google administrations (Pearson 2013). It was expressed by the Google that the clients are furnished with the alternative of turning certain highlights that gathers the data. The new arrangement would remain exceptionally dedicated to the security of clients and would not influence the measure of information erased or assembled. Google has encountered a lot of moral issues being a huge organization. One of the significant analysis concerning protection about the Google is monitoring clients looked through things and making sure about data of some upset hack assaults (Murphy and Schlegelmilch 2013). The new arrangement embraced by Google focusing on the protection of the clients with no conflict with the productivity would make the association to play out its activities flawlessly. Keeping the productivity and the clients protection independently without one affecting the other can be clarified by the model. A large portion of the clients utilize the Google web index ensuring that their private data isn't spilled to programmers and it made sure about. In such manner, Google has the ability to keep up the two issues independently. A portion of the critical change concerning the security can be taken by Google, which will help it in keep up its productivity. Google can put a cost on protection and the default internet searcher for marked in clients can be upgraded. It can move to make sure about servers and the guidelines should be changed. It have to draw a scarce difference between keeping up benefit by utilizing informations of clients and damaging protection of clients (Slavin et al. 2016). Google for the most part rely upon following to keep up its gainfulness and thusly in such manner, it attempt to build straightforwardness in its activities and improve its security rehearses. According to WiFi, applications and cell phones, the clients of Google is furnished with the terms and conditions that are should have been acknowledged all together for the establishment of any administrations. Google would make benefit once the clients acknowledge the terms and conditions, regardless of whether the clients recognize the terms and condition or not. In the event that Google takes a shot at keeping up the security of its clients and changing the norm, which suits to the need of the clients while ensuring their protection, this is naturally make the foundation of producing the productivity (Bygrave 2014). Google need to make practical interest in keeping up the client data strategy. Different variables impacting the security of the clients ought to be investigated and in like manner the venture ought to be made. From the point of view of an association, security insurance is simply one more component of overhead until there is lost the private data of the clients. Along these lines would help Google in accomplishing the productivity. The protection of Google would give the stage and give a hit to the working exercises of Google and along these lines keeping up the benefit

Causes Of The Great Depression Essays - Free Essays, Term Papers

Reasons for The Great Depression Essays - Free Essays, Term Papers Reasons for The Great Depression The Great Depression was the most exceedingly awful monetary droop ever in U.S. history, and one which spread to basically the entirety of the industrialized world. The downturn started in late 1929 and went on for about a decade. Numerous variables assumed a job in achieving the downturn; in any case, the fundamental driver for the Great Depression was the mix of the incredibly inconsistent conveyance of riches all through the 1920's, what's more, the broad financial exchange hypothesis that occurred during the last part that equivalent decade. The maldistribution of riches in the 1920's existed on numerous levels. Cash was dispersed dissimilarly between the rich and the white collar class, among industry and horticulture inside the United States, and between the U.S. what's more, Europe. This lopsidedness of riches made an unsteady economy. The over the top theory in the late 1920's kept the financial exchange misleadingly high, however in the end lead to huge market crashes. These market crashes, joined with the maldistribution of riches, caused the American economy to invert. The thundering twenties was a period when our nation flourished immensely. The country's all out acknowledged pay rose from $74.3 billion of every 1923 to $89 billion in 1929(end note 1). In any case, the prizes of the Coolidge Prosperity of the 1920's were not shared uniformly among all Americans. As per an examination done by the Brookings Establishment, in 1929 the top 0.1% of Americans had a consolidated pay equivalent to the base 42%(end note 2). That equivalent top 0.1% of Americans in 1929 controlled 34% everything being equal, while 80% of Americans had no investment funds at all(end note 3). Car industry head honcho Henry Ford gives a striking case of the inconsistent dissemination of riches between the rich and the white collar class. Henry Ford detailed an individual pay of $14 million(end note 4) around the same time that the normal individual pay was $750(end note 5). By present day ezdards, where the normal yearly pay in the U.S. is around $18,500(end note 6), Mr. Passage would gain over $345 million per year! This maldistribution of pay between the rich and the white collar class developed all through the 1920's. While the discretionary cashflow per capita rose 9% from 1920 to 1929, those with pay inside the top 1% delighted in a spectacular 75% expansion in per capita expendable income(end note 7). A significant purpose behind this huge and developing hole between the rich also, the common laborers individuals was the expanded assembling yield all through this period. From 1923-1929 the normal yield for each laborer expanded 32% in manufacturing(end note 8). During that equivalent time of time normal wages for assembling occupations expanded just 8%(end note 9). Consequently compensation expanded at a rate one fourth as quick as profitability expanded. As creation costs fell rapidly, compensation rose gradually, and costs remained conezt, the mass advantage of the expanded profitability went into corporate benefits. Truth be told, from 1923-1929 corporate benefits rose 62% and profits rose 65%(end note 10). The government likewise added to the developing hole between the rich and white collar class. Calvin Coolidge's organization (what's more, the preservationist controlled government) supported business, and as an outcome the well off who put resources into these organizations. A case of enactment to this reason for existing is the Revenue Act of 1926, marked by President Coolidge on February 26, 1926, which decreased government salary what's more, legacy charges dramatically(end note 11). Andrew Mellon, Coolidge's Secretary of the Treasury, was the fundamental power behind these what's more, other tax breaks all through the 1920's. As a result, he had the option to lower government expenses to such an extent that a man with a million-dollar yearly pay had his government charges diminished from $600,000 to $200,000(end note 12). Indeed, even the Supreme Court assumed a job in extending the hole between the financial classes. In the 1923 case Adkins v. Kids' Hospital, the Supreme Court administered the lowest pay permitted by law enactment unconstitutional(end note 13). The huge and developing divergence of riches between the wealthy furthermore, the center salary residents made the U.S. economy temperamental. For an economy to work appropriately, absolute interest must rise to add up to gracefully. In an economy with such dissimilar dispersion of salary it isn't guaranteed that request will consistently approach gracefully. Basically what occurred in the 1920's was that there was an oversupply of merchandise. It was not that the excess results of industrialized society were

we underestimate one of Googles most useful tools when it comes to job search Google Alerts. Google Alerts can be extremely helpful for job seekers, and they are free!

we underestimate one of Google’s most useful tools when it comes to job search Google Alerts. Google Alerts can be extremely helpful for job seekers, and they are free! Im grateful to have colleagues who know about things where I do not have particular expertise. Google Alerts is one of those things! Google Alerts are valuable for job seekers and business owners alike. Heres a great guide on how to use them! Guest post by Susan P. Joyce For most of us, Google has become an integral part of our lives. We use it to find the closest gas station, the best cranberry sauce recipe, the correct spelling for antidisestablishmentarianism, and hundreds of other things every day. And yet we underestimate one of Google’s most useful tools when it comes to job search: Google Alerts. Google Alerts can be extremely helpful for job seekers, and they are free! What Are Google Alerts and How Do You Set Them Up? Google Alerts are queries that you design, and that Google runs automatically once you set them up. You receive an email for each alert, with any new content Google has found since the last time it sent you a report. As long as you stay within Google’s 1000-alert limit, you can add, delete, or modify alerts any time you choose. Google offers detailed advice for you on how to set up Google Alerts. Here are some easy basics: Simply go to google.com/alerts, and type in your query and your email address. Once you have entered your query, you can specify the source (web, news, blogs, etc.), language, and region/country. Often, the default settings are fine. If the “Alert preview” shows you the content you want, enter your email address, click on the “Create Alert” button, and you are done. Sit back and eagerly await your reports! Benefits of Using Google Alerts in Your Job Search Spending the time and energy to set up Google Alerts carefully will pay off both now and in the future. If you are a job seeker, you can use Alerts to find the best new job and employer for you and keep your online visibility as positive as possible. Google Alerts may help you with key job search activities: Expanding your personal and professional networks. Finding jobs and other professional opportunities. Researching companies to prepare for job interviews. Gathering information about your industry and/or profession. Learn which employers (and people) to avoid. Think you’d remember to run searches on all these topics every day? Think again. Instead, let Google Alerts do the work for you. The Google “early warning” will help you stay up-to-date and, hopefully, ahead of your competition. To get the benefit of Google Alerts, of course you must actually open and read them on a daily (or at a minimum, weekly) basis. Don’t let this precious information get stale! Google Alerts for Job Search â€" The Breakdown Here’s how to use Google Alerts for some of your most important job search activities. 1. Monitor your online reputation. The Google results associated with your name, even if it isn’t really you, will likely be seen by your network members, as well as by recruiters and potential employers. You can’t afford not to know what Google is showing when people search on your name! While some say that Googling your own name is “ego surfing” or “vanity Googling,” I prefer to call it “Defensive Googling.” So, set up Google alerts on various forms of your name, particularly the one you use most often professionally. Be on the lookout for something “bad” â€" trashy comments in social media, report of a drunk-driving arrest, or any unsavory or unprofessional activity. Then, do your best to distance yourself from that person and situation, including, potentially, sending out a message to recruiters you are working with or your friends in a professional group, carefully explaining that you are not that person. If you want help with researching and managing your online reputation, you might want to check out brandyourself.com. 2. Monitor your target employers. Hopefully, you have a list of specific employers that interest you. You know people who work there, or you are a fan of their products and services, or they are the largest employer in the area. Set up a Google Alert based on each company name. Add additional employers as you find good candidates. Pay attention to the names of senior executives brand names of products and services names of major business partners company location …and consider adding those names as new alerts. Then, when you receive an alert about a person or company that is relevant or interesting, consider reaching out to someoneâ€"for instance, congratulate them on a new award or contract, or ask about the reorganization at their company. 3. Stay up-to-date with your network. Knowing what is happening with old friends and former colleagues can help you strengthen your personal network. Even simple actions, like a short email when a connection receives recognition, becomes a parent, or has some good (or even bad) news, will make a difference. Set up Google Alerts for the favorite names in your network to learn about interesting things happening in their lives. 4. Keep current with your industry or profession. Thinking you have nothing more to learn about your profession can be the beginning of the end for your career, while staying abreast of events and trends in your industry is essential to moving your career forward. So, use Google Alerts to monitor things like emerging technology, major employers, thought leaders, and even national conferences or local professional gatherings. Google Alerts will keep you relevant if you play your cards right! Bottom Line Google has provided us with a very handy tool in Google Alerts. If you’re not using it, you’re missing out on a great resource for your job search. If you’re using Google Alerts already and getting value, or if you start using them after reading this article, please share about your experience! Online job search expert Susan P. Joyce has been observing the online job search world and teaching online job search skills since 1995. Susan is a two-time layoff “graduate” who has worked in human resources at Harvard University and in a compensation consulting firm. A veteran of the United States Marine Corps and a former Visiting Scholar at the MIT Sloan School of Management, Susan edits and publishes Job-Hunt.org and writes WorkCoachCafe.com.

Communication And Its Impact On Individual s Sense Of...

Acquired difficulties in communication have potential to significantly impact an individual’s sense of belonging, ultimately impeding their reintegration into society if not properly addressed. One population with prominent communication deficits includes the more than one million individuals currently diagnosed with aphasia in the United States (National Institute of Neurological Disorders and Stroke [NINDS], 2016). Attenuation of communication abilities isolates people from their prior life and role in society, decreasing their quality of life (Lam Wodchis, 2010). Initially, due to a lack of resources, this population utilized group therapy (Kearns Elman, 2001). More recently, evidence suggests this method is an integral part of improving communication (Fama, Baron, Hatfield, Turkeltaub, 2016; Layfield, Ballard, Robin, 2013). One skillset essential to successful communication includes conversation management (cite). A group setting provides a natural context for indivi duals with aphasia to employ such strategies. However, further analysis into group therapy efficacy will benefit clinicians in their practice. (need transition) Aphasia is an acquired neurogenic language disorder. A concise definition is challenging to establish because aphasia is not marked by one distinct feature. Aphasia entails a multitude of deficits, involving varying degrees of impairment based on the location and extent of brain damage (American Speech-Language-Hearing AssociationShow MoreRelatedDurkheim s Theory Of Anomie1530 Words   |  7 Pagesoutline Durkheim s theory of anomie and use this to explore the importance of a sense of belonging in modern society. This exploration will be used in explanation of the causes of the modern phenomenon of youth joining gangs. Firstly, the work and focuses of Durkheim will be introduced. Secondly, his concept of anomie and relevant surrounding theories will be defined and explained. Thirdly, the impacts of anomie will be discussed . Next, anomie will be related to the sense of belonging in modern societyRead MoreSocial Interactions in Shakespeare’s As You Like It, Hancock’s The Blind Side and Shaun Tan’s The Lost thing1122 Words   |  5 Pagesexpectations can make a significant impact on one’s ability to fit in to an environment. Some individuals’ however challenge society and break down social barriers in order to improve or limit an individual’s aptitude to assimilate. Being affiliated with a particular individuals or groups can leave a person feeling accepted as they can gain a new sense of perspective of the world. People’s connections with society and others can enhance or constrict their views on belonging. Society’s expectations canRead MorePersonal Reflection Paper : The Domino s Case796 Words   |  4 Pagessituations are related to communication. In a company, poor execution, short leadership, and conflicts on the jobs always happen, and all the relevant bad managements are about lacking communication. The first job I got in the United States was working in McDonald. Since I had no any working experiences and had poor English basis, I didn’t realize many problems inside the store. When I look back my working experience in McDonald, the biggest problem is about communication. Sometimes, the store managerRead MoreTe Whariki1308 Words   |  6 PagesWhariki: Early Childhood Curriculum in which we follow as a framework for teaching in New Zealand. This report is going to cover the three broad age groups Te Whariki is based upon. It will explain the principles and strands of Te Whariki and the impact it has on a developing child. It will describe the purpose of Te Whariki and discuss ways it is used by early childhood education services throughout New Zealand. It will describe Te Whariki’s support for bi-culturalism throughout the early childhoodRead MoreFlorida Hospital Is A Non Profit Hospital Essay1435 Words   |  6 Pagesin our community. Our branches reach far beyo nd our eight-campus facility and deep into the roots of Central Florida, where every day we cultivate hope and healing. With our collaboration and support, we’ve helped nurture our community in ways that impact the health and happiness of our friends and neighbors† (Florida Hospital cares community benefit report, 2016). Florida Hospital depicts an example of human resource perspective of management through their employee programs, as well as through theirRead MoreFunction of Communication1366 Words   |  6 Pages1. Introduction â€Å"Each of us has our own sets of needs that motivate our communication and our responses to messages. While not everyone’s priorities are identical, our needs resemble one another’s.’’ Maslow wanted to understand what inspires people. Maslow believed that people carry a set of motivation systems that are unrelated to rewards or to the unconscious desires. Maslows hierarchy of needs includes five motivational needs, that are often interpreted as the hierarchical levels that are withinRead MoreCommunication Is A Human Relationship Essay1593 Words   |  7 PagesCommunication is one of the most loosely defined terms in cultural studies. It encompasses a whole variety of experiences, events, actions and multitude happenings. The English world communication has been derived from latin word ‘communis’ which means to make common. In the simplest words, communication is a human relationship involving two or more persons who come together to share their views on a particular topic or to resolve a particular issue. The contemporary period has been labeled as theRead MoreThe Importance Of A Safe And Healthy Learning Environment1623 Words   |  7 Pageshealth needs including wellness, and to strengthen the gap between home and school. All of these goals are beneficial to the student as an individual learner. If a child is healthy and well, then they will be more likely to succeed inside the classroom. A child will also benefit from a tighter gap between home and school; this tighter gap caused by communication can lead a child down the right path as they grow older. If a parent is supportive to the child in their academic endeavors, then the childRead MoreBranding Is A Expression Of The Human Condition1727 Words   |  7 Pagesbetter businesses, and the role of the brand which consider as a barometer of value has sustained growth. Basically, branding is a philosophical expression of the human condition. It is about belonging/attachment. Belonging to a tribe, to a religion, to a family and to a product. The Branding establishes a sense of attachment. It has this function for both the people who are part of the same group and also for the people who don’t belong. The origins of branding are basically related to the nature ofRead MoreRelationship Between Relationships And Family Structures1595 Words   |  7 Pagesrelationship is traditionally characterised by two individuals who have dependent children or also as a ‘nuclear family.’ Monogamy is a hetero-normative practice that involves two individuals in a relationship; the couple is not engaged in extramarital intimacy. Nuclear families also fall under this practice. Polyamory is a non-monogamous practice that refers to multiple intimate partners and experiences. However, some scholars argue that if, or when one individual engages in infide lity, Polyamory is a viable

Major Religions and their Effects on Society - 1299 Words

What is â€Å"God†? â€Å"God† has numerous meanings behind it. It means something different to everyone. For many God is a figure of higher authority, a divine force, that is looked up to. God is a combination of fears, dominant, and immortality. Where there is God, there is religion. There are many types of religions for example, Hinduism, Judaism, Islam, Confucianism, Christianity, Bahà ¡Ãƒ ­, and Greeks. Religion is the glue that keeps people intact with their sanity. Having religion is a good aspect to have and causes beneficial outcomes for oneself and the community. Also, primary the reason for people to preform good deeds and to become interactive with their community is due to religion. Also, the reason behind why people decide to strive above†¦show more content†¦The Jewish people serve God by studying, praying and by following the Torah. However, unlike some religions, Judaism does not believe that other peoples must adopt its own religious beliefs and practices in order to be redeemed. The primary focus of the religion is on building a strong relationship with others. Judaism helps the community to interact and help one another when there is a festival each year. It helps bring families together. Confucianism is mostly around China. Confucius was the founder of the religion. It begins to spread and become in action during the Tang Dynasty. There is no real â€Å"God† for the religion. Confucianism is more of a guide rather than a religion. However, its teachings are very valuable and strict. The main purpose for this religion is to help their followers in harmony. They believe in becoming one with nature. Also, that there must be a balance for everything (Ying Yang). Respect is very crucial in the religion, similar to the Hinduism religion. These followers must show respect to elders or higher authority. All of the Confucianism principles are based on the Chinese culture. Also, like the previous religions â€Å"Confucianism teaches about how to live and conduct oneself in this life here and now† (Morgan, 2012). Christianity spread throughout the world and is widely known. Approximately 6.3 billion people are Christians around the world and out of those 6.3 billion people 33 percent people are professing Christians. â€Å"AlmostShow MoreRelatedThe Between Religion And Society894 Words   |  4 PagesIn society, people strived for social interaction among one another by grouping themselves with individuals who are like minded. This type of classification normally consist of various type of cultural similarities to include but not limited to ethnic background, food, music, fashion and arts. Another form of classification that has been instilled in the world for many years is religion. 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However, dealing with this major societal issue not only requires these legislative measures but also necessitate creative and critical thinking to enhance theRead MoreDeontological vs. Teleological Ethical Systems Essay1163 Words   |  5 Pagesof harm that the action has caused (Pollock, 2004). There are seven major ethical systems that make up Deontological and Teleological Ethical Systems. Ethical formalism is what is good is that which conforms to the categorical imperative. Ethical formalism is the doctrine that certain actions are good (ie, the right thing to do) or evil (ie, the wrong thing to do) in and of themselves, apart from any beneficial or harmful effect that they might have on individuals. Although many reasons are providedRead MoreA Secularization - The Effects Of The Early Reformation1083 Words   |  5 Pagesâ€Å"A Secularization – The Effects of the Early Reformation† In Philip Benedict’s article in response to Brad Gregory’s novel, The Unintended Reformation: How a Religious Revolution Secularized Society; Benedict addresses the long-term effects that the early Reformation had on the modern world. The articles objective is to explain how things came to be as they are institutionally and ideology in the contemporary Western world and to provide an explanation of how the past became the present. AccordingRead MoreCulture Within The Islamic Religion1290 Words   |  6 Pages Culture within the Islamic Religion Culture is the common uniting factors that a community shares. It includes values, customs, habits, thoughts that guide members of the society. Culture can also be defined as practices and knowledge that is transmitted to the generation by social interactions between members of a social community (Pohlong 1). It differs from community to community. The purpose of the essay is to relate and differentiate culture from religion, especially the Islamism andRead MoreEvery Child Across America Encounters Some Form Of Education1402 Words   |  6 Pageschild across America encounters some form of education and it is a major priority in society today. In order to receive a desired education, one attends an institution where skills and knowledge are gained to use and progress in future goals. Something parents might not realize, when deciding where a child should start the first day of kindergarten, is the options involved with attending a public or private school. Beneficial effects a re received when an individual is sent to a proper learning environment

Inflation Is Assumed Free Essays

string(67) " stockholders have the same liability as members of a partnership\." Inflation is assumed Chapter 1 True / False Questions 1. Inflation is assumed to be a temporary problem that does not affect financial decisions. FALSE 2. We will write a custom essay sample on Inflation Is Assumed or any similar topic only for you Order Now Financial Capital is composed of long-term plant and equipment, as well as other tangible investments. FALSE 3. Real Capital is composed of long-term plant and equipment. TRUE 4. During the 1930s, financial practice revolved around such topics as the preservation of capital, maintenance of liquidity, reorganization of financially troubled corporations and bankruptcy. TRUE 5. In the mid 1950s, finance began to change to a more analytical, decision-oriented approach. TRUE 6. Recently, the emphasis of financial management has been on the relationship between risk and return. TRUE 7. The most common partnership arrangement carries limited liability to the partners. FALSE 8. In terms of revenues and profits, the corporation is by far the most important form of business organization in the United States. TRUE 9. Dividends paid to corporate stockholders have already been taxed once as corporate income. TRUE 10. One advantage of the corporate form of organization is that income received by stockholders is not taxable since the corporation already paid taxes on the income distributed. FALSE 11. A corporation must have more than 75 stockholders to qualify for Subchapter S designation. FALSE 12. Profits of a Subchapter S corporation are taxed at corporate tax rates. FALSE 13. Corporate governance issues have become less important to the financial community during the first decade of the new millennium. FALSE 14. Agency Theory examines the relationship between companies and their customers. FALSE 15. A major focus of the Sarbanes Oxley Act is to make sure that publicly traded companies accurately present their assets, liabilities and income in their financial statements. TRUE 16. The Sarbanes Oxley Act is primarily intended to increase public scrutiny of private companies that had previously been exempt from many public disclosure requirements. FALSE 17. Timing is not a particularly important consideration in financial decisions. FALSE 18. Maximizing the earnings of the firm is the goal of financial management. FALSE 19. Insider trading involves the use of information not available to the general public to make profits from trading in a company’s stock. TRUE 20. Financial markets exist as a vast global network of individuals and financial institutions that may be lenders, borrowers, or owners of public companies worldwide. TRUE 21. Money markets refer to those markets dealing with short-term securities having a life of one year or less. TRUE 22. Money markets refer to markets where excess corporate cash is exchanged for foreign currencies that can earn a higher return than domestic money. FALSE 23. Capital markets refer to those markets dealing with short-term securities having a life of one year or less. FALSE 24. The primary market includes the sale of securities by way of initial public offerings. TRUE 25. High quality initial public offerings are usually sold in a primary market, such as the New York Stock Exchange. However, low-quality stocks must usually be sold in secondary markets, such as NASDAQ. FALSE 26. Although NASDAQ is a secondary market, some of the firms traded there, such as Microsoft, are large enough to move to the primary market if they so desire. FALSE 27. The secondary market characteristically has had stable prices over the past 20 years. FALSE 28. In the United States, stocks sold on either the New York Stock Exchange or NASDAQ are considered sold in the primary market. FALSE 29. New issues are sold in the secondary market. FALSE 30. Existing securities are traded in the secondary market. TRUE 31. Many companies have cross-listed their stock on multiple international stock exchanges and more than several hundred foreign companies have listed their shares on the New York Stock Exchange. TRUE 32. Financial management requires both short-term activities as well as long-term planning such as raising funds. TRUE Multiple Choice Questions 33. What is the primary goal of financial management? A. Increased earnings B. Maximizing cash flow C. Maximizing shareholder wealth D. Minimizing risk of the firm 34. In the past, the study of finance has included A. mergers and acquisitions. B. raising capital. C. bankruptcy. D. all of these. 35. Professor Merton Miller received the Nobel prize in economics for his work on   A. dividend policy. B. investment theory. C. working capital management. D. capital structure theory. 36. Professors Harry Markowitz and William Sharpe received their Nobel prize in economics for their contributions to the   A. options pricing model. B. theories of working capital management. C. theories of risk-return and portfolio theory. D. heories of international capital budgeting. 37. Proper risk-return management means that A. the firm should take as few risks as possible. B. the firm must determine an appropriate trade-off between risk and return. C. the firm should earn the highest return possible. D. the firm should value future profits more highly than current profits. 38. One of the major disadvantages of a sole proprietorshi p is   A. that there is unlimited liability to the owner. B. the simplicity of decision making. C. low organizational costs. D. low operating costs. 39. One of the major advantages of a sole proprietorship is   A. hat the owner has limited liability. B. that stock in the proprietorship can be easily transferred. C. that it is exempt from many tax rules that would otherwise apply when employees are hired by the firm. D. low operating costs. 40. The partnership form of an organization A. avoids the double taxation of earnings and dividends found in the corporate form of organization. B. usually provides limited liability to the partners. C. has unlimited life. D. simplifies decision making. 41. A corporation is A. owned by stockholders who enjoy the privilege of limited liability. B. easily divisible between owners. C. a separate legal entity with perpetual life. D. all of these. 42. With a Subchapter S corporation A. income is taxed as direct income to stockholders. B. stockholders have the same liability as members of a partnership. You read "Inflation Is Assumed" in category "Essay examples" C. the number of stockholders is unlimited. D. life of the corporation is limited. 43. A Subchapter S corporation A. is similar to a partnership in that is carries unlimited liability. B. is a separate legal entity which is treated like a normal corporation. C. has all the organizational benefits of a corporation and its income is only taxed once. D. all of these. 44. Corporate governance is the A. relationship and exercise of oversight by the board of directors of the company. B. relationship between the chief financial officer and institutional investors. C. operation of a company by the chief executive officer (CEO) and other senior executives on the management team. D. governance of the company by the board of directors with a focus on social responsibility. 45. Many companies such as Tyco, Enron, and WorldCom that suffered financial distress in the late 1990s and early 2000s,   A. committed fraud. B. had failed corporate governance oversight. C. went bankrupt. D. ll of these are true. 46. Agency theory examines the relationship between the A. shareholders of the firm and the firm’s investment banker. B. owners of the firm and the managers of the firm. C. board of directors and large institutional investors. D. shareholders and the firm’s transfer agent. 47. Agency theory would imply that conflicts are more likely to occur betw een management and shareholders when   A. the company is owned and operated by the same person. B. management acts in the best interests of maximizing shareholder wealth. C. the chairman of the board is also the chief executive officer (CEO). D. he board of directors exerts strong and involved oversight of management. 48. Agency problems are least likely to arise in which organizational form? A. sole proprietorship B. limited partnership C. corporation D. subchapter S corporation 49. Institutional investors are important in today’s business world because   A. as large investors they have more say in how businesses are managed. B. they have a fiduciary responsibility to the workers and investors that they represent to see that the firms they own are managed in an ethical way. C. as a group they can vote large blocks of stock for the election of board members. D. all of these. 50. The increasing percentage ownership of public corporations by institutional investors has   A. had no effect on corporate management. B. created higher returns for the stock market in general. C. created more pressure on public companies to manage their firms more efficiently. D. taken away the voice of the individual investor. 51. The Sarbanes-Oxley Act was passed in an effort to A. protect small business from large corporations dominating the market. B. ensure that partnerships divide profits among partners in a fair manner. C. guarantee outside auditors can control corporate accounting practices. D. control corrupt corporate behavior. 52. Maximization of shareholder wealth is a concept in which   A. increased earnings is of primary importance. B. profits are maximized on a quarterly basis. C. virtually all earnings are paid as dividends to common stockholders. D. optimally increasing the long-term value of the firm is emphasized. 53. Which of the following is not a true statement about the goal of maximizing shareholder wealth? A. It takes into account the timing of cash-flows. B. It is a short-run point of view which takes risk into account. C. It considers risk as a factor. D. None of these. 54. Insider trading occurs when A. someone has information not available to the public which they use to profit from trading in stocks. B. corporate officers buy stock in their company. C. lawyers, investment bankers, and others buy common stock in companies represented by their firms. D. any stock transactions occur in violation of the Federal Trade Commissions restrictions on monopolies. 55. The major difficulty in most insider-trading cases has been   A. that lenient judges have simply released the guilty individuals. B. that insider trading, even though illegal, actually serves a beneficial economic and financial purpose. C. that inside trades have not been legally well defined. D. inside trades actually have a beneficial effect on the wealth of all stockholders. 56. Money markets would include which of the following securities? A. common stock and corporate bonds. B. treasury bills and commercial paper. C. certificates of deposit and preferred stock. D. all of these. 57. Capital markets do not include which of the following securities:   A. common stock B. commercial paper C. government bonds D. preferred stock 58. When a corporation uses the financial markets to raise new funds, the sale of securities is made in the   A. rimary market. B. secondary market. C. on-line market. D. third market. 59. Corporate restructuring has been one result of more institutional ownership. Restructuring can cause   A. changes in the assets and liabilities of the firm. B. the sale of low-profit margin divisions. C. the removal of current management and/or large reductions in the workforce. D. all of these. 60. Th e internationalization of the financial markets has   A. allowed firms such as McDonalds to raise capital around the world. B. raised the cost of capital. C. forced companies to price everything in U. S. dollars. D. all of these. Chapter 2 True / False Questions 61. The income statement is the major device for measuring the profitability of a firm over a period of time. TRUE 62. The income statement measures the increase in the assets of a firm over a period of time. FALSE 63. Operating profit is essentially a measure of how efficient management is in generating revenues and controlling expenses. TRUE 64. Accounting income is based on verifiably completed transactions. TRUE 65. The P/E ratio is strongly related to the past performance of the firm. FALSE 66. When a firm has a sharp drop off in earnings, its P/E ratio may be artificially high. TRUE 67. The real value of a firm is the same from an economic and accounting perspective. FALSE 68. A balance sheet represents the assets, liabilities, and owner’s equity of a company at a given point in time. TRUE 69. The investments account represents a commitment of funds of at least one year or more. TRUE 70. Asset accounts are listed in order of their liquidity. TRUE 71. Accumulated depreciation shows up in the income statement. FALSE 72. Total assets of a firm are financed with liabilities and stockholders equity. TRUE 73. Book value per share and market value per share are usually the same dollar amount. FALSE 74. Book value per share is of greater concern to the financial manager than market value per share. FALSE 75. Book value is equal to net worth. TRUE 76. Equity is a measure of the monetary contributions that have been made directly or indirectly on behalf of the owners of the company. TRUE 77. Stockholders’ equity is equal to liabilities plus assets. FALSE 78. Retained earnings shown on the balance sheet represents available cash on hand generated from prior year’s earnings but not paid out in dividends. FALSE 79. Retained earnings represent the firm’s cumulative earnings since inception, minus dividends and other adjustments. TRUE 80. The statement of cash flows helps measure how the changes in a balance sheet were financed between two time periods. TRUE 81. Cash flow is equal to earnings before taxes minus depreciation. FALSE 82. An increase in an asset represents a source of funds. FALSE 83. Assume that two companies both have Net Income of $100,000. The firm with the highest depreciation expense will have the highest cash flow, assuming all other adjustments are equal. TRUE 84. An increase in inventory represents a source of funds. FALSE 85. An increase in a liability account represents a source of funds on the cash flow statement. TRUE 86. An increase in accounts receivable represents a reduction in cash flows from operations. TRUE 87. An increase in accounts payable represents a reduction in cash flows from operations. FALSE 88. The purchase of a new factory would reduce the cash flows from investing activities on the statement of cash flows. TRUE 89. The sale of corporate bonds held by the firm as a long-term investment would increase cash flows from investing activities on the statement of cash flows. TRUE 90. Paying dividends to common shareholders will not affect cash flows from financing activities. FALSE 91. The sale of a firm’s securities is a source of funds, whereas the payment of dividends is a use of funds. TRUE 92. Depreciation is an accounting entry and does not involve a cash expense. TRUE 93. Free cash flow is equal to cash flow from operating activities minus necessary capital expenditures and normal dividend payments. TRUE 94. An increase in accounts receivable results in a cash inflow on the statement of cash flows. FALSE 95. A decrease in bonds payable results in a cash outflow on the statement of cash flows. TRUE 96. An increase in accrued expenses results in a cash outflow on the statement of cash flows. FALSE Multiple Choice Questions 97. Which of the following is not one of the three basic financial statements? A. Income Statement B. Statement of Retained Earnings C. Statement of Cash Flows D. Balance Sheet 98. Which of the following is not subtracted out in arriving at operating income? A. interest expense B. cost of goods sold C. depreciation D. selling and administrative expense 99. Increasing interest expense will have what effect on EBIT? A. increase it B. decrease it C. no effect D. not enough information to tell 100. The residual income of the firm belongs to A. creditors. B. preferred stockholders. C. common stockholders. D. bondholders. 101. Allen Lumber Company had earnings after taxes of $580,000 in the year 2006 with 400,000 shares outstanding on December 31, 2006. On January 1, 2007, the firm issued 35,000 new shares. Because of the proceeds from these new shares and other operating improvements, 2007 earnings after taxes were 25 percent higher than in 2006. Earnings per share for the year-end 2007 was   A. $1. 67 B. $1. 45 C. $1. 81 D. None of these 102. Consider the following information for Ball Corp. [pic] What is the Operating Profit for Ball Corp? A. $71,450 B. $90,000 C. 120,000 D. None of these 103. Candy Company had sales of $240,000 and cost of goods sold of $108,000. What is the gross profit margin (ratio of gross profit to sales)? A. 75% B. 55% C. 73. 3% D. None of these 104. Density Farms, Inc. had sales of $500,000, cost of goods sold of $180,000, selling and administrative expense of $70,000, and operating profit of $90,000. What was the value of depreciat ion expense? A. $170,000 B. $230,000 C. Less than $170,000 D. None of these 105. Elgin Battery Manufacturers had sales of $900,000 in 2006 and their cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 9 percent of sales. Depreciation expense was $10,000 and interest expense for the year was $8,000. The firm’s tax rate is 30 percent. What is the dollar amount of taxes paid? A. $151,200 B. $145,800 C. More than $151,800 D. None of these 106. A firm with earnings per share of $5 and a price-earnings ratio of 15 will have a stock price of   A. $20. 00 B. $75. 00 C. $3. 00 D. the market assigns a stock price independent of EPS and the P/E ratio. 107. Earnings per share is A. operating profit divided by number of shares outstanding. B. et income divided by number of shares outstanding. C. net income divided by stockholders’ equity. D. net income minus preferred dividends divided by number of shares outstanding. 108. Reinvested funds from retained earnings theoretically belong to:   A. bond holders. B. common stockholders. C. employees. D. all of these. 109. The firm’s price-earnings (P/E) ratio is influenced by its   A. capital structure. B. earnings volatility. C. sales, profit margins, and earnings. D. all of these. 110. Which of the following factors do not influence the firm’s P/E ratio:   A. past earnings. B. shares outstanding. C. volatility in performance. D. none of these. 111. Which of the following would not be classified as a current asset? A. Marketable securities B. Investments C. Prepaid expenses D. Inventory 112. An item which may be converted to cash within one year or one operating cycle of the firm is classified as a   A. current liability. B. long-term asset. C. current asset. D. long-term liability. 113. Which of the following would not be included in the balance sheet investment account? A. stocks of other corporations B. long term government bonds C. marketable securities D. investments in other corporations 14. Which of the following is not a primary source of capital to the firm? A. assets B. common stock C. preferred stock D. bonds 115. The major limitation of financial statements is A. in their complexity. B. in their lack of comparability. C. in their use of historical cost accounting. D. in their lack of detail. 116. Net worth is equal to stockholders’ equity A. plus dividends . B. minus preferred stock. C. plus preferred stock. D. minus liabilities. 117. Book value is the same as A. stockholders’ equity. B. fixed assets minus long-term debt. C. net worth. D. current assets minus current debt. 118. Total stockholders’ equity consists of A. preferred stock and common stock. B. common stock and retained earnings. C. common stock and capital paid in excess of par. D. preferred stock, common stock, capital paid in excess of par and retained earnings. 119. The net worth of a firm A. is usually the same as the firm’s market value. B. is based on current asset costs. C. is based on current liabilities. D. none of these. 120. The orientation of book value per share is __________, while the orientation of market value per share is ___________. A. short term, long term B. future, historical C. historical, future D. ong term, short term 121. A statement of cash flows allows a financial analyst to determine   A. whether a cash dividend is affordable. B. how increases in asset accounts have been financed. C. whether long-term assets are being financed with long-term or short-term financing. D. all of these. 122. A firm’s purchase of plant and equipment would be consid ered a   A. use of cash for financing activities. B. use of cash for operating activities. C. source of cash for investment activities. D. use of cash for investment activities. 123. Depreciation is a source of cash inflow because A. it is a tax-deductible non-cash expense. B. it supplies cash for future asset purchases. C. it is a tax-deductible cash expense. D. it is a taxable expense. 124. Depreciation tends to A. increase cash flow and decrease income. B. decrease cash flow and increase income. C. affect only cash flow. D. affect only income. 125. Given the following, what is free cash flow? [pic] A. $115,000. B. $235,000. C. $185,000. D. $165,000. 126. Assuming a tax rate of 35%, depreciation expenses of $400,000 will   A. reduce income by $140,000. B. reduce taxes by $140,000. C. reduce taxes by $400,000. D. have no effect on income or taxes, since depreciation is not a cash expense. 27. Assuming a tax rate of 30%, the after-tax cost of interest expense of $200,000 is   A. $60,000 B. $140,000 C. $200,000 D. $120,000 128. Assuming a tax rate of 40%, the after-tax cost of a $200,000 dividend payment is   A. $200,000 B. $70,000 C. $130,000 D. none of these. 129. Farah Snack Co. has earnings after taxes of $128,750. Interest expense for the year was $20,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. Taxes were $15,000. The firm has 100,000 shares of common stock outstanding. Earnings per share on the common stock was   A. $0. 90 B. $1. 10 C. $0. 5 D. $0. 80 130. Gerry Co. has a gross profit of $880,000 and $360,000 in depreciation expense. Selling and administrative expense is $120,000. Given that the tax rate is 40 percent, compute the cash flow for Gerry Co. A. $456,000 B. $240,000 C. $600,000 D. None of these 131. Hoover Inc. has current assets of $360,000 and fixed assets of $640,000. Current liabilities are $90,000 and long-term liabilities are $160,000. There is $90,000 in preferred stock outstanding and the firm has issued 10,000 shares of common stock. Compute book value (net worth) per share   A. $84. 00 B. $66. 00 C. $75. 00 D. None of these 132. The best indication of the operational efficiency of management is   A. net income. B. earnings per share. C. earnings before interest and taxes (EBIT). D. gross profit. 133. A corporation can increase their earnings per share by   A. increasing tax-deductible expenses B. increasing Treasury stock C. decreasing depreciation D. decreasing retained earnings From End of the Chapter 2 Problems 5. Given the following information, prepare, in good form, an income statement for Goodman Software, Inc. Selling and administrative expense$ 50,000 Depreciation expense80,000 Sales400,000 Interest expense30,000 Cost of goods sold150,000 Taxes18,550 2-5. Solution: Goodman Software, Inc. Sales$ 400,000 Cost of goods sold 150,000 Gross Profit250,000 Selling and administrative expense50,000 Depreciation expense 80,000 Operating profit120,000 Interest expense 30,000 Earnings before taxes90,000 Taxes 18,550 Earnings after taxes$ 71,450 6. Given the following information prepare in good form an income statement for the Kid Rock and Gravel Company. Selling and administrative expense$ 60,000 Depreciation expense70,000 Sales470,000 Interest expense40,000 Cost of goods sold140,000 Taxes45,000 2-6. Solution: Kid Rock and Gravel Co. Income Statement Sales$ 470,000 Cost of goods sold$ 140,000 Gross profit$ 330,000 Selling and administrative expense$ 60,000 Depreciation expense$ 70,000 Operating profit$ 200,000 Interest expense$ 40,000 Earnings before taxes$ 160,000 Taxes$ 45,000 Earnings after taxes$ 115,000 7. Prepare in good form an income statement for Virginia Slim Wear. Take your calculations all the way to computing earnings per share. Sales$600,000 Shares outstanding100,000 Cost of goods sold200,000 Interest expense30,000 Selling and administrative expense40,000 Depreciation expense20,000 Preferred stock dividends80,000 Taxes100,000 2-7. Solution: Virginia Slim Wear Income Statement Sales$600,000 Cost of goods sold 200,000 Gross profit400,000 Selling and administrative expense40,000 Depreciation expense 20,000 Operating profit340,000 Interest expense 30,000 Earnings before taxes310,000 Taxes 100,000 Earnings after taxes210,000 Preferred stock dividends80,000 Earnings available to common stockholders130,000 Shares outstanding100,000 Earnings per share$ 1. 30 8. Prepare in good form an income statement for Franklin Kite Co. , Inc. Take your calculations all the way to computing earnings per share. Sales$900,000 Shares outstanding50,000 Cost of goods sold400,000 Interest expense40,000 Selling and administrative expense60,000 Depreciation expense20,000 Preferred stock dividends80,000 Taxes50,000 2-8. Solution: Franklin Kite Company Income Statement Sales$900,000 Cost of goods sold400,000 Gross profit500,000 Selling and administrative expense60,000 Depreciation expense20,000 Operating profit$420,000 Interest expense40,000 Earnings before taxes$380,000 Taxes50,000 Earnings after taxes$330,000 Preferred stock dividends80,000 Earnings available to common stockholders250,000 Shares outstanding50,000 Earnings per share$5. 00 9. Lasar Technology, Inc. , had sales of $500,000, cost of goods sold of $180,000, selling and administrative expense of $70,000, and operating profit of $90,000. What was the value of depreciation expense? Set this problem up as a partial income statement, and determine depreciation expenses as the plug figure. 2-9. Solution: Lasar Technology, Inc. Sales$500,000 Cost of goods sold $180,000 Gross Profit$320,000 Selling and administrative expense70,000 Depreciation Expense (plug figure) 160,000 Operating profit$ 90,000 10. The Ace Book Company sold 1,500 finance textbooks for $185 each to High Tuition University in 2008. These books cost Ace $145 to produce. Ace spent $10,000 (selling expense) to convince the university to buy its books. In addition, Ace borrowed $80,000 on January 1, 2008, on which the company paid 10 percent interest. Both interest and principal of the loan were paid on December 31, 2008. Ace’s tax rate is 25 percent. Depreciation expense for the year was $15,000. Did Ace Book Company make a profit in 2008? Please verify with an income statement presented in good form. -10. Solution: Ace Book Company Sales (1,500 books at $185 each)277,500 Cost of goods sold (1,500 books at $145 each) 217,500 Gross Profit60,000 Selling expense10,000 Depreciation expense 15,000 Operating profit†¦Ã¢â‚¬ ¦35,000 Interest expense 8,000 Earnings before taxes27,000 Taxes @ 25% 6,750 Earnings after taxes20,250 11. Carr Auto Wholesalers had sales of $900,000 in 2004 an d their cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 9 percent of sales. Depreciation expense was $10,000 and interest expense for the year was $8,000. The  firm’s tax rate is 30 percent. a. Compute earnings after taxes. b. Assume the firm hires Ms. Hood, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 12 percent of sales, sales can be increased to $1,000,000. The extra sales effort will also reduce cost of goods sold to 60 percent of sales (there will be a larger markup in prices as a result of more aggressive selling). Depreciation expense will remain at $10,000. However, more automobiles will have to be carried in inventory to satisfy customers, and interest expense will go up to $15,000. The firm’s tax rate will remain at 30 percent. Compute revised earnings after taxes based on Ms. Hood’s suggestions for Carr Auto Wholesalers. Will her ideas increase or decrease profitability? 2-11. Solution: Carr Auto Wholesalers Income Statement a. Sales$ 900,000 Cost of goods old (65% of sales) 585,000 Gross Profit$ 315,000 Selling and administrative expense (9% of sales) 81,000 Depreciation 10,000 Operating profit 224,000 Interest expense 8,000 Earnings before taxes 216,000 Taxes @ 30% 64,800 Earnings after taxes $ 151,200 2-11. (Continued) b. Sales $1,000,000 Cost of goods sold (60% of sales) 600,000 Gross profit 400,000 Selling and administrative expense (12% of sales) 120,000 Depreciation 10,000 Operating profit 270,000 Interest expense 15,000 Earnings before taxes 255,000 Taxes @ 30% 76,500 Earnings after taxes$ 178,500 Ms. Hood’s ideas will increase profits. 15. Elite Trailer Parks has an operating profit or $200,000. Interest expense for the year was $10,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. The tax was $61,250. The firm has 20,000 shares of common stock outstanding. . Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. b. What was the increase in retained earnings for the year? 2-15. Solution: Elite Trailor Parks a. Operating profit (EBIT)$200,000 Interest expense 10,000 Earnings before taxes (EBT)$190,000 Taxes 61,250 Earnings after taxes (EAT)$128,750 Preferred dividends 18,750 Available to common stockholders$110,000 Common dividends 30, 000 Increase in retained earnings$80,000 [pic] Dividends per Share = $30,000/20,000 shares = $1. 50 per share b. Increase in retained earnings = $80,000 16. Johnson Alarm Systems had $800,000 of retained earnings on December 31, 2008. The company paid common dividends of $60,000 in 2008 and had retained earnings of $640,000 on December 31, 2007. How much did Johnson earn during 2008, and what would earnings per share be if 50,000 shares of common stock were outstanding? 2-16. Solution: Johnson Alarm Systems Retained earnings, December 31, 2008$800,000 Less: Retained earnings, December 31, 2007 640,000 Change in retained earnings$160,000 Add: Common stock dividends 60,000 Earnings available to common stockholders$220,000 Earnings per share [pic] 17. Mozart Music Co. had earnings after taxes of $560,000 in 2008 with 200,000 shares of stock outstanding. The stock price was $58. 80. In 2009, earnings after taxes increased to $650,000 with the same 200,000 shares outstanding. The stock price was $78. 00 a. Compute earnings per share and the P/E ratio for 2008. The P/E ratio equals the stock price divided by earnings per share. b. Compute earnings per share and the P/E ratio for 2009. c. Give a general explanation of why the P/E changed. 2-17. Solution: Mozart Music Co. a. EPS (2008)[pic] = $2. 80 P/E Ratio (2008)= Price/EPS =[pic] = 21X b. EPS (2009)[pic] = $3. 5 P/E Ratio (2009)= Price/EPS=[pic]= 24X c. The stock price increased by 34% while EPS only increased 16. 1%. 20. Nova Electrics anticipated cash flow from operating activities of $6 million in 2008. It will need to spend $1. 2 million on capital investments in order to remain competitive within the industry. Common stock dividends are projected at $. 4 million and preferred stock dividends at $. 55 million. a. What is the firm’s projected free cash flow for the year 2008? b. What does the concept of free cash flow represent? 2-20. Solution: Nova Electronics a. Cash flow from operations activities$6. 0 million – Capital Expenditures1. 20 – Common stock dividends. 40 – Preferred stock dividends . 55 Free cash flow$3. 85 million b. Free cash flow represents the funds that are available for special financial activities, such as a leveraged buyout, increased dividends, common stock repurchases, acquisitions, or repayment of debt. 21. The Rogers Corporation has a gross profit of $880,000 and $360,000 in depreciation expense. The Evans Corporation also has $880,000 in gross profit, with $60,000 in depreciation expense. Selling and administrative expense is $120,000 for each company. Given that the tax rate is 40 percent, compute the cash flow for both companies. Explain the difference in cash flow between the two firms. 2-21. Solution: Rogers Corporation – Evans Corporation | |Rogers |Evans | |Gross profit |$880,000 |$880,000 | |Selling and adm. expense |120,000 |120,000 | |Depreciation |360,000 60,000 | |Operating profit |$400,000 |$700,000 | |Taxes (40%) |160,000 |280,000 | |Earnings after taxes |$240,000 |$420,000 | |Plus depreciation expense |$360,000 |$60,000 | |Cash Flow |$600,000 |$480,000 | | | |Rogers had $300,000 more in depreciation which provided $120,000 (0. 40 ( $300,000) more in cash flow. | | | 22. Horton Electronics has current assets of $320,000 and fixed assets of $640,000. Current liabilities are $90,000 and long-term liabilities are $160,000. There is $90,000 in preferred stock outstanding and the firm has issued 40,000 shares of common stock. Compute book value (net worth) per share. 2-22. Solution: Horton Energy Company Current assets |$320,000 | |Fixed assets |640,000 | |Total assets |$960,000 | |–Current liabilities |90,000 | |–Long-term liabilities |160,000 | |Stockholders’ equity |$710,000 | |–Preferred stock obligation |90,000 | |Net worth assigned to common $620,000 | | | | |Common shares outstanding |40,000 | | | | |Book value (net worth) per share |$15. 50 | 23. The Holtzman Corporation has assets of $400,000, current liabilities of $50,000, and long-term liabilities of $100,000. There is $40,000 in preferred stock outstanding; 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. b. If there is $22,000 in earnings available to common stockholders and Holtzman’s stock has a P/E of 18 times earnings per share, what is the current price of the stock? c. What is the ratio of market value per share to book value per share? 2-23. Solution: Holtzman Corporation |a. Total assets |$400,000 | |–Current liabilities |50,000 | |–Long-term liabilities |100,000 | |–Stockholders’ equity |$250,000 | |–Preferred stock |40,000 | |Net worth assigned to common |$210,000 | |Common shares outstanding |20,000 | |Book values (net worth) per share |$10. 50 | |b. Earnings available to common |$22,000 | |Shares outstanding |20,000 | |Earnings per share |$1. 10 | | [pic] | |c. Market value per share (price) to book value per share $19. 80/$10. 50 = 1. 89 | 24. Bradley Gypsum Company has assets of $1,900,000, current liabilities of $700,000, and long-term liabilities of $580,000. There is $170,000 in preferred stock outstanding; 30,000 shares of common stock have been issued. a. Compute book value (net worth) per share. b. If there is $42,000 in earnings available to common stockholders and Bradley’s stock has a P/E of 15 times earnings per share, what is the current price of the stock? c. What is the ratio of market value per share to book value per share? 2-24. Solution: Bradley Gypsum Company |a. Total assets |$1,900,000 | |–Current liabilities |700,000 | |–Long-term liabilities |580,000 | |Stockholders’ equity |$ 620,000 | |–Preferred stock |170,000 | |Net worth assigned to common |$ 450,000 | |Common shares outstanding |30,000 | |Book values (net worth) per share |$ 15. 00 | |b. Earnings available to common | | |stockholders |$ 42,000 | |Shares outstanding |30,000 | |Earnings per share |$ 1. 40 | | [pic] | |c. Market value per share (price) to book value per share $21. 00/$15. 00 = 1. 40 | Chapter 14 True / False Questions 148. Capital markets consist of securities having maturities greater than one year. TRUE 149. The capital structure of the firm consists of long-term debt and equity. TRUE 150. Capital markets are becoming increasingly international as investors and issuers seek out the best risk-return opportunities. TRUE 151. Upon entering the capital markets, an investor might invest in common stocks, preferred stock, negotiable certificates of deposit, and convertible securities. FALSE 152. In the last decade, the US has invested substantially more in foreign countries than foreign countries have invested back in the US. FALSE 153. Municipal securities are called tax exempt because no federal taxes must be paid on interest received. TRUE 154. The stock market far exceeds the bond market in terms of size of new capital raised. FALSE 155. The capital markets serve as a way of allocating available capital to the most efficient user. TRUE 156. The main reason for the small amount of financing with preferred stock is that dividends on preferred stock are not tax deductible as are interest paid on bonds. TRUE 157. Retained earnings account for the majority of internally generated corporate funds. FALSE 158. When an investor buys stock in the stock market, he is purchasing shares from a company. FALSE 159. Internal funds generated by corporations include retained earnings and non cash expenses such as depreciation and deferred taxes. TRUE 160. Households and the government are mainly considered to be suppliers of funds while corporations are generally considered users of funds. FALSE 161. Financial intermediaries channel funds into the capital markets from the household sector. TRUE 162. Brokers on an organized stock exchange act as an agent for the person buying or selling securities. TRUE 163. Brokers actually own the securities they buy and sell on the floor of the exchange. FALSE 164. The NASDAQ National Market is composed of large nation-wide companies that are traded in the over-the-counter market. TRUE 165. The strong form of the efficient market hypothesis states that prices reflect all public information. FALSE 166. The efficient market hypothesis is generally concerned with the impact of information on the behavior of stock prices. TRUE 167. The weak form of the efficient market hypothesis states that an investor can profit by using past price data. FALSE 168. Markets are efficient when prices adjust rapidly to new information, continuous markets exist and large dollar trades can be absorbed without large price movements. TRUE 169. The Sarbanes-Oxley Act of 2002 holds the CEO legally accountable for the accuracy of their firm’s financial statements. TRUE 170. The Sarbanes-Oxley Act of 2002 holds a firm’s internal auditors legally accountable for the accuracy of their firm’s financial statements. FALSE 171. The future of the NYSE is uncertain due to their unwillingness to adapt to the increase in internationalization and electronic trading in the markets. FALSE Multiple Choice Questions 172. Evidence of how global markets are linked was provided in 1997 and 1998 when international markets reacted to   A. the collapse of Asian currencies in Thailand, Indonesia, Malaysia and Korea. B. Russia’s default on its sovereign debt. C. Japan’s seven years of economic stagnation. D. a and b are true. 173. When global capital markets collectively react to international events like Russia’s default on its sovereign debt, it is common to find   A. that there is no impact on multinational companies’ ability to raise capital. B. an impact on the ability to raise capital. C. that Wall Street firms are so diversified that they are not affected by this event. D. All of these are true. 174. Which of the following is not a money market instrument? A. Treasury bills B. Commercial paper C. Negotiable certificates of deposit D. Treasury bonds 175. Global capital markets are influenced by A. interest rates. B. investor confidence. C. elative economic growth. D. all of these. 176. Companies list their stock around the globe to A. capitalize on the inefficiency inherent in foreign markets. B. increase liquidity for their stockholders. C. provide opportunities for the sale of new stock in foreign countries. D. b and c are correct. 177. Foreign investors have p referred to invest in the United States due to all but one of the following reasons:   A. less stringent regulation of securities markets. B. political stability of the U. S. government. C. the U. S. dollar is the world’s international currency. D. all of these are reasons that foreign investors prefer to invest in the United States. 178. With respect to the United States and its relationship with the rest of the world, it can be said that   A. the U. S. has invested more dollars in the rest of the world than foreign countries have invested in the U. S. B. the U. S. has actively helped foreign countries finance their government deficits. C. foreign investors hold large positions in U. S. government securities. D. All of these. 179. Financial instruments in the capital markets generally fall under what category in the Balance Sheet? A. Short-term liabilities and equities. B. Long-term liabilities and equities. C. Near cash assets. D. None of these. 180. Corporations prefer bonds over preferred stock for financing their operations because   A. referred stocks require a dividend. B. bond interest rates change with the economy while stock dividends remain constant. C. the after-tax cost of debt is less than the cost of preferred stock. D. none of these. 181. Federally sponsored credit agencies include all but which of the following? A. Securities Investor Protection Corporation (SIPC) B. Federal Home Loan Banks (FHLB) C. Student Loan Marketing Association (Sallie Mae) D. Federal National Mortgage Association (Fannie Mae) 182. Which of the following is an internal source of funds? A. Cash flow from depreciation (tax shield) B. Net loss C. Repurchase of debt securities D. Bank loan 183. The major supplier of funds for investment in the whole economy is   A. businesses. B. households. C. government. D. financial institutions. 184. Financial intermediaries serve which of the following purposes? A. Financial intermediaries allow for indirect investment in the capital markets by households. B. Aid in the flow of funds through the economy. C. Help provide allocation of funds to the best investments. D. All of these. 185. Which of the following are benefits of financial intermediaries? A. Increase market liquidity B. Provide a direct market for investors C. Act as agents of the government D. Only a and b 186. The purpose of secondary trading is to A. rovide liquidity and competition between investments. B. provide a market to issue securities not handled in primary trading. C. provide jobs for brokers and dealers. D. provide lower commissions than on the organized exchanges. 187. The most important capital markets in the world (in terms of dollar value) are located in   A. New York. B. London. C. Toronto. D. Tokyo. 188. Which Stock Exchange is known as the most liquid? A. NASDAQ B. AMEX C. CBOT D. NYSE 189. Middle to small size companies that are centered in one city or state would most likely be found on the   A. NASDAQ National Market. B. NASDAQ Small Cap Market. C. Supplemental list. D. New York Stock Exchange. 190. The emergence of trading via ECNs has A. offer a unique advantage not offered by the NYSE B. lowered the cost of trading. C. made trading more difficult for small investors. D. all of these are true. 191. Which of the following is not a criterion for an efficient market? A. Prices adjust rapidly to new information. B. Large dollar amounts of securities can be absorbed without price destabilization. C. Each successive trade is made at a price close to the previous trade. D. Computerized handling of transactions. 192. Security markets are efficient when each of the following exist except   A. security prices follow the leading indicators such as the DJIA very closely. B. he markets can absorb large dollar amounts of stock without destabilizing the price. C. prices adjust rapidly to new information. D. there is a continuous market where each successive trade is made at a price close to the previous trade. 193. The efficient market hypothesis deals primarily with   A. random speculat ion in securities. B. the degree to which prices adjust to new information. C. degrees to which price movements are the result of past trends. D. how an investor can significantly outperform the market in general. 194. The efficient market hypothesis has several forms. The weak form states that   A. past price data is unrelated to future prices. B. prices reflect all public information. C. ll information both public and private is immediately reflected in stock prices. D. none of these 195. Security markets provide liquidity A. by allowing corporations to raise funds by selling new issues. B. by creating a market in which owners may easily turn an investment into cash through its sale. C. a and b are both correct. D. neither a nor b are correct. 196. The semi-strong form of the efficient market hypothesis states that   A. past price data is unrelated to future prices. B. prices reflect all public information. C. all information both public and private is immediately reflected in stock prices. D. none of these 197. The strong form of the efficient market hypothesis states that   A. ast price data is positively correlated to future prices. B. prices reflect all public information. C. all information both public and private is immediately reflected in stock prices. D. none of these 198. Security markets are affected by all of the following except:   A. interest rates B. global crises C. book values of equity D. emotions 199. Financial intermediaries include all of the following except:   A. commercial banks B. life insurance companies C. corporations D. pension plans 200. The purposes of security legislation include all of the following except:   A. protect against fraud B. ensure market efficiency C. reduce insider trading D. provide a global competitive advantage How to cite Inflation Is Assumed, Essay examples

Graduating free essay sample

Succeeding in school is a difficult challenge for me. Entering high school, thoughts of graduation were the least of my concerns, but with a blink of an eye, it’s already my senior year. High school was a big change from junior high, there were more people, the school was twice as big, and I could feel myself changing too. My first three years of high school, I was a very different person than I am today. I was naive, rebellious, and clueless to the repercussions of my actions. My attitude was poor and my grades were worse. I think my teachers would have labeled me as a lost cause. By the time I entered my junior year I could feel myself maturing. Now I am confident, secure, and determined to go to college. There are things in life I want. I didn’t want the reputation I had earned thus far. We will write a custom essay sample on Graduating or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page So I began to re-invent myself. My goal now is to graduate from high school. Unfortunately I do not have older siblings or even family members’ footsteps to follow in, because I will be the first in my family to go to college. My grandparents lived in Puerto Rico, and weren’t fortunate enough to continue past the sixth grade. This has motivated me to take full advantage of any and all learning experiences. Also, my mother and aunt dropped out their junior years to have their children. There decision has made me chose to not have children at a young age. Instead, I would like to focus in school and on my future career. Seeing how they failed to graduate, I have a strong determination to succeed and finish high school. I want to show my family that I will accomplish my goal. Sometimes I worry that if I don’t meet my goal, I will be looked at as a failure and I wouldn’t be able to live with that. Attending college is something I never thought would happen. It gives me a great sense of pride, to know that I can set an example for my relatives. I want to be able to open their eyes and demonstrate the value of a higher education. To me, the value of a higher education is having the ability to have more choices. I see how my mom despises her job, yet because of her lack of education she is and always will be at a standstill with her career. Therefore acquiring my college degree, will limit my struggles and open up a door of endless possibilities for me. In a few months, I will be the one graduating in the Abington High School gymnasium, where family and friends will join me in celebrating my accomplishments. Hopefully, they will look back at my graduation and think about how I was able to keep my promise to myself and accomplish my goals.