...Principles of Business Credit Chapter 1 - Credit: must involve exchange of values - 5 C’s of credit: character, capacity, capital, collateral, conditions - credit ( can be private or public - Credit Process: o First goes through a buyer who wants to buy a service or product o operating cycle: activities company goes through to produce and sell its goods and services o production stage: when material is converted into goods o manufacturer then sells finished goods to customers and customer pays for goods that were purchased on credit (collection stage) - Types of Credit o Public credit: government credit o Private credit: extended or used by individuals or businesses to carry on exchange of goods and services in private sector Private credit: - Investment credit - Consumer credit - Agricultural credit - Business credit - Bank credit Investment Credit: long-term borrowing of large amounts of money to finance productive assets. Primarily loans made to governments or businesses to raise money to pay for expansion modernization or public projects. - Bonds of fixed income securities (generally 10+ years) - Asset backed bond (backed by specific holdings for ex. Real estate) - Debentures (backed by financial standing, not assets) most common. - Secured bonds o Mortgage bonds o Equipment trust certificates (bonds issued to buy new...
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...MGT 415 WEEK 5 ASSIGNMENT FINAL PAPER A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=mgt-415-week-5-assignment-final-paper Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION MGT 415 Week 5 Assignment Final Paper, Organization and Structure in a Business Setting The circulation focus is an indispensable piece of any association. A DC (Distribution Center) works as a cost focus and does not can produce any benefit all alone’s. The building is given an apportioned plan for the year and is in charge of staying inside the parameters of that funding. Numerous distinctive elements can influence a building’s capacity to effectively meet that funding and gainfulness is one of the greatest ones. Gainfulness clearly drives the quantity of containers that are transformed and the more that are prepared, the better that is for the monetary allowance. Wage hours are additionally specifically affected by benefit. In the event that every colleague has high gainfulness, it will take less wage hours to achieve the volumes than the financial backing considers. There can likewise be a drawback of high gainfulness, as well. The quicker a group ventures to every part of the more potential there is for inefficiencies and wounds. These can really nullify any of the monetary profits acknowledged from the higher profit of the group by adding extra wage hours to settle quality issues and added expenses identified with lost work hours. The...
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...Developing business in the brewing industry as thousands of tradition, always face of intense competition from existing competitors as well as new entrants. In additional, any manufacturers have difficult in expending production capacities and resources. This report aims to recommend how to continue growing business without compromising on quality in high competitive market and limited production capacities and resources. After four year growth in volume, from 6,000 cases in 2008 to 200,000 cases in 2012, the 961 volume of beer sold increased dozens of times. The various products of 961 beer have presented and its retailers network have expanded to variety channel such as bars, restaurants and local supermarkets, even it opened a beer pub by the company. This pub has been an exciting successful case and also has given hints for next periods. However, the company faced of limited capacity for the production of larger volumes while the team operated in small volume and even a new bottling machine had to be ordered. The company had strategically become one of biggest Lebanese brewing company and had prepared for huge competition from Almaza who is also local company dominated the Lebanese market. In additional, by being acquired by Heineken in 2002, this closet competitor took on hand many advantages in technology, experiences, alternative famous brand from the No. 1 worldwide brewing corporation. While the company has built all things from zero. Its largest early customer group...
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...Political Competency Name Institution Lessons learned about Political Competency from the Documentary, Shameless Propaganda (2013) Political competency is viewed as the capacity to understand what an individual can or cannot control when to take action, which is going against your motive and who you require on your side to push your motive ahead. Political competency relates to having knowledge of how to map the political terrain, get others on your area and lead coalitions. More often than not, political competency is not viewed as a critical core competence that is required by all politicians or leaders within an organization. The documentary “Shameless Propaganda” gives insights of the art of political competence that took place in Canada between 1939 and 1945 (“National Film Board of Canada,” 2014). When you ask fruitful pioneers how they get things going, they'll converse with you about conceptualizing, support, authority, market investigation, and arranging, however they'll infrequently expound on the unending normal micro-legislative issues they participate in. Legislative issues are by all accounts an unthinkable subject in authoritative life-the elephant in the initiative parlor that nobody examines or concedes is there (Golubeva, 2013). Political competence is not fiendishness by result of authoritative life. Being political, in its most appealing light, is being mindful of the hobbies of others, discovering zones of shared view, bringing others on board, and...
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...of transfers from EROW ? 2. Examine the Actual and Budgeted Fixed Costs of Exhibit 2. Show the calculations used to derive actual and budget: a. Standard b. Cost Adjustments (HINT: the cost adjustment hinges on the answer to question 1b) c. Volume Variance 3. As Choquette, what evidence would you present to the Polysar Board of Directors during the upcoming performance review of NASA Rubber Division. Pay particular attention to questions that may be raised concerning the accuracy and meaning of volume variances. 4. In light of the current compensation plan, what sales and production strategy is Henderson (EROW Division) likely to choose? What would Choquette (NASA Division) prefer? 5. Suppose EROW is operating at capacity and would like to purchase additional rubber. If EROW could buy the rubber from an external source (and not have to purchase it from NASA) , what is the most that EROW would be willing to pay (per tonne)? 6. Compare the profitability (per tonne) of EROW and NASA. How should the company schedule production to insure the highest level of profits to the Rubber Group in...
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...individuals who are working and have sustained injuries on or off the job, a key focus of rehabilitation is restoration of work capacity. Rehabilitation programs that are funded by government or private insurers often have an explicit goal of returning the injured party to previous or comparable levels of employment. In such cases, it is important to identify required job tasks and expected performance levels. Such information creates targeted outcomes for the rehabilitation program. The overall rehabilitation process is guided by the job analysis through a process wherein assessed levels of current functional capacity are compared to the required job performance demands (Loisel et al. 2001). Identified gaps between worker capacity and job demands are then addressed through restorative programs and/or job modification. Work transition planning In rehabilitation the job analysis is used to provide information to match the injured worker with tasks that can be safely performed on initial resumption of duties following an absence or time away from regular duties. The job analysis information serves as the foundation for a graduated work resumption process that optimizes productivity and compliments the rehabilitation program and injury recovery. Regular review of the job analysis is used to identify job demands that are suitable to the worker's capacities throughout the recovery process until the worker resumes the pre-injury job or reaches an optimal level of performance in a...
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...Amsterdam MBA Operations & Supply Chain Management Bayonne Packaging, Inc. HBS brief case 4420 March 5, 2013 Gulcin Askin Michelle Donovan Kivanc Ozuolmez Peter Tempelman 1 The answers in this report relate to the questions given in the document ‘Case 1: Bayonne Packaging, Inc.’ Question 1: Operations Performance of Bayonne Packaging 1A. How would you define the Operations Strategy of Bayonne Packaging? The operations strategy of a company is the prioritization of the five key performance measures: cost, quality, speed, dependability and flexibility. The president of Bayonne Packaging, Inc. indicates that the problems of the company are: they have incurred their first losses since 2001, there are complaints about quality and they are delivering late more often. The other department managers, except for the absent Finishing department manager, also indicate to the new vice president of operations that they have problems in their departments that relate to the performance measures dependability, quality and speed. Based on the priorities given by the key personnel of Bayonne Packaging we have determined the operations strategy of Bayonne Packaging to be as follows (key performance measures in descending order of importance: 1. Dependability 2. Quality 3. Speed 4. Costs 5. Flexibility 1B. How can Bayonne Packaging, Inc.’s Operations & Supply Chain performance be quantified? Per Key Performance Measure we have determined the following ways to...
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...Michael Greenberg Macroeconomic Policy 10/15/2013 Capacity Utilization of China For a long time, we have suggested that because of China’s GDP growth being driven primarily by investment, the end result will inevitably be over-capacity. This has been rather apparent in some industries such as steel, cement and wind power. We also believe that the construction boom after the 2008/09 stimulus has already led to over-building of residential real estate. The only problem we all have is that there are no accurate official statistics in China (like those in the US) that we are aware of for capacity utilization. With investment increasing by 5 percent of GDP over the past three years, estimates show that capacity utilization has declined from just under 80 percent before the crisis to around 60 percent today. This low rate of capacity utilization, together with continued low core inflation, suggests that there is large excess capacity in China’s economy. The estimates also show that China has had excess capacity for the better part of the past decade. The gap was closing in the run-up to the financial crisis, but did so based on an unsustainable level of external demand. Even in 2007, when growth exceeded 14 percent, nonfood inflation was low and stable, suggesting the economy was still operating below capacity. Then, in 2008, the government put in place a large investment stimulus that increased growth and broadened capacity in a range of areas. Filtering techniques which impose...
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...It is learnt that the management is in the process of finalizing the VISION of PSPCL and one of the mission identified is to "attain 10,000 MW Power Generation in the state by 2020". Presently, the total installed capacity of share is 4878 MW and PS has signed PPAs with private companies setting up plants at Goindwal Sahib (540MW), Talwandi Sabo(1980 MW), Rajpura (1400 MW)and with NTPC (2640 MW with PSPCL share of 1320 MW). So the total installed capacity in the state by the end of 2014-15 is expected to be 9118 MW. In addition, has signed MOUs with private companies for setting up thermal plants in the state of more than 5000 MW capacity. In addition, presently P has allocation of 1840 MW from central sector plants which is expected to cross 470 MW in the next 5 years. As there is no difference between the powers contracted on long term basis with plants set up outside the state either by central sector or private sector companies and the PPAs signed for procurement of power with private companies setting up plants in the state so mission appears to have been secured well before 2015 without investing even a penny in any project. The question is what will be doing in the next 5 years whereas generation is concerned? In the past, the management of repeatedly argued in favour of setting up plants under state sector and has mentioned it many a times that "setting up of thermal plants in the state sector is in the interest of the state" but surprisingly this commitment...
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...A tax is an involuntary fee levied on producers and consumers by the government that is used to finance government activities. A land value tax is a tax that is paid by landowners to the government based on the value of the land, disregarding property and any improvements made to the land. The most efficient tax would result in the least distortion of economic decision making thereby interfering the least with the market’s efficient allocation of resources and reducing the “excess burden” on society. In this essay, we shall be first examining the economic effect of a land tax, and discuss how land tax is economically efficient. Then I will discuss how land value tax may not be the most efficient tax due to the supply elasticity of land created by government land use regulations and the existence of alternative potentially efficient tax bases. Refer to figure 1. As land is immobile and the amount of land available at any point in time is fixed, we assume the supply of land (S) is perfectly price inelastic. Demand for land use is represented by D. The rent paid by the land user to the landowner is OR, and the rental revenue earned by the owner is ORAQ on figure 1. Changes in the economic rent of land do not affect the quantity of land supplied. With the implementation of a land value tax of OT, based on the value of the land, the total rental revenue received by the landowner is reduced from ORAQ to TRAB, and the tax revenue earned by the government is OTBQ. As the supply...
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...In January 1980, the management of the Marriott Corporation found itself in an interesting dilemma: not only did the corporation have considerable excess debt capacity, but projections of future operations and cash flows indicated that this capacity was on the rise. For Marriott, excess debt capacity was viewed as comparable to unused plant capacity because the existing equity base could support additional productive assets. Management was therefore faced with two problems. First, it needed to determine the amount of funds that would be available if Marriott's full debt capacity were utilized. Second, management needed to decide whether to invest excess funds in new or existing businesses, or to return them to the companies shareholders by paying higher cash dividends or repurchasing stock. To resolve the first issue, it is recommended that the Marriott corporation calculates several coverage ratios so that it can evaluate it's ability to cover the costs associated with varying levels of debt. There are three coverage ratios, corresponding to the costs associated with increased debt leverage, recommended by Higgins n his book. These ratios are times interest covered, times burden covered, and times common covered. To calculate these ratios EBIT is divided by a specific cost, or sum of costs, to determine how well profits are able to support them. Alternatively, “percentage EBIT can fall” could be calculated with regards to each type of cost, to determine the percentage amount...
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...Financial Risk|0.00|1.00|0.23|1.00| Income statements for the four quarters: Income Statement| |Quarter 1|Quarter 2|Quarter 3|Quarter 4| 'Gross Profit| ' Revenues|0|2,088,800|1,966,400|7,276,700| '- Rebates|0|106,950|97,200|177,500| '- Cost of Goods Sold|0|1,222,026|1,147,195|4,827,198| '= Gross Profit|0|759,824|722,005|2,272,002| |||| | 'Expenses| ' Research and Development|120,000|0|60,000|60,000| '+ Advertising|0|130,118|132,990|272,805| '+ Sales Force Expense|0|163,914|163,914|175,122| '+ Sales Office Expense|430,000|220,000|220,000|220,000| '+ Marketing Research|0|15,000|15,000|15,000| '+ Shipping|0|30,661|29,521|63,603| '+ Inventory Holding Costs|0|61,969|98,790|0| '+ Excess Capacity Cost|0|391,710|491,700|0| '+ Depreciation|0|25,000|25,000|25,000| '= Total Expenses|550,000|1,038,372|1,236,915|831,530| |||| | ' Operating Profit|-550,000|-278,548|-514,910|1,440,472| |||| | 'Miscellaneous Income and Expenses| '+ Other Income|0|0|0|0| '- Other Expenses|0|0|0|0| '= Earnings Before Interest and Taxes|-550,000|-278,548|-514,910|1,440,472| |||| | '+ Interest Income|0|0|0|0| '- Interest Charges|0|0|0|0| '= Income Before Taxes|-550,000|-278,548|-514,910|1,440,472| |||| | '- Loss Carry...
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...Case Analysis Write-Up #1 Case Study: Tots-R-Us Questions: 1. Compute the cost of a single preschool class and a single birthday party using the current cost system. 2. Would you recommend that TRU continue to allocate the building-related costs only to the preschool program? What alternative allocation method would you suggest? Justify your answer. Ignore consideration of excess capacity discussed in question 3 below for this answer. Please discuss any additional information that you feel is needed. Based upon the information available to us we would not recommend that TRU continue to allocate all of the building-related costs to the preschool program only since doing so results in an inaccurate representation of the actual cost for both the preschool and birthday party segments of the business. The alternative cost allocation method that we believe if the most appropriate for TRU and therefore the one we would suggest that they should use would be the Step-Down Method as it will allocate the cost of one service department to the other service department. It will also define how indirect costs must be allocated to both the preschool service department and the birthday service department and the cost allocation would then be more accurate for each service provided. TRU is using a direct method of cost allocation which is less accurate than other methods that could be used, such as the Step-Down method. TRU has two departments that provide services within their business...
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...Summary ISCOM/471 December 9, 2013 Jose Aguaylo Executive Summary Introduction Capacity Management. This is a strategically important aspect of operations management for any organization, particularly those engaged in the fabrication and distribution of a product such as Starbucks. Capacity management refers to the design and control of an organization’s processes such that it can meet demand in a timely manner. Capacity management includes proper sizing and allocation of resources including workers, raw materials, inventory, equipment, space, and technology. Inefficient capacity management can have substantial impact on a business, either because it will not be able to meet demand, or because there would be too much idle inventory, raw materials and other resources. Effective capacity management requires good demand forecasting for proper planning on the aggregate (Chase, Jacobs, & Aquilano, 2006). In the case of the new Starbucks yogurt and ice cream products, the company needs good forecasting on daily, weekly and seasonal demand for these products. Each store needs to be supplied with the required equipment and receive sufficient raw materials to meet daily demand. Just-In-Time. Just-in-time (JIT) is a production model to meet demand without incurring in unnecessary surplus or inventory build-up. The purpose of JIT is to reduce the expense associated with excess inventories and overproduction. JIT requires a predictable forecast of product demand. It...
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...plant since the Merseyside production process was old and therefore higher in labor than competitors. The project Greystock wanted to propose to senior management consisted of GBP 12 million expenditure. Grestock was faced with some issues and decisions related to the project that she had to address. Those issues includes, issues with the transport division, the ICG and marketing department, the assistant plant manager, the treasury staff, and evaluating the capital expenditure. Issues: Concerns of the Transport division: Greystock’s argument is that the purchase of tank cars shouldn’t be included in the initial outlay because the company will use the transport division’s excess capacity. However, The transport division thinks the purchase should be included, because the increased output would deplete capacity for the tank cars currently used, which would accelerate the purchase of new tank cars to be in 2010 instead of 2012. This change in the timing of the purchase would change timing of cash flows as well as affecting incremental depreciation. My argument is in favor...
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