Question & Answer

An open side planer is to be used to plane the top surface of a rectangular workpart, 20.0 in by 45.0 in. The cutting speed is 30 ft/min, the feed is 0.015 in/pass, and the depth of cut is 0.250 in. The length of the stroke across the work must be set up so that 10 in are allowed at both the beginning and end of the stroke for approach and overtravel. The return stroke, including an allowance for acceleration and deceleration, takes 60% of the time for the forward stroke. The workpart is made of carbon steel with a tensile strength of 50,000 lb/in2 and a Brinell hardness of 110 HB. How long will it take to complete the job, assuming that the part is oriented in such a way as to minimize the time?

In processes involving pipeline operations or assembly line operations, if the pipeline or assembly line is always full, then beginning and ending WIP inventories are always 50 per cent complete with regard to conversion costs. Explain.

How would you attempt to assess whether a particular period of inflation was the result of cost-push or demand-pull pressures?

: Define entrepreneurship and the five classifications of entrepreneurs.

Explain the importance of contingency planning, scenario building, stretch goals, and crisis planning for managers today.

: Summarize the impact of people of color, immigrants, and women on the creation of new businesses.

Explain how finance companies benefit from offering consumers a credit card. (LO2)

Why are monetary surprises less likely with independent central banks pursuing an inflation target? Would monetary surprises still be possible in such circumstances?

: Outline the planning necessary to launch an entrepreneurial start-up.

Describe important steps for starting an online or mobile app business.

To what extent is national defence a pure public good? Can it ever be rivalrous or excludable in consumption?

Balanced scorecard perspectives: internal business process, innovation             and growth The Galaxy Hotel Group owns and operates a number of mid-level boutique hotels mostly in regional Australia. Galaxy is structured around regions with a regional general manager usually given the responsibility of working closely with the managers of the hotels within their region. Commonly, a regional general manager is responsible for around 6 to 8 hotels. Within Australia, Galaxy has six regional general managers who report to the CEO, Angelo Vellma. Galaxy’s strategy has focused on meeting the needs of business and holiday travellers seeking 3 to 3.5 star accommodation for relatively short stays that are affordable but comfortable. One thing Galaxy enforces is its objective of having the same high-level service at each hotel. The CFO of Galaxy, Caitlin Zhang, has raised the idea of introducing a balanced scorecard. At this stage it has only been discussed at board level, but most of the board members are in favour of its implementation. As Zhang points out, ‘it will focus the attention of employees on our key priorities as well as provide the opportunity to reinforce our strategy throughout the company’. Zhang’s first draft balanced scorecard developed for use at the individual hotel level is provided below. To date, Zhang has constructed the first draft alone, without consulting others.       Another board member, Patrick Ryan, wonders about using the balanced scorecard a little differently. ‘Perhaps we could use the scorecard to facilitate discussion with our regional managers and individual hotel managers. Not all are the same and they obviously face different challenges. The scorecard could be used by senior management to meet with regional managers and discuss the performance of hotels in the region, and perhaps re-work part of the scorecard and set different priorities as the regions work to meet local challenges.’ Required (a)          Angelo Vellma is a little concerned about the draft scorecard. He had recently attended a seminar on balanced scorecards and is worried about the lack of measures relating to what he thinks are important issues at the individual hotel level. He is particularly concerned at the lack of an internal business process perspective and a learning and growth perspective in the scorecard. Identify two measures relevant at the individual hotel level at Galaxy for the internal business process perspective and the learning and growth perspective. Provide a brief justification for each measure. (b)          Comment on the implementation process of the balanced scorecard at Galaxy to date.

Compare and contrast financial accounting rules with the tax rules under UNICAP (§263A). Explain whether the UNICAP rules tend to accelerate or defer income relative to the financial accounting rules.

Assume a free-floating exchange rate. Draw a diagram like Figure 25.6, only this time show an initial equilibrium national income with a balance of payments surplus.          (a)  Mark the size of the surplus.          (b)  Show the resulting shifts in the (X–M) and the E curves.          (c)  Mark the eventual equilibrium.          (d)  Show the size of the income and substitution effects (of the change in the exchange rate).          (e)  Under what circumstances will the income effect be (i) ‘desirable’; (ii) ‘undesirable’?          (f)   Could the income effect of the change in the exchange rate ever be larger than the substitution effect?

: Explain three approaches to corporate-level strategy: the portfolio, the Boston Consulting Group (BCG) matrix, and diversification.

Presented below is a list of accounts in alphabetical order. Accounts Receivable Inventory—Ending Accumulated Depreciation—Buildings Land Accumulated Depreciation—Equipment Land for Future Plant Site Accumulated Other Comprehensive Income Loss from Flood Advances to Employees Noncontrolling Interest Advertising Expense Notes Payable (due next year) MAllowance for Doubtful Accounts Paid-in Capital in Excess of Par—Preferred StockBond Sinking Fund Patents Bonds Payable Payroll Taxes Payable Buildings Pension Liability Cash (in bank) Petty Cash Cash (on hand) Preferred Stock  ash Surrender Value of Life Insurance Premium on Bonds Payable Commission Expense Prepaid Rent Common Stock Purchase Returns and Allowances Copyrights Purchases Debt Investments (trading) Retained Earnings Dividends Payable Salaries and Wages Expense (sales) Equipment Salaries and Wages Payable Freight-In Sales Discounts Gain on Disposal of Equipment Sales Revenue Interest Receivable Treasury Stock (at cost) Inventory—Beginning Unearned Subscriptions Revenue Instructions Prepare a classified balance sheet in good form. (No monetary amounts are to be shown.)

: Describe Michael Porter’s competitive forces and strategies.

Ann M. Martin Company makes the following errors during the current year. (Evaluate each case independently and assume ending inventory in the following year is correctly stated.) 1. Ending inventory is overstated, but purchases and related accounts payable are recorded correctly. 2. Both ending inventory and purchases and related accounts payable are understated. (Assume this purchase was recorded and paid for in the following year.) 3. Ending inventory is correct, but a purchase on account was not recorded. (Assume this purchase was recorded and paid for in the following year.) Instructions Indicate the effect of each of these errors on working capital, current ratio (assume that the current ratio is greater than 1), retained earnings, and net income for the current year and the subsequent year.

Should a liability be recorded for risk of loss due to lack of insurance coverage? Discuss.

: Compare and contrast the globalization, multidomestic, and glocalization strategies for global business.

: Describe how managers can use the organizational mission and other techniques to manage goal conflict.

Where can authoritative IFRS related to accounting changes be found?

How did the Financial Services Modernization Act affect securities firms? (LO2)

Indicate the mathematical equation for the flow curve

A country’s central bank (e.g. the Bank of England or the US Federal Reserve) has a key role in ensuring the stability of the banking system. In many countries the central bank is prepared to bail banks out which find themselves in financial difficulties. Although this has the benefit of reducing the chance of banks going bankrupt and depositors losing their money, it can create a moral hazard. Explain why.