...Chapter Two Economics: The Framework for Business Review Questions 1. How did the global economic crisis unfold? The economy changed for the worst when the dot.com bubble burst in 2000, and 9/11 terrorist attacks happened in 2001. 2. What steps did the Federal government and the Federal Reserve take to mitigate the crisis? They decreased interest rates, and subprime mortgage came into play. They seized a few companies that controlled a lot of the mortgage. The congress passed a bill on dollar bailout plan. As the new administration began Obama passed a 825 billion dollar bailout plan. 3. Compare and contrast microeconomics and macroeconomics. How do the two approaches interrelate? Use a specific example to explain. Macroeconomics is the study of a country’s overall economic issues such as performance, structure, behavior, decisions making, and study rates. Microeconomics focuses on smaller economic units such as individual consumers, families and businesses. They can affect how much and what you can buy for your family. 4. What is the difference between fiscal and monetary policy? What role does politics play in shaping these policies? Fiscal policies refer to government efforts to influence the economy through taxation without representation and spending decisions that are designed to encourage growth. Monetary policies refer to actions that shape...
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...What is organizational culture? Where does it come from? Organizational culture can be loosely described as "the way things are done in an organization. It is a system of shared characteristics that the members in the organization value and which distinguish the organization from other organizations. Main characteristics that the organization culture defines include the following. 1. The degree to which innovation and risk taking behavior is accepted and valued. 2. The degree to which employees are expected to pay attention to detail in performance of their work. 3. The degree to which management focuses on the results produced rather than adherence to systems and procedures. 4. Degree to which people and people aspect of any situation is taken into consideration in decision making. 5. The degree to which work is organized around teams of people rather than individuals. 6. The degree to which aggressive and competitive behavior is accepted and appreciated. 7. The relative emphasis placed on maintenance of status quo versus growth. The current organization culture of any company is largely determined by what has been the way of working in the past and the degree of success achieved using those ways. The ultimate source of the past behavior is primarily the influence of the founders of the organization. The founders contribute to formation of early organization culture in three ways. 1. Founders only hire and keep employee of certain types who...
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...1) Non-governmental organisation: A non-governmental organisation is an organization that is neither a part of a government nor a conventional for-profit business. 2) Life expectancy at birth: Average number of years that a newborn is expected to live if current mortality rates continue to apply. 3) Objectives of WHO: To improve equity in health, reduce health risks, promote healthy lifestyles and settings, and respond to the underlying determinants of health. 4) Infrastructure: the basic, underlying framework or features of a system or organization. 5) The distribution of long lasting insecticide-treated nets and water filters to prevent malaria and water-borne diseases can significantly reduce the chances. 6) It is hard to treat those with malaria or diarrhoea in rural areas. This is because it is expensive to get aid to those areas due to the distance and the quantity needed. Also, in order to treat the diseases, quick action is needed which is made harder by the distance. 7) This entry gives the number of deaths of infants under one year old in a given year per 1,000 live births in the same year. This rate is often used as an indicator of the level of health in a country. 8) Infant mortality rate: total: 40.71 deaths/1,000 live births male: 45.33 deaths/1,000 live births female: 35.99 deaths/1,000 live births (2014 est.) Life expectancy at birth: total population: 63.52 years male: 62.06 years female: 65.01 years (2014 est.) ...
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...1. What is the importance of information system to STARS? Although STARS appears to have maintained the highest standards in recruiting highly trained professionals for its team, these high standards have not been the case previously with regard to information systems. The former CIO was not a member of the permanent staff but a consultant who just focused on his own assignments. Department managers had to deal with the system problems on their own. Senior executives do not seem to have had any clear vision as to the importance of IS and the commensurate need for professional leadership. According to the communication with the managers by CIO, one argument raised was that even if a lengthy information system outage occurs, information systems are not truly critically important because helicopters and medical teams can still fly to accident sites and rely on the cell phone for communication purpose. That is, STARS basic operations will still function even in the absence of information system support. However, the STARS mission is measured in human lives and not simply by the timely dispatch of a helicopter and medical team. Much of the critical information regarding accident victims, site conditions , availability of the chain of survival partners and even factors related to aircraft safety cannot be successfully communicated by cell phone, these information, in turn, can directly affect the survival rate of patients and the safety of the aircrews. In fact, ELC heavily relies...
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...Principals of Finance FIN-3005 June 3, 2014 Questions and Applications 7) Borrowing from the Federal Reserve: Describe the process of “borrowing at the Federal Reserve.” What rate is charged, and who sets it? Why do banks commonly borrow in the federal funds market rather than through the Federal Reserve? “Borrowing at the discount window” represents the borrowing by depository institutions from the Federal Reserve. The interest rate charged on these loans is known as the discount rate is set by the FED. Banks tend to prefer the federal funds market over the discount window because the Fed may monitory the bank’s reasons for borrowing. The Fed’s discount window is intended to accommodate banks that experience “unanticipated” shortage of funds. 9) Bullet Loan: Explain the advantage of a bullet loan. A bullet loan is a loan that specifies a date in the future in which the principal is paid off in a lump sum. This type of loan is useful for a borrower will have limited funds in the near future. 10) Bank Use of Funds Why do banks invest in securities even though loans typically generate a higher return? Explain how a bank decides the appropriate percentage of funds that should be allocated to each type of asset. Securities provide a bank with liquidity, because they can often be sold easily in the secondary market. In addition, many securities purchased by banks have low risk. Therefore, the securities can be used to minimize liquidity risk and...
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...QUESTION NO: 57 New switches have been purchased for a network upgrade. The objective for the network design emphasizes efficient, error-free transport instead of fast transport. Which switching mode should be configured on the new switches to provide error-free transport to the network? A. cut-through B. fragment-free C. frame-filtering D. store-and-forward E. 802.1q forwarding F. VTP transparent mode Answer: D Explanation: The Switch receives and stores all bits in the frame before forwarding the frame. This allows switch to check the FCS before forwarding the frame. FCS is Ethernet Trailer. Incorrect answers: A. The Switch performs the address table lookup as soon as the destination address field in the header is received. The first bits in the frame can be sent out to out port before the final bits in the incoming frame are received. This does not allow the switch to discard frames that fail the FCS check. B. This is also same as A. But Switch waits 64 bytes to be received before forwarding the first bytes of the outgoing frame. Collisions may occur during first 64 bytes of the frame. Frames in error due to collision will not be forwarded. The FCS still cannot be checked. C,E,F : They are not related to Switch mode transport. QUESTION NO: 107 Which protocol admin overhead in a switch network by allowing the configuring of a new VLAN to be distributed to all the switches in a domain? A. STP B. VTP C. GVRP D. SNMP E. DHCP Answer: B Explanation...
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...Beau Smith, Zach Chrzan, Robbie Wacker, Terence Heiser 9/16/12 Business Comm. Short Answer Questions 45. An accounting career would be an interesting career to pursue. Listening can be a vital part of the job. One example would be having a more people oriented style of listening and being able to understand what they say more effectively to be able to help them with their problem. Along with being people oriented, being versatile in our listening style can make us better accountants. An action oriented style can help us accomplish that. Asking questions as an accountant is important. By asking questions we can obtain more information to help accomplish a goal for customers. When being people-oriented, the best way to improve your communication is to not worry so much about the factual information at that point. There will be time to make up all of the information that may be lost at another time. When asking questions, don’t just ask questions to make the person feel involved, rather really listen to the content of what they are saying. Really listen to the answer which they give, and take it for what it is worth. When being task-oriented, the best way to improve listening skills in this area is to remove the emotion from the situation, and focus solely on the information at hand. 46. The three barriers which affect our listening the most are preoccupation, fear of appearing ignorant and physical distractions. A lot of times in our busy lives, we can become...
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...University of Washington Graduate School of Business Finance 553 Midterm Assignment Rocky Higgins February 10, 2004 In less than five, double-spaced, typewritten pages, plus any exhibits, please answer the following questions about MW Petroleum Corp. This assignment is worth a maximum of 100 points. 1. (10 points.) Apart from any quantitative analysis, are there any reasons to anticipate that Apache Corporation’s acquisition of MW Petroleum might be a positive net present value activity for Apache, for Amoco? Explain. This looks like an attractive deal for both parties. Amoco does many things well, but managing smaller, marginally productive oil and gas fields apparently isn’t one of them. This is a chance to unload some properties that because of their high cost structure, Amoco can’t manage profitably. Apache, on the other hand, has low costs and is an efficient operator of small- to medium-sized properties. The company has grown significantly in recent years by acquiring less well-run properties and applying its “rationalize and reconfigure” strategy. The MW Petroleum properties appear to offer the opportunity to continue this strategy. If Amoco can strike a price wherein Apache shares some of its operating savings with Amoco, both parties can generate positive net present values from the transaction. Acquisition of MW Petroleum may also reduce the volatility of Apache’s cash flows by making them less dependent on gas. Although this may not...
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...TEN TOUGH INTERVIEW QUESTIONS AND TEN SMART ANSWERS If only interviewees could have the slightest idea of the kind of questions interviewers will ask them, a lot more people would be able to overcome mental fear of the unknown which often produces the physical symptoms of nervousness. The best way to prepare mentally is to know what may be coming. Fear of the unknown can only exist when there is an unknown. Take the time to understand some of the standards when it comes to interviewing questions. The following are some of the most difficult questions you will face in the course of your job interviews. Some questions may seem rather simple on the surface such as ‘tell me about yourself’ but these questions can have a variety of answers. The more open ended the question, the wider the variation in the answers. Once you have become practiced in your interviewing skills, you will find that you can use almost any question as a launching pad for a particular topic or compelling story. Others are classic interview questions, such as “what is your greatest weakness”? Questions most people answer improperly. In this case, the standard textbook answer for the greatest weakness question is to provide a veiled positive such as: I work too much. I just work and work and work. Wrong. Either you are lying or, worse yet, you are telling the truth, in which case you define working too much as a weakness and really do not want to work much at all. The following answers are provided to give...
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...Case 2 -‐ Solution / expected answers Part 1 Question 1 The correct answer is: 20.00% 18.00% Annual Return Annualized Volatility 15.00% Explanation: Using the return from Technical Document 4 we compute the annual return: !"!!"!!"#$ 3314.46 r= −1= − 1 = 20.00% !"!!"!!"#$ 2762.05 Using the same formula we compute the returns between each trading day: !"!!"!!"#$ !"!!"!!"#$ r! = − 1 = 0.0916% … r!"! = − 1 = −0.8024% !"!!"!!"#$ !"!!"!!"#$ After that, we use these returns to compute for the annualized volatility: Market Risk Premium σ= 1 −1 ! ! − ! = 18.00% !!! Finally, we compute the market risk premium: = − = 20.00% − 5.00% = 15.00% Question 2 The correct answer is: Equity Beta Cost of Equity 0.8 17.00% Explanation: We compute the equity Beta using the relevant formula from Technical Document 4. All necessary inputs are already obtained: ...
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...Business Writing in the Mortgage Industry Business Communications Underwriting Training Manual ( 3L’s Training Services 12345 Main Street • Suite 100 Atlanta, GA 30303 Phone 404.555.0167 • Fax 404.555.0168 Table of Contents Introduction 1 Training-at-a-Glance 1 The Writing Process 2 Planning Business Messages 3-9 Defining Your Purpose 3-4 Understanding Your Audience 4-5 Gathering Information 6-7 Establishing a Good Relationship 8-9 Writing Business Messages 10-16 Organizing Your Message 10-13 Understanding the Need for Organization 14 Composing and Shaping Your Message 15-16 Answer Key 17-20 Lesson 2a 17 Lesson 2b 18 Lesson 2c 18-19 Lesson 3a 19-20 Introduction W elcome to the Underwriting Training Course. This course will help you to determine the relevance of effective business communications in your Underwriting job. Good communication skills are important in any business because these skills help the organization succeed. “Only through effective communication can you anticipate problems, make decisions, coordinate work flow, supervise others, develop relationships, and promote products and services” ( Thill and Bovee 4). While only a portion of the Underwriter’s responsibility is to write correspondence to various audiences...
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...True/False questions 1. True 2. True 3. False 4. True 5. False 6. True 7. False 8. False 9. False 10. True Essay questions 1. A highly developed and efficient financial system is essential to ongoing economic growth and prosperity. Discuss the component parts that form a financial system and the relevance of the above statement. A financial system consists of financial institutions, financial instruments and financial markets. Financial institutions are classified into five categories according to where they source their funds from and who uses their funds. These include: depository financial institutions e.g. banks; investment and merchant banks; contractual savings institutions e.g. insurance companies; finance companies and general financiers; unit trusts e.g. property trusts. Financial instruments are documents that entitle holders to future cash flows. They are classified into three categories: equity e.g. ordinary share; debt e.g. loan; derivatives e.g. futures contract. Financial markets are the means by which funds are transferred in financial systems and are broadly divided into money markets and capital markets, which are further split into primary and secondary markets. Examples of financial markets include stock market and foreign exchange market. 1 The primary function of the financial system is to facilitate the flow of funds from those who have surplus funds to those who have a shortage of funds. By providing a range of investment and borrowing...
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...bounces half the distance back? Q. What is the height of the cone of diameter 12 cm that is formed after melting a sphere of 6 cm diameter? Q. A can work three times as B can work. If A takes 60 days less than B to complete the same task, calculate the number of days when both A and B start working together on the same day. a) 25 days b) 20 days c) 22 and 1/2 days d) 24 days Q. A boy has Rs 3 in total. If he wins, he gains 1 Rupee and if he looses, he has to loose 1 Rupee. The boy may lose only 5 times in the game and if he earns 5 Rs, he has to quit the game. Find the number of ways of the possibilities. Q. A and B decide to speak truth or lie on a day. Another person asks A if he is saying truth or lie. B listens to A whatever he answers. Now the person asks B what A had told. B replies as “ A has told that he is a liar”. What does B say? a) Truth b) Truth when A lies c) Lie d) Cannot be determined Q. What is the angle between the two hands of the clock when it shows 10:10? Q. In a queue, a man is standing at the position 10th from the front and 15th from behind. How many persons are standing in the queue? Q. A man runs towards the east direction and then takes his right. Then he takes a left and again 50 degrees to his right. What is the direction in which he is moving now? a) North west b) North...
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...ANSWERS TO REVIEW QUESTIONS 1 1. Discuss each of the following terms: a. Data: Raw facts from which the required information is derived. Data have little meaning unless they are grouped in a logical manner. b. Field: A character or a group of characters (numeric or alphanumeric) that describes a specific characteristic. A field may define a telephone number, a date, or other specific characteristics that the end user wants to keep track of. c. Record: A logically connected set of one or more fields that describes a person, place, event, or thing. For example, a CUSTOMER record may be composed of the fields CUST_NUMBER, CUST_LNAME, CUST_FNAME, CUST_INITIAL, CUST_ADDRESS, CUST_CITY, CUST_STATE, CUST_ZIPCODE, CUST_AREACODE, and CUST_PHONE. d. File: Historically, a collection of file folders, properly tagged and kept in a filing cabinet. Although such manual files still exist, we more commonly think of a (computer) file as a collection of related records that contain information of interest to the end user. For example, a sales organization is likely to keep a file containing customer data. Keep in mind that the phrase related records reflects a relationship based on function. For example, customer data are kept in a file named CUSTOMER. The records in this customer file are related by the fact that they all pertain to customers. Similarly, a file named PRODUCT would contain records that describe products – the records in this file are all related by the fact that they...
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...Payoff Diagrams (16p) Draw the gross payoff (not net-payoff/profit) diagram as a function of MLM stock for the following portfolios consisting of: (Strike values are given in parentheses) (a) one long position in the stock and two short positions in the same put option (K). (b) two long positions in the stock, two short call options (2K), and one long position ina put (K). (c) two short positions in the stock, two long call options (2K), and one short put option(3K). (d) one long position in the stock, two short call options (2K), two short call options (3K),and one short put option (2K). For this question, take into account the net profit only for the stock. You can assume that the stock is purchased at a price of K. Binomial Model (27p) Chevron Corporation has stakes in various oil development projects in Yemen and is considering to bid on a development of a new oil platform in Yemen in the future. However, due to ongoing civil war in Yemen and the instability of the Yemeni Currency (YER), Chevron wants to be hedged against two possible scenarios: * First scenario: The country becomes stable in the future and Chevron decides to go on with the bid and the bid is accepted, in that case Chevron would need Yemeni Rial (YER). * Second scenario: The country’s situation deteriorates and Chevron is forced to liquidate its current assets, in that case Chevron would want to exchange Yemeni Rial for USD and would want to be hedged against a possible depreciation...
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