Business Economics Questions and Answers - 968 Words

CHAPTER 1 1. Internal expansion involves a normal increase in business resulting from increased demand for products and services, achieved without acquisition of preexisting firms. Some companies expand internally by undertaking new product research to expand their total market, or by attempting to obtain a greater share of a given market through advertising and other promotional activities. Marketing can also be expanded into new geographical areas. External expansion is the bringing together of two or more firms under common control by acquisition. Referred to as business combinations, these combined operations may be integrated, or each firm may be left to operate intact. 2. Four advantages of business combinations as†¦show more content†¦There may be practical difficulties in determining the fair value of the consideration given and in allocating the total implied fair value to specific assets and liabilities. In the case of a less than wholly owned company, valuation of net assets at implied fair value violates the cost principle of conventional accounting and results in the reporting of subsidiary assets and liabilities using a different valuation procedure than that used to report the assets and liabilities of the parent company. 14. The economic entity is more consistent with the principles addressed in the FASB’s conceptual framework. It is an integral part of the FASB’s conceptual framework and is named specifically in SFAC No. 5 as one of the basic assumptions in accounting. The economic entity assumption views economic activity as being related to a particular unit of accountability, and the standard indicates that a parent and its subsidiaries represent one economic entity even though they may include several legal entities. 15. The FASB’s conceptual framework provides the guidance for new standards. The quality of comparability was very much at stake in FASB’s decision in 2001 to eliminate the pooling of interests method for business combinations. This method was also argued to violate the historical cost principle as it essentiallyShow MoreRelated0 out of 5 points1002 Words   |  5 Pagesreasoning is that: Answer Selected Answer:   Ã‚   The majority may override the rights of those in the minority. Correct Answer:   Ã‚   It is difficulty to accurately measure both costs and benefits. ï‚ · Question 2 5 out of 5 points Business executives are finding that a trusting, ethical relationship with a business partner is: Answer Selected Answer:   Ã‚   Often essential in conducting business. Correct Answer:   Ã‚   Often essential in conducting business. ï‚ · Question 3 5 out of 5 pointsRead Morethe biggest challenges and biggest opportunities facing new managers entering industry883 Words   |  4 Pagesï » ¿ In the current economic climate, what are the biggest challenges and biggest opportunities facing new managers entering industry? Full reference 1 Department for Business (2012) ‘Leadership Management in the UK - The Key to Sustainable Growth’ [online] available from [05 November 2013] Source type This paper has been written by the Department for Business, Innovation Skills Leadership and Management Network Group (LMNG). Key contributors include Petra Wilton and Patrick Woodman ofRead MoreEssay The Global Financial Crisis and Protectionism617 Words   |  3 PagesQuestion 1 Why do you think calls for protectionism are greater during sharp economic contractions than boom periods? Answer: Calls from business for protection could be based on the fact that in times of sharp economic contractions there is generally a reduced demand for goods and services within the local market. This results in foreign companies and their goods and services competing with domestic companies and their goods and services in a local market characterized by a reduction in demandRead MoreBEA683 Economics For Managers Student158431 Essay888 Words   |  4 Pagesï » ¿BEA683 Economics for Managers Reading Gans, Core Economics for Managers, Chs. 1 and 2. CT, Ch. 11 JiTT Assignment 3: Decision Making and Costs In order to prepare for the class on March 20 you are required to read on individual decision making and costs answer the following questions _______________Yanqiz__________(Name)________158431____________(Student ID) Submission Instructions: Your assignment must be in Word format. You must submit your assignment through the ‘JiTT Assignment-Submission’Read MoreImpact of Reward System on Employee Performance1051 Words   |  5 Pages2010 (2) From KeMUWiki Jump to: navigation, search FACULTY : BUSINESS AND MANAGEMENT STUDIES DEPARTMENT : BUSINESS ADMINISTRATION TIME : 2 HOURS [pic] INSTRUCTIONS Answer Question ONE and any Other TWO Questions [pic] Question 1 a) Define the term performance management. (5marks) b) Distinguish between Reward strategy and Reward policy giving examples of each. (15marks) c) Discuss the major components of reward management. (10marks) Question 2 a) As a manager what are the methods you will considerRead MorePersonal Computer and Michael Dell1186 Words   |  5 Pages------------------------------------------------- ------------------------------------------------- AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH * Course Name * Introduction to Business * Course Code * 01412 * Prepared For * Tasnuva Farin * Section A5 * * Prepared By ID No. * Sarkar Shila 13-23378-1 No. | Case Name | Page No. | 1.1Read MoreEco 550 Quiz 1 (2013) Essay examples691 Words   |  3 PagesQuestion 1 3 out of 3 points To reduce Agency Problems, executive compensation should be designed to: Correct Answer: create incentives so that managers act like owners of the firm. Question 2 3 out of 3 points In the shareholder wealth maximization model, the value of a firms stock is equal to the present value of all expected future ____ discounted at the stockholders required rate of return. Correct Answer: profits (cash flows) Question 3 3 out of 3 points TheRead MoreUnexpected Shocks in the Economy Lead to Fluctuation721 Words   |  3 PagesBusiness cycle theories and their improvements are very interesting topics till now (although it is twentieth century product) because every economy wants a stables growth path but there are some expected or unexpected shocks which leads to fluctuations, as a result whole economy fluctuates. We are unable to foresee such fluctuations, so economists try their best in studying related situations in their country and rest of the world. They can ´t afford applying a policy and its results. May be theRead MoreLeg 100 Business Law I Quiz 1918 Words   |  4 PagesCourse Business Law I Quiz 1 LEG100 This quiz consist of 20 multiple choice questions and covers the material in chapters 1 through 4. There are five questions from each chapter. Be sure you are in the correct Chapter when you take the quiz. †¢ Question 1 4 out of 4 points The ______ approach recognizes that â€Å"business decisions consist of continuous, interrelated economic and moral components.† Answer Selected Answer: Systems Correct Answer: Systems Read MoreCase 8 the Accra Beach Hotel: Block Booking of Capacity During a Peak Period1028 Words   |  5 PagesCase 8 The Accra Beach Hotel: Block Booking of Capacity during a Peak Period Question 1 What factors lead to variations in demand for rooms at a hotel such as the Accra Beach? Answer: There are 3 factors that will lead to variations in demand for rooms at a hotel, which are seasonal cycle, economic cycle and days of the week. Seasonal cycle - Hotel such as Accra Beach will depends highly on seasonal cycle, hotel will be in low demand on September (64.7%) as it is in peak hurricane