An entrepreneur founded a company (ABC) in 2001. Recently, the stock was trading at $42per share. With 850k shares outstanding, EPS were $1.41. The entrepreneur and the members of the board of directors were initially pleased when another firm purchased 50k shares of ABC stock. However, when the purchasing firm bought another 50k shares, the entrepreneur and members of the board became concerned that the purchasing firm might be trying to take over ABC.

The entrepreneur was reminded by the legal staff that ABC had a poison pill provision that took effect when any outside investor accumulated 23% or more of the shares outstanding. Current stockholders, excluding the potential takeover company, were given the privilege of buying up to 500k shares of ABC at 84.04% of current market value. Thus, new shares would be restricted to friendly interests. The legal staff also found that the entrepreneur and “friendly” members of the board currently owned 175k shares of ABC.

In view of the above information, ABC company is in the process of determining the costs described by the following scenarios:

Scenario #1: Takeover firm makes a move

Gets 50% (plus 1 share) of ABC stock at the current market price level, in addition to shares previously accumulated.

Scenario #2: “Friendly” shareholders come to the rescue

Takeover firm exceeds the number of shares determined in the previous scenario, and gets all the way up to 625,000 shares of ABC. Under the poison pill provision, friendly shareholders purchase to prevent a takeover attempt by the acquiring firm, next to what they already own.

Required: In percentage terms, by how much would the poison pill strategy make the purchase more expensive for the takeover firm?

Answer% Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.

McDonald's Corporation is an American fast food company, founded in 1940 as a
restaurant operated by Richard and Maurice McDonald , in San Bernardino, California ,
United States. They rechristened their business as a hamburger stand, and later
turned the company into a franchise , with the Golden Arches logo being introduced in
1953 at a location in Phoenix, Arizona . Although McDonald's is best known for its
hamburgers, cheeseburgers and french-fries , they feature chicken products,
breakfast items, soft drinks , milkshakes , wraps , and desserts . In response to changing
consumer tastes and a negative backlash because of the unhealthiness of their food,
the company has added to its menu salads , fish , smoothies , and fruit .
In March 2010, McDonald’s Corp. announced a policy to increase summer sales by
selling all soft drinks, no matter the size, for $ 1.00. The policy would run for 150 days
starting after Memorial Day. The $ 1.00 drink prices were a discount from the
suggested price of $ 1.39 for a large soda. Some franchises worried that discounting
drinks, whose sales compensate for discounts on other products, could hurt overall
profits, especially if customers bought other items from the Dollar Menu. McDonald’s
managers expected this promotion would draw customers from other fast-food
chains and from convenience stores such as 7-Eleven. Additional customers would
also help McDonald’s push its new beverage lineup that included smoothies and
frappes. Discounted drinks did cut into McDonald’s coffee sales in previous years as
some customers chose the drinks rather than pricier espresso beverages. Other chain
with new drink offerings, such as Burger King and Taco Bell, could face pressure from
the $ 1.00 drinks at McDonalds.
Questions
a. Given the change in price for a large soda from $ 1.39 to $ 1, how much would
quantity demanded have to increase for McDonald’s revenues to increase?
b. What is the sign of the implied cross-price elasticity with drinks from McDonald’s
competitors?
c. What are the other benefits and costs to McDonald’s of this discount drink policy?
……….

Phoenix Airways Inc. is an airline company headquartered in Hong Kong. It was founded in 2010 and currently provides passenger and cargo services to more than 50 regional and international destinations. The passenger service is operated by Phoenix Airways under the brand name of “Phoenix” while the cargo service is provided by its wholly owned subsidiary, Phoenix Cargo. The airline operates a fleet consisting of Boeing 737, Airbus 320, Airbus A330, and Airbus A350 aircrafts. In September 2016, the airline launched a new passenger route between Hong Kong (HKG) and Los Angeles (LAX) in hopes of competing with the larger carriers in the market for long-haul flights. However, this route between Hong Kong (HKG) and Los Angeles (LAX) has continued to lose money to the point where the airline has been forced to consider whether to discontinue it. Required: Discuss factors that will affect the company’s decision to discontinue the HKG-LAX route, including quantitative and qualitative factors.

Sunkist, an internet company, founded at the beginning of the technology boom had problems developing the technological systems necessary to support its rapidly expanding user base. In addition, due to the rapid expansion in recent years, many of its systems had been added hastily, resulting in poor integration and eroding data integrity. As a result, the CEO of Sunkist announced an initiative to integrate all systems and increase the quality of internal data. In compliance with this initiative, Sunkist purchased an expensive and complex billing system called Gateway, which would automate the billing for thousands of Internet accounts via credit cards. During the integration, Gateway, in collaboration with Visa, created a phony credit card number that could be used by developers and programmers to test the functionality and integration of the Gateway system. Moreover, this credit card number was fully functional in “live” environments so testers and developers could ensure functionality without being required to use actual personal or company credit card numbers (the activity on this card was not monitored). The integration went smoothly; however, it created thousands of corrupt accounts that required fixing. Michael, the manager of the Operations Department, was responsible for the resolution of all data integrity issues. His team was tasked with fixing all corrupt accounts created by the launch and integration of the Gateway system. As a result, Michael was given the phony credit card number, which was kept on a Post-it Note in his drawer. One of the top performers on the Operations team was a 25-year-old male name Robert. Robert had worked in Operations for over a year and was making $15 per hour, the same salary at which he was hired. He wan an introvert working to support a young family and put himself through school. Robert was the most technologically savvy individual on the team, and his overall systems knowledge even exceeded that of his manager, Michael. Robert was very brilliant in creating more efficient tools and methods to repair corrupt accounts. Therefore, Robert was tasked with conducting training for new employees and updating team members on new processes and tools that he had created. As a result, Robert quickly became a trusted and valuable team member, thus Michael gave him and other team members the phony credit card number in order to further increase the productivity of the team. However, after six months of working at Sunkist, Robert received an official reprimand from the company for using the company system to access Web sites containing pirated software and music. The FBI attended the investigation and determined that Robert had not been a major player in the piracy. Therefore, Robert was quietly warned and placed on a short-term probation. Michael was asked to write a warning letter for the action; however, after a brief conversation with Robert, Michael determined that Robert’s intentions were good and never officially submitted the letter because Robert was a trusted employee and elevated the overall performance of the team. A few months after the piracy incident, Michael noticed some changes in Robert’s behavior such as (a) his computer monitor was repositioned so that his screen was not visible to other co-workers, (b) he had almost all the latest technological innovations, (c) he was going out to lunch more frequently, and (d) he frequently used multiple fake usernames and passwords for testing purposes. Questions: 1. Evaluate this case using the three elements of the fraud triangle to identify the following: a. Potential pressures for Robert to commit fraud. b. Potential opportunities for Robert to commit fraud. c. Potential rationalizations that Robert could use to commit fraud. 2. What are some of the symptoms that fraud potentially exists in this situation? 3. What could Michael have done to eliminate some of the opportunities for fraud?

Fiat

Fiat is an Italian car manufacturer based in Italy. The company was founded in 1899, and has grown to become the world's ninth largest car maker, and the largest in Italy. The company is best known for producing small, economical family cars. Fiat designed cars are manufactured worldwide, and the company has factories in Brazil, Poland and Argentina, and has licensing agreements with many other countries, including Russia, India, Pakistan and China. The company has tended to buy out its component suppliers and also minimized the number of suppliers it deals with. This creates greater security of supply and reduces costs, in some cases dramatically.

The Products Although Fiat has a reputation for small, cheap cars, the company has won the prestigious European Car of the Year Award 12 times in 40 years, more often than any other manufacturer. Fiat has also made a major breakthrough in its engine technology, developing an engine (the Fiat 500 model) that has the lowest emissions in the world. In addition, the car is extremely economical to run

Emerging Markets Fiat has made a decision to focus on emerging countries. Since cars sold in these countries need to be simple to maintain and operate, they tend to have fewer features (e.g. often do not have air-conditioning), so Fiat is well-placed to exploit these opportunities. Re-engineering the cars to have fewer features is obviously a great deal cheaper than adding features, so development costs can be minimized.

Promotion on Communications Fiat has concluded an agreement with the British School of Motoring (BSM), which is the UK's largest driving school. BSM uses Fiats for teaching people to drive, and in exchange Fiat provides the cars at a heavily discounted rate, and also offers special deals for graduates of BSM. Fiat's website emphasizes the 'fun' aspects of driving a Fiat. The company believes that Italians have a fun-loving approach to life, and that this is reflected in the design and performance of the cars.

During 2009, the car scrappage scheme adopted throughout Europe (by which governments subsidized the replacement of old cars with new ones in order to stimulate the economy) provided a major boost to Fiat, at a time when the worldwide recession was damaging sales. However, Fiat faces a number of challenges in the next few years. The relative strength of the euro has eroded the firm's competitive price advantage, the rising price of steel worldwide has raised costs, and the entry of
Japanese and Korean manufacturers into Europe has increased competition in Fiat's traditional markets.

The Future As people become more environmentally aware, and as governments worldwide look to bring in legislation to reduce greenhouse gases, Fiat is well placed, with its fuel efficient, cheap-to-run, economical cars. In addition, Fiat's expertise in creating engines that can run on alternative fuels also gives the company an advantage over competitors.

1-Conduct SWOT analysis for Fiat?

2-Discuss the factors Fiat should consider before deciding the price of their cars?

3-Produce 2 objectives for Fiat in 2012?

4- Recommend How Fiat should coordinate its marketing mix in order to maintain its competitive position during an economic recession?

5-Discuss 2 promotional techniques that Fiat can use to promote its cars?

On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.

The company's chart of accounts follows:

Use the following information:

Two-thirds (or $128) of one month’s insurance coverage has expired.

At the end of the month, $600 of office supplies are still available.

This month’s depreciation on the computer equipment is $300.

Employees earned $500 of unpaid and unrecorded salaries as of month-end.

The company earned $2,300 of commissions that are not yet billed at month-end.

Required:

6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b.
7. Prepare a post-closing trial balance.

1. Each of the following situations describes error in a statistical experiment, where a researcher is trying to find the percentage of American college students who identify as Democrats or Republicans. State whether this is sampling or non-sampling error, and explain why you chose that answer.
   1. The researcher randomly selects 400 college students from around the country and asks them if they are Democrats or Republicans. The researcher finds that 38% of the students are Democrats, when the actual percentage is 41%.
   2. The researcher sets up a table in the cafeteria at their University, a wealthy private school in New England, and asks students who pass by if they identify as a Democrat or Republican. They find that 53% of the surveyed students identify as Republicans, when the actual percentage is 36%.

Question based on the business course

24. The United States has a Masculine Orientation when compared to a country like Sweden . Which of the following statements are true

a.The US encourages power, physical strength, and domination Sweden values submission and politeness .

b. The US focuses on results , achievement and competition ; Sweden focuses on modesty , work/life balance ,

and promoting equality.

25. Which of the following are NOT terms used to describe and compare Divergent Cultural Characteristics

a. High context vs. Low context

b.bAtheistic vs. Polytheistic

c. Implicit rule vs Explicit-Rule

d. Long-term vs. Short-term orientation

26. in Uncertainty-Rejecting cultures, such as Japan and Saudi Arabia:

a.Employees are encouraged to question policies and/or regulations

b. Society is resistant to change and seeks to avoid unnecessary risks

c. Freedom of expression is celebrated

d. Few clear rules or regulations exist

c.The US prizes sports, cars, and the military Sweden values furniture, music, and meatballs .

d. The US rewards manliness and winning ; Sweden rewards feminism and beauty

30. When trying to get in touch with a coworker who is out of the office for the day, you should try to:

a. Send a text message to their personal mobile phone during business hours

b. Email them immediately once the work day is over

c. Try your best to reach them by their preferred method of contact

d. Call and leave a detailed voicemail

33. Which of the following groups of words are ONLY CONCRETE subjects ?

a. teamwork , initiative, customer service representative

b. strategy , goal, advertising firm .

c.ethics , competition , challenge

d. coworker , document , supervisor

35. Identity the sentence focus error(s) in the following sentence: The marketing strategy was developed by the CEO of the company.

a. abstract subjects, passive voice, and faulty expletives

b. abstract subjects and faulty expletives

c. abstract subjects and passive voice

d. faulty expletives ONLY

36. Identity the sentence focus error(s) in the following sentence: There are number of reasons why record profits will be earned by Apple in 2019.

a. abstract subjects ONLY

b. passive voice and faulty expletives

c. abstract subjects, passive voice, AND faulty expletives

d. passive voice ONLY

Problem 4-1A Applying the accounting cycle LO C2, P2, P3

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.

April 1 Nozomi invested $31,000 cash and computer equipment worth $20,000 in the company.

2 The company rented furnished office space by paying $1,700 cash for the first month’s (April) rent.

3 The company purchased $1,100 of office supplies for cash.

10 The company paid $2,900 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.

14 The company paid $1,300 cash for two weeks' salaries earned by employees.

24 The company collected $9,000 cash for commissions earned.

28 The company paid $1,300 cash for two weeks' salaries earned by employees.

29 The company paid $300 cash for minor repairs to the company's computer.

30 The company paid $1,200 cash for this month's telephone bill.

30 Nozomi withdrew $2,000 cash from the company for personal use.

The company's chart of accounts follows: 101 Cash 405 Commissions Earned 106 Accounts Receivable 612 Depreciation Expense—Computer Equip. 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated Depreciation—Computer Equip. 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 301 J. Nozomi, Capital 688 Telephone Expense 302 J. Nozomi, Withdrawals 901 Income Summary

Use the following information:

Prepaid insurance of $161 has expired this month.

At the end of the month, $600 of office supplies are still available.

This month’s depreciation on the computer equipment is $300.

Employees earned $450 of unpaid and unrecorded salaries as of month-end.

The company earned $1,550 of commissions that are not yet billed at month-end.

Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts.

3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30.

4. Journalize the adjusting entries for the month and prepare the adjusted trial balance.

5a. Prepare the income statement for the month of April 30.

5b. Prepare the statement of owner's equity for the month of April 30.

5c. Prepare the balance sheet at April 30.

6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b.

6b. Post the journal entries to the ledger.

7. Prepare a post-closing trial balance.

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month. April 1 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company.

2 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent.

3 The company purchased $1,000 of office supplies for cash.

10 The company paid $2,400 cash for the premium on a 12-month insurance policy.

Coverage begins on April 11. 14 The company paid $1,600 cash for two weeks' salaries earned by employees.

24 The company collected $8,000 cash for commissions earned.

28 The company paid $1,600 cash for two weeks' salaries earned by employees.

29 The company paid $350 cash for minor repairs to the company's computer.

30 The company paid $750 cash for this month's telephone bill.

30 Nozomi withdrew $1,500 cash from the company for personal use.

The company's chart of accounts follows. eq 1 and 2Req 3Req 4 Adj Entries Req 4 Adj Trial Ba lReq 5AReq 5BReq 5CReq 6AReq 6B GLReq 7 101

Cash 405

Commissions Earned 106

Accounts Receivable 612

Depreciation Expense—Computer Equip. 124

Office Supplies 622

Salaries Expense 128

Prepaid Insurance 637

Insurance Expense 167

Computer Equipment 640

Rent Expense 168

Accumulated Depreciation—Computer Equip. 650

Office Supplies Expense 209

Salaries Payable 684

Repairs Expense 301

J. Nozomi, Capital 688

Telephone Expense 302

J. Nozomi, Withdrawals 901

Income Summary Use the following information:

Prepaid insurance of $133 has expired this month. At the end of the month, $600 of office supplies are still available. This month’s depreciation on the computer equipment is $500.

Employees earned $420 of unpaid and unrecorded salaries as of month-end. The company earned $1,750 of commissions that are not yet billed at month-end. Required: 1. & 2.

Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts.

3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b.

Prepare the statement of owner's equity for the month of April 30. 5c. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.