In an effort to promote a new product, a marketing firm asks participants to rate the effectiveness of ads that varied by length (short, long) and by type of technology (static, dynamic, interactive). Higher ratings indicated greater effectiveness.

(a) Complete the F-table and make a decision to retain or reject the null hypothesis for each hypothesis test. (Assume experimentwise alpha equal to 0.05.)

In an effort to promote a new product, a marketing firm asks participants to rate the effectiveness of ads that varied by length (short, long) and by type of technology (static, dynamic, interactive). Higher ratings indicated greater effectiveness.

(a) Complete the F-table and make a decision to retain or reject the null hypothesis for each hypothesis test. (Assume experimentwise alpha equal to 0.05.)

In an effort to promote a new product, a marketing firm asks participants to rate the effectiveness of ads that varied by length (short, long) and by type of technology (static, dynamic, interactive). Higher ratings indicated greater effectiveness.

(a) Complete the F-table and make a decision to retain or reject the null hypothesis for each hypothesis test. (Assume experimentwise alpha equal to 0.05.)

1. Unearned revenues refer to a(n):

a. Asset that will be used over time.

b. Expense incurred because a customer has paid in advance.

c. Liability that is settled in the future when a company delivers its products or services.

d. Increase in revenues as a result of delivering products or services to a customer.

e. Decrease in an asset.

2. Prepaid accounts (also called prepaid expenses) are generally:

a. Payments made for products and services that never expire.

b. Classified as liabilities on the balance sheet.

c. Decreases in equity.

d. Assets that represent prepayments of future expenses.

e. Promises of payments by customers.

3. The record of all accounts and their balances used by a business is called a:

a. Journal.

b. Book of original entry.

c. General Journal.

d. Balance column journal.

e. Ledger (or General Ledger).

4. A debit:

a. Always increases an account.

b. Is the right-hand side of a T-account.

c. Always decreases an account.

d. Is the left-hand side of a T-account.

e. Is not needed to record a transaction.

5. Identify the statement below that is incorrect.

a. The normal balance of accounts receivable is a debit.

b. The normal balance of owner's withdrawals is a debit.

c. The normal balance of unearned revenues is a credit.

d. The normal balance of an expense account is a credit.

e. The normal balance of the owner's capital account is a credit.

6. An account balance is:

a. The total of the credit side of the account.

b. The total of the debit side of the account.

c. The difference between the total debits and total credits for an account including the beginning balance.

d. Assets = liabilities + equity.

e. Always a credit.

7. A double-entry accounting system is an accounting system:

a. That records each transaction twice.

b. That records the effects of transactions and other events in at least two accounts with equal debits and credits.

c. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.

d. That may only be used if T-accounts are used.

e. That insures that errors never occur.

8. When closing entries are made:

a. All ledger accounts are closed to start the new accounting period.

b. All temporary accounts are closed but permanent accounts are not closed.

c. All real accounts are closed but nominal accounts are not closed.

d. All permanent accounts are closed but nominal accounts are not closed.

e. All balance sheet accounts are closed.

9. Which of the following statements is incorrect?

Permanent account is another name for nominal account.

a. Temporary accounts carry a zero balance at the beginning of each accounting period.

b. The Income Summary account is a temporary account.

c. Real accounts remain open as long as the asset, liability, or equity items recorded in the accounts continue in existence.

d. The closing process applies only to temporary accounts.

10. Assets, liabilities, and equity accounts are not closed; these accounts are called:

a. nominal accounts

b. temporary accounts

c. permanent accounts

d. contra accounts

e. accrued accounts

Case 6-1  Chobani

Chobani LLC, is a producer and marketer of Greek yogurt. The company was founded in 2005 by Hamdi Ulukaya, an immigrant from Turkey, who recognized the lack of options for high-quality yogurt in the United States. The company is headquartered in Norwich, New York, and it employs approximately 2,000 employees. It operates two manufacturing plants—its original facility in central New York and a second new state-of-the-art facility in Twin Falls, Idaho.

The mission of the company is “To provide better food for more people. We believe that access to nutritious, delicious yogurt made with only natural ingredients is a right, not a privilege. We believe every food maker has a responsibility to provide people with better options, which is why we’re so proud of the way our food is made.” Chobani’s core values are integrity, craftsmanship, innovation, leadership, people, and giving back.

The company’s beginning in 2005 occurred when Hamdi Ulukaya discovered a notice about an old Kraft yogurt factory in South Edmeston that was closed. He decided to obtain a business loan in order to purchase it. Between 2005 and 2007, Ulukaya worked with four former Kraft employees and yogurt master Mustafa Dogan to develop the recipe for Chobani Greek Yogurt. Between 2007 and 2009, the company started to sell its yogurt in local grocery stores including Stop and Shop and ShopRite. By 2010, Chobani Greek yogurt became the best selling Greek yogurt in the United States. The company pursued global expansion by entering Australia in 2011 and the United Kingdom in 2012. In 2013, the company opened its international headquarters in Amsterdam, and Hamdi Ulukaya was named the Ernst and Young World Entrepreneur of the Year.

Chobani has achieved its success in large part due to its ability to innovate in its product lineup. For example, in 2016, it launched a new line of yogurt drinks, more flavors of its Flip mix-in product, and even a concept café in Manhattan.

The company also created a food incubator program that is designed to provide resources, expertise (e.g., brand and marketing, packaging and pricing), and funding to small, young companies that have promising ideas for new natural foods that they aspire to develop.

Although Hamdi Ulukaya has been extremely successful in his founding and establishment of Chobani, he has recognized that there are some key lessons learned from his experience as the head of a young but very successful and industry-leading company. These include the importance of hiring people with functional experience such as marketing, supply chain, logistics, operations, and quality control, as they were essential to the smooth operation of the company. In addition, remembering to respect the competition and not to underestimate it is critical, as Chobani’s two main competitors, Dannon and Yoplait, launched their own Greek yogurt lines, and they were able to win back some of Chobani’s market share over time.

Discussion Questions

5.   Think about managing change at a personal level. Why is it so hard for so many people to change their behavior or way of thinking? Are these personal challenges to managing change also relevant to managing change in organizations?

6.   What can you learn from Hamdi Ulukaya about what is needed to become a successful entrepreneur?

Case 6-1  Chobani

Chobani LLC, is a producer and marketer of Greek yogurt. The company was founded in 2005 by Hamdi Ulukaya, an immigrant from Turkey, who recognized the lack of options for high-quality yogurt in the United States. The company is headquartered in Norwich, New York, and it employs approximately 2,000 employees. It operates two manufacturing plants—its original facility in central New York and a second new state-of-the-art facility in Twin Falls, Idaho.

The mission of the company is “To provide better food for more people. We believe that access to nutritious, delicious yogurt made with only natural ingredients is a right, not a privilege. We believe every food maker has a responsibility to provide people with better options, which is why we’re so proud of the way our food is made.” Chobani’s core values are integrity, craftsmanship, innovation, leadership, people, and giving back.

The company’s beginning in 2005 occurred when Hamdi Ulukaya discovered a notice about an old Kraft yogurt factory in South Edmeston that was closed. He decided to obtain a business loan in order to purchase it. Between 2005 and 2007, Ulukaya worked with four former Kraft employees and yogurt master Mustafa Dogan to develop the recipe for Chobani Greek Yogurt. Between 2007 and 2009, the company started to sell its yogurt in local grocery stores including Stop and Shop and ShopRite. By 2010, Chobani Greek yogurt became the best selling Greek yogurt in the United States. The company pursued global expansion by entering Australia in 2011 and the United Kingdom in 2012. In 2013, the company opened its international headquarters in Amsterdam, and Hamdi Ulukaya was named the Ernst and Young World Entrepreneur of the Year.

Chobani has achieved its success in large part due to its ability to innovate in its product lineup. For example, in 2016, it launched a new line of yogurt drinks, more flavors of its Flip mix-in product, and even a concept café in Manhattan.

The company also created a food incubator program that is designed to provide resources, expertise (e.g., brand and marketing, packaging and pricing), and funding to small, young companies that have promising ideas for new natural foods that they aspire to develop.

Although Hamdi Ulukaya has been extremely successful in his founding and establishment of Chobani, he has recognized that there are some key lessons learned from his experience as the head of a young but very successful and industry-leading company. These include the importance of hiring people with functional experience such as marketing, supply chain, logistics, operations, and quality control, as they were essential to the smooth operation of the company. In addition, remembering to respect the competition and not to underestimate it is critical, as Chobani’s two main competitors, Dannon and Yoplait, launched their own Greek yogurt lines, and they were able to win back some of Chobani’s market share over time.

Discussion

1. Start with a brief (1-2 paragraphs) summary of the case.

2. List the management issues short term & longer term you see in the case.

3.Propose a solution to fix the major current problem and a longer term course of action to prevent the problem.

2. Airbiz Food Products produces a wide variety of food and related products. The? company's tomato-canning operation relies partly on tomatoes grown on Airbiz?'s own farms and partly on tomatoes bought from other growers. Airbiz?'s tomato farm is on the edge of? Sharpestown, a? fast-growing, medium-sized city. It produces 14 million pounds of tomatoes a year and employs 58 persons. The annual costs of tomatoes grown on this farm are as? follows:

Variable production costs $605,000

Fixed production costs 1,250,000

Shipping costs (all variable) 230,000

Total costs $2,085,000

Fixed production costs include depreciation on machinery and? equipment, but not on land because land should not be depreciated. Airbiz owns the? land, which was purchased for $600,000 many years ago. A recent appraisal placed the value of the land at $30 million because it is a prime site for an industrial park and shopping center. Airbiz could purchase all the tomatoes it needs on the market for $0.30 per pound delivered to its factory. If it did? this, it would sell the farmland and shut down the operations in Sharpestown. If the farm were? sold, $325,000 of the annual fixed costs would be saved. Airbiz can invest excess cash and earn an annual rate of 12%.

1. How much does it cost Airbiz annually for the land used by the tomato? farm?

2. How much would Airbiz save annually if it closed the tomato? farm? Is this more or less than would be paid to purchase the tomatoes on the? market?

3. What ethical issues are involved with the decision to shut down the tomato? farm?

Please list and explain at least 3 main provisions of the Dodd-Frank Act of 2010 that are designed to prevent the next crisis or make it less severe.

(Paragraph Form) One to two-page Paper discussing the purpose and the various titles of the Patient Protection and Affordable Care Act of 2010, and subsequent Amendments.

¿What are the three levels of healthcare and the services under each level?

Explain, ¿What the purpose of the Patient Protection and Affordable Health Care Act (2010)?