Silvah Leasing Ltd. (SLL) is a private company founded over 20 years ago. Its main business is providing lease financing to small to medium-size local businesses for financing their operating equipment, store fixtures, and so on.

SLL’s business is direct lease financing, and the company never takes ownership of any of the leased assets. Leasing is popular with smaller businesses since the economy has been in a recession, and leasing assets rather than buying conserves cash. Many larger financial institutions have become more active in selling leases to the smaller customers that have been

SSL’s main source of business, to increase their own revenues during the recessionary times. Equipment vendors are also increasingly providing financing with equipment sales to increase their own business.

D. Silvah owns the majority of the common shares and runs the business with three employees. There are two minority shareholders who are family members, M. Silvah and J. Silvah. Your firm has audited SLL for several years. The company’s bank demands annual audited financial statements because of SLL’s large outstanding bank loan.

How does management’s integrity impact the auditor’s risk assessment process?

Step 1: Read the following scenario carefully:

EverGlad Bodycare was recently co-founded by two Australian siblings who share a passion for protecting our planet and being ethical consumers. Ann and Oliver Jones, while pursuing their vocational education, realised that people the world over desire products that are not only good for them but also for the Earth. They wanted to create a line of skin and hair care products that used all-natural and organic ingredients and were cruelty-free and ethically sourced. The brother-sister duo spent months reaching out to local producers to understand which ingredients could be locally sourced with ease. After much experimentation with the various ingredients, they locked in their formulae for five product lines: shampoo & conditioner bars; hair masks; soap bars; body oils and body scrubs. As Ann and Oliver want to use only the best and safest natural ingredients, they realise that their prices will be high initially, at least until they started manufacturing on a much larger scale. Currently, they expect to just sell in their home state of South Australia. As they have no prior business or marketing experience, they approach you to be their marketing consultant.

Step 2: Answer the following questions 1. What marketing problems do you think EverGlad Bodycare will face once they launch their products? How should they overcome these? (You need to identify at least two possible problems and solutions. Provide reasons and support for your answers through research). (approx. 300 words)

2. On which bases should EverGlad segment the market? (Along with the segments, provide reasons and support them with your research). (approx. 150 words)

3. Which of Roy Morgan's value segments will this brand appeal to? (you need to provide reasons for your answer). (approx. 150 words)

4. Which targeting strategy would suit this brand the best? Why? (approx. 150 words)

5. Create a perceptual map for EverGlad Bodycare. Apart from showing its positioning, use external research to plot two other actual companies on the same perceptual map. Include a short write up to explain your logic. (approx. 100 words)

6. Which type of competitive advantage can EverGlad Bodycare establish? How should they go about it? (Chose one of the following - Cost, Differentiation, Niche or Sustainable competitive advantage to address this question). (approx. 150 words)

Integrated Waveguide Technologies, Inc. (IWT) is a 6-year-old company founded by Hunt
Jackson and David Smithfield to exploit metamaterial plasmonic technology to develop and
manufacture miniature microwave frequency directional transmitters and receivers for use
in mobile Internet and communications applications. IWT’s technology, although highly
advanced, is relatively inexpensive to implement, and its patented manufacturing techniques
require little capital as compared to many electronics fabrication ventures. Because of the
low capital requirement, Jackson and Smithfield have been able to avoid issuing new stock
and thus own all of the shares. Because of the explosion in demand for its mobile Internet
applications, IWT must now access outside equity capital to fund its growth, and Jackson
and Smithfield have decided to take the company public. Until now, Jackson and Smithfield
have paid themselves reasonable salaries but routinely reinvested all after-tax earnings in the
firm, so dividend policy has not been an issue. However, before talking with potential
outside investors, they must decide on a dividend policy.
Your new boss at the consulting firm Flick and Associates, which has been retained to help
IWT prepare for its public offering, has asked you to make a presentation to Jackson and
Smithfield in which you review the theory of dividend policy and discuss the following issues.
a. (1) What is meant by the term “distribution policy”? How has the mix of dividend
payouts and stock repurchases changed over time?
(2) The terms “irrelevance,” “dividend preference,” or “bird-in-the-hand,” and “tax
effect” have been used to describe three major theories regarding the way
dividend payouts affect a firm’s value. Explain these terms, and briefly describe
each theory.
(3) What do the three theories indicate regarding the actions management should take
with respect to dividend payouts?
(4) What results have empirical studies of the dividend theories produced? How does
all this affect what we can tell managers about dividend payouts?
b. Discuss (1) the information content, or signaling, hypothesis, (2) the clientele effect,
and (3) their effects on distribution policy.

Founded in April 1996, Antheus Tecnologia develops and distributes Automated Fingerprint Identification Systems (AFIS), automated fingerprinting, and other systems such as iris recognition devices. Antheus Tecnologia also claims that it is the first Brazilian company to be certified by the US Federal Bureau of Investigation (FBI) and develops biometric solutions for domestic and overseas clients. In March 2020, the security research team at SafetyDetectives discovered a significant data leak in addition to other security flaws (such as lack of password protection) relating to fingerprint data on an Antheus log server in Brazil. The research team discovered almost 2.3 million data points in total and estimated that 76,000 unique fingerprints were found on the database. Approximately 16 gigabytes of data were found on the Elasticsearch server including highly sensitive information related to identification and biometric details. The Antheus server investigated by the security team is an identity server, which means it gives users access to the system or the ability to register as a new user. It also had fingerprint information in at least two “indices” from a total of 91. The Antheus server stored server and API access logs but also contained fingerprint data comprising of Ridge Bifurcation and Ridge ending – essential components for identifying and verifying fingerprints. In addition to fingerprint information, there were also instances of biometric data vulnerabilities, such as face recognition data being accessible and retrievable from the database. In parallel to the biometric data breach, Antheus Tecnologia also had another related vulnerability which was noticed during the investigation. The company provides services to a national Civil Identification System in Brazil used to issue driving licenses although the access portal used for on-boarding new users was also not secure because of the lack of password protection. Furthermore, user data, administrator login information, several employee email addresses and phone numbers were also found. According to the SafetyDetectives research team, the practice of allowing access to server data in such a way is rather unusual. This methodology generally leaves the server MN502 - Overview of Network Security - Final Assessment Trimester 2, 2020 Page 8 of 15 exposed, but this could have been done purposefully. If so, it’s a rather strange option to take when it comes to ensuring security. SafetyDetectives security team found two indices, potentially referring to two different companies using the Antheus server to store personal information including fingerprint data. Moreover, the investigation team found data logs relating to precise fingerprint scans that could be reconstructed from the index numbers stored on the Antheus server. Moreover, it could be possible to recreate (or reverse-engineer) a biometric image map for a particular fingerprint from strings of data found on the server. According to the research finding of the SafetyDetectives security team, nefarious users can access the Antheus server and after extracting the available data, could use the data stream of ones and zeros to recreate the full biometric image of someone’s fingerprint.

You founded your own firm three years ago. You initially contributed $200,000 of your ownmoney and in return you received 2 million shares of stock . You also sold an additional 1 million shares of stock to angel investors. Now, you are considering a second round raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.

a.What is the price per share of this funding round?

b. What is the value of the whole firm afterthis investment (the post-money valuation)?

c. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own? What percentage of the firm will you own

after this investment?

d.How much money will you gain from founding this firm after this round of financing? Ignore time value of money when you answer this question.

Founded in April 1996, Antheus Tecnologia develops and distributes Automated Fingerprint Identification Systems (AFIS), automated fingerprinting, and other systems such as iris recognition devices. Antheus Tecnologia also claims that it is the first Brazilian company to be certified by the US Federal Bureau of Investigation (FBI) and develops biometric solutions for domestic and overseas clients.

In March 2020, the security research team at SafetyDetectives discovered a significant data leak in addition to other security flaws (such as lack of password protection) relating to fingerprint data on an Antheus log server in Brazil. The research team discovered almost 2.3 million data points in total and estimated that 76,000 unique fingerprints were found on the database. Approximately 16 gigabytes of data were found on the Elasticsearch server including highly sensitive information related to identification and biometric details.

The Antheus server investigated by the security team is an identity server, which means it gives users access to the system or the ability to register as a new user. It also had fingerprint information in at least two “indices” from a total of 91. The Antheus server stored server and API access logs but also contained fingerprint data comprising of Ridge Bifurcation and Ridge ending – essential components for identifying and verifying fingerprints. In addition to fingerprint information, there were also instances of biometric data vulnerabilities, such as face recognition data being accessible and retrievable from the database.

In parallel to the biometric data breach, Antheus Tecnologia also had another related vulnerability which was noticed during the investigation. The company provides services to a national Civil Identification System in Brazil used to issue driving licenses although the access portal used for on-boarding new users was also not secure because of the lack of password protection. Furthermore, user data, administrator login information, several employee email addresses and phone numbers were also found.

According to the SafetyDetectives research team, the practice of allowing access to server data in such a way is rather unusual. This methodology generally leaves the server, but this could have been done purposefully. If so, it’s a rather strange option to take when it comes to ensuring security. SafetyDetectives security team found two indices, potentially referring to two different companies using the Antheus server to store personal information including fingerprint data. Moreover, the investigation team found data logs relating to precise fingerprint scans that could be reconstructed from the index numbers stored on the Antheus server. Moreover, it could be possible to recreate (or reverse-engineer) a biometric image map for a particular fingerprint from strings of data found on the server. According to the research finding of the SafetyDetectives security team, nefarious users can access the Antheus server and after extracting the available data, could use the data stream of ones and zeros to recreate the full biometric image of someone’s fingerprint.

a) After analysing the case study, discuss the importance of biometric credentials, and report the impact of the data breach associated with biometric data.

b) Identify and discuss the vulnerability associated with fingerprint data stored on the Antheus Tecnologia server. Recommend a possible solution to patch this vulnerability.

HarLeY-DaViDSOn Founded in 1903 in Milwaukee, Wisconsin, Harley-Davidson has twice narrowly escaped bankruptcy but is today one of the most recognized motor vehicle brands in the world. In dire financial straits in the 1980s, Harley licensed its name to such ill-advised ventures as cigarettes and wine coolers. Although consumers loved the brand, sales were depressed by product-quality problems, so Harley began its return to greatness by improving manufacturing processes. It also developed a strong brand community in the form of an inclusive owners’ club, called the Harley Owners Group (H.O.G.), which sponsors bike rallies, charity rides, and other motorcycle events and now numbers more than 1 million members in some 1,400 chapters. H.O.G. benefits include a magazine called Hog Tales, a touring handbook, emergency road service, a specially designed insurance program, theft reward service, discount hotel rates, and a Fly & Ride program enabling members to rent Harleys on vacation. The company also maintains an extensive Web site devoted to H.O.G. with information about club chapters and events and a special members-only section. Harley is active with social media too and boasts more than 3.3 million Facebook fans. One fan inspired a digital video and Twitter campaign dubbed E Pluribus Unum—“Out of Many, One”—where Harley riders from all walks of life show their diversity and their pride in their bikes. Companies large and small can build brand communities. When New York’s Signature Theatre Company built a new 70,000-square-foot facility for its shows, it made sure there was a central hub where casts, crew, playwrights, and audiences for all productions could mingle and interact.65 Online, marketers can tap into social media such as Facebook, Twitter, and blogs or create their own online community. Members can recommend products, share reviews, create lists of recommendations and favorites, or socialize together online. Online forums can be especially helpful in a business-to-business setting for professional development and feedback opportunities. The Kodak Grow Your Biz blog is a place for members to learn and share insights about how Kodak products, services, and technologies can improve important company or industry business performance.66 The Pitney Bowes User Forum is a place for members to discuss issues related to Pitney Bowes equipment and to mailing and marketing in general. Members often answer each other’s business questions, though Pitney Bowes customer service representatives are available for any particularly difficult support questions.67 maximizing the benefits of branD Communities A strong brand community results in a more loyal, committed customer base. One study showed that a multichannel retailer of books, CDs, and DVDs enjoyed long-term incremental revenue of 19 percent from customers—what the authors called “social dollars”— after customers joined an online brand community. The more “connected” a member of the community was, the greater the likelihood he or she would spend more.68 A brand community can be a constant source of inspiration and feedback for product improvements or innovations. The activities and advocacy of members of a brand community can also substitute to some degree for activities the firm would otherwise have to engage in, creating greater marketing effectiveness and efficiency as a result.69To better understand how brand communities work, one comprehensive study examined communities around brands as diverse as StriVectin cosmeceutical, BMW Mini auto, Jones soda, Tom Petty & the Heartbreakers rock and roll band, and Garmin GPS devices. Using multiple research methods such as “netnographic” research with online forums, participant and naturalistic observation of community activities, and in-depth interviews with community members, the researchers found 12 value creation practices taking place. They divided them into four categories—social networking, community engagement, impression management, and brand use—summarized in Table 5.5. Building a positive, productive brand community requires careful thought and implementation.70 One set of researchers offers these recommendations for making online brand communities more effective:71

1. Enhance the timeliness of information exchanged. Set appointed times for topic discussion; give rewards for timely, helpful responses; increase access points to the community

. 2. Enhance the relevance of information posted. Keep the focus on topic; divide the forum into categories; encourage users to preselect interests.

3. Extend the conversation. Make it easier for users to express themselves; don’t set limits on length of responses; allow user evaluation of the relevance of posts.

4. Increase the frequency of information exchanged. Launch contests; use familiar social networking tools; create special opportunities for visitors; acknowledge helpful members.

Seven-year-old Timothy’s mother takes him to his pediatrician for his annual checkup. His weight is 68 pounds (30.91 kg), plotted at the 95th percentile, and his height is 50 inches (127 cm, 1.27 M), between the 75th and 90th percentiles for his age. Timothy is considered sedentary. His body mass index plots at the 95th percentile for his age. His growth percentiles have been increasing over the last several years. Timothy has a cousin Marley. She is also 7 years old, is considered low active, weighs 69 pound (31.3 Kg) and is 50.5 inches tall (128 cm, 1.28 M). Timothy and Marley have nearly the same Estimated Energy Requirements, 1652 and 1651 Calories per day respectively.

Timothy’s mother expresses concern to the pediatrician about her son’s weight. His older and younger brothers and his cousin Marley are thinner than Timothy. Timothy’s mother is obese, but his father is a normal weight for height. Timothy is in the second grade. He rides the school bus to and from school. He participates in the School Lunch Program at his school. After school, Timothy and his brothers stay in their home with a babysitter until one of their parents returns home from work. Timothy usually watches TV or plays video games after school. His parents leave snack foods—chips, cookies, and sodas—in the house for their sons to have after school. His mother usually prepares their evening meal, which consists of a meat, starch, vegetables, and a dessert item. After dinner, Timothy does his homework and then usually watches more TV with his parents. He usually has a dish of ice cream before going to bed.

1. Given Timothy and Marley’s age, weight, height, and physical activity level how can their EERs be essentially the same? (5 points)
2. What is your assessment of Timothy’s body size based on his weight-for-age, height-for-age, and BMI-for age percentiles? (5 points)
3. What suggestions do you have for Timothy’s parents about improving his eating habits? (5 points)
4. What suggestions do you have for Timothy’s parents for increasing his physical activity level? (5 points)
5. Is it significant that Timothy’s mother also has a weight problem, explain? (5 points)

You may use the Chapter 12 Case Study file to work on this assignment. Submit your answers using this Canvas quiz submission.

Take the Quiz

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Read the case study details below then answer the questions.

Seven-year-old Timothy’s mother takes him to his pediatrician for his annual checkup. His weight is 68 pounds (30.91 kg), plotted at the 95th percentile, and his height is 50 inches (127 cm, 1.27 M), between the 75th and 90th percentiles for his age. Timothy is considered sedentary. His body mass index plots at the 95th percentile for his age. His growth percentiles have been increasing over the last several years. Timothy has a cousin Marley. She is also 7 years old, is considered low active, weighs 69 pound (31.3 Kg) and is 50.5 inches tall (128 cm, 1.28 M). Timothy and Marley have nearly the same Estimated Energy Requirements, 1652 and 1651 Calories per day respectively.

Timothy’s mother expresses concern to the pediatrician about her son’s weight. His older and younger brothers and his cousin Marley are thinner than Timothy. Timothy’s mother is obese, but his father is a normal weight for height. Timothy is in the second grade. He rides the school bus to and from school. He participates in the School Lunch Program at his school. After school, Timothy and his brothers stay in their home with a babysitter until one of their parents returns home from work. Timothy usually watches TV or plays video games after school. His parents leave snack foods—chips, cookies, and sodas—in the house for their sons to have after school. His mother usually prepares their evening meal, which consists of a meat, starch, vegetables, and a dessert item. After dinner, Timothy does his homework and then usually watches more TV with his parents. He usually has a dish of ice cream before going to bed.

1. Given Timothy and Marley’s age, weight, height, and physical activity level how can their EERs be essentially the same? (5 points)
2. What is your assessment of Timothy’s body size based on his weight-for-age, height-for-age, and BMI-for age percentiles? (5 points)
3. What suggestions do you have for Timothy’s parents about improving his eating habits? (5 points)
4. What suggestions do you have for Timothy’s parents for increasing his physical activity level? (5 points)
5. Is it significant that Timothy’s mother also has a weight problem, explain? (5 points)

A)

As part of a larger project to study the behavior of stressed-skin panels, a structural component being used extensively in North America, an article reported on various mechanical properties of Scotch pine lumber specimens. Data on the modulus of elasticity (MPa) obtained 1 minute after loading in a certain configuration and 4 weeks after loading for the same lumber specimens is presented here.

Calculate an upper confidence bound for the true average difference between 1-minute modulus and 4-week modulus; first check the plausibility of any necessary assumptions. (Use α = 0.05. Round your answer to two decimal places.)
MPa=_______

B)

It is thought that the front cover and the nature of the first question on mail surveys influence the response rate. An article tested this theory by experimenting with different cover designs. One cover was plain; the other used a picture of a skydiver. The researchers speculated that the return rate would be lower for the plain cover.

Does this data support the researchers' hypothesis? Test the relevant hypotheses using α = 0.10 by first calculating a P-value.

Compute the test statistic value and find the P-value. (Round your test statistic to two decimal places and your P-value to four decimal places.)

C)

Do teachers find their work rewarding and satisfying? An article reports the results of a survey of 396 elementary school teachers and 261 high school teachers. Of the elementary school teachers, 224 said they were very satisfied with their jobs, whereas 125 of the high school teachers were very satisfied with their work. Estimate the difference between the proportion of all elementary school teachers who are satisfied and all high school teachers who are satisfied by calculating a 95% CI. (Use p_elementary − p_{high school}. Round your answers to four decimal places.)