Read the passage given below, and answer the questions given at the end. Each answer must be within the
word limit of 50-100 words.
Passage:
Students are responsible for familiarising themselves with the University Code of Student Conduct, as on
enrollment with the University the student has placed themselves under the policies and regulations of the
University and all of its duly constituted bodies. Disciplinary authority is exercised through the Student
Conduct Committee. The Committee has procedures in place for hearing allegations of misconduct. Copies of
the student conduct code are available at the Student Services Office.
Academic dishonesty is never condoned by the University. This includes cheating and plagiarism, which violate
the Student Conduct Code and could result in expulsion or failing the course.
Cheating includes but is not limited to obtaining or giving unauthorized help during an examination, getting
unauthorized information about the contents of an examination before it is administered, using unauthorised
sources of information during an examination, altering or falsifying the record of any grades, altering or
supplying answers after an examination has been handed in, falsifying any official University record, and
misrepresenting the facts to get exemptions from or extensions to course requirements.
Plagiarism includes but is not limited to submitting any paper or other document, to satisfy an academic
requirement, which has been copied either in whole or in part from someone else’s work without identifying
that person; failing to identify as a quotation a documented idea that has not been thoroughly assimilated into
the student's language and style, or paraphrasing a passage so closely that the reader could be misled as to the
source; submitting the same written or oral material in different courses without obtaining authorisation from
the lecturers involved; or 'dry-labbing', which includes obtaining and using experimental data from fellow
students without the express consent of the lecturer, utilizing experimental data and laboratory write-ups
from other parts of the course or from previous terms during which the course was conducted, and fabricating
data to fit the expected results.
Questions:
1. Arsal takes help from an online blog for his final essay assignment. Although he does not copy the
exact words of the blog, the plagiarism check shows more than 60% plagiarism in his essay. What do
you think could be the reason?
2. If you were in Arsal’s place, what steps would you take to ensure the absence of plagiarism in your
essay?
3. How does one credit the original source consulted for the information they have incorporated into
their work?
4. In your opinion, which sources (books, journals, blogs, websites, social media, newspapers, magazines,
videos, etc.) are more reliable in terms of research and why?

Aftron is a very famous US company producing auto spare parts. They produce parts on large scale
and sells all over the country. Most of the US car manufacturing industries place orders with them
in advance for the various auto parts. For these advance bookings, companies make payments for
the pre booking of delivery of parts. Aftron are known for their efficiency and reliability among
the business communities. One-day news breaks out for the default of Aftron. The news turned
out as a shock for the auto industries. There seems to be multiple reasons for the default. In such
a situation it is hard to blame someone for the failure. Investors are assuming that the financial
statements fail to present the performance of the company. The disclosures are insufficient in
highlighting the key assumptions and judgements made when estimating the fair value of assets.
The management of the company blames the financial team and internal control system. The
financial team are unable to provide realistic calculations to the management and does not follow
the correct practices.
a. In your opinion, what information could be presented by the company to cover up their flaws?
Being an internal control officer, what strategy you would follow to investigate the internally
generated failures?
b. What suggestions would you like to provide to the management to make themselves aware of
the company’s activities in order to save the Aftron from such happenings in the future.

Aftron is a very famous US company producing auto spare parts. They produce parts on large scale
and sells all over the country. Most of the US car manufacturing industries place orders with them
in advance for the various auto parts. For these advance bookings, companies make payments for
the pre booking of delivery of parts. Aftron are known for their efficiency and reliability among
the business communities. One-day news breaks out for the default of Aftron. The news turned
out as a shock for the auto industries. There seems to be multiple reasons for the default. In such
a situation it is hard to blame someone for the failure. Investors are assuming that the financial
statements fail to present the performance of the company. The disclosures are insufficient in
highlighting the key assumptions and judgements made when estimating the fair value of assets.
The management of the company blames the financial team and internal control system. The
financial team are unable to provide realistic calculations to the management and does not follow
the correct practices.

a. In your opinion, what information could be presented by the company to cover up their flaws?
Being an internal control officer, what strategy you would follow to investigate the internally
generated failures?

b. What suggestions would you like to provide to the management to make themselves aware of
the company’s activities in order to save the Aftron from such happenings in the future.

Using Excel to Construct event dummy (or binary) variables to represent three international events :

(i) The Asian financial crisis – one from Aug 1997 to Jul 1998, zero otherwise.

(ii) The Global Financial Crisis (GFC) – one from Feb 2007 to Feb 2009, zero otherwise.

(iii) Covid-19– one from Jan 2020 to Mar 2020, zero otherwise.

Question 2
Part (a) Consider a firm called Health-R-Us that is a monopoly. How does Health-RUs
decide the price to charge and quantity to sell of the good it has a monopoly on?
Illustrate your answer using a fully labelled and explained market diagram. Assume
Health-R-Us is making monopoly profits and illustrate these on the same diagram. In
addition, indicate the area on your diagram that illustrates the efficiency cost (the
dead weight loss) of the monopoly, and explain why this dead weight loss arises.

Part (b) Assume Health-R-Us is a legal monopoly: it is a monopoly due to legal
protection from the government in the form of a patent issued to the company.
Imagine that the government withdraws the legal protection for Health-R-Us such
that the market becomes competitive. Will a typical individual firm in this
competitive market make economic profit in the long run? Why or why not? Use an
appropriate firm-level diagram to illustrate and explain your answer.

Part (c) Your answers to parts 2a and 2b illustrated different levels of profit made by
an individual firm in both a monopoly market structure and a competitive market
structure respectively. In part 2a you also indicated the dead weight loss of a
monopoly.
Assume now that Health-R-Us has discovered a vaccine for coronavirus. Why might
the government be willing to grant (and allow to remain in place) a patent to Health-
R-Us, despite the dead weight loss and the ensuring monopoly profits caused by
such a patent? Explain your answer. For simplicity assume the vaccine is only
relevant for the domestic market (i.e., there is no global market for vaccines).

Question 6: The following company provides a single product and have provided their summary forecast data shown below relating to its product for 2020.    

a. Calculate the contribution margin per unit.                         

b. Calculate the contribution margin ratio.

c. Calculate the break-even in units and sales dollars for 2020.

d.Calculate the profit earned in 2020.

Carla Vista Company, which uses the retail LIFO method to determine inventory cost, has provided the following information for 2020:

Assuming stable prices (no change in the price index during 2020), what is the cost of Carla Vista's inventory at December 31, 2020? (Hint: Round intermediate calculation to 2 decimal places, e.g. 0.63 and final answer to 0 decimal places.)