Jake was the owner of Top Flight Furnishings, Inc., a small corporation. Jake is the CEO, and there are no other officers. Jake used the company’s bank account as his own, used the company’s cars, and regularly took home furnishings from the store. Jake also failed to maintain liability insurance on the business. After several accidents where chair legs bought at Top Flight were falling off and causing injuries to customers, a group of customers sued the company. However, because Jake had been spending all the company’s money and had let its insurance policy lapse, the business was broke, and the customers wanted to hold Jake personally liable. Jake argues that because the business is a corporation, the liability lies with the corporation, not with him. Who is correct, Jake or the customers? Why or why not?

Smith Inc. is a public company but is tightly controlled by Joe Smith. Mr. Smith is quite confident about his ability to evaluate investments in all aspects of the business. The situation at Smith Inc. is quite different from that at Jones Inc., although they share a similar line of business. Jones Inc. has a much less powerful CEO, Fred Jones, who delegates much more control to the firm’s divisional heads. Mr. Fred meets with the divisional heads to make a capital allocation choices as a group.

1. Discuss how and why Smith Inc. and Jones Inc. might have different approaches for determining the discount rates used to evaluate their projects.

2. Discuss three sources of difference between “Cash provided by operations” and “Free Cash Flows.”

TM company is considering replacing its machine with a new model that sells for $40,000, the cost of installation is $6,000. Net working capital needed would be $5500. The old machine has been fully depreciated and has a $2500 salvage value. The new machine will be depreciated as a 5-year MACRS asset. Revenues are expected to increase $18,000 per year over the 5-year life of the new machine. At the end of 5 years the new machine is expected to have a $1500 salvage value. What are the NPV, IRR for this project if TM has a required rate of return of 14% and a marginal tax rate of 35%? Operating costs are not expected to increase from the current level of $8,000 per year. Discuss your recommendations to the company’s CEO about the replacement.

1-________ is a perception of marketplace needs and the methods an organization can use to satisfy them.

Group of answer choices

A-The organizing function

B-Vision

C-Strategic Management

D-Strategic Planning

2-In a traditional performance review, an employee's review is conducted by ________.

Group of answer choices

A-the firm's CEO

B-customers

C-his or her supervisor

D-his or her co-workers

3-Once a manager has determined the problem or opportunity, the next step in the decision-making process is to _____.

Group of answer choices

A-create a contingency plan

B-recognize the strengths

C-identify the threats

D-develop possible courses of action

4- Tactical planning guides the current and near-term activities required to implement company-wide strategies.

Group of answer choices

True

False

Huston Makena is the owner and CEO of H3 Solar Inc., a startup that makes and installs solar panels. In January, H3 Solar received 4 independent orders. The company applies overhead at a rate of $6 per direct labor hour. Direct labor wages average $10 per hour.

What is the number of units being produced for Job# 213?

2. Mr. Chopra is the CEO of Tasty packaged Foods. They manufacture various products like potato fries, samosas, etc. Post covid, the company is under revenue pressure due to the reduced demand for packaged food. Like every other business, the short-term decision-making process in this business is also a process of selecting the best amongst various alternatives considering the cost-benefit factors and impact on the overall profitability of the firm. These could involve accepting or rejecting a special order, making or buying decisions, product mix decisions, etc. These decisions require different analysis like Contribution margin analysis, relevant and irrelevant cost analysis.

Please describe any 3 of these short term decision strategies with salient features.

The answer should be a min of 1000 words. And in the word format

1.Todd Corp. manufactures train components. On January 1, 2011, management provided the following forecast of income for the next five years:

Thomas' common shareholders' equity was $422,174 on January 1, 2011. The firm does notexpect to pay a dividend during the 2011-2015 period. Thomas' cost of equity capital is 11 percent.

Required:

Compute the value of Todd Company on January 1, 2011, using the residual income valuation model and the half year convention. T. Harp, the CEO of Todd, expects net income to grow at a rate of 6 percent annually after 2015.

*Use excel cell reference

TM company is considering replacing its machine with a new model that sells for $40,000, the cost of installation is $6,000. Net Working Capital needed would be $5,500. The old machine has been fully depreciated and has a $2500 salvage value. The new machine will be depreciated as a 5-year MACRS asset. Revenues are expected to increase $18,000 per year over the 5-year life of the new machine. At the end of 5 years, the new machine is expected to have a $1500 salvage value.

What are the NPV and IRR for this project if TM has a required rate of return of 14% and a marginal tax rate of 35%? Operating costs are not expected to increase from the current level of $8,000 per year. Discuss your recommendations to the company's CEO about the replacement.

TM company is considering replacing its machine with a new model that sells for $40,000, the cost of installation is $6,000. Net working capital needed would be $5500. The old machine has been fully depreciated and has a $2500 salvage value. The new machine will be depreciated as a 5-year MACRS asset. Revenues are expected to increase $18,000 per year over the 5-year life of the new machine. At the end of 5 years the new machine is expected to have a $1500 salvage value. What are the NPV, IRR for this project if TM has a required rate of return of 14% and a marginal tax rate of 35%? Operating costs are not expected to increase from the current level of $8,000 per year. Discuss your recommendations to the company’s CEO about the replacement.

Whole Foods. By 2006, Whole Foods Market had evolved into the “world’s largest retail chain of natural and organic foods supermarkets.” Their rapid growth and success is primarily due to being highly selective about what they sell, as well as being dedicated quality standards and core values. However, sales growth has slowed. CEO John Mackey is highly committed to these values, however, the company needs to survive, and thus WF has agreed to a sale to Amazon for more than $13B. What are the key issues that facing Whole Foods? Evaluate the sale in terms of its likelihood to resolve these key issue. What alternative courses of action could Whole Foods have taken? Evaluate each course of action (pros and cons). Recommend the best course of action.