1.   The CEO of the firm you work for is reading some research about the market you firm is in. He keeps coming across this concept of p-value and is perplexed by what it means. He asks you to explain it to him in a way he can understand it. (He took stats 40 years ago at an inferior university). Write up an explanation of p-value and use an example that will clearly explain this concept to him.    Remember, he basically has no background in statistics.

A business has a gross income of $1.32 million. It has promised to pay the CEO a bonus of 20% of net income, which is income after taxes. But the bonus is not subject to taxes because the bonus is an operating expense. The total tax owed is 20% of gross income less the bonus. Our goal is to find the company profit after the bonus and taxes are paid. Let B be the amount on which the bonus is based, and let T be the amount on which taxes are calculated, both in millions of dollars.

(a) Express the taxes paid in terms of the variable T.

(b) The gross income of $1.32 million equals the amount B on which the bonus is based plus the taxes paid. Express this as an equation involving T and B. (Part (a) may be helpful.)

(c) Express the bonus paid in terms of the variable B.

(d) The gross income also equals the amount T on which taxes are based plus the bonus paid. Express this as an equation involving T and B. (Part (c) may be helpful.)

  

(e) Solve the system of two equations in two unknowns from parts (b) and (d) for the variables T and B.

(f) How much is the bonus?
$  million

How much is paid in taxes?
$  million

How much profit is left over?
$  million

CASE: The Broken Board

You are the CEO of the “Ending Homelessness Foundation” (EHF) and have been in your role for three months. You are getting yourself acquainted with the operations of the foundation as well as the functioning of the board. For many years the EHF has had a strong reputation in the community but as of late the stakeholders including donors, community members, and staff are showing signs of a lack of trust and commitment to the organization.

You know in your new role as CEO you have a lot of work to do and have decided to examine the board of director culture and functioning. You have come to realize that your board of directors is really not functioning at an optimal level and feel significant improvements need to be made.

You have witnessed several signs that need to be addressed quickly. The first noticeable problem was the blatant lack of respect on the board. There appears to be political and personal agendas and obvious power struggles between some of the members. People interrupt each other and have sideline conversations that influence votes and essentially “gang up” on ideas. Board members meet outside of the meetings and coerce others to vote in a certain way. During meetings members of the board present issues not identified on the agenda that often take up too much time. As the CEO you know these items are important however board meetings only last two hours. Lately they have been running way longer. During the last board meeting you had individuals bring up a funding opportunity that resulted in a motion directing you to pursue the application. This funding opportunity, although would grow the organization, is completely outside of your mission and strategic priorities. Additionally outside of the board meetings you have board members individually calling you and trying to push their own agendas and ideas forward, all the while, speaking about other board members behind their backs. Finally, you notice that the chair of the board only calls you the day before the meeting for an “update.”

On a positive note, you know all the board members are solid individuals with the right intentions. They clearly believe in the cause of the Ending Homelessness Foundation and you know that this board, with significant improvements and guidance, can make great things happen.

1. Integrating the five elements of board effectiveness and the seven basic areas of board responsibility, how would you guide your board through change?
2. Also, you will want to consider “how the board does it work” in your essay.

The CEO has given her secretary this material for a memo, but it is highly un-organized. Rewrite the memo so that the main point is first, that the memo flows in a much more logical order. Delete information not relevant to the main idea. Use strong subjects and verbs -- in other words, employ the principles we talked about in the lesson on writing.

To employees at a call center

I’m hoping you can send out a memo for me to all phone operators. As you might or might not be aware of, we’ve had some problems lately with operators asking for breaks, or simply taking them, at all sorts of time during their shift. While we are happy to be flexible, we do have a job to do and must have a certain amount of operators manning the phones at all times. Several times the phones have rung and rung with not enough people to answer them. Several supervisors have complained to me that their people have argued with them about combining their breaks and meal break to get an hour at one time. I feel like I need to put my foot down so that each supervisor doesn’t have to make their own decision. We need to remind folks of our policy on breaks and meal breaks through the day. Remind telephone operators that they should take the two 15 minute breaks allotted to them generally about halfway through a four-hour work period. If they want or need to take a break during another time, they should talk with their supervisor. But let folks know this should be under extraordinary circumstances. Stress that these should be extraordinary circumstances so we can count on enough people to be on the phones through the day. Meal breaks should be taken roughly halfway through their shift, but they should be coordinated with their supervisor. Several times, we’ve lost folks we were counting on, only to find that they were on break. Phone operators can stay at their desks and work on personal business, or simply each lunch, as long as they are not tying up resources. We’d prefer, though, that they go to the break rooms or leave their cubicles. We don’t want people to create the perception that they’re doing personal tasks during work time. I often eat at my desk but of course I’m not salaried employee. Oh, and we don’t want folks saving up their breaks and leaving work early. We need to staff our phones from 8 a.m. to 8 p.m. Our staggered schedule allows us to do that, but not if folks create their own schedules. Do people have to take their breaks? Yes, they do -- federal law mandates it. So tell them they just can’t skip the breaks, though why they’d want to I don’t know. By the way, it looks like we’ll be hiring in the new fiscal year, as we go ahead with that expansion into the Southeast. Should be about 20 to 25 new phone operators.

. Write an IOM to the CEO concerning your analysis of the following case stating strengths and weaknesses giving testing tools and recommendation for controls.

A Spring Water Spa Company is a 15-store chain in the Midwest that sells hot tubs, supplies and accessories. Each store has a full-time, salaried manager and an assistant manager. The sales personnel are paid an hourly wage and a commission based on sales volume.

The company uses electronic cash registers to record each transaction. The salesperson enters his or her employee number at the beginning of his/her shift. For each sale, the salesperson rings up the order by scanning the item’s bar code, which then displays the item’s description, unit price, and quantity (each item must be scanned.) The cash register automatically assigns a consecutive number to each transaction. The cash register prints a sales receipt that shows the total, any discounts, the sales tax, and the grand total.

The salesperson collects payment from the customer, gives the receipt to the customer, and either directs the customer to the warehouse to obtain the items purchased or makes arrangements with the shipping department for delivery. The salesperson is responsible for using the system to determine whether credit card sales are approved and for approving both credit sales and sales paid by check. Sales returns are handled in exactly the reverse manner, with the salesperson issuing a return slip when necessary.

At the end of each day, the cash registers print a sequentially ordered list of sales receipts and provide totals for cash, credit card, and check sales, as well cash and credit card returns. The assistant manager prepares a daily reconciled report for the store manager’s review.

Cash sales, check sales, and credit card sales are reviewed by the manager, who prepares the daily bank deposit. The manager physically makes the deposit at the bank and files the validated deposit slip. At the end of the month, the manager performs the bank reconciliation. The cash register tapes, sales invoices, return slips, and reconciled report are mailed daily to corporate headquarters to be processed with files from all the other stores. Corporate headquarters returns a weekly Sales and Commission Activity Report to each store manager for review.

Forum Activity #8 (3%)
Imagine you are the CEO of Google and you are interested in developing a new product. You have 5 ideas to choose from:

•3-sided flip phone
•Living robots
•760mph trains
•Cancer-detecting “smart” needles
•Car batteries that charge in 10 minutes
1.What are the top 15 criterias you would use to screen/evaluate the above ideas? List those criterias in order of importance (1- most important, 15- least important).

2.Based on your established criteria, which of the 5 ideas would work best? Explain your choice and the selection criteria(s) that helped you determine it.
Post a 1-page response

Otis is the CEO of Rectify, Inc., a private foundation. Otis invests $500,000 (80%) of the foundation's investment portfolio in high-risk derivatives. Previously, the $500,000 had been invested in corporate bonds with an AA rating that earned 4% per annum. If the derivatives investment works as Otis's investment adviser claims, the annual earnings could be as high as 20%.

Compute the amount of the initial tax, if any.

1. The initial tax imposed on Rectify (if any) is $.
   The initial tax imposed on Otis (if any) is $

If the act causing the imposition of the tax is not addressed within the correction period, compute the additional tax, if any.

1. The additional tax for Rectify (if any) would be $.
   The additional tax for Otis (if any) would be $

that's the whole question from the homework

You are CEO of SUNSUP Corporation, a major innovator and manufacturer of solar panels. As part of SUNSUPS’s commitment to social responsibility, you initiated and led, between 2013 and 2018, the financing of startup solar panel companies in 3rd world countries (with loans forgiven if the startup did not succeed).

By the end of 2018, about 2/3s of the startups have failed, but the other 1/3 appear to be commercially viable. Your Chief Financial Officer has advised you that, whatever its successes, this goodwill program has cut your company’s profit margin by about 15%. What are your ethical responsibilities under these circumstances?

One Friday afternoon years ago I was sitting in my office as the CEO of a young software company, when my department heads of software development and finance came in separately to each request an additional $125,000 in funding. My software development director wanted new product testing equipment and my CFO wanted to upgrade our accounting and business systems software. Both were legitimate requests that would help move the business forward. I couldn’t help but laugh: In the span of 10 minutes I was being asked to approve two unplanned expenses of $125,000, and they were as different as apples and oranges. Framing the Problem This story captures the dilemma faced by CEOs every day and is unique to the job. How do you compare two expenses that have almost no relation to each other?

When you have to decide between two expenses, you choose the one that you think based upon your experience will generate the most.

True or False and why please:)