23. On January 1, 2019, Mancunian Corp. purchased 10% bonds, with a $200,000 face value, for $218,492.52. This price implies an 8% yield to Mancunian. The bonds pay interest on December 31 of each year. Mancunian uses the effective-interest method and classifies the bonds as available for sale securities.

The fair value of the bonds on December 31, 2019 equals $217,200. The fair value of the bonds on December 31, 2020 equals $208,340.

Prepare the journal entries to:

1. Record the purchase of the bonds on January 1, 2019.

2. Record receipt of interest on December 31, 2019.

3. Record the fair value adjustment on December 31, 2019.

4. Record receipt of interest on December 31, 2020.

5. Record the fair value adjustment on December 31, 2020.

6. Record the sale of these bonds on January 1, 2021 for $209,000. cash.

Bonita Company sells 8% bonds having a maturity value of $1,420,000 for $1,312,340. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.

Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.)

eTextbook and Media

Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38,548.)

TRUE OR FALSE

5. TRADE SURPLUS = EXPORTS > IMPORTS; MORE DOMESTIC JOBS; AND LOWER CONSUMER

PRICES; AND THIS IS GOOD FOR THE US ECONOMY.

6. GENERALLY THE HIGHER THE UNEMPLOYMENT RATE, THE HIGHER THE INFLATION RATE.

7. Ed > 1 Product is Inelastic.

8. STRUCTURAL UNEMPLOYMENT IS BETTER AND EASIER TO FIX COMPARED TO FRICTION

UNEMPLOYMENT.

9. ABSOLUTE ADVANTAGE IS WHEN A COMPETITOR CAN MAKE A PRODUCT WITH MORE

RESOURCES AND SLIGHTLY LOWER COSTS.

10. COMPARATIVE ADVANTAGE IS WHEN A COMPETITOR CAN MAKE A PRODUCT WITH

LOWER OPPORTUNITY COSTS; THEREFORE MAKES THE PRODUCT CHEAPER AND EASIER.

11. SUSTAINED COMPETITIVE ADVANTAGE IS LONG TERM, AND COMPETITIVE ADVANTAGE IS

SHORT TERM. BOTH ARE VERY IMPORTANT FOR COMPETITORS TO HAVE IN THE

MARKETPLACE .

12. AUTARKY, CLOSED SYSTEM, AND PROTECTIONISM ARE THE SAME. THEY MEAN NO

BUSINESS WITH OTHER COUNTRIES

13. ASSET INTEREST RATES ARE GENERALLY MUCH LOWER COMPARED TO DEBT INTEREST

RATES.

14. COMPARATIVE ADVANTAGE COMES FROM NATIONS’ CLIMATE, LABOR, TECHNOLOGY,

AND AVAILABIITY OF ENTPRENEURSHIP AND CAPITAL.

15. CAPITAL IN ECONOMICS MEANS SOME MONEY, EQUIPMENT,COMPUTERS, AND

BUILDINGS THAT HELP US PRODUCE OTHER PRODUCTS.

16. Ed OF INCOME= % CHANGE Qd/ % CHANGE I. THE HIGHER THE INCOME THE HIGHER Qd

FOR NORMAL PRODUCTS.

17. STOCKS GENERALLY ARE MORE RISKY THAN BONDS. BONDS ARE DEBT INVESTMENTS.

18. REAL INTEREST RATE < NOMINAL INTEREST RATE.

19. ACCOUNTING PROFIT= NET INCOME= REVENUES- EXPENSES – TAXES

20. ECONOMIC PROFIT= NET INCOME= REVENUES – EXPLICIT COSTS – IMPLICIT COSTS.

21. POSITIVE CASH FLOW = INFLOW < OUTFLOW.

22. FIRMS RAISE MONEY BY USE OF STOCKS, BONDS, AND DIVIDENDS.

23. OWNERS EQUITY= REVENUE – DIVIDENDS + EXPENSES – OWNERS PAID IN CAP.

24. RISKS ARE INDIRECTLY RELATED TO REWARDS.

25. MOODY’S, S & P, FITCH, AND SC JOHNSON ARE RATINGS AGENCIES FOR BOND

INVESTMENTS.

Stock Market Valuation and Success - IPO

The business I’ve chosen is DocuSign Inc (DOCU). The company makes software for digitally signing documents, and has been on CNBC’s list of startups revolutionizing the technology industry three times. They went public in April 2018 after raising $629.3 million in IPO. The stock opened at $38 per share, above the estimates of between $24 and $26 per share, and closed at $39.73 per share. DocuSign planned to offer 16.1 million shares but initially sold 21.7 million shares giving them a total of 152.1 million shares, valuing the company at $4.41 billion, which is above the original $3 billion valuation estimated. The IPO money has been spent on major investments in infrastructure and security, and creating a company culture that’ll attract top talent (Novet, 2018).

The market at the time seemed very favorable for the tech company’s. DocuSign was the eighth cloud based company to go public in 2018 following Dropbox and Zscaler Inc. In recent years leading up to going public in 2018 the company struggled with revenue loss, but its revenue has risen 39% overall. The revenue losses have been $52 million for the fiscal year ending 2017, $115 million in 2016, and $123 million in 2015. In good news for shareholders the revenue in fiscal year 2019 was over $700 million and the company grew 35%. There was some fear the company may not be profitable in the future because most of their revenue is from customer subscriptions, but they’ve done a good job at partnering with companies to use their services creating more revenue, and more profit value for shareholders (Bary, 2018).

For Chegg: explain whether you agree or disagree with the above assessments of my Selected IPO that occurred in the last five years . Can you identify additional economic and market factors that may have influenced the results of the IPO?

Keywords: Covid-19 Globalization International Business Risk Trade Uncertainty

2. Theoretical background and conceptual framework 2.1. Uncertainty – Definition and dimensions Past research identifies different types of uncertainty based on its source (environmental, industry or firm characteristics) or its nature (exogenous vs. endogenous) in the international business context (Certo, Connelly, & Tihanyi, 2008). However, there is still no consensus on the distinction among different dimensions of uncertainty and as a result, these are often used inconsistently or interchangeably, which in turn may hamper the decision-making by international business managers facing uncertainty, by providing an incomplete picture of the role played by uncertainty in international business context (Sniazhko, 2019). A lack of clear distinction among different dimensions of uncertainty may also lead to risky decisions due to misplaced perceptions about the prevailing environment (Brouthers, 1995). A consensus on the exact definition of uncertainty remains elusive, with arguments revolving around whether it is an objective description of an firm’s environment (Milliken, 1987) or the subjective perception of an individual manager or decision-maker about the uncertainty in the environment (Michel, 2007; Milliken, 1987). While the former suggests a universal view of uncertainty, the latter implies uncertainty lies “in the eye of the beholder” (Milliken, 1987; p. 134). To add to the confusion, researchers describe uncertainty in terms of ambiguity, complexity, conflict, entropy, equivocality, risk, and turbulence (Alpers, 2019). Milliken (1987; p. 136) defines uncertainty as a “perceived inability to predict something accurately” resulting from a lack of confidence in one’s knowledge in a situation. From that perspective, uncertainty can be considered to be an overarching environmental variable that influences a business or the economy as a whole, rather than a level of ambiguity, complexity or risk involved in a single problem or decision-making context (Alpers, 2019). This depiction of uncertainty as an overarching environmental variable is particularly relevant to the current crisis as uncertainty due to its widespread and almost instantaneous impact across different countries and markets has made it difficult to predict and control by any single business as it has affected entire international business ecosystems within and across nations. Past research also identifies several dimensions of uncertainty, namely environmental uncertainty that includes political, economic, government, cultural and discontinuous uncertainty, and represents both formal and informal parts of a country’s environment (Sniazhko, 2019). As is evident by the rapid global spread of Covid-19, the nature and level of uncertainty is potentially amplified due to the potential disconnect that each of these elements may have across different national boundaries. Similarly, industry uncertainty includes input, demand, competition and technological uncertainty, whereas firm uncertainty relates to behavioral, R&D, operating and previous experience uncertainty. The cross-national differences in these two types of uncertainties, coupled with the inconsistencies in the way uncertainty is conceptualized and operationalized (Sniazhko, 2019), fail to provide a complete picture of the impact of uncertainty on international business performance. At first glance, discontinuous uncertainty may seem to best describe the uncertainty associated with the Covid-19 pandemic, because its impact is quite similar to that of a natural disaster that result in widespread human and economic casualties (Oetzel & Oh, 2014). However, P. Sharma, et al. Journal of Business Research 116 (2020) 188–192 189 viewing it through this single lens may be problematic because of its cascading effect on other types of uncertainty, such as environmental, political, industry, and firm uncertainties, as highlighted by the way most countries across the world did not consider Covid-19 to be a serious threat when it was mainly concentrated in China and neighboring countries. In fact, they seemed to be only concerned about the continuity of supply chains to ensure the availability of manufactured goods from China, while they waited for further instructions from WHO about the impending disaster, which may have resulted in a great deal of political uncertainty (Gray, 2020). However, as the virus spread across the globe, its impact on the governments, public institutions, industries and individual firms became more apparent, with most nations coming to a stand-still due to the lock-downs and closing of borders, which led to industry and firm level uncertainty. Hence, one major learnings from this experience for international business managers and policy-makers is to consider all the dimensions of uncertainty simultaneously or in sequence, to ensure a more unified approach to dealing with such global disasters in future. 2.2. Uncertainty assessment Previous studies also examine how contextual (e.g. firm, industry, and national) factors influence managerial perceptions of uncertainty (Bouquet, Morrison, & Birkinshaw, 2009; Santos-Álvarez & GarcíaMerino, 2010). For example, larger and older firms tend to have more resources that may help reduce the perceived risk due to an uncertain environment (Acedo & Jones, 2007; Liesch, Welch, & Buckley, 2011), while family firms perceive greater risk than non-family firms (Claver, Rienda, & Quer, 2008). Others show systematic variation in risk perceptions across nations due to differences in their formal and informal institutional structures (Makhija & Stewart, 2002), which affect the nature and availability of information for decision-makers and the consequences of their decisions (Delerue & Simon, 2009). The Covid-19 crisis provides mixed evidence to these ideas as we can see even larger and older businesses like airlines and retailers coming under tremendous pressure and being forced to furlough or layoff a large number of employees, just as smaller businesses like cafes and restaurants. Similarly, developed nations in Europe and North America lead the number of diagnosed cases and deaths due to Covid19, which suggests either a complete failure of their public health systems (e.g., in Italy and Spain) or a lack of political leadership (e.g., in UK and USA). By contrast, countries like South Korea, Australia, and New Zealand have managed to flatten the infection curve with minimal disruption, due to a combination of excellent public health systems and responsible political leadership, while Singapore has seen a second wave of cases despite its early success (Ang, 2020). Interestingly, China seems to have almost controlled further spread of Covid-19, while India has so far managed to keep the number of cases and death quite low relative to its huge population (Srivastav, 2020). However, it is still early to see how countries in the rest of Asia, Africa and Latin America handle this ongoing crisis. 2.3. Uncertainty – Antecedents and outcomes Current literature focuses on the factors that influence the choice of a particular approach to manage uncertainty (e.g., the role of decisionmakers) but pays less attention to the antecedents and outcomes of the different types of uncertainty and/or the outcomes of international business firms strategies used to manage uncertainty. As a result, there is a limited understanding of the impact of uncertainty in the international business environment, and in particular, how it may influence the performance of different businesses based on their unique conditions. For example, one of the main challenges in international business is the assessment of the impact of uncertainty when the risks are interconnected and asymmetric (Bekaert, Harvey, Lundblad, and Siegel, 2014; Buckley, Chen, Clegg, & Voss, 2016), including macro risks that affect most firms and micro risks that only impact a few firms – contingent upon their origin (Eduardsen & Marinova, 2020). Most small firms do not even attempt to assess some types of uncertainty (e.g., political and economic) as these may not affect them directly and/or due to the unstructured and subjective nature of their assessment methods (Oetzel, 2005). Moreover, they may rely on the managers’ own judgment and expert opinion that could be biased and subjective (Eduardsen & Marinova, 2020), as exhibited by the inability of the governments in many countries to anticipate and control the spread of Covid-19 despite having proper pandemic plans in place for many years. For example, public health managers and political leaders have launched programs and initiatives after every major health crisis in the US in the last two decades but most of these “programs were defunded, staff was allowed to depart and Washington forgot the stark lessons it had just learned” (Diamond, 2020). The Covid-19 crisis further demonstrates these issues in quite a dramatic manner, wherein many small businesses around the world have simply collapsed due to the lack of demand from their regular customers and an inability to pivot to alternate ways of doing business. Of course, there are exceptions, such as restaurants switching over to a take-away model instead of dine-in option, fast food franchisees selling bread and milk through their drive-thru counters, and rideshare operators such as Ola and Uber taking up mail and package delivery as their traditional passenger business has almost dried up (cites). Of course, there are implications in such actions that may further increase uncertainty. For example, UberEats has been in battle with food retailers in Australia over delivery fee structures but the company is reportedly not only digging its heels in but is seemingly reluctant to be more flexible in adjusting their fee structures in the current Covid-19 environment (Durkin, 2020). The core uncertainty here is whether this action is signaling power play for channel control or simply a business taking advantage of the uncertain environment by acting opportunistically. Going forward, we would need to look at how these businesses can better prepare themselves so that they can become not only more resilient to overcome the uncertainty imposed by unexpected events but also be more agile to cope with these challenges by being flexible and innovative. 2.4. Uncertainty management Managing uncertainty involves strategies that help firms either reduce (risk management) or cope with (strategic management) uncertainty; reducing uncertainty is a natural motivator that guides firms’ behavior, whereas coping with it allows firms to adapt their strategy to deal with the type of uncertainty faced by them (Sniazhko, 2019). Uncertainty reduction involves information gathering, proactive collaboration or cooperation, and networking; whereas, uncertainty coping consists of flexibility (diversification and operational adaptation), imitation (copy competitors and early movers), reactive collaboration and/ or cooperation, control and avoidance (Simangunsong, Hendry, & Stevenson, 2012). For instance, many food retailers in the United Kingdom (Co-op, Waitrose, etc.) have been forced to reduce their offers on shelves and to focus on delivering the most essential products, to reduce the operational pressure and give more time to retailers’ employees to prepare shelves, clean stores and respond to abnormal customer demand during the lockdown due to Covid-19. More employees were also deployed to increase cleaning across all operations. To reassure customers safety concerns, retailers have offered free hand washing to customers, implemented social distancing with limiting number of customers in outlets, and limiting contact at pay points with installing the protective screens across stores and increasing the card contactless limit to £45. During times like these, reactive collaboration and/or cooperation (e.g., shifting the risk and uncertainty to the firms’ partners) is the most common strategy used by firms to handle environmental or industry uncertainty. Firms may also try to avoid uncertainty when the level of P. Sharma, et al. Journal of Business Research 116 (2020) 188–192 190 environmental and industry uncertainties is much greater than their worst expectations. Overall, managing uncertainty involves reducing the probability of undesirable outcomes and their impact on the businesses at various stages of the value chain (Figueira-de-Lemos & Hadjikhani, 2014). For instance, Aldens is family owned butcher SME, based in Oxford and established in 1783, supplies universities, restaurants, pubs, etc., and they faced an 85% reduction in orders overnight (Midcounties, 2020). Aldens partnered with regional Midcounties Coop retailer to supply fresh meet and substitute those product lines that were in jeopardy because of increased consumer demand and disrupted supply chains. Similarly, many SMEs in fashion industry have started making face masks and lab coats, to meet the insatiable demand for these personal protective equipment (PPE). Similarly, many alcohol factories are now producing hand sanitisers, while a small firm (Isinnova) was able create a system to use the Decathlon diving Mask as a pulmonary ventilator (Murdock, 2020). In this context, it may also be useful to see the experience of Samsung, a South Korean giant in consumer electronics and home appliances, during the ongoing Covid-19 crisis. Being fully aware of the risks of single sourcing, Samsung has established a vast manufacturing network over the years with factories in Brazil, India, Indonesia, South Korea, and Vietnam, to fulfill its huge production demand and to reduce its dependence on China. Unsurprisingly, this has helped Samsung shift its production from one location to another during the ongoing Covid19 crisis, thereby facing just a slow-down, and not a complete shutdown in production. Similarly, to compensate for the closure of retail stores, Samsung has leveraged its contracts with mobile phone retailers and Benow (a payment and EMI technology firm) to create an e-commerce platform so that its retail business can continue to sell and deliver the products to its customers (Mukherjee, 2020). Samsung has also launched additional services to maintain its customer relationships, such as “Free Repairs for the Frontline” program to offer free smartphone repair services to healthcare workers and special discounts for first responders and healthcare professionals (Mihai, 2020).

Make an article summary?

Tax incentives offered by local governments make the most sense

1. For commercial and residential development

       b. For industrial and technology development

c. When agglomeration economies are present

d. For relatively small jurisdictions in metropolitan areas

Insurance and billing are an important part of the health managers’ job: Be prepared to define & discuss DRGs, CPTs, etc.   

DRG - Diagnostic Related Group

CPT - Current Procedural Terminology  

COURSE:  Information Technology for the Health Professions