Business Studies Questions & Answers

A.     Set up a table or spreadsheet for NPI's order quantity (Q), inventory-related total cost (TC), the purchase price (P), use requirement (X), order cost (Θ), and carrying cost (C).   Establish a range for Q from 0 to 2,000 in increments of 100 (i.e., 0, 100, 200, ..., 2,000). The table or spreadsheet for NPI's order quantity (Q), inventory-related total cost (TC), purchase price (P), use requirement (X), order cost (Θ), and carrying cost (C) appears as follows: Quantity (Q) Total Cost (TC) Price (P) Use Requirement (X) Order Cost θ Carrying Cost (C) 0 4 5,000 $50 $0.50 100 $22,525 4 5,000 50 0.50 200 21,300 4 5,000 50 0.50 300 20,908 4 5,000 50 0.50 400 20,725 4 ...

  A.       One of the most important skills to learn in managerial economics is the ability to identify a good business.  Discuss at least four characteristics of a good business. Interesting perspective on the characteristics of wonderful businesses has been given by legendary Wall Street investors T. Rowe Price and Warren E. Buffett.  The late T. Rowe Price was the founder of Baltimore-based T. Rowe Price and Associates, Inc., one of the largest no-load mutual fund organizations in the United States, and the father of the "growth stock" theory of investing.  According to Price, attractive growth stocks have low labor costs, superior research to develop products and new markets, a high rate of return on stockholder's equity (ROE), elevated profit margins, rapid earnings per share (EPS) growth, lack cutthroat competition and are comparatively immune from regulation.  Omaha 's Warren E. Buffett, the billionaire head of Berkshire ...

Facebook Interview Process (Case Study) 1.   What are the principles behind Facebook’s interview process?  Do you think it is too complex?  Explain. Facebook is always seeking individuals that not only fit their organization’s culture but that have a strong grasp on what the company is about.  2. What does the interview process tell you about Facebook’s culture? Explain. Facebook is not looking for a (warm body) for its various positions.  Candidates and the ones selected for hiring should have a strong ability to contribute to the organization. 3.   Can Facebook’s interview process be applied in companies that are not technology-based?  How might it be applied to a company that makes golf clubs? No, it can't be applied exactly but can be used as a reference for a similar approach. Because every new hire an entrepreneur makes determines the heights to which the company can climb or the depths to which it can go and is based on...

Don't Just Do It, Do It Right (Case Study) Q1. Why did worldwide protests break over alleged '' sweatshops conditions'' in Nike factories across south Asia? Were the business practices ethical? Sweatshops often have poor working conditions, unfair wages, unreasonable hours, child labor, and a lack of benefits for workers. In this situation Nike business ethics was unethical.   Q2. Was Nike a helper or exploiter of the third world? Exploiter more than a helper. Because more than 200 children are involved in the production line at Nike in Asia. Though, Nike is characterized of making its equipments  in countries which are in the developing phase by very cheap labor. In doing this Nike made high margins on the cost to its workers. So, Nike success story is not based on good name and advertising alone but also attached to the tears of tortured workers and child labor. The issue is not that simple. As the demand is increasing on Nike products produced by ...

A Tale of Two Borrowers (Case Study) 1.        One of these businesses received a bank loan and the other did not. Describe the differences between the two companies that led to one entrepreneur receiving the financing he needed and the other one failing to qualify for a loan.       The differences in the two businesses from the bank’s perspective can be based on many factors that may have played a part in the loan decision: Credit rating: The bank will want to review both the credit history of the business and Andy because a   personal guarantee   is often required for a small business loan. The cash flow from a business operation and the cycle of cash flow, from the purchase of inventory through the collection of accounts receivable, is the most important factor for obtaining short-term debt financing. Collateral: When lenders demand collateral for a secured loan, they are seeking to minimize the ...