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FIN 540 Week 3 Homework Problems – Strayer NEW

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 Week 3

Homewrok Problems Chapter 20 and 21

 Which of the following statements is most CORRECT?

a. By law in most states, all preferred stock must be cumulative, meaning that the

compounded total of all unpaid preferred dividends must be paid before any dividends

can be paid on the firm's common stock.

b. From the issuer's point of view, preferred stock is less risky than bonds.

c. Whereas common stock has an indefinite life, preferred stocks always have a specific

maturity date, generally 25 years or less.

d. Unlike bonds, preferred stock cannot have a convertible feature.

e. Preferred stock generally has a higher component cost of capital to the firm than does

common stock.

  2. Which of the following statements about convertibles is most CORRECT?

a. One advantage of convertibles over warrants is that the issuer receives additional cash

money when convertibles are converted.

b. Investors are willing to accept a lower interest rate on a convertible than on otherwise

similar straight debt because convertibles are less risky than straight debt.

c. At the time it is issued, a convertible's conversion (or exercise) price is generally set

equal to or below the underlying stock's price.

d. For equilibrium to exist, the expected return on a convertible bond must normally be

between the expected return on the firm's otherwise similar straight debt and the

expected return on its common stock.

e. The coupon interest rate on a firm's convertibles is generally set higher than the market

yield on its otherwise similar straight debt.

  3. Which of the following statements concerning warrants is correct?

a. Warrants are long-term put options that have value because holders can sell the firm's

common stock at the exercise price regardless of how low the market price drops.

b. Warrants are long-term call options that have value because holders can buy the firm's

common stock at the exercise price regardless of how high the stock's price has risen.

c. A firm's investors would generally prefer to see it issue bonds with warrants than straight

bonds because the warrants dilute the value of new shareholders, and that value is

transferred to existing shareholders.

d. A drawback to using warrants is that if the firm is very successful, investors will be less

likely to exercise the warrants, and this will deprive the firm of receiving any new capital.

e. Bonds with warrants and convertible bonds both have option features that their holders

can exercise if the underlying stock's price increases. However, if the option is exercised,

the issuing company's debt declines if warrants were used but remains the same if it

used convertibles.

 4. Which of the following statements is most CORRECT?

a. One important difference between warrants and convertibles is that convertibles bring in

additional funds when they are converted, but exercising warrants does not bring in any

additional funds.

b. The coupon rate on convertible debt is normally set below the coupon rate that would be

set on otherwise similar straight debt even though investing in convertibles is more risky

than investing in straight debt.

c. The value of a warrant to buy a safe, stable stock should exceed the value of a warrant to

buy a risky, volatile stock, other things held constant.

d. Warrants can sometimes be detached and traded separately from the debt with which

they were issued, but this is unusual.

e. Warrants have an option feature but convertibles do not.

 5. Mariano Manufacturing can issue a 25-year, 8.1% annual payment bond at par. Its investment

bankers also stated that the company can sell an issue of annual payment preferred stock to

corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax

return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would

represent an after-tax risk premium. What coupon rate must be set on the preferred in order to

issue it at par?

a. 6.66%

b. 6.99%

c. 7.34%

d. 7.71%

e. 8.09%

  Chapter – 21

Week 3

 1.The major contribution of the Miller model is that it demonstrates that

a. personal taxes decrease the value of using corporate debt.

b. financial distress and agency costs reduce the value of using corporate debt.

c. equity costs increase with financial leverage.

d. debt costs increase with financial leverage.

e. personal taxes increase the value of using corporate debt.

 2. Which of the following statements concerning capital structure theory is NOT  CORRECT?

a. Under MM with zero taxes, financial leverage has no effect on a firm's value.

b. Under MM with corporate taxes, the value of a levered firm exceeds the value of the

unlevered firm by the product of the tax rate times the market value dollar amount of

debt.

c. Under MM with corporate taxes, rs  increases with leverage, and this increase exactly

offsets the tax benefits of debt financing.

d. Under MM with corporate taxes, the effect of business risk is automatically incorporated

because rsL  is a function of rsU .

e. The major contribution of Miller's theory is that it demonstrates that personal taxes

decrease the value of using corporate debt.

  3. Which of the following statements concerning the MM extension with growth is NOT  CORRECT?

a. The value of a growing tax shield is greater than the value of a constant tax shield.

b. For a given D/S, the levered cost of equity is greater than the levered cost of equity under

MM's original (with tax) assumptions.

c. For a given D/S, the WACC is less than the WACC under MM's original (with tax)

assumptions.

d. The total value of the firm increases with the amount of debt.

e. The tax shields should be discounted at the unlevered cost of equity.

 4. Which of the following statements concerning the MM extension with growth is NOT  CORRECT?

a. The value of a growing tax shield is greater than the value of a constant tax shield.

b. For a given D/S, the levered cost of equity is greater than the levered cost of equity under

MM's original (with tax) assumptions.

c. For a given D/S, the WACC is greater than the WACC under MM's original (with tax)

assumptions.

d. The total value of the firm increases with the amount of debt.

e. The tax shields should be discounted at the cost of debt.

   5. Which of the following statements concerning the MM extension with growth is NOT CORRECT?

a. The value of a growing tax shield is greater than the value of a constant tax shield.

b. For a given D/S, the levered cost of equity is greater than the levered cost of equity under

MM's original (with tax) assumptions.

c. For a given D/S, the WACC is greater than the WACC under MM's original (with tax)

assumptions.

d. The total value of the firm is independent of the amount of debt it uses.

e. The tax shields should be discounted at the unlevered cost of equity.

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ACC 410 Week 3 Quiz  – Strayer

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 Chapter 2

 Fund Accounting

 TRUE/FALSE (CHAPTER 2)

 1.         A fund is a separate fiscal and accountingentity with a self-balancing set of accounts.

 2.         Fund accounting promotes control and accountability over restricted resources.

 3.         The basis of accounting determines what transactions and events are recognized.

 4.         An entity’s measurement focus determines when transactions and events are recognized.

 5.         If an entity adopts a full accrual basis of accounting, its measurement focus will automatically be on all economic resources.

 6.         If an entity adopts a modified accrual basis of accounting, its measurement focus will automatically be on current financial resources.

 7.         A government may report some of its funds on a full accrual basis.

 8.         A government may have as many general funds as it deems necessary.

 9.         Funds divide a government into functional departments.

 10.     General funds are established to account for resources legally restricted for specified purposes.

 11.     Fiduciary activities only benefit parties other than the government itself.

 12.     The Financial Accounting Standards Board requires all nongovernmental not-for-profit entities to use fund accounting.

 MULTIPLE CHOICE (CHAPTER 2)

 1.   What is the primary reason that governmental entities use fund accounting?

a)      Fund accounting is required by law.

b)      Fund accounting is required by GAAP.

c)      Fund accounting promotes control and accountability over restricted resources.

d)     Fund accounting promotes better control over operating activities.

 2.   Basis of accounting determines which of the following?

a)      When transactions and events are recognized.

b)      What transactions and events will be reported.

c)      Where transactions and events will be reported.

d)     Why transactions and events will be reported.

 3.      A fund is

a)      A separate legal entity.

b)      A separate fiscal and accounting entity.

c)      A separate self-balancing set of accounts for inventory purposes.

d)     None of the above.

 4.   Which of the following funds is a fiduciary fund?

a)      Permanent fund.

b)      Agency fund.

c)      Capital project fund.

d)     Debt service fund.

 5.   When a governmental entity adopts a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets and liabilities in its governmental fund types:

a)      It is in violation of the law.

b)      It is in violation of GAAP.

c)      It has recorded transactions in accordance with standards for presentation in the fund financial statement required by the new GASB reporting model.

d)     It has the ability to better measure the results of operations.

 6.   A city receives a donation from a citizen who specifies that the principal must be invested and the earnings must be used to support operations of a city-owned recreational facility.  The principal of this gift should be accounted for in which of the following funds?

a)      Trust fund.

b)      Special revenue fund.

c)      Permanent fund.

d)     Internal service fund.

 7.   Which of the following is NOT a governmental fund?

a)      City Hall Debt Service Fund.

b)      City Utilities Enterprise Fund.

c)      Gasoline Tax Special Revenue Fund.

d)     City Hall Capital Project Fund.

 8.      Which of the following accounts would you least expect to see in a debt service fund?

a)      Principal payments.

b)      Interest charges.

c)      Interest earned.

d)     Outstanding balance of the debt being serviced.

 9.   Which of the following funds is a proprietary fund?

a)      Internal service fund.

b)      Special revenue fund.

c)      Capital project fund.

d)     Permanent fund.

 10. Which of the following funds is a governmental fund?

a)      Enterprise fund.

b)      Debt service fund.

c)      Internal service fund.

d)     Agency fund.

 11. Which of the following activities should the City of Highland account for in a trust fund?

a)      General fund contributions received by the City pension plan.

b)      Greens fees received from golfers at the City-owned golf course.

c)      Grants received from the Federal government to purchase buses to be used for public transit.

d)     Proceeds of bonds issued to construct a new city hall building.

 12. The state collects a gasoline tax that must be used to support highway construction and maintenance.  The gasoline tax should be accounted for in which of the following funds?

a)      General fund.

b)      Special revenue fund.

c)      Debt service fund.

d)     Internal service fund.

 13. The City of San Jose built a new city hall and financed construction by issuing bonds due in installments over the next 30 years.  The bond principal and interest will be paid by a special tax levied on property in the City.  The money received from this special tax should be accounted for in which of the following funds?

a)      General fund.

b)      Special revenue fund.

c)      Capital project fund.

d)     Debt service fund.

 14. Riverside Golf Course is a City-owned golf course that collects greens fees in amounts sufficient to cover its expenses.  Riverside Golf Course should be accounted for in which of the following funds?

a)      Internal service fund.

b)      Enterprise fund.

c)      General fund.

d)     Special revenue fund.

 15. To fulfill the printing needs of its various departments and agencies, the City has established a Central Print Shop which bills the various departments and agencies of the city for printing services rendered.  The Central Print Shop should be accounted for in which of the following funds.

a)      Internal service fund.

b)      Enterprise fund.

c)      General fund.

d)     Special revenue fund.

 16. Which of the following funds is accounted for on the modified accrual basis of accounting?

a)      General fund.

b)      Internal service fund.

c)      Proprietary fund.

d)     Pension trust fund.

 17. Which of the following assets would NOT be found in the fund balance sheet of the General Fund of the City of Harrison?

a)      Cash.

b)      Capital assets.

c)      Receivable from Special Revenue Fund.

d)     Receivable from State.

 18. Which of the following liabilities would NOT be found in the fund balance sheet of the General Fund of the City of Marmaduke?

a)      Accounts payable.

b)      Payable to the special revenue fund.

c)      Deferred revenue.

d)     Bonds payable, due in 5 years.

 19. For which of the following entities is fund accounting mandated?

a)      American Hospital Association.

b)      City of New York.

c)      Grace Lutheran Church.

d)     United Way.

 20.   Governments most commonly separate resources into funds to assure that they adhere to restrictions placed on them by

a)   legislators.

      b)   grantors.

      c)   donors.

      d)   all of the above.

   PROBLEMS (CHAPTER 2)

 1.      Assume that the City of Ft. Smith maintains its books and records in a manner that facilitates the preparation of the fund financial statements.  For each of the following events indicate in which fund(s) of the City of Ft. Smith the event would be recorded and justify your fund selection.  

  The City collected property     taxes levied for the general operations of the City.

The City collected property     taxes levied to pay principal and interest on bonds issued several years     in the past to construct a new fire station.

The City collected property     taxes levied on a specific area of the City for the purposes of providing     more frequent snow removal than is enjoyed by the rest of the City.

The City sold bonds to     finance the construction of a new City Hall.

The City sold bonds to     finance major renovations at the city-owned electric utility.

 2.   Assume that the City of Amber maintains its books and records in a manner that facilitates the preparation of the fund financial statements.   Amber City maintains a general fund, a capital project fund, and a special revenue fund.  During 2002, the City engaged in the following transactions.  Record all transactions.  Be sure to clearly indicate the fund in which the entry is made.

  The City sold bonds, face     value $26 million, at par to finance the construction of a new City Hall.

The City purchased two new     police cars at a total cost of $50,000.

The City collected $8,000 in     taxes dedicated for the eradication of noxious weeds.

The City spent $6,000 on     pesticides for noxious weeds.

The City acquired a new     tractor for $75,000.  The City paid     $20,000 in cash, and signed a $55,000 note which is due in three years.

 3.   Assume that the Blackfoot County maintains its books and records in a manner that facilitates the preparation of the fund financial statements.   Blackfoot County engaged in the following transactions during the current month.  Prepare journal entries in the general fund to record these events.

 a.    Paid salaries to County employees, $100,000.

      b.   Borrowed $35,000 at a local bank to use to buy a County car.

      c.   Purchased an automobile for the use by County administrative officials, $35,000.

      d.   Made a $7,000 payment on the outstanding accounts payable.

      e.   Collected $3,500,000 of the current property tax lavy.

      f.   Received a $50,000 grant from the State to support general government activities.

 4.   For each of the following funds list the basis of accounting it should use, either modified accrual or full accrual.

 a.   General fund

      b.   Debt service fund

      c.   Internal service fund

      d.   Investment trusts

      e.   Private purpose trusts

5.   For each of the following funds list the measurement focus it should use, either current financial resources or economic resources.

       a.   General fund

     b.   Special revenue funds

     c.   Capital projects funds

     d.   Enterprise funds

     e.   Pension trusts

  ESSAYS (CHAPTER 2)

 1.      Why do governments and not-for-profit entities use fund accounting?

 2.      Governments use the modified accrual basis of accounting and a current financial resources measurement focus when presenting the fund financial statements of the governmental funds,  but they use the accrual basis of accounting and the flow of economic resources for the government-wide financial statements.  What is a basis of accounting?  What is measurement focus?  How does the selection of one affect the selection of the other?

 3.      For what purposes do governmental and not-for-profit entities use agency funds? What are the distinguishing characteristics of agency funds?

 4.      Briefly describe the three broad categories of activities that most general-purpose governments engage in.

    Chapter 3

 Government Financial Reporting

 TRUE/FALSE (CHAPTER 3)

 1.    In addition to preparing fund financial statements, governments should also prepare consolidated financial statements to provide information on the financial position and operating results of the government as a single economic entity.

 2.    Fiduciary activities should be reported in fund statements, but should be excluded from the government-wide statements.

 3.    To prepare their government-wide statements, governments must adjust the governmental fund statements from the full accrual basis to the modified accrual basis.

 4.    The format that may now be used for the government-wide statement of net assets is “assets plus liabilities equals net assets.”

 5.    The government-wide statement of activities bears little resemblance to the income statement of a business.

 6.    A reservation of fund balance is, in essence, an additional restriction on fund resources.

 7.    Internal service fund balances generally are included in the governmental activities column of the government-wide statement of net assets, rather than in the business-type activities column.

 8.    A governmental funds balance sheet does not include capital or other noncurrent assets.

 9.    Fund balance is equal to fund assets plus fund liabilities.

 10.  Footnotes are not required to be included as part of the basic financial statements of governments.

  MULTIPLE CHOICE (CHAPTER 3)

 1.   __________ is governments’ responsibility to report the extent to which they have met their operating objectives efficiently and effectively, using all resources available for that purpose, and whether they can continue to meet their objectives for the foreseeable future.

      a)   Fund accountability.

      b)   Fiscal accountability.

      c)   Operational accountability.

      d)   Government accountability.

 2.   __________ is the responsibility of governments to justify that their actions in the current period have complied with public decisions concerning the raising and spending of public moneys in the short term.

       a)   Fund accountability.

       b)   Fiscal accountability.

       c)   Operational accountability.

       d)   Government accountability.

 3.    Which of the following is NOT considered Required Supplementary Information (RSI)?

       a)   Notes to the financial statements.

       b)   Management’s Discussion and Analysis.

       c)   Budgetary comparisons.

       d)   Pension schedules.

 4.    Government-wide financial statements should include

       a)   the statement of net assets, and the statement of activities.

       b)   the statement of net assets only.

       c)   the statement of activities only.

       d)   the statement of net assets, the statement of activities, and the statement of cash flows.

 5.   In addition to government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government’s basic set of financial statements. The basic fund financial statements that should be included for governmental funds are

       a)   the Balance Sheet and

     the Statement of Revenues, Expenditures, and  Changes in Fund Balance.

       b)   the Statement of Nets Assets,

              the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and

the Statement of Cash Flows.

       c)   the Statement of Fiduciary Net Assets, and

the Statement of Changes in Fiduciary Net Assets.

       d)   the Balance Sheet,

the Income Statement,

the Statement of Cash Flows, and

the Statement of Retained Earnings.

 6.   In addition to government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government’s basic set of financial statements. The basic fund financial statements that should be included for proprietary funds are

       a)   the Balance Sheet and

      the Statement of Revenues, Expenditures, and  Changes in Fund Balance.

       b)   the Statement of Nets Assets,

              the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and

the Statement of Cash Flows.

       c)   the Statement of Fiduciary Net Assets, and

the Statement of Changes in Fiduciary Net Assets.

       d)   the Balance Sheet,

the Income Statement,

the Statement of Cash Flows, and

the Statement of Retained Earnings.

 7.   In addition to government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government’s basic set of financial statements. The basic fund financial statements that should be included for fiduciary funds are

       a)   the Balance Sheet and

      the Statement of Revenues, Expenditures, and  Changes in Fund Balance.

       b)   the Statement of Nets Assets,

              the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and

the Statement of Cash Flows.

       c)   the Statement of Fiduciary Net Assets, and

the Statement of Changes in Fiduciary Net Assets.

       d)   the Balance Sheet,

the Income Statement,

the Statement of Cash Flows, and

the Statement of Retained Earnings.

 8.   The aim of the government-wide statement of activities is to show

       a)   the net cost of each of the government’s main functions and programs.

       b)   the net income for the government as a whole.

       c)   the net income for the government’s governmental activities and fiduciary activities.

       d)   the net income for the government’s governmental activities and proprietary activities.

 9.   The government-wide statements should be prepared using

       a)   the cash basis.

       b)   the full accrual basis.

       c)   the modified accrual basis.

       d)   the modified accrual basis for the governmental activities, and the full accrual basis for the business-type activities.

 10.   In the fund financial statements, the statements for the governmental funds should be prepared using

       a)   the cash basis.

       b)   the full accrual basis.

       c)   the modified accrual basis.

       d)   the modified cash basis.

 11.   In the fund financial statements, the statements for the proprietary funds should be prepared using

       a)   the cash basis.

       b)   the full accrual basis.

       c)   the modified accrual basis.

       d)   the modified cash basis.

 12.   In the fund financial statements, the statements for the fiduciary funds should be prepared using

       a)   the cash basis.

       b)   the full accrual basis.

       c)   the modified accrual basis.

       d)   the modified cash basis.

 13.   Per Statement No. 34, the GASB requires that governments present their budget versus actual comparisons on a __________ and include a schedule that reconciles the actual amounts per the budgetary comparison with the GAAP amounts per the financial statements.

       a)   full accrual basis

       b)   modified accrual basis

       c)   cash basis

       d)   budgetary basis

 14.   How many government-wide statements is a municipality required to prepare?

       a)   One.

       b)   Two.

       c)   Eight.

       d)   Ten.

 15.  The Basic Financial Statements of a city do not include which of the following?

       a)   Government-wide Statement of Net Assets.

       b)   Government-wide Statement of Activities.

       c)   Government-wide Statement of Cash Flows.

       d)   Balance Sheet for each governmental and proprietary fund.

 16. Which of the following would NOT be found in the business-type activity column of the government-wide Statement of Net Assets of the City of Smithville?

      a)   Cash.

      b)   Inventory.

      c)   Capital assets.

      d)   Receivable from general fund.

 17. Which of the following would NOT be found in the Statement of Net Assets of Teton City?

      a)   Cash.

      b)   Capital assets.

      c)   Receivable from special revenue fund.

      d)   Inventories.

 18. The focus of the Statement of Activities of the city of West Hills is on which of the following?

      a)   Determining the total expenses by natural classification.

      b)   Determining the total expenses by function.

      c)   Determining the total revenues by function.

      d)   Determining the net cost of functions.

 19.  Under the new GASB reporting model for governmental entities, which of the following is required?

      a)   Only one set of financial statements, prepared on the full accrual basis of accounting.

      b)   Only one set of financial statements, prepared on the modified accrual basis of accounting.

      c)   Two sets of financial statements, one similar to the pre-GASB #34 reporting requirements using the current financial resources measurement focus and modified accrual basis of accounting and one that combines all governmental activities in one column and all business-type activities in another column using the full accrual basis of accounting for both columns.

      d)   Two sets of financial statements, one exactly like the pre-GASB #34 reporting requirements using the current financial resources measurement focus and modified accrual basis of accounting and one that combines all governmental activities in one column and all business-type activities in another column using the full accrual basis of accounting for both columns.

 20.   Under the new GASB reporting model for governmental entities, the entity-wide balance sheet will display which of the following?

       a)   Assets, Liabilities, and Net Assets.

       b) Assets, Liabilities, and Fund Balances.

       c)   Assets, Liabilities, and Fund Equity.

      d)   Assets, Liabilities, and Owner’s Equity.

 21.  Under the new GASB reporting model for governmental entities, the focus of the entity-wide activity/operating statement is on which of the following?

       a)   Program revenues and expenditures.

       b)   Program revenues and expenses.

       c)   Net income.

       d)   Net program revenues/expenses.

   PROBLEMS (CHAPTER 3)

 1.   Listed below are the names of the two government-wide financials statements and the seven fund statements that should be included in the government’s basic financial statements.  Identify each as either a government-wide statement, a governmental funds statement, a proprietary funds statements, or a fiduciary funds statement.

 ________________ (a)  Statement of Activities

 ________________ (b)  Statement of Fiduciary Net Assets

 ________________ (c)  Statement of Cash Flows

 ________________ (d)  Statement of Revenues, Expenses, and Changes in Fund Net Assets

 ________________ (e)  Statement of Revenues, Expenditures, and Changes in Fund Balance

       ________________ (f)  Balance Sheet

       ________________ (g)  Statement of Net Assets (or a Balance Sheet)

       ________________ (h)  Statement of Net Assets

       ________________ (i)  Statement of Changes in Fiduciary Net Assets

  2.   Listed below are the names of the two government-wide financials statements and the seven fund statements that should be included in the government’s basic financial statements.  Identify the appropriate basis of accounting, either modified accrual or full accrual, that should be used to prepare that statement.

 ________________ (a)  Statement of Activities

 ________________ (b)  Statement of Fiduciary Net Assets

 ________________ (c)  Statement of Cash Flows

 ________________ (d)  Statement of Revenues, Expenses, and Changes in Fund Net Assets

 ________________ (e)  Statement of Revenues, Expenditures, and Changes in Fund Balance

       ________________ (f)  Balance Sheet

       ________________ (g)  Statement of Net Assets (or a Balance Sheet)

       ________________ (h)  Statement of Net Assets

       ________________ (i)  Statement of Changes in Fiduciary Net Assets

 3.   Listed below are the names of the two government-wide financials statements and the seven fund statements that should be included in the government’s basic financial statements.  Identify the appropriate measurement focus, either economic resources or current financial resources, that should be followed to prepare that statement.

 ________________ (a)  Statement of Activities

 ________________ (b)  Statement of Fiduciary Net Assets

 ________________ (c)  Statement of Cash Flows

 ________________ (d)  Statement of Revenues, Expenses, and Changes in Fund Net Assets

 ________________ (e)  Statement of Revenues, Expenditures, and Changes in Fund Balance

       ________________ (f)  Balance Sheet

       ________________ (g)  Statement of Net Assets (or a Balance Sheet)

       ________________ (h)  Statement of Net Assets

       ________________ (i)  Statement of Changes in Fiduciary Net Assets

   ESSAYS (CHAPTER 3)

 1.   Concerning the government-wide statement of net assets, describe what information is included in the governmental activities column, the business-type activities column, and the column for the total primary government.

 2.   The activities of an internal service fund are presented on the Statement of Revenues, Expenses, and Changes in Fund Net Assets in the fund financial statements. Why?  Where are the activities of an internal service fund presented on the Government-wide Statement of Activities?  Why?  

 3.   Contrast the reporting of major funds in the governmental funds financial statements versus that of nonmajor funds.

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LEG 505 Assignment 1: Code of Conduct Assessment - Strayer

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Due Week 3 and worth 150 points

Refer the following resources to complete this assignment:
Note: The assignments are a series of papers that build upon one another.

                           Raytheon’s code of conduct (http://www.raytheon.com/responsibility/rtnwcm/groups/public/documents/content/rtn_ethics- code.pdf)

                           Examples of Procurement Fraud (http://cporising.com/2012/08/03/examples-of-procurement-fraud/) 
The recent emphasis on ethics in government contracting requires contractors to avoid any conduct that even appears to be unethical. Imagine you are a former contracting officer (CO) turned contractor (you choose your area of expertise) and you just created a new contracting firm. 
Write a four to five (4-5) page paper in which you:

1.  Provide an explanation of the specific goods and / or services the new contracting firm will provide.

2.  Evaluate the Raytheon Code of Ethics as to whether it is effective in avoiding any conduct that even appears to be unethical in the type of organization you selected for your product.

3.  Determine the three (3) most critical clauses in the Raytheon document that aid the company’s avoidance of the appearance of impropriety.

4.  Determine two (2) additional ethics provision that you would include in your company’s Code of Conduct document based on Raytheon Code of Ethics. Explain the rationale for the inclusion.

5.  Analyze how your recommended clause sufficiently closes the gap on one (1) potential major ethical breach in the industry to which your product belongs. Note: Be sure to address any areas of concern regarding potential fraud in the contracting process.

6.  Use at least three (3) quality resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

                           Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

                           Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

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CIS 518 Week 3 Assignment 1 – Strayer

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Assignment 1: Activity Graph

Due Week 3 and worth 120 points

This assignment consists of two (2) sections: a written project plan and a PowerPoint presentation. You must submit the two (2) sections as separate files for the completion of this assignment. Label each file name according to the section of the assignment it is written for.

Section 1: Written Project Plan

Imagine you are a software engineer working on a fixed budget and you are tasked to develop a Web- based student registration system. This Web-based system allows students to register for classes, authenticate their credentials, and select classes for which they are eligible to register. It also registers the students, prints a confirmation receipt, and prepares a registration invoice. You have been asked to provide senior management with a detailed summary, activity graph, and project plan of how you plan to execute the project.

1. Write a five to six (5-6) page paper in which you:

a.  Describe the development of the student registration project as a work breakdown structure of actions and transitions among these actions.

b.  Create an activity graph from the breakdown structure using Microsoft Visio or its open source alternative, Dia. Be sure to identify the time estimates and critical path in your submission. Note: The graphically depicted solution is not included in the required page length.

c.  Write a project plan for this project which includes, but is not limited to, a risk analysis, task scheduling, and personnel staffing for the project.

d. Provide a rationale for the decisions you made in your project plan to senior management.

Section 1 of this assignment must follow these formatting requirements:

                             Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

                             Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

                             Include charts or diagrams created in MS Visio or Dia as an appendix of the project plan. All references to these diagrams must be included in the body of the project plan. 


        Section 2: PowerPoint Presentation 


        The senior management team has also requested that you present the plan in a concise presentation to the Board of Directors during the organization’s next operations meeting.

2. Create a five to ten (5-10) slide PowerPoint presentation for the presentation to the Board of Directors in which you:

a.  Present the proposed plan documented in the written project plan.

b.  Include the key elements of the project plan (i.e., work breakdown structure, activity graph, risk management, project schedule, and project staffing).

c.  Include a justification of the decisions made in the proposed plan to senior management.

d. Create bulleted speaking notes for the presentation to the Board of Directors in the Notes section of the PowerPoint. Note: You may create or assume any fictitious names, data, or scenarios that have not been established in this assignment for a realistic flow of communication.

e. Use a professional technically written style to graphically convey the information.

The specific course learning outcome associated with this assignment is:

e.                        Develop project plans and schedules that satisfy user requirements.

f.                        Use technology and information resources to research issues in software engineering.

g.                        Write clearly and concisely about advanced software engineering topics using proper writing mechanics and technical style conventions.

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BUS 508 Week 3 Assignment 1: Corporate Responsibility and Marketing Strategies - Strayer

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 Due Week 3 and worth 240 points

Use the Internet to research the Apple Corporation, its current position and reputation regarding ethical and social responsibility, and the strategies that it currently employs to market its products.

Write a six to eight (6-8) page paper in which you:

1.  Examine Apple’s current position on the company’s ethical and social responsibilities, and determine whether or not the company has met these responsibilities. Provide two (2) examples that support your position.

2.  Determine the impact that the publication of ethics and social responsibilities violations made by Apple’s suppliers has had on Apple’s reputation. Support your response with examples of the impact in question.

3.  Suggest two (2) methods that Apple can utilize to ensure that its suppliers adhere to wage and benefits standards going forward. Justify your response.

4.  Determine whether or not you believe that Apple’s customers would be willing to pay more for its products if Apple had to increase selling prices in order to provide better wages and benefits for suppliers’ workers. Provide a rationale for your position.

5.  Analyze Apple’s current overall marketing strategy. Recommend two (2) actions that Apple can take in order to improve its competitive advantage in the global marketplace. Support your response with examples of instances where your recommendations yielded the desired results.

6.  Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

                           Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

                           Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

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CIS 554 Week 3 Case Study 1 – Strayer

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Case Study 1: Reaching Success through Best Project Management Practices

Due Week 3 and worth 80 points Read the following articles:

                             “OPM3® Case Study: OPM3 in Action: Pinellas County IT Turns Around Performance and Customer Confidence”. Note: The article in PDF format can be found in the online course shell.

                             “IT project management and virtual teams”. SIGMIS CPR '04 Proceedings of the 2004 SIGMIS conference on Computer personnel research: Careers, culture, and ethics in a networked environment, pages 129-133. Note: This article can be found in the ACM Digital Library 
Please follow the steps below to access ACM Digital Library:

a.                          Login to iCampus at https://icampus.strayer.edu/login:

b.                          From iCampus:

i.                                                    Click STUDENT SERVICES>> Learning Resources Center >> Databases

ii.                                                  Scroll down to "Information Systems/Computing"

iii.                                                The ACM Digital Library is below the heading.

                           Write a two to three (2-3) page paper in which you:

1.  Identify the common challenges that exist within IT projects based on the first article. Highlight the best practices that could be linked to the successful performance of IT project teams.

2.  Determine at least three (3) challenges that exist when working with virtual teams based on the second article titled “IT project management and virtual teams”. Analyze how the efficient management of these challenges influences the success of project deliverables.

3.  Based on the lessons learned within the first article titled “OPM3® Case Study: OPM3 in Action: Pinellas County IT Turns Around Performance and Customer Confidence”, draw a workflow diagram to show how a project should initiate to gain support from the various project stakeholders. Use the graphical tools in Microsoft Word or Visio, or an open source alternative such as Dia. Note: The graphically depicted solution is not included in the required page length.

4.  Compare and contrast the assessment steps provided by the OPM3 Model presented in the first article with the CMMI-DEV-v1.2 process framework presented in Appendix 1A of the textbook. Discuss how the CMMI maturity levels are related to the assessment steps.

5.  Summarize at least three (3) CMMI processes that can improve the productivity of virtual teams. Determine the three (3) most significant measures and the activities associated with each process. Note: Refer to table 1A.4 in Chapter 1 of the textbook for information on purposes of the CMMI-DEV-v1.2 processes.

Your assignment must follow these formatting requirements:

                             Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

                             Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

                             Include charts or diagrams created in Visio or Dia. The completed diagrams / charts must be imported into the Word document before the paper is submitted. 
The specific course learning outcomes associated with this assignment are:

                             Discuss the challenges of leading software projects.

                             Compare and contrast the frameworks, standards, and guidelines for managing software projects.

                                    Explain the use of process frameworks for developing technology-based systems.

                                     Use technology and information resources to research issues in IT Project Leadership Strategies.

                                     Write clearly and concisely about topics related to IT Project Leadership Strategies using proper writing mechanics and technical style conventions.

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MKT 506 Week 3 Assignment 1 – Strayer

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 Assignment 1: Marketing Models

Due Week 3 and worth 150 points

 Write a five to six (5-6) page paper that addresses the following.

Develop an argument     regarding the significance of marketing to organizational success in the     21st century.

Assume you are charged with     establishing a marketing campaign for a product that is in a mature stage     of the product life cycle. Review the ‘Marketing and Promotions Process     Model” and decipher which part of the process would be the most difficult     for you as a marketing expert to implement. Be sure to provide the     rationale for your position as well as how you would address the     difficulties you identified.

Determine whether you favor     a centralized or decentralized system for marketing firms or departments.     Explain your rationale.

Use at least three to four     (3-4) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality     resources.

 Your assignment must follow these formatting requirements:

·         Integrate creative strategies into planning, developing, implementation, and evaluation of an advertising approach.

Be typed, double spaced,     using Times New Roman font (size 12), with one-inch margins on all sides;     citations and references must follow APA or school-specific format. Check     with your professor for any additional instructions.

Include a cover page     containing the title of the assignment, the student’s name, the     professor’s name, the course title, and the date. The cover page and the     reference page are not included in the required assignment page length.

 The specific course learning outcomes associated with this assignment are:

·         Formulate an integrated marketing communications strategy to support a firm’s marketing objectives that incorporates an effective media plan, direct marketing and Internet-based applications, and other promotional activities to effectively communicate with customers.

Develop an organizational     concept to execute an integrated marketing communications strategy.

·         Use technology and information resources to research issues in integrated marketing communications.

Write clearly and concisely about integrated marketing communications using proper writing mechanics.

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ACC 401 Week 3 Quiz  - Strayer

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 Chapter 3

 Consolidated Financial Statements—Date of Acquisition

 Multiple Choice

 1.         A majority-owned subsidiary that is in legal reorganization should normally be accounted for using

a.   consolidated financial statements.

b.   the equity method.

c.   the market value method.

d.   the cost method.

 2.         Under the acquisition method, indirect costs relating to acquisitions should be

a.   included in the investment cost.

b.   expensed as incurred.

c.   deducted from other contributed capital.

d.   none of these.

 3.         Eliminating entries are made to cancel the effects of intercompany transactions and are made on the

a.   books of the parent company.

b.   books of the subsidiary company.

c.   workpaper only.

d.   books of both the parent company and the subsidiary.

 4.         One reason a parent company may pay an amount less than the book value of the subsidiary's stock acquired is

a.   an undervaluation of the subsidiary's assets.

b.   the existence of unrecorded goodwill.

c.   an overvaluation of the subsidiary's liabilities.

d.   none of these.

 5.         In a business combination accounted for as an acquisition, registration costs related to common stock issued by the parent company are

a.   expensed as incurred.

b.   deducted from other contributed capital.

c.   included in the investment cost.

d.   deducted from the investment cost.

 6.         On the consolidated balance sheet, consolidated stockholders' equity is

a.   equal to the sum of the parent and subsidiary stockholders' equity.

b.   greater than the parent's stockholders' equity.

c.   less than the parent's stockholders' equity.

d.      equal to the parent's stockholders' equity.

 7.         Majority-owned subsidiaries should be excluded from the consolidated statements when

a.   control does not rest with the majority owner.

b.   the subsidiary operates under governmentally imposed uncertainty.

c.   a foreign subsidiary is domiciled in a country with foreign exchange restrictions or controls.

d.   any of these circumstances exist.

  8.         Under the economic entity concept, consolidated financial statements are intended primarily for the benefit of the

a.   stockholders of the parent company.

b.   creditors of the parent company.

c.   minority stockholders.

d.   all of the above.

 9.         Reasons a parent company may pay more than book value for the subsidiary company's stock include all of the following except

a.       the fair value of one of the subsidiary's assets may exceed its recorded value because of appreciation.

b.   the existence of unrecorded goodwill.

c.   liabilities may be overvalued.

d.   stockholders' equity may be undervalued.

 10.        What is the method of presentation required by SFAS 160 of “non-controlling interest” on a consolidated balance sheet?

a.   As a deduction from goodwill from consolidation.

b.   As a separate item within the long-term liabilities section.

c.   As a part of stockholders' equity.            

d.   As a separate item between liabilities and stockholders' equity.

 11.       Which of the following is a limitation of consolidated financial statements?

a.   Consolidated statements provide no benefit for the stockholders and creditors of the parent company.

b.   Consolidated statements of highly diversified companies cannot be compared with industry standards.

c.   Consolidated statements are beneficial only when the consolidated companies operate within the same industry.

d.      Consolidated statements are beneficial only when the consolidated companies operate in different industries.

 12.       Pine Corp. owns 60% of Sage Corp.'s outstanding common stock. On May 1, 2011, Pine advanced Sage $90,000 in cash, which was still outstanding at December 31, 2011. What portion of this advance should be eliminated in the preparation of the December 31, 2011 consolidated balance sheet?

a.   $90,000.

b.   $54,000.

c.   $36,000.

d.      $-0-.

           Use the following information for questions 13-15.

 On January 1, 2011, Polk Company and Sigler Company had condensed balance sheets as follows:

                                                                                Polk                Sigler

Current assets                                        $ 280,000           $ 80,000

Noncurrent assets                                   _360,000       __160,000

Total assets                                             $ 640,000         $240,000

 Current liabilities                                     $  120,000         $ 40,000

Long-term debt                                        200,000                 -0-

Stockholders' equity                            __320,000           200,000

Total liabilities & stockholders' equity   $ 640,000         $240,000

On January 2, 2011 Polk borrowed $240,000 and used the proceeds to purchase 90% of the outstanding common stock of Sigler. This debt is payable in 10 equal annual principal payments, plus interest, starting December 30, 2011. Any difference between book value and the value implied by the purchase price relates to land.

 On Polk's January 2, 2011 consolidated balance sheet,

 13.       Noncurrent assets should be

a.   $520,000.

b.   $536,000.

c.   $544,000.

d.   $586,667.

 14.       Current liabilities should be

a.   $200,000.

b.   $184,000.

c.   $160,000.

d.   $120,000.

 15.       Noncurrent liabilities should be

a.   $440,000.

b.   $416,000.

c.   $240,000.

d.      $216,000.

 16.       A newly acquired subsidiary has pre-existing goodwill on its books.  The parent company’s consolidated balance sheet will:

a.          treat the goodwill the same as other intangible assets of the acquired company.

b.         will always show the pre-existing goodwill of the subsidiary at its book value.

c.          not show any value for the subsidiary’s pre-existing goodwill.

d.         do an impairment test to see if any of it has been impaired.

 17.       The Difference between Implied and Book Value account is:

a.          an account necessary for the preparation of consolidated working papers.

b.         used in allocating the amounts paid for recorded balance sheet accounts that are different than

       their fair values.

c.          the excess implied value assigned to goodwill.

d.         the unamortized excess that cannot be assigned to any related balance sheet accounts

  18.       The main evidence of control for purposes of consolidated financial statements involves

a.       possessing majority ownership

b.      having decision-making ability that is not shared with others.

c.       being the sole shareholder

d.      having the parent company and the subsidiary participating in the same industry.

 19.       In which of the following cases would consolidation be inappropriate? 

a.       The subsidiary is in bankruptcy.

b.      Subsidiary's operations are dissimilar from those of the parent.

c.       The parent owns 90 percent of the subsidiary's common stock, but all of the subsidiary's nonvoting preferred stock is held by a single investor.

d.      Subsidiary is foreign.

 20.       Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31, 2011. On the date of acquisition, Princeton held land with a book value of $150,000 and a fair value of $300,000; Sheffield held land with a book value of $100,000 and fair value of $500,000. What amount would land be reported in the consolidated balance sheet prepared immediately after the combination? 

a.       $650,000

b.      $500,000

c.       $550,000

d.      $375,000

            Use the following information to answer questions 21 - 23.

 On January 1, 2011, Pena Company and Shelby Company had condensed balanced sheets as follows:

                                                                               Pena                                       Shelby    

 Current assets                                                      $   210,000                                $   60,000

Noncurrent assets                                                 270,000                               120,000

Total assets                                                      $480,000                                 $180,000

 Current liabilities                                                 $     90,000                               $   30,000

Long-term debt                                                                    150,000                                           -0-

Stock holders' equity                                            240,000   150,000

Total liabilities & stockholders' equity                       $ 480,000                                 $  180,000

  On January 2, 2011 Pena borrowed $180,000 and used the proceeds to purchase 90% of the outstanding common stock of Shelby. This debt is payable in 10 equal annual principal payments, plus interest, starting December 30, 2011. Any difference between book value and the value implied by the purchase price relates to land.

 On Pena's January 2, 2011 consolidated balance sheet,

 21.       Noncurrent assets should be

a.   $390,000.

b.   $402,000.

c.   $408,000.

d.   $440,000.

 22.       Current liabilities should be

a.   $150,000.

b.   $138,000.

c.   $120,000.

d.   $90,000.

 23.       Noncurrent liabilities should be

a.   $330,000.

b.   $312,000.

c.   $180,000.

d.   $162,000. 

 24.       On January 1, 2011, Primer Corporation acquired 80 percent of Sutter Corporation's voting common stock.

Sutters's buildings and equipment had a book value of $300,000 and a fair value of $350,000 at the time of

acquisition. At what amount will Sutter’s buildings and equipment will be reported in the consolidated

statements ? 

a.       $350,000

b.      $340,000

c.       $280,000

d.      $300,000

  Problems

 3-1       On December 31, 2011, Page Company purchased 80% of the outstanding common stock of Snead Company for cash.  At the time of acquisition, Snead Company's balance sheet was as follows:

                   Current assets                                    $  1,680,000

                 Plant and equipment                             1,580,000

                 Land                                                         280,000

                       Total assets                                    $3,540,000

                   Liabilities                                         $   1,320,000

                 Common stock, $10 par value              1,440,000

                 Other contributed capital                         700,000

                 Retained earnings                                    240,000

                       Total                                              $3,700,000

                 Treasury stock at cost, 5,000 shares         160,000

                       Total equities                                 $3,540,000

 Required:

 Prepare the elimination entry(s) required for the preparation of a consolidated balance sheet workpaper on December 31, 2011, assuming the purchase price of the stock was $1,670,000.  Any difference between the value implied by the purchase price of the investment and the book value of net assets acquired relates to subsidiary land.

 3-2       P Company purchased 80% of the outstanding common stock of S Company on January 2, 2011, for $380,000. Balance sheets for P Company and S Company immediately after the stock acquisition were as follows:

                                                                    P Company     S Company

Current assets                                             $  166,000         $  96,000

Investment in S Company                             380,000                 -0-

Plant and equipment (net)                              560,000           224,000

Land                                                                 40,000           120,000

                                                                 $1,146,000         $440,000

 Current liabilities                                         $ 120,000          $ 44,000

Long-term notes payable                                     -0-                36,000

Common stock                                               480,000           160,000

Other contributed capital                               244,000             64,000

Retained earnings                                          302,000           136,000

                                                                 $1,146,000         $440,000

 S Company owed P Company $16,000 on open account on the date of acquisition.

 Required:

 Prepare a consolidated balance sheet for P and S Companies on the date of acquisition. Any difference between the value implied by the purchase price of the investment and the book value of net assets acquired relates to subsidiary land. The book values of S Company's other assets and liabilities are equal to their fair values.

  3-3       P Company acquired 54,000 shares of the common stock of S Company on January 1, 2011, for $950,000 cash. The stockholders' equity section of S Company's balance sheet on that date was as follows:

 Common stock, $10 par value         $600,000

Other contributed capital                     80,000

Retained earnings                              320,000

     Total                                        $1,000,000

 On the date of acquisition, S Company owed P Company $10,000 on open account.

             Required:

Present, in general journal form, the elimination entries for the preparation of a consolidated balance sheet workpaper on January 1, 2011. The difference between the value implied by the purchase price of the investment and the book value of the net assets acquired relates to subsidiary land.

    3-4       On January 2, 2011, Potter Company acquired 90% of the outstanding common stock of Smiley Company for $480,000 cash.  Just before the acquisition, the balance sheets of the two companies were as follows:

                                                                 Potter            Smiley          

Cash                                                     $  650,000        $ 160,000

Accounts Receivable (net)                       360,000             60,000

Inventory                                                 290,000           140,000

Plant and Equipment (net)                       970,000           240,000

Land                                                         150,000             80,000

     Total Assets                                  $2,420,000         $680,000

 Accounts Payable                                 $ 260,000        $ 120,000

Mortgage Payable                                    180,000           100,000

Common Stock, $2 par value                1,000,000           170,000

Other Contributed Capital                       520,000             50,000

Retained Earnings                                    460,000           240,000

     Total Equities                                $2,420,000         $680,000

 The fair values of Smiley's assets and liabilities are equal to their book values with the exception of land.

   Required:

 A.  Prepare the journal entry necessary to record the purchase of Smiley's common stock.

B.  Prepare a consolidated balance sheet at the date of acquisition.

 3-5       P Corporation paid $420,000 for 70% of S Corporation’s $10 par common stock on December 31, 2011, when S Corporation’s stockholders’ equity was made up of $300,000 of Common Stock, $90,000 of Other Contributed Capital and $60,000 of Retained Earnings.  S’s identifiable assets and liabilities reflected their fair values on December 31, 2011, except for S’s inventory which was undervalued by $60,000 and their land which was undervalued by $25,000.  Balance sheets for P and S immediately after the business combination are presented in the partially completed work-paper below.

    Eliminations

   P

S

Debit

Credit

 Noncontrolling  Interest

Consolidated  Balances

ASSETS

Cash

$40,000

$30,000

    Accounts

receivable-net

30,000

45,000

    Inventories

185,000

165,000

    Land

45,000

120,000

    Plant  assets-

net

480,000

240,000

    Investment  in

S  Corp.

420,000

     Difference  between implied and book value

      Goodwill

      Total  Assets

$1,200,000

$600,000

    EQUITIES

Current

liabilities

$170,000

$150,000

    Capital  stock

600,000

300,000

    Additional  paid-in capital

150,000

90,000

    Retained  earnings

280,000

60,000

    Noncontrolling  interest

      Total  Equities

$1,200,000

$600,000

                 Required:

                 Complete the consolidated balance sheet workpaper for P Corporation and Subsidiary.

  3-6       Prepare in general journal form the workpaper entries to eliminate Porter Company's investment in Sewell Company in the preparation of a consolidated balance sheet at the date of acquisition for each of the following independent cases:

    Sewell Company  Equity Balances

Cash

Percent of  Stock Owned

Investment  Cost

Common Stock

Other  Contributed Capital

Retained  Earnings

a.

90

$675,000

$450,000

$180,000

$75,000

b.

80

318,000

620,000

140,000

20,000

 Any difference between book value of net assets acquired and the value implied by the purchase price relates to subsidiary property, plant, and equipment except for case (b). In case (b) assume that all book values and fair values are the same.

  3-7       On December 31, 2011, Pryor Company purchased a controlling interest in Shelby Company for $1,060,000. The consolidated balance sheet on December 31, 2011 reported noncontrolling interest in Shelby Company of $265,000.

 On the date of acquisition, the stockholders' equity section of Shelby Company's balance sheet was as follows:

 Common stock                                                                                             $520,000

Other contributed capital                                                                               380,000

Retained earnings                                                                                          280,000

Total                                                                                                            1,180,000

 Required:

 A.  Compute the noncontrolling interest percentage on December 31, 2011.

B.     Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land.

  3-8       On January 1, 2011, Primer Company issued 1,500 of its $20 par value common shares with a fair value of $50 per share in exchange for 2,000 outstanding common shares of Swartz Company in a purchase transaction.  Registration costs amounted to $1,700 paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows:

  Primer

Swartz

   Cash

                $ 73,000

          $13,000

Accounts  Receivable (net)

95,000

19,000

Inventory

58,000

25,000

Plant  and Equipment (net)

95,000

43,000

Land

26,000

20,000

    Total Assets

              $ 347,000

       $ 120,000

   Accounts  Payable

                $ 66,000

16,000

Notes  Payable

                   82,000

21,000

Common  Stock, $20 par value

                 100,000

40,000

Other  Contributed Capital

60,000

24,000

Retained  Earnings

39,000

19,000

    Total Liabilities and Equities

              $ 347,000

       $ 120,000

 Any differences between the book value of equity and the value implied by the purchase price relates to Land.

 Required:

Prepare the journal entry on     Primer’s books to record the exchange of stock.

Prepare a Computation and     Allocation Schedule for the Difference between book value and value     implied by the purchase price.

Calculate the consolidated balance     for each of the following accounts as of December 31, 2011:

1.      Cash

2.      Land

3.      Common Stock

4.      Other Contributed Capital

    Short Answer

 1.   There are several reasons why a company would acquire a subsidiary’s voting common stock rather than its net assets. Identify at least two advantages to acquiring a controlling interest in the voting stock of another company rather than its assets.

 2.   A useful first step in the consolidating process is to prepare a Computation and Allocation of Difference (CAD) Schedule.  Identify the steps involved in preparing the CAD schedule.

   Short Answer Questions from the Textbook

 1.      What are the advantages of acquiring the majority of the voting stock of another company rather than acquiring all its voting stock?

 2.      What is the justification for preparing consolidated financial statements when, in fact, it is ap-parent that the consolidated group is not a legal entity?

 3.      Why is it often necessary to prepare separate financial statements for each legal entity in a consolidated group even though consolidated statements provide a better economic picture of the combined activities?

 4.      What aspects of control must exist before a subsidiary is consolidated?

 5.      Why are consolidated work papers used in pre-paring consolidated financial statements?

 6.      Define noncontrolling (minority) interest. List three methods that might be used for reporting the noncontrolling interest in a consolidated balance sheet, and state which is preferred under the SFAS No. 160[topic 810].

 7.      Give several reasons why a parent company would be willing to pay more than book value for subsidiary stock acquired.

 8.      What effect do subsidiary treasury stock holdings have at the time the subsidiary is acquired? How should the treasury stock be treated on consolidated work papers?

 9.      What effect does a noncontrolling interest have on the amount of intercompany receivables and payables eliminated on a consolidated balance sheet?

 10  A.SFAS No. 109and SFAS No. 141R[ASC 740 and805] require that a deferred tax asset or liability be recognized for likely differences between the reported values and tax bases of assets and liabilities recognized in business combinations (for example, in exchanges that are nontaxable to the selling shareholders). Does this decision change the amount of consolidated net income reported in years subsequent to the business combination? Explain.

  Business Ethics Question from the Textbook

 Part I. You are working on the valuation of accounts receivable, and bad debt reserves for the current year’s annual report. The CFO stops by and asks you to reduce the reserve by enough to increase the current year’s EPS by 2 cents a share. The company’s policy has always been to use the previous year’s actual bad debt percentage adjusted for a specific economic index. The CFO’s suggested change would still be within acceptable GAAP. However, later, you learn that with the increased EPS, the CFO would qualify for a significant bonus. What do you do and why?

 Part II. Consider the following: Accounting firm KPMG created tax shelters called BLIPS, FLIP, OPIS, and SOS that were based largely in the Cayman Islands and allowed wealthy clients (there were 186) to create $5 billion in losses, which were then deducted from their income for IRS tax purposes. BLIPS (Bond Linked Issue Premium Structures) had clients borrow from an offshore bank for purposes of purchasing currency. The client would then sell the currency back to the lender for a loss. However, the IRS contends the losses were phony and that there was never any risk to the client in the deals. The IRS has indicted eight former KPMG partners and an outside lawyer alleging that the transactions were shams, illegal methods for avoiding taxes. KPMG has agreed to pay a$456 million fine, no longer to do tax shelters, and to cooperate with the government in its prosecution of the nine individuals involved in the tax shelter scheme. Many argue that the courts have not always held that such tax avoidance schemes show criminal intent because the tax laws permit individuals to minimize taxes. However, the IRS argues that these shelters evidence intent because of the lack of risk.

 Question

In this case, the IRS contends that the losses generated by the tax shelters were phony and that the clients never incurred any risk. Do tax avoidance schemes indicate criminal intent if the tax laws permit individuals to minimize taxes? Justify your answer.

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BUS 518 Week 3 Assignment 1 - Strayer

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Assignment 1: A Peaceful Evacuation: Building a Multi-Project Battalion by Leading Upward

Due Week 3 and worth 240 points
Read the weekly assigned chapters and view the lectures before beginning the assignment.

Read the case study titled “A Peaceful Evacuation: Building a Multi-Project Battalion by Leading Upward.” before starting this assignment.

Write a three to four (3-4) page paper in which you:

1.  Describe the leadership style that Lieutenant Colonel Yaron exhibited as the commander of a battalion for the evacuation operation. Provide three (3) examples of his leadership actions and behavior. Discuss the pros and cons in each example you describe to support the response.

2.  Analyze the leadership style that Lieutenant Colonel Daniel exhibited as he took center stage to lead this complex military operation. Provide three (3) examples of his leadership actions and behavior, assessing the pros and cons in each example you describe to support the response.

3.  Compare and contrast the leadership styles of Lieutenant Colonel Yaron and Lieutenant Colonel Daniel. Provide three (3) examples of the similarities and differences between these project leaders, and discuss how each leader might address contemporary leadership issues and challenges in Israel today.

4.  Discuss Lieutenant Colonel Yaron and Lieutenant Colonel Daniel interrelationship using Jung theory and the four (4) personality traits. Provide three (3) examples of how Lieutenant Colonel Yaron and Lieutenant Colonel Daniel personality and leadership style might enhance or hinder team performance for the complex military operation in this case study.

Your assignment must:

                           Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

                           Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

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BUS 517 Week 3 Assignment 1 – Strayer

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Assignment 1: Project Proposal

Due Week 3 and worth 200 points
Note: Use the project you selected in Week 1 Discussion 2 to complete this assignment.

During Week 1 Discussion 2: Project Selection, you were asked to develop a project proposal in which you determined if the proposed project is feasible, practical, and cost beneficial. By completing this assignment, you will recognize whether the project:

                             sufficiently justifies the scope, time, and cost.

                             has been defined so that the project sponsor agrees with the cost benefit.

                             outlines the implications of not approving the project. 
Write a seven to eight (7-8) page paper in which you:

1.  Recommend a project portfolio management method for your selected project. Provide a rationale for your recommendation. Note: Be sure to align your project with the strategic efforts of the organization.

2.  Create an outline of an executive summary that includes the type of problem, requirements, and proposed business problem solutions.

3.  State the vision and the goal of the project. Note: Be sure that the goals are Specific, Measurable, Attainable, Realistic, and Timely (S.M.A.R.T.).

4.  Determine five (5) major deliverables of the project, and explain the importance of each major deliverable.

5.  Provide the timeframe for delivering the solution to the project.

6.  Create a table which contains the generic resources, including people, equipment, and materials needed to undertake the project. Note: These are only generic figures to give the Project Sponsor an idea of the level of resourcing required to finish the project.

7.  Estimate the total budget for the project based on the cost of the resources specified in the table that you have created. Next, add contingency and any other additional costs (e.g., intangible costs, the cost of a change in culture or process within the business, etc.).Support your response.

8.  Determine the key success criteria for your project. Provide a rationale to support your response.

9.  Assume that your project is delivered on time, within scope, and budget. Justify your stakeholders' satisfactory level with three (3) key success criteria, against which the project will be measured.

10.              Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Your assignment must follow these formatting requirements:

                             Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

                             Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. 
The specific course learning outcomes associated with this assignment are:

 Analyze corporate strategy and the project life cycle phases to define the project and initiate a project plan.

                             Apply the concepts of project management to prioritize project portfolios and align the projects with corporate strategies, culture, and organization.

                             Use technology and information resources to research issues in project management.

                             Write clearly and concisely about project management using proper writing mechanics.

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BUS 515 Week 3 Assignment 1 – Strayer

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Assignment 1: Vice President of Operations, Part 1

Due Week 3 and worth 200 points

Scenario

Imagine that you are the vice president of operations at a production or service organization. You have noticed that your organization’s current operations strategy is not supporting the challenges that the organization is presently facing. In order to maintain a competitive edge, you must address these challenges with your Chief Executive Officer immediately.

Select an existing production organization. Analyze the organization’s current vision, mission, business strategy, operation strategy, supply chain, total quality management, just-in-time philosophy, forecasting method, statistical technique, facility location, work design, project life cycle, and project management. Note: You will need this information in order to complete this and subsequent assignments.

As you collect the information for Assignment 1 and Assignment 2, remember that in Assignment 3 you must prepare a presentation for your Chief Executive Officer.

Write a three to five (3-5) page paper in which you:

1.  Evaluate key elements of the selected production or service organization’s operational efficiency with its operational strategy. Determine three (3) tasks that do not align with the operational strategy. Determine the weaknesses that are evident in each task.

2.  Formulate a new operations strategy for the selected organization based on the four (4) competitive priorities (i.e., cost, quality, time, and flexibility).

3.  Analyze both the structure of the competitive priorities and infrastructure of the production process. Develop three (3) new enablers that are aligned with the long-term plan of the selected organization. Evaluate three (3) pros and three (3) cons of the new enablers.

4.  Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.

Your assignment must follow these formatting requirements:

                           Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

                           Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

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HSA 530 Week 3 Assignment 1 – Strayer NEW

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 Assignment 1: Health Care Human Resources Management

Due Week 3 and worth 240 points

Imagine that you have applied for the position of Manager of Human Resources at an acute care hospital in your community. The hospital is planning to expand its services to meet the needs of a growing community. As part of the application screening process, you have been asked to write a document that outlines the steps you would take, as the manager of HR, to improve the effectiveness of HRM in this organization.

Write a three to four (3-4) page paper in which you:

1.  Analyze two (2) current trends in health care that are affecting human resources management that may likely impact your hiring decision as HR manager. Provide support for your analysis.

2.  Suggest a significant opportunity for HR to become more of a strategic partner within an organization. Justify your response.

3.  Recommend a model of human resources management that would be the most appropriate for this organization in question. Provide support for your recommendation.

4.  Recommend a strategy that HR could implement in order to develop more effective relationships between Human Resources and the organization’s managers and senior executives, indicating how each strategy will achieve the desired goal.

5.  Determine a specific employment law that may affect the hiring and selection process at the acute hospital in your community. Provide support for your rationale.

6.  Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

                             Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

                             Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. 
The specific course learning outcomes associated with this assignment are:

                             Analyze the unique aspects of managing human resources (HR) in health care organizations.

                             Evaluate the effects of major employment laws on HR functions in health care organizations.

                             Evaluate the competencies necessary for effective health care human resources management.

                             Use technology and information resources to research issues in health services human resource management.

                             Write clearly and concisely about health services human resource management using proper writing mechanics.

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ECO 305 Week 3 Quiz – Strayer

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 Quiz 2 Chapter 3 and 4

 CHAPTER 3

 SOURCES OF COMPARATIVE ADVANTAGE

 MULTIPLE CHOICE

             1.         Which of the following suggests that a nation will export the commodity in the production of which a great deal of its relatively abundant and cheap factor is used?

a.         The Linder theory

b.         The product life cycle theory

c.         The MacDougall theory

d.         The Heckscher-Ohlin theory

               2.         According to Staffan Linder, trade between two countries tends to be most pronounced when the countries:

a.         Find their tastes and preferences to be quite harmonious

b.         Experience economies of large-scale production over large output levels

c.         Face dissimilar relative abundances of the factors of production

d.         Find their per capita income levels to be approximately the same

               3.         Which of the following is a long-run theory, emphasizing changes in the trading position of a nation over a number of years?

a.         Theory of factor endowments

b.         Comparative advantage theory

c.         Theory of the product cycle

d.         Overlapping demand theory

               4.         The Leontief paradox questioned the validity of the theory of:

a.         Comparative advantage

b.         Factor endowments

c.         Overlapping demands

d.         Absolute advantage

               5.         Which of the following would least likely apply to the product life cycle theory?

a.         Calculators and computers

b.         Coal and crude oil

c.         Home movie cameras

d.         Office machinery

               6.         Classical trade theory emphasized which of the following as an underlying explanation of the basis for trade?

a.         Productivities of labor inputs

b.         Tastes and preferences among nations

c.         Changes in technologies over time

d.         Quantities of economic resources

               7.         Concerning the influence that transportation costs have on the location of industry, which of the following industries has generally attempted to locate production facilities close to resource supplies?

a.         Autos

b.         Steel

c.         Soft drinks

d.         Valuable electronics goods

               8.         Assume that Country A, in the absence of trade, finds itself relatively abundant in labor and relatively scarce in land. The factor endowment theory reasons that with free trade, the internal distribution of national income in Country A will change in favor of:

a.         Labor

b.         Land

c.         Both labor and land

d.         Neither labor nor land

               9.         When considering the effects of transportation costs, the conclusions of our trade model must be modified. This is because transportation costs result in:

a.         Lower trade volume, higher import prices, smaller gains from trade

b.         Lower trade volume, lower import prices, smaller gains from trade

c.         Higher trade volume, higher import prices, smaller gains from trade

d.         Higher trade volume, lower import prices, greater gains from trade

               10.       Most economists maintain that the major factor underlying wage stagnation in the United States in the 1990s has been:

a.         Import competition

b.         Technological change

c.         Rising real value of the minimum wage

d.         Increasing union membership

               11.       Assume the cost of transporting autos from Japan to Canada exceeds the pretrade price difference for autos between Japan and Canada. Trade in autos is:

a.         Impossible

b.         Possible

c.         Highly profitable

d.         Moderately profitable

               12.       Eli Heckscher and Bertil Ohlin are associated with the theory of comparative advantage that stresses differences in:

a.         Income levels among countries

b.         Tastes and preferences among countries

c.         Resource endowments among countries

d.         Labor productivities among countries

               13.       Hong Kong is relatively abundant in labor, while Canada is relatively abundant in capital. In both countries the production of shirts is relatively more labor intensive than the production of computers. According to the factor endowment theory, Hong Kong will have a(n):

a.         Absolute advantage in the production of shirts and computers

b.         Absolute advantage in the production of computers

c.         Comparative advantage in the production of shirts

d.         Comparative advantage in the production of computers

               14.       If Japanese workers receive lower wages in the production of autos than do American workers:

a.         Japan will have a comparative advantage in the production of autos

b.         Japan will have an absolute advantage in the production of autos

c.         Production costs will be lower in Japan than in the U.S.

d.         Production costs could be lower in the U.S. if American labor productivity is higher than the Japanese

               15.       Which trade theory suggests that a newly produced good, once exported, could ultimately end up being imported as the technology is transferred to lower- cost nations?

a.         Factor endowment theory

b.         Product life cycle theory

c.         Overlapping demand theory

d.         Comparative advantage theory

               16.       A firm is said to enjoy economies of scale over the range of output for which the long-run average cost is:

a.         Increasing

b.         Constant

c.         Decreasing

d.         None of the above

               17.       A product will be internationally traded as long as the pretrade price differential between the trading partners is:

a.         Greater than the cost of transporting it between them

b.         Equal to the cost of transporting it between them

c.         Less than the cost of transporting it between them

d.         None of the above

               18.       Which of the following suggests that by widening the market's size, international trade can permit longer production runs for manufacturers, which leads to increasing efficiency?

a.         Economies of scale

b.         Diseconomies of scale

c.         Comparative cost theory

d.         Absolute cost theory

               19.       The Leontief paradox:

a.         Was applied to the product life cycle theory

b.         Suggested that the U.S. exports labor-intensive goods

c.         Found that national income differences underlie world trade patterns

d.         Implied that diseconomies of scale occur at low output levels

               20.       Which of the following best applies to the theory of overlapping demands?

a.         Manufactured goods

b.         Services

c.         Primary products

d.         None of the above

               21.       The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries':

a.         Economies of large-scale production

b.         Relative abundance of various resources

c.         Relative costs of labor

d.         Research and development

               22.       Boeing aircraft company was able to cover its production costs of the first "jumbo jet" in the 1970s because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates:

a.         How economies of scale make possible a larger variety of products in international trade

b.         A transfer of wealth from domestic consumers to domestic producers as the result of trade

c.         How a natural monopoly is forced to behave more competitively with international trade

d.         How a natural monopoly is forced to behave less competitively with international trade

               23.       Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product?

a.         Theory of factor endowments

b.         Theory of overlapping demands

c.         Economies of scale theory

d.         Product life cycle theory

               24.       The theory of overlapping demands predicts that trade in manufactured goods is unimportant for countries with very different:

a.         Tastes and preferences

b.         Expectations of future interest rate levels

c.         Per-capita income levels

d.         Labor productivities

               25.       The trade model of the Swedish economists Heckscher and Ohlin maintains that:

a.         Absolute advantage determines the distribution of the gains from trade

b.         Comparative advantage determines the distribution of the gains from trade

c.         The division of labor is limited by the size of the world market

d.         A country exports goods for which its resource endowments are most suited

               26.       According to the factor endowment model, countries heavily endowed with land will:

a.         Devote excessive amounts of resources to agricultural production

b.         Devote insufficient amounts of resources to agricultural production

c.         Export products that are land-intensive

d.         Import products that are land-intensive

               27.       For the United States, empirical studies indicate that over the past two decades the cost of international transportation relative to the value of U.S. imports has:

a.         Increased

b.         Decreased

c.         Not changed

d.         None of the above

               28.       Should international transportation costs decrease, the effect on international trade would include:

a.         An increase in the volume of trade

b.         A smaller gain from trade

c.         A decline in the income of home producers

d.         A decrease in the level of specialization in production.

               29.       That the division of labor is limited by the size of the market best applies to which explanation of trade?

a.         Factor endowment theory

b.         Product life cycle theory

c.         Economies of scale theory

d.         Overlapping demand theory

               30.       A larger variety of products results from international trade especially if:

a.         International trade affords producers monopoly power

b.         National governments levy import tariffs and quotas

c.         Producing goods entails increasing costs

d.         Economies of scale exist for producers

               31.       With economies of scale and decreasing unit costs, a country has the incentive to:

a.         Specialize completely in the product of its comparative advantage

b.         Specialize partially in the product of its comparative advantage

c.         Specialize completely in the product of its comparative disadvantage

d.         Specialize partially in the product of its comparative disadvantage

               32.       Proponents of ____ maintain that government should enact policies that encourage the development of emerging, "sunrise" industries.

a.         Product life cycle policy

b.         Static comparative advantage policy

c.         Intraindustry trade policy

d.         Industrial policy

               33.       Legislation requiring domestic manufacturers to install pollution abatement equipment tends to promote:

a.         Higher production costs and an increase in output

b.         Higher production costs and a decrease in output

c.         Lower production costs and an increase in output

d.         Lower production costs and a decrease in output

               34.       Stringent governmental regulations (e.g., air quality standards) imposed on domestic steel manufacturers tend to:

a.         Enhance their competitiveness in the international market

b.         Detract from their competitiveness in the international market

c.         Increase the profitability and productivity of domestic manufacturers

d.         Reduce the market share of foreign firms selling steel in the domestic market

               35.       Among the determinants underlying a country's international competitiveness in business services (e.g., construction) are:

a.         The potential scale economies afforded by a market's size

b.         Abundance of equipment including data processing facilities and computers

c.         Skills and capabilities of employees and their wage rates

d.         All of the above

               36.       The simultaneous import and export of computers by Germany is an example of:

a.         Intraindustry trade

b.         Interindustry trade

c.         Perfect competition

d.         Imperfect competition

               37.       Linder's theory of overlapping demand provides an explanation of:

a.         Product life cycle theory

b.         Factor endowment model

c.         Economies of large-scale production

d.         Intraindustry trade

               38.       Intraindustry trade can be explained in part by:

a.         Adam Smith's principle of absolute advantage

b.         Perfect competition in product markets

c.         Diseconomies of large scale production

d.         Transportation costs between and within nations

               39.       The Leontief paradox provided:

a.         Support for the principle of absolute advantage

b.         Support for the factor endowment model

c.         Evidence against the factor endowment model

d.         Evidence against the principle of absolute advantage

               40.       Which trade theory suggests that comparative advantage tends to shift from one nation to another as a product matures?

a.         Interindustry trade theory

b.         Intraindustry trade theory

c.         Product life cycle theory

d.         Overlapping demand theory

               41.       Which trade theory is tantamount to a short-run version of the factor price equalization theory?

a.         Specific factors theory

b.         Product life cycle theory

c.         Economies of scale theory

d.         Overlapping demand theory

               42.       According to the specific factors trade theory:

a.         Owners of factors specific to export industries suffer from trade, while owners of factors specific to import-competing industries gain

b.         Owners of factors specific to export industries gain from trade, while owners of factors specific to import-competing industries suffer

c.         Both owners of factors specific to export industries and owners of factors specific to import-competing industries gain from trade

d.         Both owners of factors specific to export industries and owners of factors specific to import-competing industries suffer from trade

               43.       Which nation has sometimes been characterized as being a "pollution haven" due to its lenient environmental standards that encourage the production of pollution-intensive goods?

a.         Japan

b.         Canada

c.         Germany

d.         Mexico

               44.       Boeing Inc. has criticized The Airbus Company's competitiveness on the grounds that Airbus benefits from:

a.         Import tariffs protecting Airbus in the European market

b.         Import quotas protecting Airbus in the European market

c.         Lenient environmental standards of European governments

d.         Production subsidies supplied by European governments

               45.       To justify the subsidies it has received from European governments, The Airbus Company has used all of the following arguments except:

a.         Its subsidies have prevented U.S. aircraft firms from holding a world-wide monopoly

b.         U.S. aircraft firms have benefited from military-sponsored programs of the U.S. government

c.         Airbus' subsidies were totally repaid as the firm realized profits on its aircraft sales

d.         Without subsidies to Airbus, Europe would be dependent on the United States as a supplier of aircraft

               46.       Expanding trade or technological improvements

a.         Increases the demand for skilled workers in the U.S.

b.         Decreases the demand for unskilled workers in the U.S.

c.         Increases the demand for unskilled workers in the U.S.

d.         Both a and b.

               47.       Economists agree that wages of unskilled workers are being held down by

a.         International trade

b.         Technology improvements

c.         Lack of education

d.         A combination of a, b, and c

               48.       The factor endowment theory states that comparative advantage is explained

a.         Exclusively by differences in relative supply conditions

b.         Exclusively by differences in relative national demand conditions

c.         Both supply and demand conditions

d.         None of the above

               49.       The factor endowment theory assumes

a.         Same tastes and preferences

b.         Factor inputs of uniform quality

c.         Same technology

d.         All of the above

               50.       In explaining international trade, the product life cycle theory focuses on

a.         Tastes and preferences

b.         The role of technological innovation

c.         Per-capita income levels of nations

d.         Both b and c

   TRUE/FALSE

             1.         According to Ricardian theory, comparative advantage depends on relative differences in labor productivity.

              2.         The Heckscher-Ohlin theory asserts that relative differences in labor productivity underlie comparative advantage.

              3.         The factor-endowment theory highlights the relative abundance of a nation's resources as the key factor underlying comparative advantage.

              4.         According to the factor-endowment theory, a nation will export that good for which a large amount of the relatively scarce resource is used.

              5.         According to the factor-endowment theory, a nation will import that good for which a large amount of the relatively abundant resource is used.

              6.         The Heckscher-Ohlin theory suggests that land-abundant nations will export land-intensive goods while labor-abundant nations will export labor-intensive goods.

              7.         The Heckscher-Ohlin theory contends that over a period of years a country that initially is an exporter of a product will become an importer of that product.

              8.         The Heckscher-Ohlin theory emphasizes the role that demand plays in the creation of comparative advantage.

              9.         The factor-endowment theory asserts that with specialization and trade there tends to occur an equalization in the relative resource prices of trading partners.

              10.       According to the factor-endowment theory, international specialization and trade cause a nation's cheap resource to become cheaper and a nation's expensive resource to become more expensive.

              11.       Fears about the downward pressure that cheap foreign workers place on U.S. wages have led U.S. labor unions to lobby for import restrictions such as tariffs and quotas.

              12.       According to the factor-price-equalization theory, international trade results in the relative differences in resource prices between nations being eliminated.

              13.       Empirical testing by Wassily Leontief gave support to the Heckscher-Ohlin theory of trade.

              14.       The Leontief Paradox was the first major challenge to the product-life-cycle theory of trade.

              15.       The Leontief Paradox suggested that, in contrast to the predictions of the factor-endowment theory, U.S. exports were less capital-intensive than U.S. import-competing goods.

              16.       The specific-factors theory analyzes the income distribution effects of trade in the short run when resources are immobile among industries.

              17.       Owners of resources specific to export industries tend to lose from international trade, while owners of factors specific to import-competing industries tend to gain.

              18.       The factor-price-equalization theory is a short-run version of the specific-factors theory.

              19.       With economies of scale, specialization in a few products allows a manufacturer to benefit from longer production runs which lead to decreasing average cost.

              20.       With decreasing costs, a country has an incentive to partially specialize in the product of its comparative advantage.

              21.       By widening the size of the domestic market, international trade permits companies to take advantage of longer production runs and increasing efficiencies such as mass production.

              22.       The theory of overlapping demands applies best to trade in manufactured goods.

              23.       Decreasing cost conditions lead to complete specialization in the production of the commodity of comparative advantage.

              24.       According to Staffan Linder, the factor endowment theory is useful in explaining trade patterns in manufactured goods, but not primary products.

              25.       The theory of overlapping demands asserts that trade in manufactured goods is stronger the less similar the demand structures of two countries.

              26.       The theory of overlapping demands contends that international trade in manufactured products is strongest among nations with similar income levels.

              27.       According to the theory of overlapping demands, trade in manufactured goods would be greater among two wealthy countries than among a wealthy country and a poor country.

              28.       Recent studies of U.S. resource endowments indicate that the United States is most abundant in unskilled labor, followed by semi-skilled labor and skilled labor.

              29.       Intraindustry trade would occur if computers manufactured in the United States by IBM are exported to Japan while the United States imports computers manufactured by Hitachi of Japan.

              30.       Because seasons in the Southern Hemisphere are opposite those in the Northern Hemisphere, one would expect intraindustry trade to occur in agricultural products.

              31.       Intraindustry trade can be explained by product differentiation, economies of scale, seasons of the year, and transportation costs.

              32.       According to the theory of intraindustry trade, many manufactured goods undergo a trade cycle in which the home country initially is an exporter and eventually becomes an importer of a product.

              33.       The product-life-cycle theory applies best to trade in primary products in the short run.

              34.       According to the product-life-cycle theory, the first stage of a product's trade cycle is when it is introduced to the home market.

              35.       According to the product life cycle theory, the last stage of a product's trade cycle is when it becomes an import-competing good.

              36.       Ricardo's theory of comparative advantage is a static theory that does not consider changes in international competitiveness over the long run.

              37.       Dynamic comparative advantage refers to the creation of comparative advantage through the mobilization of skilled labor, technology, and capital.

              38.       Industrial policy seeks to direct resources to declining industries in which productivity is low, linkages to the rest of the economy are weak, and future competitiveness is remote.

              39.       Europe's jumbo-jet manufacturer, Airbus, has justified receiving governmental subsidies on the grounds that the subsidies prevent the United States from becoming a monopoly in the jumbo-jet market.

              40.       The imposition of pollution-control regulations on domestic steel manufacturers leads to decreases in production costs and an improvement in the steel manufacturers' competitiveness.

              41.       Empirical studies conclude that U.S. environmental policies are a more important determinant of trade performance than capital, raw materials, labor skills, and wages.

              42.       Most developing countries have pollution-control laws and enforcement policies that are more stringent than those of the major industrial countries.

              43.       Although the theory of comparative advantage explains trade in manufactured goods, it has no explanatory value for trade in business services.

              44.       When transportation costs are added to our trade model, the low-cost exporting country produces less, consumes more, and exports less than that which occurs in the absence of transportation costs.

              45.       When transportation costs are added to our trade model, the degree of specialization in production between two countries increases as do the gains from trade.

              46.       In the absence of transportation costs, free trade results in the equalization of the prices of traded goods, as well as resource prices, in the trading nations.

              47.       In industries where the final product is much less weighty or bulky than the materials from which it is made, firms tend to locate production near resource supplies.

              48.       Industrial processes that add weight or bulk to a commodity are likely to be located near the resource market to minimize transportation costs.

              49.       A product will be traded only if the cost of transporting it between nations is less than the pretrade difference between their relative product prices.

              50.       Generally speaking, transportation costs are more important than production costs as a source of comparative advantage.

              51.       The product-life-cycle model contends that when a new product is introduced to the home market, it generally requires low-skilled labor to produce it.

              52.       According to the product life cycle model, comparative advantage shifts from cheap-labor countries to high-technology countries after a manufactured good becomes standardized.

  SHORT ANSWER

             1.         Does factor price equalization occur in the real world?

               2.         What is the focus of the product life cycle theory, and where is it applicable?

   ESSAY

             1.         Explain how immigration and trade may worsen wage inequality, and how college education may mitigate against that.

               2.         How does Staffan Linder explain world trade patterns?

    CHAPTER 4—TARIFFS

 MULTIPLE CHOICE

             1.         The imposition of tariffs on imports results in deadweight welfare losses for the home economy. These losses consist of the:

a.         Protective effect plus consumption effect

b.         Redistribution effect plus revenue effect

c.         Revenue effect plus protective effect

d.         Consumption effect plus redistribution effect

               2.         Suppose that the United States eliminates its tariff on steel imports, permitting foreign-produced steel to enter the U.S. market. Steel prices to U.S. consumers would be expected to:

a.         Increase, and the foreign demand for U.S. exports would increase

b.         Decrease, and the foreign demand for U.S. exports would increase

c.         Increase, and the foreign demand for U.S. exports would decrease

d.         Decrease, and the foreign demand for U.S. exports would decrease

               3.         A $100 specific tariff provides home producers more protection from foreign competition when:

a.         The home market buys cheaper products rather than expensive products

b.         It is applied to a commodity with many grade variations

c.         The home demand for a good is elastic with respect to price changes

d.         It is levied on manufactured goods rather than primary products

               4.         A lower tariff on imported aluminum would most likely benefit:

a.         Foreign producers at the expense of domestic consumers

b.         Domestic manufacturers of aluminum

c.         Domestic consumers of aluminum

d.         Workers in the domestic aluminum industry

               5.         When a government allows raw materials and other intermediate products to enter a country duty free, its tariff policy generally results in a:

a.         Effective tariff rate less than the nominal tariff rate

b.         Nominal tariff rate less than the effective tariff rate

c.         Rise in both nominal and effective tariff rates

d.         Fall in both nominal and effective tariff rates

               6.         Of the many arguments in favor of tariffs, the one that has enjoyed the most significant economic justification has been the:

a.         Infant industry argument

b.         Cheap foreign labor argument

c.         Balance of payments argument

d.         Domestic living standard argument

               7.         The redistribution effect of an import tariff is the transfer of income from the domestic:

a.         Producers to domestic buyers of the good

b.         Buyers to domestic producers of the good

c.         Buyers to the domestic government

d.         Government to the domestic buyers

               8.         Which of the following is true concerning a specific tariff?

a.         It is exclusively used by the U.S. in its tariff schedules.

b.         It refers to a flat percentage duty applied to a good's market value.

c.         It is plagued by problems associated with assessing import product values.

d.         It affords less protection to home producers during eras of rising prices.

               9.         The principal benefit of tariff protection goes to:

a.         Domestic consumers of the good produced

b.         Domestic producers of the good produced

c.         Foreign producers of the good produced

d.         Foreign consumers of the good produced

               10.       Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and applies a higher tariff rate to imports above this quantity?

a.         Tariff quota

b.         Import tariff

c.         Specific tariff

d.         Ad valorem tariff

               11.       Assume the United States adopts a tariff quota on steel in which the quota is set at 2 million tons, the within-quota tariff rate equals 5 percent, and the over-quota tariff rate equals 10 percent. Suppose the U.S. imports 1 million tons of steel. The resulting revenue effect of the tariff quota would accrue to:

a.         The U.S. government only

b.         U.S. importing companies only

c.         Foreign exporting companies only

d.         The U.S. government and either U.S. importers or foreign exporters

               12.       When the production of a commodity does not utilize imported inputs, the effective tariff rate on the commodity:

a.         Exceeds the nominal tariff rate on the commodity

b.         Equals the nominal tariff rate on the commodity

c.         Is less than the nominal tariff rate on the commodity

d.         None of the above

               13.       Developing nations often maintain that industrial countries permit raw materials to be imported at very low tariff rates while maintaining high tariff rates on manufactured imports. Which of the following refers to the above statement?

a.         Tariff-quota effect

b.         Nominal tariff effect

c.         Tariff escalation effect

d.         Protective tariff effect

               14.       Should the home country be "large" relative to the world, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms-of-trade effect exceeds the sum of the:

a.         Revenue effect plus redistribution effect

b.         Protective effect plus revenue effect

c.         Consumption effect plus redistribution effect

d.         Protective effect plus consumption effect

               15.       Should Canada impose a tariff on imports, one would expect Canada's:

a.         Terms of trade to improve and volume of trade to decrease

b.         Terms of trade to worsen and volume of trade to decrease

c.         Terms of trade to improve and volume of trade to increase

d.         Terms of trade to worsen and volume of trade to increase

               16.       A beggar-thy-neighbor policy is the imposition of:

a.         Free trade to increase domestic productivity

b.         Trade barriers to increase domestic demand and employment

c.         Import tariffs to curb domestic inflation

d.         Revenue tariffs to make products cheaper for domestic consumers

               17.       A problem encountered when implementing an "infant industry" tariff is that:

a.         Domestic consumers will purchase the foreign good regardless of the tariff

b.         Political pressure may prevent the tariff's removal when the industry matures

c.         Most industries require tariff protection when they are mature

d.         Labor unions will capture the protective effect in higher wages

               18.       Tariffs are not defended on the ground that they:

a.         Improve the terms of trade of foreign nations

b.         Protect jobs and reduce unemployment

c.         Promote growth and development of young industries

d.         Prevent overdependence of a country on only a few industries

               19.       The deadweight loss of a tariff:

a.         Is a social loss since it promotes inefficient production

b.         Is a social loss since it reduces the revenue for the government

c.         Is not a social loss because society as a whole doesn't pay for the loss

d.         Is not a social loss since only business firms suffer revenue losses

               20.       Which of the following is a fixed percentage of the value of an imported product as it enters the country?

a.         Specific tariff

b.         Ad valorem tariff

c.         Nominal tariff

d.         Effective tariff

               21.       A tax of 20 cents per unit of imported cheese would be an example of:

a.         Compound tariff

b.         Effective tariff

c.         Ad valorem tariff

d.         Specific tariff

               22.       A tax of 15 percent per imported item would be an example of:

a.         Ad valorem tariff

b.         Specific tariff

c.         Effective tariff

d.         Compound tariff

               23.       Which type of tariff is not used by the American government?

a.         Import tariff

b.         Export tariff

c.         Specific tariff

d.         Ad valorem tariff

               24.       Which trade policy results in the government levying a "two-tier" tariff on imported goods?

a.         Tariff quota

b.         Nominal tariff

c.         Effective tariff

d.         Revenue tariff

               25.       If we consider the impact on both consumers and producers, then protection of the steel industry is:

a.         In the interest of the United States as a whole, but not in the interest of the state of Pennsylvania

b.         In the interest of the United States as a whole and in the interest of the state of Pennsylvania

c.         Not in the interest of the United States as a whole, but it might be in the interest of the state of Pennsylvania

d.         Not in the interest of the United States as a whole, nor in the interest of the state of Pennsylvania

               26.       If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars. But if I purchase a stereo produced in the United States, I obtain the stereo and the dollars remain in America. This line of reasoning is:

a.         Valid for stereos, but not for most products imported by the United States

b.         Valid for most products imported by the United States, but not for stereos

c.         Deceptive since Koreans eventually spend the dollars on U.S. goods

d.         Deceptive since the dollars spent on a stereo built in the United States eventually wind up overseas

               27.       The most vocal political pressure for tariffs is generally made by:

a.         Consumers lobbying for export tariffs

b.         Consumers lobbying for import tariffs

c.         Producers lobbying for export tariffs

d.         Producers lobbying for import tariffs

               28.       If we consider the interests of both consumers and producers, then a policy of tariff reduction in the U.S. auto industry is:

a.         In the interest of the United States as a whole, but not in the interest of auto-producing states

b.         In the interest of the United States as a whole, and in the interest of auto-producing states

c.         Not in the interest of the United States as a whole, nor in the interest of auto-producing states

d.         Not in the interest of the United States as a whole, but is in the interest of auto-producing states

               29.       Free traders point out that:

a.         There is usually an efficiency gain from having tariffs

b.         There is usually an efficiency loss from having tariffs

c.         Producers lose from tariffs at the expense of consumers

d.         Producers lose from tariffs at the expense of the government

               30.       A decrease in the import tariff will result in:

a.         An increase in imports but a decrease in domestic production

b.         A decrease in imports but an increase in domestic production

c.         An increase in price but a decrease in quantity purchased

d.         A decrease in price and a decrease in quantity purchased

   Figure 4.1 illustrates the demand and supply schedules for pocket calculators in Mexico, a "small" nation that is unable to affect the world price.

 Figure 4.1. Import Tariff Levied by a "Small" Country

               31.       Consider Figure 4.1. In the absence of trade, Mexico produces and consumes:

a.         10 calculators

b.         40 calculators

c.         60 calculators

d.         80 calculators

               32.       Consider Figure 4.1. In the absence of trade, Mexico's producer surplus and consumer surplus respectively equal:

a.         $120, $240

b.         $180, $180

c.         $180, $320

d.         $240, $240

               33.       Consider Figure 4.1. With free trade, Mexico imports:

a.         40 calculators

b.         60 calculators

c.         80 calculators

d.         100 calculators

               34.       Consider Figure 4.1. With free trade, the total value of Mexico's imports equal:

a.         $220

b.         $260

c.         $290

d.         $300

               35.       Consider Figure 4.1. With free trade, Mexico's producer surplus and consumer surplus respectively equal:

a.         $5, $605

b.         $25, $380

c.         $45, $250

d.         $85, $195

               36.       Consider Figure 4.1. With a per-unit tariff of $3, the quantity of imports decreases to:

a.         20 calculators

b.         40 calculators

c.         50 calculators

d.         70 calculators

               37.       According to Figure 4.1, the loss in Mexican consumer surplus due to the tariff equals:

a.         $225

b.         $265

c.         $285

d.         $325

               38.       According to Figure 4.1, the tariff results in the Mexican government collecting:

a.         $100

b.         $120

c.         $140

d.         $160

               39.       According to Figure 4.1, Mexican manufacturers gain ____ because of the tariff.

a.         $75

b.         $85

c.         $95

d.         $105

               40.       According to Figure 4.1, the deadweight cost of the tariff totals:

a.         $60

b.         $70

c.         $80

d.         $90

               41.       Consider Figure 4.1. The tariff would be prohibitive (i.e., eliminate imports) if it equaled:

a.         $2

b.         $3

c.         $4

d.         $5

   Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.+W.

 Figure 4.2. Import Tariff Levied by a "Large" Country

               42.       Consider Figure 4.2. With free trade, the United States achieves market equilibrium at a price of $____. At this price, ____ tons of steel are produced by U.S. firms, ____ tons are bought by U.S. buyers, and ____ tons are imported.

a.         $450, 5 tons, 60 tons, 55 tons

b.         $475, 10 tons, 50 tons, 40 tons

c.         $525, 5 tons, 60 tons, 55 tons

d.         $630, 30 tons, 30 tons, 0 tons

               43.       Consider Figure 4.2. Suppose the United States imposes a tariff of $100 on each ton of steel imported. With the tariff, the price of steel rises to $____ and imports fall to ____ tons.

a.         $550, 20 tons

b.         $550, 30 tons

c.         $575, 20 tons

d.         $575, 30 tons

               44.       Consider Figure 4.2. Of the $100 tariff, $____ is passed on to the U.S. consumer via a higher price, while $____ is borne by the foreign exporter; the U.S. terms of trade:

a.         $25, $75, improve

b.         $25, $75, worsen

c.         $75, $25, improve

d.         $75, $25, worsen

               45.       Referring to Figure 4.2, the tariff's deadweight welfare loss to the United States totals:

a.         $450

b.         $550

c.         $650

d.         $750

               46.       According to Figure 4.2, the tariff's terms-of-trade effect equals:

a.         $300

b.         $400

c.         $500

d.         $600

               47.       According to Figure 4.2, the tariff leads to the overall welfare of the United States:

a.         Rising by $250

b.         Rising by $500

c.         Falling by $250

d.         Falling by $500

               48.       Suppose that the production of $500,000 worth of steel in the United States requires $100,000 worth of iron ore. The U.S. nominal tariff rates for importing these goods are 15 percent for steel and 5 percent for iron ore. Given this information, the effective rate of protection for the U.S. steel industry is approximately:

a.         6 percent

b.         12 percent

c.         18 percent

d.         24 percent

               49.       Suppose that the production of a $30,000 automobile in Canada requires $10,000 worth of steel. The Canadian nominal tariff rates for importing these goods are 25 percent for automobiles and 10 percent for steel. Given this information, the effective rate of protection for the Canadian automobile industry is approximately:

a.         15 percent

b.         32 percent

c.         48 percent

d.         67 percent

   Exhibit 4.1

 Assume that the United States imports automobiles from South Korea at a price of $20,000 per vehicle and that these vehicles are subject to an import tariff of 20 percent. Also assume that U.S. components are used in the vehicles assembled by South Korea and that these components have a value of $10,000.

             50.       Refer to Exhibit 4.1. In the absence of the Offshore Assembly Provision of U.S. tariff policy, the price of an imported vehicle to the U.S. consumer after the tariff has been levied is:

a.         $22,000

b.         $23,000

c.         $24,000

d.         $25,000

               51.       Refer to Exhibit 4.1. Under the Offshore Assembly Provision of U.S. tariff policy, the price of an imported vehicle to the U.S. consumer after the tariff has been levied is:

a.         $22,000

b.         $23,000

c.         $24,000

d.         $25,000

               52.       Suppose an importer of steel is required to pay a tariff of $20 per ton plus 5 percent of the value of steel. This is an example of a (an):

a.         Specific tariff

b.         Ad valorem tariff

c.         Compound tariff

d.         Tariff quota

               53.       A compound tariff is a combination of a (an):

a.         Tariff quota and a two-tier tariff

b.         Revenue tariff and a protective tariff

c.         Import tariff and an export tariff

d.         Specific tariff and an ad valorem tariff

   Table 4.1. Production Costs and Prices of Imported and Domestic VCRs

 Imported VCRs          Domestic VCRs

Component parts         $150    Imported component parts      $150

Assembly cost/profit       50    Assembly cost     50

Nominal tariff     25    Profit       25

           ____                ____

Import price                Domestic price            

after tariff         225    after tariff         225

              54.       Consider Table 4.1. Prior to the tariff, the total price of domestically-produced VCRs is:

a.         $150

b.         $200

c.         $225

d.         $250

               55.       Consider Table 4.1. Prior to the tariff, the total price of imported VCRs is:

a.         $150

b.         $200

c.         $225

d.         $235

               56.       Consider Table 4.1. The nominal tariff rate on imported VCRs equals:

a.         11.1 percent

b.         12.5 percent

c.         16.7 percent

d.         50.0 percent

               57.       Consider Table 4.1. Prior to the tariff, domestic value added equals:

a.         $25

b.         $50

c.         $75

d.         $100

               58.       Consider Table 4.1. After the tariff, domestic value added equals:

a.         $25

b.         $50

c.         $75

d.         $100

               59.       Consider Table 4.1. The effective tariff rate equals:

a.         11.1 percent

b.         16.7 percent

c.         50.0 percent

d.         100.0 percent

               60.       If the domestic value added before an import tariff for a product is $500 and the domestic value added after the tariff is $550, the effective rate of protection is:

a.         5 percent

b.         8 percent

c.         10 percent

d.         15 percent

               61.       When a tariff on imported inputs exceeds that on the finished good,

a.         The nominal tariff rate on the finished product would tend to overstate its protective effect

b.         The nominal tariff rate would tend to understate it's protective effect

c.         It is impossible to determine the protective effect of a tariff

d.         Tariff escalation occurs

               62.       The offshore assembly provision in the U.S.

a.         Provides favorable treatment to U.S. trading partners

b.         Discriminates against primary product importers

c.         Provides favorable treatment to products assembled abroad from U.S. manufactured components

d.         Hurts the U.S. consumer

               63.       Arguments for U.S. trade restrictions include all of the following except

a.         Job protection

b.         Infant industry support

c.         Maintenance of domestic living standard

d.         Improving incomes for developing countries

               64.       For the United States, a foreign trade zone (FTZ) is

a.         A site within the United States

b.         A site outside the United States

c.         Always located in poorer developing countries

d.         Is used to discourage trade

   TRUE/FALSE

             1.         To protect domestic producers from foreign competition, the U.S. government levies both import tariffs and export tariffs.

              2.         With a compound tariff, a domestic importer of an automobile might be required to pay a duty of $200 plus 4 percent of the value of the automobile.

              3.         With a specific tariff, the degree of protection afforded domestic producers varies directly with changes in import prices.

              4.         During a business recession, when cheaper products are purchased, a specific tariff provides domestic producers a greater amount of protection against import-competing goods.

              5.         A ad valorem tariff provides domestic producers a declining degree of protection against import-competing goods during periods of changing prices.

              6.         With a compound duty, its "specific" portion neutralizes the cost disadvantage of domestic manufacturers that results from tariff protection granted to domestic suppliers of raw materials, and the "ad valorem" portion of the duty grants protection to the finished-goods industry.

              7.         The nominal tariff rate signifies the total increase in domestic productive activities compared to what would occur under free-trade conditions.

              8.         When material inputs enter a country at a very low duty while the final imported product is protected by a high duty, the result tends to be a high rate of protection for domestic producers of the final product.

              9.         According to the tariff escalation effect, industrial countries apply low tariffs to imports of finished goods and high tariffs to imports of raw materials.

              10.       Under the Offshore Assembly Provision of U.S. tariff policy, U.S. import duties apply only to the value added in the foreign assembly process, provided that U.S.-made components are used by overseas companies in their assembly operations.

              11.       Bonded warehouses and foreign trade zones have the effect of allowing domestic importers to postpone and prorate over time their import duty obligations.

              12.       A nation whose imports constitute a very small portion of the world market supply is a price taker, facing a constant world price for its import commodity.

              13.       Graphically, consumer surplus is represented by the area above the demand curve and below the product's market price.

              14.       Producer surplus is the revenue producers receive over and above the minimum necessary for production.

              15.       For a "small" country, a tariff raises the domestic price of an imported product by the full amount of the duty.

              16.       Although an import tariff provides the domestic government additional tax revenue, it benefits domestic consumers at the expense of domestic producers.

              17.       An import tariff reduces the welfare of a "small" country by an amount equal to the redistribution effect plus the revenue effect.

              18.       The deadweight losses of an import tariff consist of the protection effect plus the consumption effect.

              19.       The redistribution effect is the transfer of producer surplus to domestic consumers of the import-competing product.

              20.       As long as it is assumed that a nation accounts for a negligible portion of international trade, its levying an import tariff necessarily increases its overall welfare.

              21.       Changes in a "large" country's economic conditions or trade policies can affect the terms at which it trades with other countries.

              22.       A "large" country, that levies a tariff on imports, cannot improve the terms at which it trades with other countries.

              23.       For a "large" country, a tariff on an imported product may be partially absorbed by the domestic consumer via a higher purchase price and partially absorbed by the foreign producer via a lower export price.

              24.       If a "large" country levies a tariff on an imported good, its overall welfare increases if the monetary value of the tariff's consumption effect plus protective effect exceeds the monetary value of the terms-of-trade effect.

              25.       If a "small" country levies a tariff on an imported good, its overall welfare increases if the monetary value of the tariff's consumption effect plus protective effect is less than the monetary value of the terms-of-trade effect.

              26.       A tariff on steel imports tends to improve the competitiveness of domestic automobile companies.

              27.       If a tariff reduces the quantity of Japanese autos imported by the United States, over time it reduces the ability of Japan to import goods from the United States.

              28.       A compound tariff permits a specified amount of goods to be imported at one tariff rate while any imports above this amount are subjected to a higher tariff rate.

              29.       A tariff can be thought of as a tax on imported goods.

              30.       Although tariffs on imported steel may lead to job gains for domestic steel workers, they can lead to job losses for domestic auto workers.

              31.       Relatively low wages in Mexico make it impossible for U.S. manufacturers of labor-intensive goods to compete against Mexican manufacturers.

              32.       According to the infant-industry argument, temporary tariff protection granted to an infant industry will help it become competitive in the world market; when international competitiveness is achieved, the tariff should be removed.

  Exhibit 4.2

 In the absence of international trade, assume that the equilibrium price and quantity of motorcycles in Canada is $14,000 and 10 units respectively. Assuming that Canada is a small country that is unable to affect the world price of motorcycles, suppose its market is opened to international trade. As a result, the price of motorcycles falls to $12,000 and the total quantity demanded rises to 14 units; out of this total, 6 units are produced in Canada while 8 units are imported. Now assume that the Canadian government levies an import tariff of $1,000 on motorcycles.

             33.       Refer to Exhibit 4.2. As a result of the tariff, the price of imported motorcycles equals $13,000 and imports total 4 cycles.

              34.       Refer to Exhibit 4.2. The tariff leads to an increase in Canadian consumer surplus totaling $11,000.

              35.       Refer to Exhibit 4.2. The tariff's redistribution effect equals $7,000.

              36.       Refer to Exhibit 4.2. The tariff's revenue effect equals $6,000.

              37.       Refer to Exhibit 4.2. All of the import tariff is shifted to the Canadian consumer via a higher price of motorcycles.

              38.       Refer to Exhibit 4.2. The tariff leads to a deadweight welfare loss for Canada totaling $1,000.

              39.       Unlike a specific tariff, an ad valorem tariff differentiates between commodities with different values.

              40.       A limitation of a specific tariff is that it provides a constant level of protection for domestic commodities regardless of fluctuations in their prices over time.

              41.       A tariff quota is a combination of a specific tariff and an ad valorem tariff.

              42.       A specific tariff is expressed as a fixed percentage of the total value of an imported product.

              43.       The protective effect of a tariff occurs to the extent that less efficient domestic production is substituted for more efficient foreign production.

              44.       A tariff can increase the welfare of a "large" levying country if the favorable terms-of-trade effect more than offsets the unfavorable protective effect and consumption effect.

              45.       If the world price of steel is $600 per ton, a specific tariff of $120 per ton is equivalent to an ad valorem tariff of 25 percent.

              46.       An import tariff will worsen the terms of trade for a "small" country but improve the terms of trade for a "large" country.

              47.       Suppose that the tariff on imported steel is 40 percent, the tariff on imported iron ore is 20 percent, and 30 percent of the cost of producing a ton of steel consists of the iron ore it contains. The effective rate of protection of steel is approximately 49 percent.

              48.       There is widespread agreement among economists that import tariffs increase overall employment in the levying country.

              49.       Assume that the United States imports VCRs from South Korea at a price of $200 per unit and that these VCRs are subject to an import tariff of 20 percent. Also assume that U.S. components are used in the VCRs assembled by South Korea and that these components have a value of $100. Under the Offshore Assembly Provision of U.S. tariff policy, the price of an imported VCR to the U.S. consumer after the tariff has been levied is $220.

              50.       Assume that the United States imports televisions from Taiwan at a price of $300 per unit and that these televisions are subject to an import tariff of 25 percent. Also assume that U.S. components are used in the televisions assembled by Taiwan and that these components have a value of $100. Under the Offshore Assembly Provision of U.S. tariff policy, the price of an imported television to the U.S. consumer after the tariff has been levied is $375

  SHORT ANSWER

             1.         Can import duties have unintended side effects?

               2.         What happens to effective protection when the value added by the domestic producer declines?

  ESSAY

             1.         Is it possible for a low nominal tariff rate to understate the effective rate of protection? What is tariff escalation?

               2.         How can tariffs be justified?

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CIS 515 Week 3 Assignment 3 – Strayer

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Assignment 3: University Database

Due Week 3 and worth 90 points

A prestigious university has recently implemented a consolidation strategy that will require it to centralize their student records. In order to move forward, the local university will need to develop a data model that will retain student records and perform various data extract transform and load (ETL) processes. Imagine that you have been hired as a database consultant to assist in the development of a data design strategy for the student records.

You met with various university subject matter experts and have determined the following after performing various business analysis processes:

                             Faculty groups are divided by core competencies that the university offers. For example, there are groups such as the Art Faculty, Computer Technology Faculty, Language Faculty, and Science Faculty. Each faculty member has an assigned Dean and is designated to teach at one particular campus and school. They are able to teach as many courses as required.

                             Courses are categorized by course code and title. Certain courses have prerequisites and the university has asked for this to be cataloged as well.

                             There are various schools within each campus. For example, the Los Angeles campus holds the following schools: School of Science, School of Law, and School of Computer Technology. Additionally, each school offers different professional study programs such as Forensic Computer Science, Marine Biology, Business Management, and Civil Engineering to name a few.

                             The study path for students requires that they be enrolled in a specific professional study program. The professional study program requires the students to complete a specific set of core courses. The university also requires that an online grade book be available. The online grade book should show grades awarded to students for specific courses and the term they completed the course.

                             The university identifies each student by his or her name, date of birth, social, and professional study program.

Using these findings, write a three to four (3-4) page paper in which you:

1.  Analyze the university’s requirements and provide a proposal to organize all the required data elements. The proposal should include the following:

a.                          Provide an Entity Relationship Model (ERM) that will describe the data structure that will store all data elements. Note: The graphically depicted solution is not included in the required page length.

b.                          Describe any assumptions or limitations for each relationship. For example, professors are able to teach more than one course or students can only be enrolled in one program.

2.  Create the primary key and foreign keys using a UML Class diagram for each table.

3.  Suggest at least four (4) types of business intelligence reports that could help the university in course management, student enrollment, or historical tracking. Support your answer by providing specific business functions that these reports could assist executives of the university.

4.  As an alternative for development of the database, you are considering outsourcing the functions above. Research the Internet and other media sources for vendors who develop registrar and school management database systems.

a.                          Suggest three (3) vendors that developed and are employing efficient registrar and school management database systems and support your reasons to choose from one (1) of these three (3) vendors.

b.                          Compare and contrast the key aspects that each system offers. Examples of system aspects include but not limited to cloud based, pricing model, open source, etc.

5. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Your assignment must follow these formatting requirements:

                             Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

                             Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

                             Include charts or diagrams created in Excel, Visio, MS Project, or one of their equivalents such as Open Project, Dia, and OpenOffice. The completed diagrams / charts must be imported into the Word document before the paper is submitted. 
The specific course learning outcomes associated with this assignment are:

5.                        Describe the role of databases and database management systems in managing organizational data and information.

6.                        Recognize the historical development of database management systems and logical data models.

7.                        Design and implement a database solution to solve a proposed business problem.

8.                        Use technology and information resources to research issues in the strategic implications and 
management of database systems.

9.                        Write clearly and concisely about topics related to the strategic planning for database systems using proper writing mechanics and technical style conventions.

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ECO 550 Week 3 Assignment 1 – Strayer

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 Assignment 1: Demand Estimation Due Week 3 and worth 200 points

Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.

For a refresher on independent and dependent variables, please go to Sophia’s Website and review the Independent and Dependent Variables tutorial, located athttp://www.sophia.org/tutorials/independent-and-dependent-variables--3.

Option 1 Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets. QD       =          - 5200 - 42P + 20PX + 5.2I + .20A + .25M (2.002)  (17.5) (6.2)    (2.5)   (0.09)   (0.21) R2 = 0.55           n = 26               F = 4.88

Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:

Q          =          Quantity demanded of 3-pack units P (in cents)       =          Price of the product = 500 cents per 3-pack unit PX (in cents)     =          Price of leading competitor’s product = 600 cents per 3-pack unit I (in dollars)       =          Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarkets are located = $5,500 A (in dollars)     =          Monthly advertising expenditures = $10,000 M                     =          Number of microwave ovens sold in the SMSA in which the supermarkets are located = 5,000

Option 2 Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets.

QD       =          -2,000 - 100P + 15A + 25PX + 10I (5,234)  (2.29)   (525)   (1.75)  (1.5) R2 = 0.85           n = 120             F = 35.25

Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:

Q          =          Quantity demanded of 3-pack units P (in cents)       =          Price of the product = 200 cents per 3-pack unit PX (in cents)     =          Price of leading competitor’s product = 300 cents per 3-pack unit I (in dollars)       =          Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarkets are located = $5,000 A (in dollars)     =          Monthly advertising expenditures = $640

Write a four to six (4-6) page paper in which you:

1.      Compute the elasticities for each independent variable. Note: Write down all of your calculations.

2.      Determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Provide a rationale in which you cite your results.

3.      Recommend whether you believe that this firm should or should not cut its price to increase its market share. Provide support for your recommendation.

4.      Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 dollars.

a.       Plot the demand curve for the firm.

b.      Plot the corresponding supply curve on the same graph using the following MC / supply function Q = -7909.89 + 79.0989P with the same prices.

c.       Determine the equilibrium price and quantity.

d.      Outline the significant factors that could cause changes in supply and demand for the product. Determine the primary manner in which both the short-term and the long-term changes in market conditions could impact the demand for, and the supply, of the product.

5.      Indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves.

6.      Use at least three (3) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

·         Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

·         Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

·         Analyze how production and cost functions in the short run and long run affect the strategy of individual firms.

·         Apply the concepts of supply and demand to determine the impact of changes in market conditions in the short run and long run, and the economic impact on a company’s operations.

·         Use technology and information resources to research issues in managerial economics and globalization.

·         Write clearly and concisely about managerial economics and globalization using proper writing mechanics.

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CIS 210 Week 3 Case Study 1 – Strayer NEW

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 Case Study 1: Building an Access Control System

Due Week 3 and worth 50 points

As a member of the Information Security team at a small college, you have been made the project manager to install an access control system (ACS) in a dormitory. The ACS will automatically unlock the dormitory doors via an electronic proximity reader and integrate with an existing security camera system. The cameras are designed to face and rotate to record a person as they use their identification card to unlock the door.

Create a 3-4 page project plan for this project in which you:

1.  Include a one-half page project scope statement.

2.  Define five (5) major tasks, each with one to two (1-2) subtasks. Also write a brief description for each task.

3.  Create a Gantt chart illustrating the project tasks (use Microsoft Project or a similar project management program).

4.  Create a system diagram illustrating the equipment and connections required for this project (use Microsoft Visio or a similar software package).

Your assignment must follow these formatting requirements:

•     Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

•     Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

•     Include charts or diagrams created in Excel, Visio, MS Project, or one of their equivalents such as Open Project, Dia, and OpenOffice. The completed diagrams/charts must be imported into the Word document before the paper is submitted. 
The specific Course Learning Outcomes associated with this assignment are:

•     Distinguish between non-functional and functional requirements.

•     Use contemporary CASE tools in process and data modeling.

•     Use technology and information resources to research issues in systems analysis and development.

•     Write clearly and concisely about Systems Analysis and Development topics using proper writing mechanics and technical style conventions.

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HRM 530 Week 3 Assignment 1 – Strayer NEW

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  Assignment 1: Alignment of HRM and Business Strategies

Due Week 3 and worth 100 points

 Select a publicly traded company to research and evaluate its Human Resource (HR) and business strategy, HR department job positions, and ways it markets its company regarding human capital. Some company Websites that provide this information are listed below:

Marriott: http://www.arubamarriottcareers.com/JobDescriptions.html

Allstate: http://www.jigsaw.com/id209321_d40/allstate_insurance_human_resources_business_contacts.xhtml

State Farm:     http://www.statefarm.com/about/retirees/news_articles/hr_serv_assist.asp

Ford Motor     Company: http://corporate.ford.com/careers/career-paths/human-resources?&ccode=US

 Write a two to three (2-3) page paper in which you:

1.      Propose how you would ensure the HR strategy is in alignment with the business strategy.

2.      Describe the HR job positions and the responsibilities listed for that HR department.

3.      Determine which HR job positions you would prefer and explain why.

4.      Analyze how the selected company can establish HRM strategies to improve competitive advantages.

Propose     three (3) ways that the company can increase diversity.

Use at     least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites     do not qualify as academic resources.

 Your assignment must follow these formatting requirements:

Be typed, double     spaced, using Times New Roman font (size 12), with one-inch margins on all     sides; citations and references must follow APA or school-specific format.     Check with your professor for any additional instructions.

Include a     cover page containing the title of the assignment, the student’s name, the     professor’s name, the course title, and the date. The cover page and the     reference page are not included in the required assignment page length.

 The specific course learning outcomes associated with this assignment are:

Examine the     role of human resource management (HRM) in organizations and how it     supports the organization’s business strategy.

·         Evaluate human resource strategies and how these strategies align with business strategies.

·         Create a competitive advantage in the marketplace.

Formulate     HRM strategies and policies to recruit, select, place, and retain the most     efficient and effective workforce.

Use technology and information resources to research issues in     strategic human resource development.

Write clearly     and concisely about strategic human resource development using proper     writing mechanics.