What are the implications of having negative working capital?
What will be an ideal response?
A firm doesn’t have enough current assets to meet its current obligations. It would have to borrow or raise equity to make up the difference. This can be costly to do because of the potentially higher interest rates on new debt and/or the costs of issuing equity (dilution of ownership, fees).
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In a short essay, discuss the ethical issues related to data preparation and analysis
What will be an ideal response?
What is the corn constraint?
Billy Hill's Still William J Hill runs a small batch artisnal bourbon distillery at a secluded location in the hills of Kentucky. He makes two products, known among his customers as Rotgut and White Lightning. The recipes for the two have been passed down in the Hill family for generations and are Rotgut: 1 bushel of corn, 3 pounds of sugar, 2 hours of cooking time. For the premium blend, White Lightning, he needs 2 bushels of corn, 2 pounds of sugar, and 3 hours of cooking time. Both recipes make enough to fill two jugs, which sell for $8 apiece for Rotgut and $12 apiece for White Lightning. A quick inventory one crisp autumn morning reveals that William has on hand 40 bushels of corn, 70 pounds of sugar, and 50 jugs. He would like to brew up a few artisnal batches, but has recently received a tip that certain agencies have taken an interest in his talents and may be paying him a visit in three days, hence he plans to restrict any brewing activity to 72 hours at most, before he retreats to his home away from home, Lubbock. William cleans his equipment, lights a fire, and ponders the objectives. Obviously the first priority is restricting himself to 72 hours of work — any more than that and he runs the risk of an extended holiday. His second priority to make enough to acquire materials for the next production run and fund his daughter's college tuition - he believes that $500 would make this production run worth his while. His third and fourth priorities are not to have too much perishable inventory, so he wants to make sure he doesn't have too many bushels of corn on hand (third priority) nor does he want too many pounds of sugar on hand (fourth priority).
Detta borrows $20,000 from the bank. For a five-year loan, the bank requires annual end-of-year payments of $4,878.05. The annual interest rate on the loan is ________
A) 6 percent B) 7 percent C) 8 percent D) 9 percent
New Car PurchaseZena has been promoted to vice-president at the management consulting firm she works for. Her status has led her to consider the need for a new car. Her trusty little Volkswagen Beetle had over 100,000 miles on it and no longer seemed appropriate. Susanne, another vice-president, suggested that Zena consider a car produced in the United States because the consulting firm she works for has a policy of supporting U.S. businesses. Zena began her quest for a new car by visiting several car dealers and obtaining pamphlets on the models she is considering. She also studied Consumer Reports magazine, Car and Driver ratings, and other consumer rating publications to see what the experts think. Finally, after evaluating all options, Zena decided to purchase a new Chrysler. She
believes the car is a good fit with her new image and position in her company. Now that she has purchased the car, she has seen more advertisements touting its features than she ever noticed before. She also has noticed many models of her car on the road. Zena thinks the fact that so many others are driving the same model car as hers is proof that she made a good decision.Refer to New Car Purchase. Zena spent a considerable amount of time and effort on her new car purchase. This suggests the car is a(n) _____ product for Zena. A. impulse B. low-involvement C. routine response D. nondurable E. high-involvement