Section II - Questions 21-25 (1 Viewer)

[DRAGONZ]

Hey guys, the one you're stressing about threw me for a while was the one with two efficiency indicators. Obviously the only indicator they provided was the accounts recievable turnover ratio, and the expense ratio wasn't there. However, you could infer the fact that the expense ratio had risen based on the data that showed the GP ratio remaining stagnant while the NP and Return on OE had fallen.

Haha OMG that's freaky stuff. I just wrote that now ..

Like I said, Net Sales had to be the same over the two years, and I'm not sure if they were.

If so, our theory works.

I didn't use it in any case, though.

 

[Shell]

i talked about the two meausres of efficiency...expenses over sales and accounts receivable turnover...and said how if you minimises your expenses such as labour and substitute for capital you may have less working capital...but for accounts if u encourage them to pay on time using discount for early payment you would have increased working capital..
would that be right? :S

i wrote pretty much exact same as you for that one.

 

[Shell]

oh and i had no idea what to put for all the questions about the Vic man with the wife and kid. just made some crap up about how he might have to go on casual or part time. :S

 

[ss1]

i used the stimuls as an example.. because if you looked at it closely the gross profit remained the same but the net profit decreased by 5% meaning the expense ratio increased by 5% and accounts recievable ratio also detereorated meaning that the business would struggle financing its short term debt as credit customers where taking longer to pay (from 30 days to 6o from memory) meaning the business would experience cash flow problems from insufficient working capital etc...

 

[JoeET]

Ooops

Oops, my bad, well there goes 6 marks.. maybe i should read the question a lot more carefully during economics... U see i thought it said working capital blah blah
with measures of effectiveness.. no wonder i was wondering why the stimulus didnt relate to the questions... Oh well, wats 6 marks gonna stop me from getting lol.. there goes my 90... Lets just hope i get something for it...

 

[Logain]

oh and i had no idea what to put for all the questions about the Vic man with the wife and kid. just made some crap up about how he might have to go on casual or part time. :S

I also thought that was the most challenging of the short answer Qs. I got kinda worried when I came on here and people said it was the easiest. :s I made up something for the second 2 mark question, and I drew a blank for the "social" changes to industrial relations, I said something about the EEO and more women in the workplace? The strategy I suggested was a child care facility in the work place which would impact beneficially on Vic and perhaps put some financial strain on the management, having to hire a child care worker and set aside an area for a creche or whatever.

 

[karen88]

i reckon da efficiency and working capital question was worded pretty badly... and also had probs with da legal influences in Vics case... but other than that... this section was ok...

 

[GiantSloth]

Oi everyone for that efficancy question it asked for stratiges that would effect working captial i wrote things like invoive discount and credit policy. these effect working capital by reducing the amount of cash that comes into the business. For example if u keep offering credit to buyers u are gonna get ur cash at a later date so working capital will not keep ticking over same if u offer invoice discount.

 

[Mz_mE]

for the shoe advertisment.. was the ethical thingo. something like creating a need for wants.. and manipulating the children in buying the product.. and the legal one.. false and misleading adveritising reinforced by the trade practices act and sales of good act sayin its illegal.. coz the ad claims that the shoes make u dance like the model?

working capital/accounts receivable/ efficiency i wrote sumthin bout factoring, overdrafts, JIT, discount for early payments.. all help free up cash makin more assets.. affecting the working capital meanin they hav more money to work with which will affect efficiency and accounts receivable..

what was the ecological influence/strategy/reason.. whateva the word was.. no idea.. cant even remember..

 

[Tommy_69]

also revenue (sales targets, sales mix etc) and cost controls (fixed+variable costs, efficiency of cost centres, cost minimsation)

 

[Logain]

The ecological issue meant that the environment had to be mentioned as an external stakeholder. I wrote that the interests of the environment conflicted with the interests of the shareholders, as implementing ecologically sustainable production would increase expenses and ultimately result in a lower dividend for shareholders.

 

[Mz_mE]

The ecological issue meant that the environment had to be mentioned as an external stakeholder. I wrote that the interests of the environment conflicted with the interests of the shareholders, as implementing ecologically sustainable production would increase expenses and ultimately result in a lower dividend for shareholders.

omg did the Q ask for 2 external stakeholders? or any 2 stakeholders? :|

 

[Logain]

No, just two stakeholders. I think. I wonder where the hell I put my exam. :S

 

[tokenblackguy]

yeh i wrote the shoe advertisement had to do with creation of needs, persuading the children to buy the shoes to "be like her" or whatever.

I just bullshitted on about Vic talking about how he might be on a certain contract and how it could become a dispute and having to go thru different stages to solve the dispute

Working capital i just talked about how the business' assets dropped in 2005, showing that the business was struggling with only $1 of assets to meet $1 of debt and a bunch of shit again. Whats everyone talking about accounts receivable and stuff in this question for? working capital=liquidity

 

[0410240042]

for the advertising 1, there was an ehtical and legal question, misleading advertising is illegal so it couldnt've been the ethical q. I wrote misleading advertising for the illegal answer (i think that was part b), and for the ethical question i wrote price discrimination because of the age vulnerability of girls aged 8-12 but i dun think its rite....o well.....

 

[Mz_mE]

for that vic question.. could the legal issue the business should consider b4 changing the working conditions hav anythin to do with the employee contract.. the amount of wages and hours he works n stuff like that? maybe comply with OH&S provide safe working conditions?

 

[0410240042]

Working capital i just talked about how the business' assets dropped in 2005, showing that the business was struggling with only $1 of assets to meet $1 of debt and a bunch of shit again. Whats everyone talking about accounts receivable and stuff in this question for? working capital=liquidity

yeh but working capital is efficency and efficency ratios are a/c reveivable turnover ratio and expense ratio.
well i talked a load of crap here too anywaz, lol

 

[Logain]

Working capital i just talked about how the business' assets dropped in 2005, showing that the business was struggling with only $1 of assets to meet $1 of debt and a bunch of shit again. Whats everyone talking about accounts receivable and stuff in this question for? working capital=liquidity

The question asked about efficiency indicators, two to be precise. The two financial ratios on the syllabus that measure efficiency are accounts recievable turnover ratio and expense ratio. thus you had to apply the effects of these two ratios on working capital.

 

[Mz_mE]

for the advertising 1, there was an ehtical and legal question, misleading advertising is illegal so it couldnt've been the ethical q. I wrote misleading advertising for the illegal answer (i think that was part b), and for the ethical question i wrote price discrimination because of the age vulnerability of girls aged 8-12 but i dun think its rite....o well.....

i wrote the ethical would b the creation of a need for wants or sumthin like that.. manipulating children in buying something they dont really need

 

[0410240042]

for the employment relations q (Vic 1), the legal issue i wrote about was unfair dissmissal if the employer had any intentions of dissmissing Vic, lol mayb wrong though