Short Answers (1 Viewer)

[PhiL]

Did anyone else find the short answer questions hard? I found them pretty tough.

What were each of the questions

Q21 - Something bout stakeholders and decisional role

One question was bout 4WD mag

Another about Margaret's Kitchen or something
CAn anyone remember the others??

Oh yeah what was the answer to the effect of the $1.75million asset sell off?

 

[chris42]

Yeah, I think the 4WD was a bit hard. I think the effect of the 1.75million would be that reduncacy payouts, possible negative possibility of people losing their jobs. Also I thought the ethical fact. Also on the positive side, 1.75 million in cash will mean more profit for the company, and then share price should also go up being a public company.

 

[LaZy_KoReAn]

Is basically about stakeholders and how it can affect the business

And Margeret's kitchen (if that was the left one can't remember) is the business that is most affordable for that dude's money

 

[LUVELS]

I actually whizzed thru them in bout 35 mins and i can't remember much except for the 4wd thing that one was the hardest. i was expecting more on the ratio's though...

 

[PG5]

Margie's Kitchen Shop
revenue: 12 000
expense: 8 000
current assets: 80 000
current liabilities: 40 000
non current assets: 20 000
non current liabilities: 20 000

i think the question was calculate a profitability ratio of Margie's Kitchen Shop.

 

[Suney_J]

i dont know y they recommend an hour and 15 mins for this section, thats too much, they should decrease the recommendation time to 45 cuz its so short, maybe thats y they call it short answers.
i found the 4wd pretty easy cuz markettin is my fav. topic.
i found the employment relation Q. the hardest,the overseas labour laws.
and i recommended the guy should invest in margies kitchen cuz thats most appropriate to him. i cant remember the rest

 

[yenta]

yeah, caculate a profitability ratio, that confused me, coz I knew u can't work out gross profit or net profit coz they don't give u the right info so its gotta be return on owners equity, but I stupidly forgot how to work out owners equity aarrghhh >: ( I know now its just assets minus liabilities o fuck fuck fuck ah well its only 1 mark. The effect of selling the $1.75 million plant question tho...now that I screwed

 

[Suney_J]

they do give u the right info, they give u expences and all u had to do was minus expences from revenue, and then calculate the percentage.

 

[Jay Kay OK]

The whole thing was Pipifux

 

[crazybrad]

i went with margie

 

[symo]

which shop was on the left? margies i think. i did that one caus of better liquidity. thus can then finance capital investment = long term increased profits...

 

[crazybrad]

mARGIE

 

[Inca]

I went Margie cause she had better liquidity and didnt seem so wasteful in her expenses

 

[truly-in-bliss]

margie all da way!

the onli bit that fabric shop is statiscalli better than margie's is in the long-term assets.. which i recall is something lyk 80, 000 as opposed to margie's 20,000... but i remember from syks and codsi that its not dat good to have that much long -term assets... cuz they are subject to deprecaition... hence soemtimes it's better to have less long-term assets.. and margie was more liquid and profitable than fabric shop

 

[shazabdazla]

i said lim's, not margies..(doesnt matter which one you put does it, as long as you reasonably argue)...

i said, if he has no biz experience, go for margies...but if he's willing to change things around a little, lim's is better as 70,000 nca's can be sold and leased back, then can pay off all ncl and have 40,000 left to invest in biz activities, investment markets, etc and create better ratios...this biz has more potential long term...as margies only has enough nca to pay off ncl, so in emergency, cant sale and lease back....

for the 4 wheel drive one, advertising reaches younger audiences...blah....

for the 1.75 mill, i said implications were:
-employees redundant, loss of career path leads to feeling incompetent...
-this has social implications as poverty and unemployment are majore causes of dom. violence, substance abuse, and family breakdown..
-the biz has a responsibility to max. wealth for shareholders, but is not doing this in the long run by shutting down...
-creditors would be happy and acieve payment
-customers could be faced with higher prices caused by less competition and cant buy those products anymore
-governments may be concerned as this is moving towards monopolistic control of markets....

 

[Bruno]

$1.75 (implications). it's called assest stripping....... it's unethical financial management.
Margie kitchen and the profitability. it's gross profit ratio

 

[truly-in-bliss]

yeah asset strippign was a obvious one..

 

[chris42]

I went with the lim's because lim's had higher solvency then margies. It was a tossup between higher liquidity or higher solvency, and I thought solvency was better...

 

[shazabdazla]

yeah thats what i thought, because if you are going to buy a business you have control over how it is run and obviously lims' low ratios were caused by poor working capital management....which can be turned around especially with so much potential cash spare...in comparison, margie's ratios were only marginally higher, and owners equity = $0.....

but....once again it doesnt matter which biz you said right....im sure diff financial advisors could see points for both...as long as you provided logical arguments to support your decision.

Bruno...yeh i said asset stripping too,.....

what did you say for product strategies to gain a wider market share for 4wd mag......

i said 1. core: emphasise benefits and chance of winning a new 4wd or holiday etc....this means customer is buying hope...
2. actual: cover: brighter colours, pictures of ppl in new 4wd or holiday, broadly appealoing stories/articles, design, shape, etc.....

 

[nerdd]

I agree.. they were a bit harder than usual