A total of 80 (36 male) participants were recruited at the University of Canterbury (51 participants) and from the general population (29 participants). Participants from the general public were recruited in four different malls of the local city, representing four different socio- economic levels as indicated by land values. The overall age range was between 15 and 68 years of age, with a mean of 27 (SD = 13). All participants completed the same questionnaire. The final sample contained 53 current students and 27 non-students. All participants were given two $1 "scratch-and-win" lottery tickets in recognition of their help.
The bulk of the questionnaire consisted of nine black market scenarios.
Participants were asked to rate each scenario in terms of how unacceptable they perceived it was for the agent in the scenario to make a purchase from the black market. Participants circled a value between 1 and 7 on a rating scale where a score of 1 corresponded to "completely acceptable," a score of 4 was "reasonably acceptable," and a score of 7 was "not at all acceptable." The nine scenarios varied (3 x 3) the need of the agent and the original source of the goods offered in the market. The need of the agent could be survival; a need to save money; or not otherwise being able to afford the good. The original sources of the goods (victims) were an individual; an organisation or society.

Two examples of scenarios were:
"In the days following the Tsunami in Indonesia, isolated places have a food scarcity. Ragu has no food to feed his family. He has been approached by black market dealers who have offered him food in exchange for money. Considering the food has been procured from the burglary of a private home, how acceptable do you think it is for Ragu to buy such food?" (survival need, individual victim).

"Michael is a student with a passion for music who has been approached and offered state of the art electronic stereo equipment at half the price it sells for in the local stores.
Assuming that Michael could not otherwise afford such equipment, and that he is aware that the goods have been stolen from a large international electronic manufacturer, how acceptable do you think it is for Michael to buy such equipment?"
(cannot afford need, organisation victim).

Half the questionnaires included scenarios in which all the consumers were depicted as male while in the other half they were always female. The only difference between these two questionnaires was the implied gender of the names and the pronouns used. The order of presentation of the scenarios was varied across participants. Finally, a demographic section asked participants their age, gender, occupation and income.

1) Do you think the level of detail is sufficient or insufficient? In other words, is there enough information to allow the study to be adapted or replicated by others? If not, what would you need to know?

2) Do you think the sample scenarios are needed? Should the authors have described how the final sample was derived?

3) What verb tense dominates? Why did the authors choose this tense? Could another tense have been chosen?

4) How do the authors maintain a good flow of ideas in the first paragraph? Do they follow this same strategy in the final paragraph?

5) Does active or passive voice dominate? Why is this the case?

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Question 2 (Cash Budget) Munchkin Ltd (ML) is a rapidly growing company which produces luxury food for up- market cat owners. The owner and director, Mr Patel, is trying to produce a cash flow forecast to ensure he can afford to invest in a brand-new cat food machine that will be installed in his factory in Northern Ireland. The purchase of the cat food machine will cost £150,000, and Mr Patel intends to buy it for cash in March. ML has retail customers from its own private shop as well as large supermarket contracts. These customers pay by cash or credit. On average 20% of customers pay by cash while the remaining customers pay by credit. Of the credit customers, one quarter pay in the current month and the remaining three quarters of credit customers pay one month after sale. As Mr Patel believes the root of his success is his ingredients in the food, he ensures he keeps good relations with the suppliers and tries to pay them in the month of purchase. In reality, he pays 80% in the month of purchase and the balance one month after the purchase. The extension of credit for those he pays one month late carries an additional interest charge of 2% on the balance which is paid at the same time. Sales Purchases £55,000 £120,000 £60,000 £200,000 £80,000 £250,000 £100,000 Months January £100,000 February March April Expenses £16,000 £13,000 £14,000 £15,000 Within expenses Mr Patel includes £5,000 per month of salary costs, which are paid at the end of month in which they are incurred. The remaining expenses are paid one month after they are incurred and includes depreciation of £1,000 per month. The deprecation relates to a retail van which was bought at £34,000 (cost). It is depreciated monthly on a straight-line basis. On 1 February ML has an opening overdraft balance of £20,000 and an approved overdraft limit of £35,000. Required: (a) Prepare a monthly cash budget for the period February to April inclusive. Include all the headings that you expect in a formal cash budget. (24 marks) (b) In order to avoid technical bankruptcy an actual negative bank balance may not exceed ML's overdraft limit at any time. Using the results of your cash budget, explain what Mr Patel could do to resolve any overdraft overruns (prevent spending more money than the business has including the overdraft arrangement that it has with the bank) that may arise. (8 marks) (c) Mr Patel cannot understand why the cash budget looks different to his income statement. Explain, using four examples from the question or from your cash budget, why there are differences between items included in cash budget and those included in the income statement. (8 marks) Question 2 (Cash Budget) Munchkin Ltd (ML) is a rapidly growing company which produces luxury food for up- market cat owners. The owner and director, Mr Patel, is trying to produce a cash flow forecast to ensure he can afford to invest in a brand-new cat food machine that will be installed in his factory in Northern Ireland. The purchase of the cat food machine will cost £150,000, and Mr Patel intends to buy it for cash in March. ML has retail customers from its own private shop as well as large supermarket contracts. These customers pay by cash or credit. On average 20% of customers pay by cash while the remaining customers pay by credit. Of the credit customers, one quarter pay in the current month and the remaining three quarters of credit customers pay one month after sale. As Mr Patel believes the root of his success is his ingredients in the food, he ensures he keeps good relations with the suppliers and tries to pay them in the month of purchase. In reality, he pays 80% in the month of purchase and the balance one month after the purchase. The extension of credit for those he pays one month late carries an additional interest charge of 2% on the balance which is paid at the same time. Sales Purchases £55,000 £120,000 £60,000 £200,000 £80,000 £250,000 £100,000 Months January £100,000 February March April Expenses £16,000 £13,000 £14,000 £15,000 Within expenses Mr Patel includes £5,000 per month of salary costs, which are paid at the end of month in which they are incurred. The remaining expenses are paid one month after they are incurred and includes depreciation of £1,000 per month. The deprecation relates to a retail van which was bought at £34,000 (cost). It is depreciated monthly on a straight-line basis. On 1 February ML has an opening overdraft balance of £20,000 and an approved overdraft limit of £35,000. Required: (a) Prepare a monthly cash budget for the period February to April inclusive. Include all the headings that you expect in a formal cash budget. (24 marks) (b) In order to avoid technical bankruptcy an actual negative bank balance may not exceed ML's overdraft limit at any time. Using the results of your cash budget, explain what Mr Patel could do to resolve any overdraft overruns (prevent spending more money than the business has including the overdraft arrangement that it has with the bank) that may arise. (8 marks) (c) Mr Patel cannot understand why the cash budget looks different to his income statement. Explain, using four examples from the question or from your cash budget, why there are differences between items included in cash budget and those included in the income statement. (8 marks)

Answer rating: 100% (QA)

1 The level of detail is sufficient The study can be replicated by others with the given information This is because the study provides enough informa... View the full answer