Managerial Economics Problem Solving In A Digital World 1st Edition Nick Wilkinson - Solutions

Discover the ultimate resource for mastering "Managerial Economics Problem Solving In A Digital World" by Nick Wilkinson with our comprehensive solutions manual. Unlock step-by-step answers and delve into a vast array of solved problems, designed to enhance your understanding of the textbook. Access the complete solutions PDF, including both the answers key and an instructor manual, to effectively tackle any questions and answers you encounter. Whether you're preparing for a test bank or seeking chapter solutions, our online platform offers a free download of the essential materials you need for success.

18–9. What are the major costs and benefits of organizing as a publicly traded corporation?
18–6. Do recent corporate scandals suggest that there are serious governance problems in most large corporations?
18–3. What mechanisms are used to address the incentive conflicts in corporations?
18–1. What is a corporation? Describe the major characteristics of a large publicly traded corporation.
18–2. Cisco shareholders recently voted down a shareholder proposal that asked Cisco’s management to pay out its large cash reserves to shareholders in the form of dividends(Cisco currently has significant short-term assets, including cash and investment securities). The sponsor of the proposal
2. Does the evidence on the stock market reactions to 13D filings suggest that the benefits of outside block ownership are typically larger than the costs? Explain.
2. What might these employment packages have to say about the argument that public company executives are overpaid?
10. Explain how market forces contribute to corporate governance.
9. Discuss key issues in international corporate governance.
8. Describe the role of public accounting firms and other “external” monitors in corporate governance.
6. Describe the role of corporate governance as the firm’s high-level organizational architecture.
5. Discuss the benefits that have contributed to the survival of the corporate form of organization.
4. Discuss the implications of the separation of ownership and control in large corporations.
3. List the three key objectives of corporate governance.
2. Describe the ownership patterns of large publicly traded corporations in the United States.
1. Distinguish between closely held and publicly traded corporations.
9. The Sarbanes–Oxley Act of 2002 established a new five-person board to oversee financial accounting in publicly traded corporations. The board is appointed by the Securities and Exchange Commission. Prior to the creation of this board the industry relied primarily on self-regulation through the
8. The American Institute of Certified Public Accountants is the primary professional association for certified public accountants. It has developed a Code of Professional Conduct that sets the standards of conduct for CPAs. People can file complaints about the ethical conduct of a CPA with the
7. In 2000, the SEC proposed new regulations that would limit consulting work by accounting firms. This proposal was not passed by Congress. Do you think that the legislators were trying to act in the public interest when they failed to pass this proposal? Explain.
6. Do you think that the problems at Andersen were unique to them or did they exist at the other big accounting firms? Suppose you were the top partner at one of the other major accounting firms at that time of Andersen’s demise. What actions, if any, would you take in response? Explain.
5. Discuss the relation between the “hard” and “soft” elements of a firm’s corporate culture in the context of this case.
4. Discuss the relation between what happened at Andersen and multitask principle agent theory.
3. Suppose you were Andersen’s managing partner in the early 1990s. Would you have done anything differently than the actual management (assuming you knew only what they did at the time)? Explain.
2. Evaluate Andersen’s claim that their problems on the Enron audit were due to a few “bad partners” in the organization. If you disagree with this claim, discuss what you think were the root causes of the problem.B. Mears, “Andersen Conviction Overturned,” Money.cnn.com, May 31, 2005.
1. Discuss the environmental, strategic, and organizational changes that occurred over the life of Andersen in the context of Figure 11.1.
17–12. Do you agree with the following statement? Explain.Obviously the correct transfer price is the opportunity cost of the resource. Any firm that uses full cost (which includes an allocation of corporate overhead) is doing it wrong.
17–9. Geriatrics Inc. has a patent on a new type of hospital bed. The marginal cost of producing each bed is $400. The company has significant production capacity. Geriatrics sells the beds to customers on the open market and also uses them internally throughout its nursing home chain. The
17–4. The Xtrac Computer Company is organized into regional sales offices and a manufacturing division. The sales offices forecast sales for the upcoming year in their territories.These figures are then used to set the manufacturing schedules for the year. Prices of the computers are determined
17–3. A firm has a demand curve: P = 50 − Q. Its total costs are TC = 110 + Q + 3Q2 Prepare a table that computes the profit-maximizing quantity. What quantity minimizes average cost? (Hint: Prepare a table similar to Table 17.1 for Q = 1, 2, . . . 10.)
3. Now assume that the firm is divided into two profit centers. One division manufactures the product at a total cost of TC = Q2 and then transfers it to a selling division that faces the firm’s demand curve. The selling division has no other costs other than the transfer price for the product.
2. What are the optimal output, price, and profits for the firm?
1. Verify numerically that when TC = Q2 marginal cost is MC = 2Q.
7. Discuss why internal accounting systems are more useful for managers exercising decision-control rights than for managers exercising decision-management rights.
6. Explain how the internal accounting system is used to evaluate performance.
3. Discuss the role of transfer pricing in firms.
16–13. Bob’s Manufacturing Company has altered the determinants of pay raises for U.S.employees. Whereas in the past pay increases for managers, professionals, and hourly workers had been automatic, starting last year the company began determining the size of an annual bonus pool and then
16–9. A consultant does not like the fact that you use subjective performance measures in your firm. He argues that they are arbitrary and should be replaced with objective measures.He stresses that objective measures provide a clear target for employees, but mentions none of the potential costs.
16–6. The Green Shoe Company is considering going to a piece-rate system, where manufacturing employees are paid based on their level of output. Discuss what factors the firm should consider in deciding whether this idea should be implemented. How should the initial piece rate be set? Under what
16–5. Evaluate the following statement:The overarching purpose of a measurement system should be to help a team, rather than senior managers, gauge its progress. A team’s measurement system should primarily be a tool for telling the team when it must take corrective action.22
Don’t promote The number of ratings in the top two categories—“clearly promote” and “must promote”—will be severely restricted to at most 20 percent of the evaluations. If an officer is evaluating 10 junior officers, at the most only two can receive the top two ratings.What are the
Progressing
Promotable
Must promote
Clearly promote
16–4. The U.S. Navy revamped its officer fitness report system in the latter part of the 20th century.21 Under the old system, officers were ranked into one of four categories, where 4.0 was the highest grade. This old system had been used for 20 years and grade inflation had become rampant.
16–1. Discuss some of the costs and benefits of 360-degree evaluation systems.
10. Describe key issues that arise in the evaluation of teams.
9. Explain why many firms combine objective and subjective performance measures.
8. Explain why some firms employ forced ratings systems and the kinds of problems that can arise with these systems.
7. Discuss the advantages and disadvantages of subjective performance measures relative to objective measures.
6. Explain the benefits and costs of relative performance evaluation.
5. Define and explain the horizon problem.
4. List examples of how employees can game performance measurement.
3. Explain why the amount spent on performance measurement and the intensity of incentives in compensation plans tend to be positively correlated.
2. Define and explain the ratchet effect.
1. Describe how firms set performance benchmarks.
2. Some auto insurance companies separate the tasks of selling and customer service and assign them to different people. Why do you think they do this?
1. Which type of insurance company, life or auto, is more likely to use the in-house agent?Explain. (Be sure to discuss why the in-house agent faces product restrictions and is not always paid on a pure commission basis.)
Define ETHICS AND ECONOMICS
How to solve a problem like OVI’s
To describe the policies implemented by the UK, the EU and the USA, making comparisons.
To discuss the various policy options in competition policy, explaining the relative advantages and disadvantages.
To discuss the various policy options in monopoly policy, explaining the relative advantages and disadvantages.
To point out differences between objectives in the UK, the EU and the USA.
To discuss the objectives of government policy in the areas of monopoly and competition policy.
To explain the SCP model and its shortcomings.
To explain why government intervention can be desirable in certain markets.
To discuss certain social and ethical issues which are particularly relevant in business decision-making.
To discuss the importance of transaction costs and their implications.
To explain the concept of public goods and their relationship with externalities.
To explain the concept of externalities and their relevance to both governments and businesses.
To explain the concept of market failure and its implications for both governments and businesses.
To emphasize the distinction between positive and normative aspects of policy.
To discuss the objectives of government policy.
To explain why government policy is important for managerial decisionmaking.
To explain the concept of the optimal capital budget and how it can be determined.
To explain the different ways of incorporating risk into managerial decisionmaking in terms of investment analysis.
To examine the measurement of risk.
To explain the nature and significance of risk and uncertainty in investment appraisal.
To explain the concept and measurement of the cost of capital.
To explain the different methods of evaluating investment projects.
To explain the process and principles of cash flow analysis.
To describe and distinguish between different types of investment or capital expenditure.
To explain the nature and significance of capital budgeting.
To consider other pricing strategies that firms tend to use in practice.
To examine the dynamic aspects of pricing, by discussing pricing over the product life-cycle.
To explain the concept of transfer pricing and the issues involved.
To analyse pricing decisions for firms producing joint products.
To analyse pricing decisions for firms producing multiple products.
To explain the meaning and uses of price discrimination.
To discuss market segmentation and targeting strategies.
To explain the meaning of market positioning and its strategic implications.
To explain the concept of value creation and to show its significance in a purchasing model.
To explain the importance of the concept of competitive advantage.
To relate the concepts and analysis of the previous chapters to more complex and detailed pricing situations.
To explain the context in which pricing decisions are and should be made.
To explain the significance of pricing, both in the economic system as a whole and from a management perspective.
To stress that many of the conclusions of game theory are counter-intuitive.
To demonstrate how game theory explains much firm behaviour that cannot be explained by traditional analysis.
To examine a variety of different applications, in order to relate game theory concepts to much of the other material in the book.

Showing 2100 - 2200 of 5336

First
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Last

Managerial Economics Problem Solving In A Digital World 1st Edition Nick Wilkinson - Solutions

Step by Step Answers