Finance Mini Case

Introduction to the Financial System Financial Instruments Financial instruments can be: • Equity This is usually through the selling of common shares and/or common stock. It gives the buyer some ownership of the firm and thus, voting power when it comes to electing the board of directors. Debt This is money that is borrowed from someone else. Debt must be repaid at set intervals. Debt can be divided into short and long-term debt. This should follow the matching principle where short-term assets should be funded with short-term debt.

Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.

This assignment requires that we select “three old style and three new style organizations” and discuss the characteristics of each, as if any organization will fit neatly into one category or the other. It is more likely, however, that most organizations will have elements of both the new and the old. Some may be transitioning to new-style organizations from old-style, However, it may also be that the organizations have landed on a combination of elements that just works best for them.

b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.

Kenny is a teenager who has experienced uncontrollable bodily and facial movements, various uncontrolled vocalizations, and other compulsions such as excessive hand washing and wringing. He has been treated with Clonidine, Haldol, pimozide and buspirone. This patient was diagnosed with Tourette’s Syndrome. Clonidine is a vasodilator that allows for blood to flow more easily to the brain. This lowers blood pressure and helps treat the tics the patient experiences(1). Haldol and Pimozide are antipsychotics that blocks dopamine receptors in the brain. This would help treat the compulsive behaviors (2). Buspirone is used to treat anxiety disorders. It binds to serotonin receptors in

Management-Specific Learning Goals: Students will be able to demonstrate understanding of all business functions, practices, and related theories and be able to integrate this functional knowledge in order to address business problems. More specifically, students will gain competency and knowledge in solving complex business problems.

8. What are the pros and cons of each key organizational structure? Which do you think would be the best fit for you? Explain your answer.

Address the following questions and also provide the name of a company example of each structure with supporting rationale. Reply substantively to two other learners.

The four fundamental factors that affect the supply of and demand for investment capital, and hence interest rates, are productive opportunities, time preferences for consumption, risk, and inflation. Explain how each of these factors affects the cost of money. In your discussion, explain why a hospital 's bond rating is important and describe the different levels. (You can use any bond rating agency for analysis).

Part II: Make your recommendation as to what form of organization you believe will be best and be sure to explain the reasoning for your choice.

• Should an organization add capacity? • How should an organization react to a new competitor? • Should an organization enter/exit a

4. Compare and contrast the three organizational structures discussed in the text: functional, project, and matrix. Provide examples that show the difference between the three, including some of the advantages and disadvantages of each.

For your job as the business reporter for a local newspaper, you are asked to put together a series of articles on multinational finance and the international currency markets for your readers. Much recent local press coverage has been given to losses in the foreign exchange markets by JGAR, a local firm that is the subsidiary of Daedlufetarg, a large German manufacturing firm.

You are in charge of the advertising staff for Cindy Smith 's election campaign. Cindy is trying to prevent the eight term incumbent, Jesse Jones, from getting another term in the U.S. House of Representatives. Cindy decided to run against Jesse because he wrote 150 bad checks in the House banking scandal, voted to not disclose the names of the people involved in the scandal, and voted to give himself a substantial pay raise at taxpayers’ expense. Furthermore, Jesse seems unconcerned with the debt crisis and has been criticized by the national press for funding questionable projects in his district at the expense of more worthy projects elsewhere in the nation. Moreover, Jesse

The keys to the company’s future value and growth are profitability (ROE) and the reinvestment of retained earnings. Retained earnings are determined by dividend payout. The spreadsheet sets ROE at 15% for the five years from 2006 to 2010. If Reeby Sports will lose its competitive edge by 2011, then it cannot continue earning more than its 10% cost of capital. Therefore ROE is reduced to 10% starting in 2011.