Question 1
The enduring problem for businesses in relation to computerized information systems has been, since the very earliest days with the giant mainframes, the creative integration of the information processing capacity thus made available with the ongoing needs of business processes, often designed prior to information systems or in only loose coupling with them. This has become more acute in recent years as the capacities of the machinery have expanded, and it has become more and more necessary to do business online and globally. It's quite clear that business models are fundamentally affected by the nature of information and information systems, and that the business models currently under development and showing most success are those designed around information systems rather than grafted onto them. Michael Rappa has a very interesting analysis of currently viable business models; take a look here and see how many of them you recognize or can identify in firms you deal with: Rappa, M (2010) Business models on the web. Managing the digital enterprise. Retrieved March 3, 2012, from http://digitalenterprise.org/models/models.html But the spread of information systems and the development of new models have not changed the fundamental sociotechnical dynamics of organization; namely, the need to integrate the development of social and technical systems and to deal with their mutual adaptation during the course of system implementation. This is equally true if one is installing a brand-new system and/or process or if one is substantially modifying a legacy system and/or process to be more responsive to current conditions. Cal Nguyen discusses these sociotechnical issues here: Nguyen, C. (2011) The Case for Socio-technical Solutions in The IT Workplace. Socyberty. Oct. 24. Retrieved from http://socyberty.com/work/the-case-for-socio-technical-solutions-in-the-it-workplace/ Before we proceed to look at business processes as such, we need to be familiar with the kinds of management information processing likely to be associated with these processes. Here is a convenient summary of different types of management information; a little research on the Internet will clarify for you any uncertainties as to what these represent and why they might be important: (N.D.) Types of Information Systems. Tutor2u.net. Retrieved June 6, 2012, from http://tutor2u.net/business/ict/intro_information_system_types.htm Now let's see what those actually doing business project management think about it on a day-to-day basis: Perepa, B. (2011) BPM Voices: The evolution of business process management. IBM DeveloperWorks. Retrieved March 3, 2012, from http://www.ibm.com/developerworks/websphere/bpmjournal/1109_col_perepa/1109_perepa.html?ca=drs- It?s strongly recommended that you get some further information about business process management from other Internet sources that you locate on your own. When you've had a chance to read these articles, review information from the background readings, and conduct your own research, please prepare a 3-4 page paper on the topic: Basic principles for updating business processes tied to legacy information systems Try to identify 3-5 basic short principles, and explain how each can be implemented and why it?s important. See Expectations, below.
Question 2
1. The UCC differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that: A) the CISG applies to the sale of consumer transactions while the UCC governs both consumer and commercial transactions B) the UCC does not require contracts to be in writing, CISG requires contracts for the sale of goods in excess of $500 to be in writing C) the CISG applies to both consumer and commercial transactions, while the UCC applies only to commercial sales of goods D) the UCC holds merchants to higher standards in some circumstances, while the CISG does not make a distinction between merchants and non-merchants 2. A quasi contract is: A) contract like duties imposed by the court to prevent unjust enrichment B) a contract that has been fully performed C) an agreement which contains all but one of the basic elements needed to form an enforceable contract D) a contract where terms are stated orally only 3. Christy downloaded a music software program from the Internet. Under the UCC, the software is: A) a good B) a good faith warranty C) a mixture of goods and services D) a service 4. Pete offered Liz a job at his new law firm. In anticipation, Liz quit her job at Mega Firm, bought a new computer and invested in a new set of law books. Shortly before her anticipated start date with Pete's firm, Pete informed Liz that he had changed his mind, and no longer wanted her. Liz may recover under the doctrine of: A) unjust enrichment B) promissory estoppel C) unilateral contract D) express contract 5. Which of the following is true of the laissez faire economic theories? A) These theories were never considered a part of the public policy in the 19th century B) People in business had to face a lot of restrictions while planning the kind of economy that increasing industrialization required C) People in business were unable to limit or shift many of their economic risks by placing clauses in their contracts D) The courts were unwilling to interfere with people's private agreements or to do anything that might interfere with the country's growing industrialization 6. An executory contract is a contract: A) where one party performs on the basis of a promise made by the other B) where executive privileges are implied C) which has not yet been fully performed by all parties D) which has been fully performed by all parties 7. Which of the following is correct regarding the CISG? A) It provides rules governing the formation of international contracts and regulates the transfer of goods under those contracts B) It applies to commercial and consumer transactions C) It focuses on which terms of the offer and acceptance are the same D) Its fundamental goal is to unify and codify the law on sale of goods among contracting parties from different states in the United States 8. The UCC defines "goods" as: A) tangible public property B) intangible personal property C) abstract property D) tangible personal property 9. Ben makes an agreement with Bob for Bob to steal Professor Smith's laptop computer. The agreement between Ben and Bob is: A) valid B) unenforceable C) void D) voidable 10. When two parties have directly, but orally, stated all of the terms of a contract at the time it was formed, they have: A) made an express contract B) executed the contract C) not made an enforceable contract D) made an implied contract 11. Elroy is fifteen years old and makes an agreement with Dave to buy Dave's mp3 player. The agreement: A) is unilateral B) cannot be cancelled C) is executed D) is voidable 12. Which of the following is true about a contract? A) It must always be supported by consideration B) Any offer made is a contract, though there is no acceptance of the offer C) It must be voluntarily entered into and promise to perform a legal act D) It need not necessarily be entered into by parties having capacity to contract 13. An oral contract which was required by contract law to be in writing is: A) void B) unenforceable C) voidable D) valid 14. Joe pays Ann to mow his lawn and Ann mows Danna's lawn by mistake. Danna peeps out her window and sees Ann mowing, yet says nothing to Ann about her mistake since Danna needs to have her lawn mowed. When Ann approaches Danna for payment, Danna refuses, arguing that she had never asked Ann to mow her lawn. Under these circumstances, Ann can recover payment from Danna under: A) executory contract B) void contract C) quasi contract D) express contract 15. A promise exchanged for an act is an example of a: A) a bilateral contract B) a quasi-contract C) an implied contract D) a unilateral contract 16. A promise exchanged for a promise is an example of: A) an implied contract B) a bilateral contract C) promissory estoppel D) a unilateral contract 17. Compared with common law, the UCC: A) applies theoretical rules to deal with what people do in the marketplace today B) is more likely to find that parties have a contract C) is more rigid D) is more concerned with technical rules 18. Which of the following is intended to avoid unjust enrichment? A) An express contract B) A quasi contract C) A void contract D) A bilateral contract 19. Which of the following is correct regarding the definition of "Merchant" by UCC? A) It deals only with nonprofessional sellers B) It sometimes imposes a higher standard of behavior on merchants than non-merchants C) It regards everyone covered by the UCC as a merchant D) It always imposes the same standards on merchants and non-merchants 20. In a contract involving elements of both goods and services, a court will determine whether Article 2 of the UCC applies by: A) using the criteria of reasonableness B) balancing the need to apply a uniform standard with the interest of justice C) asking if the contract is barred by public policy D) asking which element predominates 21. As used in the UCC, the concept "reasonable": A) refers to what a reasonable person would do in the marketplace B) is a theoretical concept based on the "reasonable person standard" of tort law C) refers to the capacity to contract D) is a practical standard used to gauge what people really do in the marketplace 22. Article 2 of the UCC applies to all contracts for the: A) liquidation of assets B) transfer of money between banks C) sale of goods D) sale of securities 23. Ted makes a deal with Ella to sell her his farm. They shake hands to "seal the deal," but do not put the agreement in writing. The contract is: A) valid B) void C) voidable but enforceable D) unenforceable 24. If there is no UCC rule governing a particular contract problem: A) freedom of contract is obtained B) unconscionable contract is assumed C) the common law is applicable D) unjust enrichment is assumed 25. Which of the following statements is true about the UCC? A) The most obvious purpose of UCC was to establish a uniform law to govern commercial transactions that often takes place within the state B) One of the purposes of UCC was to promote fair dealing and higher standards of behavior in the marketplace C) In accordance with the intentions of the drafters of UCC, complete uniformity has been achieved D) The Code is divided into 10 articles that deal with many of the problems that might ordinarily arise in a commercial transaction 26. Fran promises to reimburse Tim $700 for a new scooter for his own use. After Tim delivers the scooter, Fran refuses to pay Tim. Tim may recover under the doctrine of: A) executory contract B) unjust enrichment C) unilateral contract D) promissory estoppel 27. The doctrine of promissory estoppel: A) protects reliance, not bargains B) protects bargains, not reliance C) does not make promises enforceable D) makes the contracts unenforceable 28. Regarding promissory estoppel most courts: A) do not follow the requirements for promissory estoppel set forth in the "Restatement (Second) of Contracts" despite the fact that the "Restatement" carries the force of law B) follow the requirements for promissory estoppel set forth in the "Restatement (Second) of Contracts" because the "Restatement" is the law C) do not follow the "Restatement" as it does not carry the force of law D) follow the requirements for promissory estoppel set forth in the "Restatement (Second) of Contracts" despite the fact that the "Restatement" does not carry the force of law 29. Which of the following is a change that took place in the legal system that led to the development of contract law in the process? A) Legislation does not control any contractual relationships. This has been left to private bargaining B) Courts tend to view with great suspicion, attempts by manufacturers to limit their responsibility for their products by contract C) Courts began to shift their emphasis from protecting consumers and workers to protecting business and promoting industrialization D) Courts today are not willing to consider defenses based on inequality of bargaining power between the parties
Question 3
New project analysis You must evaluate a proposal to buy a new milling machine. The base price is $131,000, and shipping and installation costs would add another $15,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $45,850. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $6,000 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $44,000 per year. The marginal tax rate is 35%, and the WACC is 14%. Also, the firm spent $5,000 last year investigating the feasibility of using the machine. a.How should the $5,000 spent last year be handled? I.Last year's expenditure is considered an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis. II.Last year's expenditure is considered a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis. III.The cost of research is an incremental cash flow and should be included in the analysis. IV.Only the tax effect of the research expenses should be included in the analysis. V.Last year's expenditure should be treated as a terminal cash flow and dealt with at the end of the project's life. Hence, it should not be included in the initial investment outlay. -Select-IIIIIIIVV b.What is the initial investment outlay for the machine for capital budgeting purposes, that is, what is the Year 0 project cash flow? Round your answer to the nearest cent. $ c.What are the project's annual cash flows during Years 1, 2, and 3? Round your answer to the nearest cent. Year 1 $ Year 2 $ Year 3 $ d.Should the machine be purchased? -Select-yesno
Question 4
Cameron Parts has the following data from year 1 operations, which are to be used for developing year 2 budget estimates: Revenues (12,500 units) . . . . . . . . . .$ 1,119,000 Manufacturing costs Materials . . . . . . . . . . . . . . . 199,500 Variable cash costs . . . . . . . . . . 271,350 Fixed cash costs . . . . . . . . . . . . . . 108,000 Depreciation (fixed) . . . . . . . . . . . .133,500 Marketing and administrative costs Marketing (variable, cash) . . . . . . . .142,500 Marketing depreciation . . . . . . . . . .33,900 Administrative (fixed, cash) . . . . . . . 135,165 Administrative depreciation . . . . . . .2,600 Total costs . . . . . . . . . . . . . . . . . .$1,036,515 Operating profits . . . . . . . . . .$ 82,485 All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $14,550 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $21,000. Sales volume and prices are expected to increase by 12 percent and 6 percent, respectively. On a per unit basis, expectations are that materials costs will increase by 10 percent and variable manufactur- ing costs will decrease by 4 percent. Fixed manufacturing costs are expected to decrease by 7 percent. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 8 percent. Inventories are kept at zero. Cameron operates on a cash basis. Required Prepare a budgeted income statement for year 2.
Question 5
The following cases relate to the valuation of assets. Consider each case independently. a. World-Wide Travel Agency has office supplies costing $1,400 on hand at the balance sheet date. These supplies were purchased from a supplier that does not give cash refunds. World-Wide?s management believes that the company could sell these supplies for no more than $500 if it were to advertise them for sale. However, the company expects to use these supplies and to purchase more when they are gone. In its balance sheet, the supplies were presented at $500. b. Perez Corporation purchased land in 1957 for $40,000. In 2015, it purchased a similar parcel of land for $300,000. In its 2015 balance sheet, the company presented these two parcels of land at a combined amount of $340,000. c. At December 30, 2015, Felix, Inc., purchased a computer system from a mail-order supplier for $14,000. The retail value of the system?according to the mail-order supplier?was $20,000. On January 7, however, the system was stolen during a burglary. In its December 31, 2015, balance sheet, Felix showed this computer system at $14,000 and made no reference to its retail value or to the burglary. The December balance sheet was issued in February 2016. In each case, indicate the appropriate balance sheet amount of the asset under generally accepted accounting principles. If the amount assigned by the company is incorrect, briefly explain the accounting principles that have been violated. If the amount is correct, identify the accounting principles that justify this amount
