Study the demand elasticity for its products and discuss the availability of close substitutes for its products. How does that affect pricing decisions? Analyze the company’s profitability. Identify the economy or industry influences on its costs, operations, and profitability. Describe the competitive environment in which the firm operates, the distribution of market power, and the strategic behavior of the firm and its competitors.
| Huffman Trucking | Memo To: Graham Grove, Vice President of Industrial Relations From: Paul Johnson Director of Accounting CC: Simone Ojeda Accounting Specialist Date: [ 4/9/2012 ] Re: Results from ratio calculations and horizontal and vertical analysis What do the liquidity, profitability, and solvency ratios reveal about the company’s financial position? Liquidity ratios are the ratios that measure the ability of Huffman Trucking to meet its short term debt obligations. These ratios measure the ability of this company to pay off its short-term liabilities when they fall due. Profitability ratios measures Huffman Trucking’s ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of the company to generate earnings, profits and cash flows relative to some metric, often the amount of money invested.
How does Adam Smith's concept of the invisible hand explain why markets move toward equilibrium? Do market participants need to know about the invisible hand for it to function? Explain your answer. Answer: Adam Smith’s concept of the invisible hand explains why markets move toward equilibrium because it allows consumers to freely choose what to buy and producers to choose freely what to sell and ultimately how to product it. It is important for market participants to know how the invisible hand functions so they can all benefit by understanding how self-interest regulates the markets supply and demand.
Lindsey Mathis Business Economics Business Economics GM545 March/April 2013 lmariemathis@gmail.com Chapter 15 Question 6 National Income Accounting refers to the bookkeeping system that a national government uses to measure the level of the country’s economic activity in a given country’s economic activity in a given time period. It provides economies with detailed information that can be used to track the health of an economy and to forecast the future growth and development. It also provides insight into how well an economy is functioning, and when the money being generated and spent. There are various forms of national income such as Gross Domestic Product, Gross National
xxxx Business Economics GM545 April 2007 Exercise 1: Macro/Micro Integration Information used in the Executive Summary was found in the following sites on April 21, 2007 Site 1: Bureau of Labor Statistics: http://www.bls.gov/eag/eag.us.htm Site 2: Conference Board: http://www.conference-board.org/economics/helpwantedonline.cfm Based on the data present in the listed websites, the overall U.S. economy, and especially the labor market, will continue to grow and continue in the current trend of low unemployment, probably continuing to fall to historically low levels of around 4.0%. Additionally, the most difficult to fill positions will continue to be in the "Management" and "Business and Financial Operations" areas. Our
Budgeting is the foundation of every financial plan of operation. A sound budget comes from understanding how much money you have, where it goes, and then planning how to best allocate those funds for a company. A financial budget is a financial plan that is structured to note projections on incomes and expenses on both a long and short term basis. Budgets incorporate budgeting strategies for a period of at least one year, although in some case organizations may prepare a budget to cover from anywhere to two to five years at a time. (Tatum, 2012) There are numerous reasons that a budget is important.
Return on Investment (ROI): It is the ratio of the net cash receipts of the project divided by the cash outlays of the project. b) Economic Feasibility: It identifies the financial benefits and costs associated with a development project. Legal and Contractual Feasibility: It assesses potential legal and contractual ramifications due to the construction of a system. Operational Feasibility: It assesses the degree to which a proposed system solves business problems or takes advantage of business opportunities. Political Feasibility: It evaluates how key stakeholders within the organization view the proposed system.
The demand curve for a product reflects the a. value of the product to consumers. b. cost of the product to consumers. c. quantity consumers are able to purchase. d. price the product will sell for in the market. ANS: A value of the product to consumers.
C. status fulfillment. D. utility. 3. When economists say that people act rationally in their self interest, they mean that individuals: A. look for and pursue opportunities to increase their utility.
Federal Reserve ECO 212 Federal Reserve Currency is the main focal point in the United States economy as well as any country in the world. The value of currency changes as the business cycle changes and the economy fluctuates. The Federal Reserve is the central bank of the United States and is in charge of all the monetary supply and the policies that have to do with money. There are many choices that the Federal Reserve makes. The choices they make have an affect the employment levels and the production of the economy.