Question & Answer

An insurance company purchased bonds issued by Hartnett Company two years ago. Today, Hartnett Company has begun to issue junk bonds and is using the funds to repurchase most of its existing stock. Why might the market value of those bonds held by the insurance company be affected by this action? (LO2)

A manual assembly line produces a small appliance whose work content time = 25.9 min. Desired production rate = 50 units/hr. Repositioning time = 6 sec, line efficiency = 95%, and balancing efficiency is 93%. How many workers are on the line?

(Threshold Concept 2) 1. Would you ever swap things with friends if both of you did not gain? Explain your answer. (Threshold Concept 2) 2. Give one or two examples of involuntary (i.e. compulsory) economic interaction where one side gains but the other loses. (Threshold Concept 3) 1. If global warming affects all of us adversely, why in a purely market economy would individuals and firms continue with activities that contribute towards global warming? (Threshold Concept 3) 2. In what ways do your own consumption patterns adversely affect other people?

How do business owners create legal entities? Is the process the same for all entities? If not, what are the differences?

There are 16 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage on the quiz is based on the total number of correct answers. 32.1 Which of the following are reasons why mechanical assembly is often preferred over other forming processes (two best answers): (a) ease of assembly, (b) ease of disassembly, (c) economies of scale, (d) involves melting of the base parts, (e) no heat affected zone in the base parts, and (f) specialization of labor? 32.2 Most externally threaded fasteners are produced by which one of the following processes: (a) cutting the threads, (b) milling the threads, (c) tapping, (d) thread rolling, or (e) turning the threads? 32.3 Which of the following methods and tools are used for applying the required torque to achieve a desired preload of a threaded fastener (three best answers): (a) arbor press, (b) preload method, (c) sense of feel by a human operator, (d) snap fit, (e) stall-motor wrenches, (f) torque wrench, and (g) use of lockwashers? 32.4 Which of the following are the common ways in which threaded fasteners fail during tightening (two best answers): (a) excessive compressive stresses on the head of the fastener due to force applied by the tightening tool, (b) excessive compressive stresses on the shank of the fastener, (c) excessive shear stresses on the shank of the fastener, (d) excessive tensile stresses on the head of the fastener due to force applied by the tightening tool, (e) excessive tensile stresses on the shank of the fastener, and (f) stripping of the internal or external threads? 32.5 The difference between a shrink fit and an expansion fit is that in a shrink fit the internal part is cooled to a sufficiently low temperature to reduce its size for assembly, whereas in an expansion fit, the external part is heated sufficiently to increase its size for assembly: (a) true or (b) false? 32.6 Advantages of snap fit assembly include which of the following (three best answers): (a) components can be designed with features to facilitate part mating, (b) ease of disassembly, (c) no heat affected zone, (d) no special tools are required, (e) parts can be assembled quickly, and (f) stronger joint than with most other assembly methods? 32.7 The difference between industrial stitching and stapling is that the U-shaped fasteners are formed during the stitching process while in stapling the fasteners are preformed: (a) true or (b) false? 32.8 From the standpoint of assembly cost, it is more desirable to use many small threaded fasteners rather than few large ones in order to distribute the stresses more uniformly: (a) true or (b) false? 32.9 Which of the following are considered good product design rules for automated assembly (two best answers): (a) design the assembly with the fewest number of components possible, (b) design the product using bolts and nuts to allow for disassembly, (c) design with many different fastener types to maximize design flexibility, (d) design parts with asymmetric features to mate with other parts having corresponding (but reverse) features, and (e) limit the required directions of access when adding components to a base part?

Remember the question we asked at the beginning of the Chapter 4 (page 105): ‘Do you ever purchase things irrationally? If so, what are they and why is your behaviour irrational?’ Can you explain this behaviour better in the light of behavioural economics?

1. Assume that in Table 2.1 the total market demand for potatoes increases by 20 per cent at each price – due, say, to substantial increases in the prices of bread and rice. Plot the old and the new demand curves for potatoes. Is the new curve parallel to the old one? 2. The price of strawberries rises and yet it is observed that the sales of strawberries increase. Does this mean that the demand curve for blueberries is upward sloping? Explain.

A manual assembly line has 17 workstations with one operator per station. Total work content time to assemble the product = 22.2 minutes. The production rate of the line = 36 units per hour. A synchronous transfer system is used to advance the products from one station to the next, and the transfer time = 6 seconds. The workers remain seated along the line. Proportion uptime = 0.90. Determine the balance efficiency.

: Think about the highly publicized safety grounding of Boeing’s 737 MAX jetliner. One observer said that the goal of profit had taken precedence over the goal of safety within the company. Do you think managers can succeed at both profit and safety simultaneously? DOrganizational effectiveness is the degree to which the organization achieves a stated goal or succeeds in accomplishing what it tries to do. Organizational efficiency refers to the amount of resources used to achieve an organizational goal. It is based on how much raw materials, money, and people are necessary for producing a given volume of output. The ultimate responsibility of managers is to achieve high performance, which is the organization’s ability to attain its goals by using resources in an efficient and effective manner. Although efficiency and effectiveness are both important for performance, most people would probably say that effectiveness is the more important concept. The reason is that internal efficiency has no value if it does not enable the organization to achieve its goals and respond to the external environment. On the other hand, an organization that is effective does achieve its goals, by definition. One of these goals should involve continuously increasing efficiency. Managers can and should improve both efficiency and effectiveness simultaneously. As noted above, one of any organization’s primary goals should be to continuously improve efficiency. To the extent that the organization increases its success in achieving this goal, along with others, its effectiveness also improves.

Production rate for a certain assembled product is 47.5 units per hour. The total assembly work content time = 32 minutes of direct manual labor. The line operates at 95% uptime. Ten workstations have two workers on opposite sides of the line so that both sides of the product can be worked on simultaneously. The remaining stations have one worker. Repositioning time lost by each worker is 0.2 min/cycle. It is known that the number of workers on the line is two more than the number required for perfect balance. Determine (a) number of workers, (b) number of workstations, (c) the balancing efficiency, and (d) average manning level.

A depreciation schedule for semi-trucks of Ichiro Manufacturing Company was requested by your auditor soon after December 31, 2015, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2012 to 2015, inclusive. The following data were ascertained. Balance of Trucks account, Jan. 1, 2012 Truck No. 1 purchased Jan. 1, 2009, cost $18,000 Truck No. 2 purchased July 1, 2009, cost 22,000 Truck No. 3 purchased Jan. 1, 2011, cost 30,000 Truck No. 4 purchased July 1, 2011, cost 24,000 Balance, Jan. 1, 2012 $94,000 The Accumulated Depreciation—Trucks account previously adjusted to January 1, 2012, and entered in the ledger, had a balance on that date of $30,200 (depreciation on the four trucks from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2012. Transactions between January 1, 2012, and December 31, 2015, which were recorded in the ledger, are as follows. July 1, 2012 Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was $40,000. Ichiro Mfg. Co. paid the automobile dealer $22,000 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $22,000. The transaction has commercial substance. Jan. 1, 2013 Truck No. 1 was sold for $3,500 cash; entry debited Cash and credited Trucks, $3,500. July 1, 2014 A new truck (No. 6) was acquired for $42,000 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.) July 1, 2014 Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $700 cash. Ichiro Mfg. Co. received $2,500 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,200, and credits to Miscellaneous Income, $700, and Trucks, $2,500. Entries for depreciation had been made at the close of each year as follows: 2012, $21,000; 2013, $22,500; 2014, $25,050; and 2015, $30,400. Instructions (a) For each of the 4 years, compute separately the increase or decrease in net income arising from the company’s errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations. (b) Prepare one compound journal entry as of December 31, 2015, for adjustment of the Trucks account to reflect the correct balances as revealed by your schedule, assuming that the books have not been closed for 2015.

Define legal–political risk and give an example of how it can affect an international corporation.

What are integral fasteners?

As you move down a straight-line demand curve, what happens to elasticity? Why?

Identify the factors affecting the premium paid on a put option. Describe how each factor affects the size of the premium. (LO2)

Calculation of indirect cost rates Wright Medical Centre has identified the following activities and cost drivers for the coming financial year.     Required Calculate the activity cost rate for each activity.

What is pocket milling?

1.       : List some possible advantages and disadvantages of using artificial intelligence for managerial decision making.

Flexible budget and variances Black Industries has a static budget based on production and sales of 24 000 units. Sales revenue is expected to be $96 000, variable costs $36 000 and fixed costs $32 000. Actual production and sales were 30 000 units with a profit of $50 000.   Required (a) Calculate the amount of profit in the flexible budget. (b) Calculate the overall variance between the flexible budget and actual results.

The common stock of Alexander Hamilton Inc. is currently selling at $120 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $70 per share. Nine million shares are issued and outstanding. Instructions Prepare the necessary journal entries assuming the following. (a) The board votes a 2-for-1 stock split. (b) The board votes a 100% stock dividend. (c) Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.

The assets of Fonzarelli Corporation are presented below (000s omitted).   Instructions Indicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation’s assets.

A cylindrical billet that is 100 mm long and 50 mm in diameter is reduced by indirect (backward) extrusion to a 20 mm diameter. The die angle is 90°. The Johnson equation has a = 0.8 and b = 1.4, and the flow curve for the work metal has a strength coefficient of 800 MPa and strain hardening exponent of 0.13. Determine (a) extrusion ratio, (b) true strain (homogeneous deformation), (c) extrusion strain, (d) ram pressure, and (e) ram force.

Identify the four different types of responsibility centres and explain the general objectives of each.

List the preforming operations discussed in the forming video.

Which casting process is the most important commercially?