Explore BrainMass

Short Term Financing, Motivation, Compounded Interest, Demographics

1.1 Discuss the three approaches to short-term financing problem and provide relevant examples of each.

1.2 Identify and discuss the characteristics of motives that may help a manager to understand employee motivation.

1.3 Assume that you need to have exactly N$40 000 saved 10 years from now .How much should you deposit today in an account that pays 6% interest, so that you reach your goal of $40 000 if the investment is compounded as follows:
(a) semi-annually
(b) monthly

2.1 Steers want to increase the number of midweek fast food sales.It introduces a `two for the price of one` promotion on Wednesdays. This is a ________ strategy.
A. Smoothing
B. Co-opting
C. rationing
D. buffering

2.2 Which one of the following characteristics is wrong concerning products that are manufactured?
A. Physically tangible
B. Low client contact
C. Long response time
D. Capital intensive
E. None

2.3 Which of the following form part of the demographic criteria for market segmentation?
a. Sex
b. Occupation
c. income
d. Education
e. a b c
f. a b d
g. a c d
h. b c d
i. a b c d

2.4 Which of the following inputs are used in the transformation process to convert inputs to outputs?
a. Material
b. Clients
c. Information
d. Human resources
e. Technology
f. a b c d
g. a b c e
h. b c d e
i. a b c d e

Indicate whether the following statements are True or False
1. A good supplier asks competitive prices
2. Discounting determine the future value of s current amount, in which the interest remains with the principal and becomes part of the principal for computing interest in the next period.
3. Arranging payment of suppliers is an activity of the purchasing and supply function.
4. Funds require for long-term investment are raised on the money market.
5.Continuous or repetitive systems represent operations system in which the output volume is low.
6.Supplier satisfaction is a criterion for gauging the effectiveness of the execution of purchasing and supply activities.
7.Working capital management entails the management of the long-term assets and liabilities of a business.
8.Reseller market includes businesses that buy goods to be converted into other products or used during production.
9. Job descriptions is written statement emphasising the characteristics required from the incumbent to perform the job successfully.
10. A farmer who sells oranges at a farm stall to passing motorists is an example of a three-link distribution channel.

Solution Preview

1.1 Short-term financing can be provided by trade credit, bank loans, inventory financing, overdrafts commercial paper, receivable financing, and bankers' acceptance. The three main types are trade credit, short-term loans, and commercial bank loans.

The least expensive and most convenient of these three is the trade credit. A trade credit gives the company time to pay with conditions for a discount if the money is paid back before 30 days. For example, an invoice could contain terms such as 3/10 net 30. What this means is that if the money is paid back within 10 days the buyer receives a 3% discount, however the entire amount must be paid within 30 days.

One form of short-term loan is a promissory note. This is a written contract between the borrower and the lender which stipulates a promise to pay within a specified amount of time. This type of note may be required if a creditor does not have an existing relationship with the borrower or the borrower has bad credit or no credit. These type of notes can be sold by the holder of the note at a discount to a bank.

Commercial bank loans involve a higher level of risk to banks because small businesses often fail. Generally these types of loans are obtained for the purchase of seasonal merchandise such as winter jackets in October with a promise to pay off the loan by the first of the year.

1.2 Motivation is an intangible concept that exist within the consciousness of each individual, thus, since each individual is unique their motivation for ...

Solution Summary

The expert examines short-term financing motivation, compounded interest and demographics. The employee motivations are provided.