One role of government ls to keep the country's economic system running smoothly. If most citizens have jobs, people are generally happier with government's role. In some cases, the government might subsidize falling or struggling businesses in order to save jobs. What might be the reason why a business is failing?

Choose a company and describe how a specific issue, policy, or procedure (for example, granting merchandise returns, establishing sales prices) might look if the business is structured as a centralized business.

You would like to start a cellular telephone equipment service business. You are considering organizing the business as a sole proprietorship. Determine the advantages and disadvantages of owning a sole proprietorship.

Organic Food. The function given by $c(t)=$ $2.2 t+4.5$ can be used to calculate the U.S. sales of organic food, in billions of dollars, $t$ years after 2000.

The goal of the business firms in a market economy is to maximize?

Abdol Akhim has just come from a Personal Finance class where he learned that he can determine how much his savings will be worth in the future. Abdol is completing his two-year business administration degree this semester and has been repairing computers in his spare time to pay for his tuition and books. Abdol got out his savings records and decided to apply what he had learned. He has a balance of $\$ 1,000$ in a money market account at First Savings Bank, and he considers this to be an emergency fund. His instructor says that he should have $3-6$ months of his total bills in an emergency fund. His bills are currently $\$ 700$ a month. He also has a checking account and a regular savings account at First Savings Bank, and he will shift some of his funds from those accounts into the emergency fund. One of Abdol's future goals is to buy a house. He wants to start another account to save the $\$ 8,000$ he needs for a down payment.

Abdol realizes he needs to earn more interest than his current money market can provide. Using annual compounding on an account that pays $5.5 \%$ interest annually, find the amount Abdol needs to invest to have the $\$ 8,000$ down payment for his house in $5$ years.

The phase of the business cycle __________ represents times of recovery.

Inventory financing Raymond Manufacturing faces a liquidity crisis: It needs a loan of $100,000 for 1 month. Having no source of additional unsecured borrowing, the firm must find a secured short-term lender. The firm’s accounts receivable are quite low, but its inventory is considered liquid and reasonably good collateral. The book value of the inventory is$300,000, of which $120,000 is finished goods. (Note: Assume a 365-day year.)

(1) City-Wide Bank will make a$100,000 trust receipt loan against the finished goods inventory. The annual interest rate on the loan is 12% on the outstanding loan balance plus a 0.25% administration fee levied against the $100,000 initial loan amount. Because it will be liquidated as inventory is sold, the average amount owed over the month is expected to be$75,000. (2) Sun State Bank will lend $100,000 against a floating lien on the book value of inventory for the 1-month period at an annual interest rate of 13%. (3) Citizens’ Bank and Trust will lend$100,000 against a warehouse receipt on the finished goods inventory and charge 15% annual interest on the outstanding loan balance. A 0.5% warehousing fee will be levied against the average amount borrowed. Because the loan will be liquidated as inventory is sold, the average loan balance is expected to be $60,000.

a. Calculate the dollar cost of each of the proposed plans for obtaining an initial loan amount of$100,000.

What is the difference between the liquidity and the solvency of a business?

The Central Valley Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows:

$$\begin{array}{lrr} \text{Support departments:}\\ \quad\text{Building and grounds} &\$45,000\\ \quad\text{Personnel} &300\\ \quad\text{General plant administration} &37,320\\ \quad\text{Cafeteria: operating loss}& 970\\ \quad\text{Storeroom}& \underline{~~~~9,990} &\$~~93,580\\ \text{Operating departments:}\\ \quad\text{Machining}& \$36,600\\ \quad\text{Assembly} &\underline{~~46,000}& \underline{~~~~82,600}\\ \text{Total for support and operating departments} &&\underline{\underline{\$176,180}}\\ \end{array}$$

Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments.

Bases for allocation are to be selected from the following:

$$\begin{array}{lrrrrr} & \begin{array}{c} \textbf { Direct } \\ \textbf { Manufacturing } \\ \textbf { Department } \end{array} & \begin{array}{c} \textbf { Number of } \\ \textbf { Labor-Hours } \end{array} & \begin{array}{c} \textbf { Square Feet of } \\ \textbf { Floor Sployees } \\ \textbf { Occupied } \end{array} & \begin{array}{c} \textbf { Manufacturing } \\ \textbf { Labor-Hours } \end{array} & \begin{array}{c} \textbf { Number of } \\ \textbf { Requisitions } \end{array} \\ \hline \text { Building and grounds } & 0 & 0 & 0 & 0 & 0 \\ \text { Personnel }^{\text {a }} & 0 & 0 & 2,500 & 0 & 0 \\ \text { General plant administration } & 0 & 40 & 12,000 & 0 & 0 \\ \text { Cafeteria: operating loss } & 0 & 10 & 5,000 & 3,000 & 0 \\ \text { Storeroom } & 0 & 5 & 6,000 & 2,000 & 0 \\ \text { Machining } & 8,000 & 55 & 22,000 & 13,000 & 6,000 \\ \text { Assembly } & \underline{32,000} & \underline{140} & \underline{202,500} & \underline{26,000} & \underline{~~4,000}\\ \text{ Total}&\underline{\underline{40,000}}&\underline{\underline{250}}&\underline{\underline{250,000}}&\underline{\underline{44,000}}&\underline{\underline{10,000}} \end{array}$$

$^a$Basis used is number of employees.

1. Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate.

2. Using the direct method, rework requirement 1.

3. Based on the following information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement 2.

$$\begin{aligned} &\textbf { Direct Manufacturing Labor-Hours }\\\hline &\begin{array}{ccc} & \textbf { Machining } & \textbf { Assembly } \\ \hline \text { Job } 88 & 17 & 7 \\ \text { Job } 89 & 9 & 20 \end{array} \end{aligned}$$

4. The company evaluates the performance of the operating department managers on the basis of how well they managed their total costs, including allocated costs. As the manager of the Machining Department, which allocation method would you prefer from the results obtained in requirements 1 and 2? Explain.

Inventory financing Raymond Manufacturing faces a liquidity crisis: It needs a loan of $100,000 for 1 month. Having no source of additional unsecured borrowing, the firm must find a secured short-term lender. The firm’s accounts receivable are quite low, but its inventory is considered liquid and reasonably good collateral. The book value of the inventory is$300,000, of which $120,000 is finished goods. (Note: Assume a 365-day year.)

(1) City-Wide Bank will make a$100,000 trust receipt loan against the finished goods inventory. The annual interest rate on the loan is 12% on the outstanding loan balance plus a 0.25% administration fee levied against the $100,000 initial loan amount. Because it will be liquidated as inventory is sold, the average amount owed over the month is expected to be$75,000. (2) Sun State Bank will lend $100,000 against a floating lien on the book value of inventory for the 1-month period at an annual interest rate of 13%. (3) Citizens’ Bank and Trust will lend$100,000 against a warehouse receipt on the finished goods inventory and charge 15% annual interest on the outstanding loan balance. A 0.5% warehousing fee will be levied against the average amount borrowed. Because the loan will be liquidated as inventory is sold, the average loan balance is expected to be $60,000.

b. Which plan do you recommend? Why?

How to start a sole proprietorship business in California?

Real GDP is at a temporary high if it is at the _____ of a business cycle.

An HPLC method was developed for the separation and determination of ibuprofen in rat plasma samples as part of a study of the time course of the drug in laboratory animals. Several standards were chromatographed and the following results were obtained:

$$\begin{aligned} &\text { Ibuprofen }\\ &\begin{array}{cc} \begin{array}{c} \text { Concentration, } \\ \mu \mathrm{g} / \mathrm{mL} \end{array} & \begin{array}{c} \text { Relative } \\ \text { Peak Area } \end{array} \\ \hline 0.5 & 5.0 \\ 1.0 & 10.1 \\ 2.0 & 17.2 \\ 3.0 & 19.8 \\ 6.0 & 39.7 \\ 8.0 & 57.3 \\ 10.0 & 66.9 \\ 15.0 & 95.3 \end{array} \end{aligned}$$

Next, a $10 \mathrm{mg} / \mathrm{kg}$ sample of ibuprofen was administered orally to a laboratory rat. Blood samples were drawn at various times after administration of the drug and subjected to HPLC analysis. The following results were obtained:

$$\begin{array}{cc} \text { Time, h } & \text { Peak Area } \\ \hline 0 & 0 \\ 0.5 & 91.3 \\ 1.0 & 80.2 \\ 1.5 & 52.1 \\ 2.0 & 38.5 \\ 3.0 & 24.2 \\ 4.0 & 21.2 \\ 6.0 & 18.5 \\ 8.0 & 15.2 \end{array}$$

Find the concentration of ibuprofen in the blood plasma for each of the times given above and plot the concentration versus time. On a percentage basis, during what half-hour period (first, second, third, etc.) is most of the ibuprofen lost?