Business
5 June 201
Question 1
i). Bank Loan
ii) Sell stock to equity investors
In the case of sale of stock to the equity investors, the sales will increase in the income statement, and in the balance sheet the stocks (assets) will decrease.
iii) Extended credit terms from vendors
In this case, the assets will increase, and the payables also will also increase in the balance sheet.
Furthermore, in the above-mentioned cases
- Liquidity Ratio
- Debt Ratio
- Payable turnover Ratio will be influenced.
Considering bank loan, when loan is taken the liquidity ratio will increase, and the debt ratio will also increase.
In the case of the sale of stock to the equity investors, liquidity position will be better so the liquidity ratio will increase, and the debt to equity ratio will also increase.
In the case of the extended credit terms from vendors the payable turnover ratio will increase with the increase in payables.
Question 2
a). According to Herzberg, Hygiene factors are essential for ensuring positive outcomes in the organization. The hygiene factors include a safe environment for working and the proper benefits and pay. Since, Dominic, works in a consumer firm where he is enjoying safe working environment, an excellent salary, good benefits, and friendly co-workers, but, now he has applied for another position in another department, so there are other motivational factors that are involved in Dominic’s decision of applying for a different position in a different department. According to Herzberg, in this Dominic’s interest for another job the motivational factors involved are recognition, promotion and job growth. Dominic now want to get better recognition for his achievements, he wants personal growth in the form of promotion, and he want to gain knowledge and experience of other positions also by getting growth in job, so for these motivations, Dominic has applied for a different position in a different department.
b). Since, Dominic look forward to a whole new set of many difficulties to performs, so he is a risk taker. He likes to accept the challenges, so according to McClelland, Dominic is attempting to satisfy his need for accomplishment, as he is trying to accomplish difficult tasks on his own. Furthermore, managers can use this Dominic’s need for accomplishment by setting such goals that are moderately difficult but at the same time achievable, so that Dominic can be facilitated with a necessary learning as well as required level of challenge that helps to enhance his skills.
Question 3
The most effective technique of sales promotion for me as a consumer is free samples. This is because, the free samples help in getting the required information about the product, the performance of the product become evident, the advantages as well as disadvantages of the products can be estimated, and based on them final decision can be made whether to buy the product in the future or not. The free samples are also effective sale technique for me because they help me to recognize that whether the product contain all those qualities and characteristics that I want, and it also become clear with the samples that the product can satisfy my needs or demands or not. They also help in making quick decisions during my buying process and without wasting time; and I can switch to the substitute available in case I find that the product is not according to my requirements after using the using the sample. So, samples are also helpful in saving the time and money of the consumers.
