Essay
Question Description
The aim of this module is to introduce and equip students with an understanding of how government policies, monetary policy, financial markets and financial information impact on the management of business and decision making; to allow students to be able to interpret and use financial information (external and internal) for effective decision making and for decision making to be informed by the governmental and economic environment.
Assignment Questions
- Write a report that applies the business economics concepts of structure-conduct-performance paradigm, growth strategy and globalisation to the Toyota Car Company. Your answer should include both the theory of these concepts and empirical evidence from the actions of the company. (600 words) (20 marks). (Learning outcome 1 and 6)
- Write a report that applies the business economics concepts of demand and supply,consumer behaviour, and opportunity cost to consumer demand for a normal good. Your answer should include both the theory of these concepts and hypothetical examples. (600 words) (20 marks). (Learning outcome 3 and 6)
- Write a report that applies the business economics concepts of environmental policy, fiscal policy, supply side policies to the desire of the UK government to seek economic prosperity for the country. Your answer should include both the theory of these concepts and empirical evidence from the actions of the UK government. (600 words) (20 marks) (Learning Outcomes 2 and 6)
- Write an essay on how firms apply the concepts of financial intermediation, financial instruments and risk and return to obtain financing for its operations and invest its profits. Your answer should include both the theory of these concepts and hypothetical examples. (600 words) (20 marks) (Learning outcomes 4 and 5)
-
Choose one financial statement from the two on GSM Learn, and calculate five (5) financial ratios, one each from the following categories– liquidity ratio, market value ratio, asset management ratio, debt management ratio and profitability ratio for the year 2016. Then analyse these ratios either by comparing it to the 2016 figures for a similar company, or the 2015 figures for the same company, to determine the health of the company in 2016 by deciding if each ratio is either, good or poor. In your answer, identify the sources of your financial statements. (8 marks). [Hint: Financial ratios.]
-
Suppose that Alice has decided that she wants to pay herself £750 each year for the next three years rather than deposit these amounts in her savings account. If she can invest a lump-sum amount in a savings account that pays 6.5 percent interest per year, how much money does Alice need to deposit today to accomplish her goal (6 marks) [Hint: Present Value.]
If the required rate of return on these projects is 7.25 percent, which would be chosen and why? Show your calculations/explanations. (6 marks) [Hint: Net Present Value] (100 words) (20 marks total)
Solution
