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3 years ago

Explain the importance of decision making in management

Business

1 answer:

Mariulka [41]3 years ago

3 0

Answer:

Decision-making is perhaps the most important component of a manager's activities. It plays the most important role in the planning process. When the managers plan, they decide on many matters as what goals their organisation will pursue, what resources they will use, and who will perform each required task.

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Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises.

antiseptic1488 [7]

Answer and Explanation:

The Preparation of Tiger’s statement of cash flows, using the indirect method is shown below:-

TIGER ENTERPRISES

Income Statement

For the Year Ended December 31, 2021

Particulars Amount

Cash flow from operating activities

Net income $1,452

Non cash adjustment effects

Depreciation expenses $280

Changes in operating assets and liabilities

Decrease in accounts receivable $100

Increase in inventory ($60)

Increase in prepaid insurance ($50)

Decrease in accounts payable ($80)

Decrease in accrued liabilities ($120)

Increase in income tax payable $30 $100

Net cash flow from operating activities $1,552

Cash flow from investing activities

Equipment purchased ($500)

Net cash flow investing activities ($500)

Cash flow from financing activities

Issuance of notes payable $240

Issuance of common stock $140

Payment of dividends ($1,292)

Net cash flow from financing activities ($912)

Net increase in cash $140

Jan 1 Cash $240

Dec 32 Cash $380

Working note:-

Retained earning Opening balance $480

Add: Net income $1,452

Less: Retained earning closing balance $640

Paid dividend $1,292

4 0

3 years ago

The manager of a company notices that the company's total revenue would increase if she raised the price of the company's produc

guajiro [1.7K]

Answer:

The answer is inelastic.

Explanation:

Elasticity is the degree of responsiveness of a change in one variable to a change in the other variable.

A good ir service is said to be inelastic if the change in quantity demanded is negligible when the price of the goods or services change i.e the change is not sensitive to price. Mostly, the goods or services in this category are considered to be a neccesity. So if the price increases, consumers will have no choice than to buy it.

6 0

4 years ago

Which of the following is NOT a factor affecting the cost of insurance?

Yakvenalex [24]

Answer:

compitition of the bussiness

8 0

3 years ago

Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the st

stealth61 [152]

Answer:

hello your question is incomplete below is the complete question and the missing table

Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the stock of the Frankfurter Sausage Company. Here is the recent price history of the two stocks: on the evidence of these six months how large would your short position in Frankfurter sausage needed to be to hedge you as far as possible against movements in the price of swiss Roll

answer : $42003667

Explanation:

$100 million in stocks

According to the data provided in the table attached below, to short the Frankfurt in order to hedge investment in Rolls is calculated below

we have to calculate the total return on both Roll corporation and Frankfurter sausage

for f-sausage

∑ (1 + monthly returns ) / 100

= ( 1 - 0.1 + 1 - 0.1 .... + 1 + 0.1 ) = -0.0297 = -2.97%

for Roll corporation

∑ (1 + monthly returns ) / 100

= ( 1 - 0.1 + 1 - 0.05 .... + 1 + 0.1 ) = -0.012475 = - 1.24%

next we will calculate the total loss inquired when investing in Roll corporation

Total loss = percentage loss * total investment

= 0.012475 * $100 million = - $ 1247500

we will have to offset the loss by shorting investments in F sausage

hence : $1247500 = investment in sausage * total return

1247500 = investment in sausage * 0.0297 ( The total return of F sausage is positive because it was a short position )

hence short investment in F sausage to offset loss incurred in ROLLS INVESTMENT

= 1247500 / 0.0297 = $42003667

8 0

3 years ago

Donna wants to open her own business. She decides that she needs to make a strategy for determining what product she should sell

Tasya [4]

Answer:

Market survey

Explanation:

For Donna to open a new business in which she will be successful and very profitable she needs to know what problem/need her new business/product can solve in the society. this is very important to know before engaging in any form of business because businesses that solve problem/needs of its community tend to strive better even in a bad economy.

The best marketing strategy to determine this need/want is called Market survey. this survey can be carried out by creating a one page questionnaire about her intended product and post/send it to the relevant audience for appropriate feedback and also to professionals in her intended product. the feedback she gets from the questionnaire will help inform her on the best product to sell.

7 0

3 years ago