Discuss one of the four types of scarce resources and how you would use that resource most effectively.

KB Requirements

Knowledgebase –. Rather than give you quizzes or tests in this class, I want you to create a knowledgebase. This it is a far more effective way not only for me to measure what you are learning, but for you to absorb the material in a way that you are much more likely to recall it in the future. You will be required to submit your knowledgebase (KB) twice throughout this course that answers all of the questions detailed below.

KB Rules

1. Please use the KB requirements.   They are located in the module assignments as well as in the course resources. Please organize your KB as follows:

a. Please include:

i. The Module Number

ii. The question number

iii. The question

iv. Your answer

2. Each module’s KB should be a minimum of 3 double-spaced pages.  (PLEASE USE NO LARGER THAN A 12 POINT FONT) and margins no larger than 1” wide. Please note that graphics should not be included in the page length.

3. You must incorporate cited resources for each question into your KB (can use the text, the module resources, or qualified internet sources). Feel free to incorporate a quote or cut and paste information into your KB, but you need to make sure that you have properly quoted and cited your sources, and that they are properly vetted sources. If you are quoting a source then they need to have the credentials that qualify them as an expert on the topic. So make sure if you are quoting a post from a forum, blog or vlog; make sure the person who wrote it is considered an expert in the field based on either formal education or a designation achieved.

4. While I encourage you to get additional information from the internet (in properly vetted sources as described above); I need to understand what you know. Therefore, while I encourage you to add direct quote information and/or resources into your knowledgebase from , that cannot be your entire answer. Instead use that as a jumping off point. Your KB needs to reflect what you have learned and/or understand about the material in your own words.

Grading Rubric

  Your grade Total
Adhered to KB Rules – 10%   0%
Explanation of the concepts – 40% of total grade   0%
Conveying your understanding of how to use the concepts – 50% of total grade   0%
     
   

10% of your grade will come from your adherence to the KB rules detailed above.

40% of your grade will come from your explanation of the concept covered in the question.  So if I were to ask you a question about the difference between stated rate and effective rate then the first part of your answer should be a detailed explanation of the difference between the two.

50% of your grade will come from your conveying your understanding of how to either use the concept, or manage for the concept.  In other words I would like to know when, where, why and/or how you would use it

Example:  So if the question was about the difference between a stated rate and effective rate then I would expect you to discuss how time and how the funds are being used will be a factor.  For instance, if you were deciding where to put a businesses’ working capital, then accessibility would be more important and the difference between the effective rate and the stated rate (and how often the funds were compounded) would not be the most important consideration; however, if these were funds that were being set aside for the long term (to pay off a bond issue or for the replacement of some equipment), then how often funds are compounded is going to be important.

 Example:  If you were asked to discuss vertical analysis.  In that case, I would expect you to explain why a business would use vertical analysis, when they would use it (in what circumstances); why you use vertical analysis as opposed to ratio analysis or horizontal analysis, and of course how you do it.

Please address the following:

Module 1: 1. Discuss one of the four types of scarce resources and how you would use that resource most effectively. 2. How do the laws of supply and demand affect ongoing business, and what policy or system could you use to help? Please give one example of an effect of supply or demand and then describe how you would manage the situation. Please be detailed and specific with a tangible example. 3. Describe one type of systematic risk and one type of unsystematic risk and then explain how a business would create a plan to address the risk. 4. What is the difference between strategic planning and functional planning and describe specific situational uses for each type of planning. 5. Describe one of the types of business organization and what circumstances would make it the best organization to use. 6. Name a specific benefit to writing a business plan when creating a new business? Explain your answer. Module 2: 1. What is opportunity cost and how does it affect the decision-making process for business decisions? 2. how does opportunity cost affect the decision-making process for personal decisions? Please give a tangible example. 3. Explain horizontal and vertical analysis and when you would use one over the other. 4. Discuss a money management challenge in a business setting and how you would overcome it. 5. Discuss a money management challenge in a personal setting and how you would overcome it. 6. Pick a ratio and explain what it is and how it is used. 7. What is fundamental analysis and where and when would it apply to a business decision. Module 3: 1. Discuss the benefits and risks of financial leverage both for a business. 2. Discuss the benefits and risks of financial leverage for you personally. 3. Compare and contrast operating leverage vs. financial leverage. 4. What are the factors that will affect break-even and explain a circumstance of how it would affect your decision-making? 5. Discuss a warning sign that could result in bankruptcy (either personal or for a business), and what you would do to fix the problem? Module 4: 1. How do you evaluate a forecasting model please use a hypothetical example? 2. Why would you use mean absolute deviation as opposed to the mean average? 3. Describe a specific scenario of how you would use a pro forma financial statement? 4. List and describe three time series models, and explain when would you use it? (be specific) Module 5: 1. Describe the two of the asset categories in working capital. 2. Why is working capital so important? 3. A growing business typically has cash flow problems because profits tend to be reinvested back into the business. Describe how you would solve that. 4. What role does inventory management play in an overall business plan and describe the benefits of just in time inventory management. 5. Describe one of the methods for managing cash disbursements or cash receipts and how it impacts profitability. Module 6: 1. Discuss how using debt ratios applies to a business. 2. Discuss how using debt ratios applies to your personal finances. 3. What does the P/E ratio or EPS tell you about a companies’ overall financial condition? 4. What industry statistics can a business use for comparison? 5. How can they use that information in their business? Please give a specific example.