Mgmt 309 Chapter 1 Test Bank Essay

1. Before you begin reading this section use a dictionary to define the following vocabulary:

The correct answer is D, $700,000. The nonmanufacturing costs are the costs incurred to make the inventory are crossed out below. Notice that purchasing raw material is not the same thing as incurring a cost. You have simply traded one asset for another. You have not yet used it to make a product, or provide a service.

Financial Instruments A financial asset is something which is defined as an entitlement of future cash flows. However, a financial instrument is a broader term used to describe financial assets and other assets in which there are no organised secondary markets to trade them. However, a financial security is something that can be traded in a secondary market. Attributes of Financial Assets Financial assets are those that: • • • • Have a return of yield expressed in terms of percentage. Have risk in which there is probability the actual return will differ from the expected return. Are liquid in that they can be sold at current market prices with reasonable transaction costs. Are expected to have a set time-pattern of cash flows in or out.

P4) Review factors that have contributed to one declining destination (Cyprus) and one developing (Greece) in the European travel market.

11. Investors and creditors are particularly interested in this financial statement because it tells them what is happening to the company’s most important resource?

EBITDA - Earnings before interest, taxes, depreciation and amortization is an indicator of a company's financial performance which is calculated in the following manner: ("EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization Definition | Investopedia," n.d.)

In April of 1979, a U.S. court finds the Beatle 's former manager _________ guilty of tax evasion and he is sentenced to serve two months of a two-year sentence in prison.

Comparing two newspaper articles, one from a tabloid and one from a broadsheet will convey the different techniques that tabloids and broadsheets use to present stories. Media in general, aim to inform and interest the audience which consist of many different types. Diverse emotions and ideas are created by the media; foremost tabloids. Tabloids are papers like ‘The Sun’, ‘The Mirror’, ‘The Daily Mail’, ‘The Express’ and ‘The Star’. In contrast to these are broadsheets like ‘The Times’, ‘The Guardian’ and ‘The Daily Telegraph’. Broadsheets are often known as the ‘quality press’ being more informing and formal in the manner they convey information and news stories.

In order to get better insight about what we try to do here we need to know some terms that used in this document.

The second object I would include would be a newspaper comprising of what is generally important in today’s society.

4. Describe an example of a common financial resource, an expense, and a debt. These can be examples from your own life or from other people you know or can imagine. (3-6 sentences. 3.0 points)

ii. Click on “605 Revenue Recognition > 20 Services> 25 Recognition” and summarize what is said in subsection 25-3.

Problem Statement: The advent of internet brought about both challenges and opportunities for the newspaper industry. On one hand, it required redesigning a new product suited for online customers and on the other it was an opportunity to reach to 123 million potential customers in this category. Thus to keep up with the pace of emerging digitization in every field, like all newspapers, New York Times also added online reading in their product portfolio. However it only worsened the crisis the newspaper was already going through. The operating profit declined by more than 76% from 234Mn$ in 2010 to a mere 57Mn$ in 2011. The circulations were steadily declining and the new online advertising could not compensate for print advertising

The New York Times, as well as every other newspaper and magazine around the world, is struggling to find the best way to transition from traditional print to the digital space while still maintaining a profitable business. The current solution for the largest local metropolitan newspaper in the United States is a paywall, which requires readers of online content to pay for a digital subscription in order to have access to the site after a fixed monthly allowance of 20 articles. However, this pay metered method has been tried by the most popular American newspaper website before and the question is whether or not this strategy can help The Times evolve

Recommendation – NYT should continue with its Paywall initiative as upwards of 40% incoming traffic is from other sites i.e. Google, yahoo etc. Internet delivery on mobile devices is also becoming popular. Additionally, lots of users are able to access news content via leaky paywall. This reflects users increasing interest in accessing NYT news content in digital format. Digital edition is in early stages for adoption by end users. New sources and models for revenue generation or sharing are to be discovered and streamlined. Internet will become “platform of choice” for majority of users in near future. New industry needs to continue exploring methods to present news content to user preferred way and adapt to new and different streams of revenue. The digital edition is in its growth phase heading into maturity. There is still potential to increase and development. The data seem to indicate that the New York Times is able to identify those with more willingness to pay and they are getting them to purchase at these increased costs. This