Mobile Telecom Networks Essay Example | Topics and Well Written Essays - 4750 words

Mobile Telecom Networks - Essay Example Network economics play a vital role in modern economy, which would be greatly diminished if without the existence of transportation, communications, information, and railway networks. Many earlier literatures have analyzed the major economic features of networks, such as Gandal et al. (2000), who studyies the development of CD technology and concludes that the number of CD titles available greatly affects consumers' willingness-to-pay for CD players. Shurmer (1993) uses consumer survey results to analyze network externalities in software by questioning consumers directly about their attitudes towards software standards. Park (2003) studies the role of network effects in the standard war of the video recording systems. ... In contrast, there are very few works on direct network effects, which have been are defined as those generated through a direct physical effect of the number of purchasers on the value of a product. 2. Network effects and mobile telecommunication industry 2.1 Network effects and compatibility In the mobile telecommunication industry, the 2G (second generation) mobile networks are believed to exhibit the direct network effects: the value of a network increases when people can call a larger set of persons. In the presence of such effects, mobile users would prefer to subscribe to the operator with a larger installed base, which offers a more attractive product. , iIn turn, inducing more customers are induced to subscribe to its networks which producinges a yet bigger installed base advantage. and theAccordingly the service providers accordingly tend to compete more aggressively to increase their market share than would otherwise be the case. But However, along with the diffusion of the 3G networks, indirect network effects begin to play an increasing role, since its their usage heavily relies on the available data services. This could be an interesting topic for future studies. Compatibility is one critical factor conditioning the impact of network effects on market outcomes. It is defined as a measure of the extent to which utility derived by users of a given network product is influenced by the number of users of competing network products (Katz and Shapiro, 1985). The incentive for compatibility is subject to depends on the relative sizes of the demands for each competing network goods. When companies have similar installed bases, they make their

Greenhouse gases Essay Example for Free

Greenhouse gases Essay â€Å"Gases that trap heat in the atmosphere are often called greenhouse gases† (Environmental Protection Agency, 1). Some greenhouse gases, such as carbon dioxide, occur naturally and are emitted into the air through natural processes and human activity. Other greenhouse gases are emitted only through human activity. These include â€Å"carbon dioxide, methane, nitrous oxide and fluorinated gases† (Environmental Protection Agency, 1). Carbon dioxide is emitted through the burning of fossil fuels as well as through solid waste and tree and wood products. Methane is emitted during the transport of coal, natural gas and oil. Nitrous oxide is emitted during agricultural and industrial activities. Fluorinated gases are emitted through a variety of industrial processes (Environmental Protection Agency, 1). These are all dangerous emissions that have a serious impact on the integrity of the environment. However, there are many natural processes that can cause an emission of greenhouse gases and these get far less attention than those associated with human activity. â€Å"Cattle numbers have more than tripled in the last ten years† (Hao, et al, 376). An analysis of the greenhouse gas emissions of these increasing cattle herds as compared to automobiles and planes is offered. The Problem with Cattle â€Å"Associated with intensification of livestock operations in an increased amount of feedlot manure produced each year† (Hao, et al, 376). Typically, cattle manure is disposed of by applying it directly to fields. â€Å"However, this has created environmental concerns† (Hao, et al, 376). Composting manure before applying it to fields has been suggested as an alternative because it â€Å"reduces odor, pathogens, weeds and fly breeding potential† (Hao, et al, 376). However, it has also been shown that composting the manure before application â€Å"contributes to emissions of greenhouse gases† (Hao, et al, 376). The process of composting the manure results in an increase in several different gases including methane and carbon dioxide. As the manure is composted, â€Å"heat is generated and the temperature of the compost increases. † As the temperature increases, greenhouse gas emissions also increase (Hao, et al, 384). Finally, â€Å"composted manure can be trucked further distances† which also adds to the overall greenhouse gas emissions associated with cattle manure (Hao, et al, 376). It is the by products of the cattle that cause a large part of the overall greenhouse gas emissions related to the livestock trade. The chemical composition of the by products are what contribute to an increase in greenhouse gases. Therefore, as cattle herds increase so does their by products which, in turn, increases gas emissions. â€Å"Globally, methane emissions from cattle are five to six percent of total emissions while nitrogen emissions are seven percent of total emissions† (Hao, et al, 37). As the cattle herds grow the amount of manure that is produces also grows and this results in an increase in overall greenhouse gas emissions over time. When manure is composted it is required to remain in one place over a long period of time. As the manure composts its temperature increases which only adds to the greenhouse gas emissions that comes from the manure Therefore, it can be shown that greenhouse gas emissions from cattle are larger than greenhouse gas emissions from automobiles and planes, particularly as the global number of cattle herds increases so does global output of methane and nitrogen. These greenhouse gas emissions are far more dangerous than the emissions from automobiles and planes. While sustainable development has received global attention it has â€Å"limited influence on the transportation sector† (Bartle, 214). While people all over the world are attempting to reduce greenhouse gas emissions by also reducing their driving and/or purchasing more efficient vehicles, the United States air industry â€Å"is unsustainable and forecasted trends suggest that this problem will get worse† (Bartle, 214). Current pollution control policies do not adequately address the issues associated with greenhouse gas emissions and airplane use. However, there are many reforms and new policies being considered in order to make air travel more sustainable while also reducing total greenhouse gas emissions during flying. While automobile and airplane travel have the capacity and ability to find new and innovative ways to reduce their overall greenhouse gas emissions, this is much more difficult for the cattle industry given the rapid increases in cattle herd size as well as manure output. Further, livestock are a leading source of greenhouse gas emissions but much more emphasis is placed on how to reduce emissions from automobiles and airplanes and much less focus is placed on how to reduce emissions within the livestock field (LA Times, 1). The cattle and livestock industry contributes more â€Å"silent and deadly emissions† than the â€Å"entire world transportation sector† (LA Times, 1). Many politicians and environmentalists do not realize the enormous problem that cattle emissions really are and often scoff at how much greenhouse gas they emit â€Å"but livestock emissions are no joke† (LA Times, 1). Further, much of the focus is placed on carbon dioxide and the majority of people do not realize the negative implications of methane and nitrous oxide – two major emissions from cattle. These two gases are more efficient at trapping heat in the environment than carbon dioxide is. Methane has â€Å"twenty-one times the potential for heat generation than carbon dioxide† does and cows can produce up to â€Å"one hundred thirty gallons† of methane per cow per day (LA Times, 1). Environmentalists tend to focus more on the greenhouse gas emissions from automobiles and planes which downplays the role of the livestock industry. At the same time, the public is not aware of the problem. Livestock, particularly cattle, are responsible for â€Å"eighteen percent of greenhouse gases worldwide – more than all the planes, trains and automobiles on the planet† (LA Times, 1). The problem appears to be getting worse. As previously mentioned the cattle herd sizes are increasing. Similarly, as living standards across the globe increase so does â€Å"a fondness for meat and dairy† (LA Times, 1). For example, meat consumption in the developing world doubled between 1980 and 2002 and it is expected to double again by 2050. â€Å"That means the environmental damage of ranching would have to be cut in half just to keep emissions at their current, dangerous level† (LA Times, 1). As more emphasis continues to be placed on the transportation sector, less emphasis is placed on the danger that the cattle emissions pose to the overall integrity of the environment. â€Å"The global livestock sector is growing faster than any other agricultural sub sector† (Food and Agriculture Organization of the United Nations, 1). â€Å"It provides livelihoods to about 1. 3 billion people and contributes about 40 percent to global agricultural output and is an important â€Å"source of renewable energy (Food and Agriculture Organization of the United Nations, 1). While this type of growth is certainly good for farmers and their bottom line, it has negative implications with regards to the overall integrity of the planet’s environment. As cattle herds continue to grow larger the problem is only going to get worse. Therefore, it is essential that the livestock industry be made aware of their contribution to greenhouse gas emissions so they are able to research and implement solutions that will help reduce their impact on the planet. Recommendations As mentioned previously, â€Å"the environmental costs per unit of livestock production must be cut by one half, just to avoid the level of damage worsening beyond its present level† (Food and Agriculture Organization of the United Nations, 1). Manure is the primary source of greenhouse gas emissions, specifically methane and nitrous oxide. The cattle industry â€Å"generates sixty-five percent of human related nitrous oxide† which has â€Å"two hundred ninety-six times the Global Warming Potential than carbon dioxide† (Food and Agriculture Organization of the United Nations, 1). The cattle industry also accounts for â€Å"thirty-seven percent of all human induced methane† which has â€Å"twenty-three times the Global Warming Potential than carbon dioxide† (Food and Agriculture Organization of the United Nations, 1). These high levels of greenhouse gas emissions from the cattle industry prove the importance of changes in order to reduce the impact that cattle has on the environment. The problem also takes much of the emphasis off of carbon dioxide and places it on methane and nitrous oxide since they have much more capability for damage. One suggestion is for human beings to begin â€Å"cutting back on read meat† as this would reduce the high demand for cattle and lower overall greenhouse gas emissions (LA Times, 1). A similar effect would be reached through a reduction in overall dairy consumption. However, for health reasons this is not a popular or feasible recommendation the way that reducing red meat consumption is. Further, politicians and lobbyists are reluctant to take on the cattle industry because â€Å"it is extremely hazardous for politicians to take on the U. S. beef industry† (LA Times, 1). Therefore, researchers are being forced to develop ways to reduce greenhouse gas emissions even as the demand for meat and dairy continues to increase. Cows have â€Å"four stomachs† and the â€Å"first stomach is called the rumen† and this is where the methane problem lies (LA Times, 1). â€Å"The bacteria in the rumen produce methane† that is released through both ends of the cow (LA Times, 1). Scientists are currently working on a type of feed that are more â€Å"energy efficient and generate less methane† as well as experimenting in order to â€Å"produce a less gassy breed of cattle† (LA Times, 1). As mentioned in the beginning of the paper, researchers are also scrambling to devise ways to reduce the contribution of manure to the overall greenhouse gas emission problem such as â€Å"storage methods and temperature† (LA Times, 1). This correlates with the research studies presented in the beginning of the paper because this research supports the notion that finding better storage methods and controlling the overall temperature of the manure can have a positive effect on the reduction of greenhouse gas emissions. Conclusions The majority of attention has been placed on the role that automobiles and airplanes play in degrading the integrity of the environment. However, few people realize the negative impact that the livestock industry has on the overall quality of the environment. It is much harder to place blame on human activity associated with driving and flying and ignoring the impact that human activity with regards to eating has on the environment. As the demand for quality beef and dairy products continues to increase so will the greenhouse gases emitted by increasing numbers of cattle herds. Humans can help reduce this impact by cutting their red meat consumption and making more sustainable choices with regards to their eating habits. This can go a long way towards improving the situation while scientists work diligently towards creating a solution that will ensure that beef demands be met while also reducing overall impact on the earth. Bartle, John R. â€Å"The Sustainable Development of U. S. Air Travel. † Public Works Management and Policy 10. 3 (2006): 214 – 224. Environmental Protection Agency. â€Å"Greenhouse Gas Emissions. † 2009. 27 April 2009 http://www. epa. gov/climatechange/emissions/index. html. Food and Agriculture Organization of the United Nations. â€Å"Livestock a Major Threat to Environment. 29 Nov 2006. 27 April 2009 http://www. fao. org/newsroom/en/news/2006/1000448/index. html. Hao, Xiying; Chang, Chi; Larney, Francis J. â€Å"Carbon, Nitrogen Balances and Greenhouse Gas Emission During Cattle Feedlot Manure Composting. † Journal of Environmental Quality 33. 1 (2004): 37 – 45. Hao, Xiying; Chang, Chi; Larney, Francis J. Travis, Greg R. â€Å"Greenhouse Gas Emissions during Cattle Feedlot Manure Composting. † Journal of Environmental Quality 30. 2 (2001): 376 – 387. LA Times. â€Å"Killer Cow Emissions. † LA Times 15 Oct 2007. 27 April 2009 http://articles. latimes. com/2007/oct/15/opinion/ed-methane15.

Urban Legend of Pemberton Park :: Urban Legends Ghost Stories

Salisbury’s Pemberton Park in the Dark Since I come from the Eastern Shore of this state, I was surprised to hear a ghost story I was previously unaware of. The story takes place in a park in Salisbury. The person who told me the story is a 19-year-old sophomore at the University, and we spoke about it one evening after dinner. He believes it to be true, because one of his friend’s siblings has apparently experienced the ghost firsthand. I tape-recorded his narrative: In Pemberton Park, about 30 years ago†¦exactly 30 years ago in a few weeks, actually, a young student got his heart broken. His girlfriend had loved him, or so it seemed, but†¦she found another guy. And the girl he had loved so much told him that their love was now dead. So he decided that he would be dead also. He walked to Pemberton Park and took a stroll along the lake, far away from everyone else, especially the girl who had hurt him. He was happy there, alone. But he dragged a heavy rope behind him anyway. He found a perfect tree above the bridge on the river. That night he hung himself out of hurt and hatred. But just as he jumped, he realized that he didn’t hate it there. He awoke the next day and saw a strange sight—his own body! He soon realized that he had died of sadness in a place of happiness, and he was destined to remain there the rest of his life, alone. But then something happened—Pemberton Park became popular. Especially among couples. Lovers would walk holding hands and the young man would sit silently, jealous and mad that they were invading his space. It happened more and more, but he did nothing. Nothing†¦nothing†¦until one night, almost twenty-five years ago, when his old girlfriend came to Pemberton Park with her new lover. When he saw her, he was filled with rage. He could not take it any more. Night fell, and his old girlfriend kissed her new boyfriend. It was her last kiss. After a huge manhunt, the police found her body, with her boyfriend’s, hanging over the river by the bridge. That’s why you aren’t supposed to wander deep into Pemberton Park this time of the year†¦and especially not with someone you love.

The End of the Cold War and the New Threats to Global Security

1.Introduction The end of the Cold War marked a new beginning for the international security agenda, and the demise of the simple bipolarity brought forward a revised agenda for human rights, international peace and cooperation and stability. The end of the Cold War triggered the rise of new threats and challenges to international security, and the advance of globalization led to the redistribution of power in the international system (Baylis & Smith, 2007; Brown, 2005). In the context of globalization, the capacity of the state was undermined and as a result state-to-state relations dramatically changed (Strange, 2002). Classic wars were gradually transformed into â€Å"modern wars† (Kaldor, 1999; Smith, 2006; Shaw, 2005). In this different political environment, the security challenges were no longer existent on a state-to-state level, because of the growing importance of sub-state actors. This essay will focus on the reorganization of the international system after the end of the Cold War, and will discuss the new challenges to global security, posed by the demise of the bipolar regime. The essay will support the view that with the end of the Cold War, the world became a more dangerous place, because of the multiplicity of actors on the international scene and the changed perceptions of military force, war and security. Changing perceptions of military force and war The end of the Cold War brought forward the change of the perceptions of military force in several different aspects. The impact of these changed perceptions upon the international security agenda has been undisputed, and will be discussed in detail. For clarity, the author has chosen to focus only on the most important security-related transformations following the Cold War – the new sources of threat such as nuclear weapons and terrorism, and the changing notions of war in the context of globalization. Their features will be discussed in the context of the changed dynamics of the international system.2.1 New sources of security threatThe end of the Cold War led to new security challenges, because of changing notions of military force and the new sources of security threat (Smith, 2006; Shaw, 2005). The first one is related to the rise of nuclear power. With the demise of the USSR, the simple bipolarity of the Cold War world was replaced by a multipolar world, where the centr ality of power was no longer clearly defined (Brown, 2005; Jackson & Sorensen, 2003). The rise of the Asian economic powers, the advance of nuclear and biological weapons in countries such as Iran, Israel and Iraq challenged the stability of the mutual deterrence principle, comfortably sustained during the Cold War (Hammes, 2005). Another source of security threat after the Cold War was related to terrorism, and the rise of sub-state actors (Smith, 2006). The War on terror, embedded in the Bush doctrine, was a clear demonstration of the changing nature of war, and the elusive image of the new enemy (Shaw, 2005). After 9/11 it became clear that terrorism was not a war against an enemy, but against tactics (Baylis & Smith, 2007). Its manifestations and capacity to destroy were as much the result of political construction, as of historically embedded perceptions about the East and the West and their manipulation by mass media and policy-makers. After the end of the Cold War non-state actors such as Al Qaeda and Hamas, became a new source of security threat because of their ability to operate internationally but at the same time to exist inside the state (Shaw, 2005). Also, the controversies, around states labelled as rogue and unable to comply with the international standards for peace and democracy such as Afgha nistan, Iraq, North Korea, Libya and Syria necessitated new means for meeting the challenges to threat and security. They will be discussed in section 3.2.2 Changing notions of war in a global worldHere it is important to mention globalization as a factor, which led to re-examination of the capacity of the state to observe human security and human rights (Strange, 2002). In the context of a borderless world, the international human rights agenda is inevitably revisited, and the main carriers of legal standards are no longer represented solely by state actors, but by the global civil society, comprising of International non-governmental organizations (INGOs). Because of these inevitable transformations, the very perception of security, threat and war changed in several important aspects. As Mary Kaldor famously observes, the end of the Cold War saw the rise of the modern wars, which lack time and space, because they are based on non-quantifiable demands often related to ideology, eth nicity, religion and the social construction of history (1999). The old wars were pushed away by new types of threats and conflicts, such as organized crime, and religious and civil wars. The early 1990s saw the bloody demise of former Yugoslavia, and a series of conflicts in Rwanda, Congo, Sudan and Somalia, triggered by the redefinition of political borders, the struggle over economic resources and ethnic and religious factionalism. In the context of globalization, the modern wars are interstate conflicts, executed by sub-state actors. In this sense, it is important to mention that the growing presence of the sub-state actors has posed new challenges to the classic perceptions of security, because of non-tangible variables such as perceptions, as opposed to old-time military ambitions related to territorial invasion and economic gain. Meeting the new security challenges: a revised agenda for peace In order to meet the new security challenges, identified earlier, the international community had to devise a new agenda in the post-Cold war era. First, humanitarian intervention became important, and triggered as an effect of the revised agenda, where the security of foreign nationals, whose human rights have been violated by their home state became important (Jackson & Sorensen, 2003). Despite the ongoing political debate about the legality and legitimacy of humanitarian intervention, a norm of intervention was authorized by the UN Security Council in the 1990s, which was followed by operations in the Democratic Republic of Congo in 1996 and Kosovo in 1999 (Baylis & Smith, 2007). Despite the criticisms that humanitarian intervention might stop the immediate killing of civilians but is not a reliable strategy for long-term piece, it reveals a shifted emphasis from military to human security in the years following the end of the Cold War. In this relation, another trend in dealing with conflicts became prominent – the imposition of economic sanctions for the purpose of exerting political, rather than military pressure u pon non-compliant states and communities. The post-Cold War agenda for peace also involved the reorganization of military forces, where the deviation from the Clausewitzian concept of war was obvious in the attempt to ameliorate and contain, rather than destroy or simply conquer (Smith, 2006). Examples of such wars of containment are the conflicts in Iraq and Afghanistan. In addition, the role of the global civil society and the growing influence of INGOs as advocates of peace and human rights deserve a mention. The importance of international non-governmental organizations in global policy-making has been undisputed because of the more complicated security agenda in the post-Cold War era. Also, because of the multiplicity of actors in the international system, and the new security needs, states and intergovernmental organizations are unable to deal with international crises without the development programmes and research, provided by the INGOs. Although their political success remains disputed, their role as independent observers and proponents of policy change is growing. Conclusion This essay has attempted to show the changing nature of the international system after the end of the Cold War. Today the international community faces different security threats based on a new perception of military force. Terrorism and the spread of nuclear power have shunned classic state-to-state conflicts, and as a result a new security agenda for peace and cooperation has been embraced. In the era of globalization, the transition towards collective security as a model of global governance, remains a challenge but also a prerequisite for peace. Bibliography: Baylis, J. & Smith, S. (2007) eds, The Globalization of World Politics. Oxford: Oxford University Press Brown, C., (2005) Understanding International Relations, Palgrave: Macmillan, Ch. 6, pp. 106-123 Clausewitz, C. (1977) ‘What is War?’, On War, Princeton: Princeton University Press Hammes, T.X (2005) ‘War evolves into the fourth generation’, Contemporary Security Policy, Vol.26, No.2pp.189–221. Jervis, R. (1991/1992) ‘The Future of World Politics: Will It Resemble the Past?’ International Security 16, no. 3 Jackson, R. & Sorensen, G. (2003) Introduction to International Relations, Oxford: Oxford University Press Kaldor, M. (1999) New and Old Wars: Organized Violence in a Global Era. Cambridge: Polity Press Shaw, M. (2005) The New Western Way of War: Risk Transfer war and its Crisis in Iraq Cambridge: Polity Press Smith, R. (2006) The Utility of Force: The Art of War in the Modern World London: Penguin Strange, S. (2002) The Declining Authority of States, in The Global Transformations Reader: an Introduction to the Globalization Debate, 2nd edition, Held and MacGrew (eds) Cambridge: Polity Press, pp.127-134 Van Creveld, M. (1991) The Transformation Of War NY: Free Press

Exercises and Problems Essay

Carry Yoki’s Lounge consists of the following. Carry, the owner believed that people would come to hear a band play on Friday, Saturday, and Sunday evening. During the remainder of the week, she believed her customers would watch sporting events on several television sets located throughout the lounge. Carry employed two bartenders, three servers, two assistant servers, two cooks, one dishwasher and a clean-up person. She had a bar, 15 barstools, 4 tables, 40 chairs, 4 television sets, and one satellite dish. She had an oven, stove, grill, refrigerator, sinks, dishes, and glassware. Carry started this business with $50,000 of her own money, and she borrowed $150,000 from the bank. From this description, list each of the scarce resources that are used in Carry Yoki’s Lounge. Entrepreneurial resource: Carry Yoki. Labor resources: 2 bartenders, 3 servers, 2 assistant servers, 2 cooks, 1 dishwasher, and a clean-up person. Economic capital resources: 1 bar, 15 bar stools, 4 tables, 40 chairs, 4 television sets, one satellite dish, oven, stove, grill, refrigerator, sinks, dishes, and glassware. Financial capital resources: $50,000 of her own money and $150,000 from the bank. Joe Fixit has an appliance repair business. He has more business than he can handle and wants to hire another repair person. Joe estimates that three appliances can be repaired each hour by a qualified person. Joe bills out labor at $45 per hour, but he stipulates that the minimum charge for appliance repair estimates is $30 plus parts. What is the marginal revenue product of a qualified repair person? 3 appliance repairs per hour times $30 = $90 marginal revenue product. What is the maximum hourly wage that he would pay an employee? Therefore, since we bring in an additional $90 per hour by hiring one more repair person, the maximum wage we would pay is $90. Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits that are equal to 30% of his salary. Sam wants to begin a consulting firm and decides to leave his current job. After his first year in business, Sam’s accountant informed him that he had made $45,000 with his consulting business. Sam also notices that he paid $6,000 for a health insurance policy, which was his total benefit during his first  year. What was Sam’s opportunity cost? Sam gave up $65,000 in salary plus $19,500 in benefits or a total of $84,500. Sara Lee just graduated from college with a degree in accounting. She had five job offers: Bean Counters CPA, $35,000; Assets R Us, $27,000; The Debit Store, $30,000; J & J’s CPA’s, $33,000; and The Double Entry Shop, $40,000. What was her opportunity cost if she accepted the job with The Double Entry Shop? Sara gave up Bean Counters CPA at $35,000 which was the highest value surrendered. Sam Club earned $50,000 and paid taxes of $10,000. Samantha Heart earned $60,000 and paid taxes of $12,000. If these taxes were paid to the same government agency, is the tax on income progressive, regressive, or proportional? Why did you reach this conclusion? As show below these taxes are proportional because they both paid the same percentage of their income in taxes. 6.You read an article in this morning’s paper that stated inflation was accelerating and would reach six percent this year. If the FED believes this statement and it has set a goal of three percent inflation, what will it likely do at the next meeting of the Federal Open Market Committee? They would most likely raise the discount rate, the federal funds rate, or both. They could also sell more government securities to decrease the money supply. 7.A friend came into your office and said that his bank was out to kill small businesses. You asked him what he meant by this remark, and he said that he read an article that said his bank had just loaned $10 million to a major automobile manufacturer at a rate of 3 percent, which is less than prime. But your friend just borrowed $50,000 from the same bank and they charged him prime plus four percent, or 7.5 percent. Your friend has been in business for two years, and last year he had a loss of $2,000. How can you explain this difference in interest rate to your friend? The bank charges interest based upon risk. The probability of the automobile manufacturer defaulting on the loan is very remote; therefore, they get a favorable interest rate from the bank. Since your friend lost money last year and since over 40 percent of all small businesses fail in the first five years, the bank’s risk is much higher and therefore they will charge a higher interest rate. 1.Carry Yoki’s Lounge consists of the following. Carry, the owner believed  that people would come to hear a band play on Friday, Saturday, and Sunday evening. During the remainder of the week, she believed her customers would watch sporting events on several television sets located throughout the lounge. Carry employed two bartenders, three servers, two assistant servers, two cooks, one dishwasher and a clean-up person. She had a bar, 15 barstools, 4 tables, 40 chairs, 4 television sets, and one satellite dish. She had an oven, stove, grill, refrigerator, sinks, dishes, and glassware. Carry started this business with $50,000 of her own money, and she borrowed $150,000 from the bank. From this description, list each of the scarce resources that are used in Carry Yoki’s Lounge. 2.Joe Fixit has an appliance repair business. He has more business than he can handle and wants to hire another repair person. Joe estimates that three appliances can be repaired each hour by a qualified person. Joe bills out labor at $45 per hour, but he stipulates that the minimum charge for appliance repair estimates is $30 plus parts. What is the marginal revenue product of a qualified repair person? What is the maximum hourly wage that he would pay an employee? 3.Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits that are equal to 30% of his salary. Sam wants to begin a consulting firm and decides to leave his current job. After his first year in business, Sam’s accountant informed him that he had made $45,000 with his consulting business. Sam also notices that he paid $6,000 for a health insurance policy, which was his total benefit during his first year. What was Sam’s opportunity cost? 4.Sara Lee just graduated from college with a degree in accounting. She had five job offers: Bean Counters CPA, $35,000; Assets R Us, $27,000; The Debit Store, $30,000; J & J’s CPA’s, $33,000; and The Double Entry Shop, $40,000. What was her opportunity cost if she accepted the job with The Double Entry Shop? 5.Sam Club earned $50,000 and paid taxes of $10,000. Samantha Heart earned $60,000 and paid taxes of $12,000. If these taxes were paid to the same government agency, is the tax on income progressive, regressive, or proportional? Why did you reach this conclusion? 6.You read an article in this morning’s paper that stated inflation was accelerating and would reach six percent this year. If the FED believes this statement and it has set a goal of three percent inflation, what will it likely do at the next meeting of the Federal Open Market Committee? 7.A friend came into your office and  said that his bank was out to kill small businesses. You asked him what he meant by this remark, and he said that he read an article that said his bank had just loaned $10 million to a major automobile manufacturer at a rate of 3 percent, which is less than prime. But your friend just borrowed $50,000 from the same bank and they charged him prime plus four percent, or 7.5 percent. Your friend has been in business for two years, and last year he had a loss of $2,000. How can you explain this difference in interest rate to your friend? Carol Jones wanted her business to increase sales by 50 percent over the next five years. To do this, she must hire three more people. She wanted to determine how to evaluate these people, so she lists their job specifications and develops job descriptions. She also listed where these employees would work and what training they would require. What management functions is Carol performing, and how do they apply to this scenario? Carol is performing the management function of planning because she wants to increase sales by 50% over the next five years. Specifically she is determining her strategic goals and beginning a long-range plan. She is also performing the management function of staffing because she is about to hire three more people, to evaluate them, and train them. Carol is also performing the management function of control when she develops the standards for evaluating her personnel. Jerry is a personnel manager for a large retail department store. He just received a memo stating that the company will build three new stores in Phoenix over the next five years, with one store opening in 24 months, one opening in 36 months, and one opening in 60 months. The memo that Jerry received relates to what type of business plan? The memo that Jerry received relates to the strategic overall plan for his company. If Jerry is directed to develop a personnel plan for Phoenix, what type of planning will Jerry be doing? When Jerry develops a personnel plan he will be working on a functional plan (personnel) designed to support the strategic plan. Joe Doe just started a business. He wants the business income to flow directly to his own personal tax return, but he wants to make sure that he has limited liability. What form(s) of business ownership would you recommend for Joe? Recommend either  a Subchapter S corporation or a Limited Liability Company. You buy 1,000 shares of ABC Company at $6 per share. The company is sued for millions of dolla rs, and ABC Co. is forced into bankruptcy. The newspaper stated that the cost of this suit would amount to $12 per share of stock. What is the maximum amount of money you can lose with this investment? Why? You can only lose $6,000 ($6 per share times the 1,000 shares). Since this is your investment in the corporation it is also your total liability. The price of $12 reported in the paper is irrelevant in this situation. Sam Jones, Mary Adams, and Larry Brown have been talking about starting their own business for several years. Sam is an electronic repairman, Mary is a partner in a large law firm, and Larry is an excellent sales person. Sam and Larry will work in the business on an equal basis. It will cost $100,000 to start this business. Sam has no money, Mary has $60,000 and Larry has $40,000. If they form a partnership, how would you recommend that they organize? You should recommend a limited partnership with Mary as the limited partner. Sam and Larry would be general partners and would each be paid a salary. The profits that accrue to the partnership after all expenses are paid would be divided with sixty percent going to Mary and forty percent going to Larry if share of profits were only based on financial contribution. The actual division o f the profits would be based on a partnership agreement because Sam would not want to have unlimited liability and no share of the profits. This business could also be formed as an LLC; then none of them would have unlimited liability, but would Mary agree to this since she is putting up most of the financial capital? This problem was inserted to stimulate discussion. Barry McGuire wants to purchase a dry-cleaning establishment. Barry has heard of the SWOT analysis and wants to use this methodology to determine whether he should purchase the business. He found the following information: The dry cleaner is located in a busy shopping center and currently does all the cleaning on the premises. It has three commercial accounts that comprise 20 percent of its business. The population in the local area is growing by approximately 6 percent per year. Located across the street in another shopping center is a price-cutting dry cleaner that advertises heavily in the local area. With the exception of this shopping center and the property across the street, all property in this area is zoned residential. Most of the residents in this area are professional  people who wear suits to work. The shop has an assumable lease, and the lease has a fixed rental fee for the next five years. Barry has had five years of experience in the dry-cleaning business, and would run the shop full time. Based on this information, perform a SWOT analysis. Strengths include the fact that Barry has five years of experience, dry cleaning business is already established, assumable lease, and fixed rent for next five years, commercial accounts for 20% of business. Weakness, none listed. Opportunities include fact that business is located in a busy shopping center, population is growing at 6% a year, residential area with residents being professional and wearing suits to work, no new competition because of favorable zoning. Threats include competition from price cutting business across the street. Joe Latte wants to open up a coffee and gelato shop. He figures with the popularity of coffee shops and Italian ice cream shops that a combination business will be a clear winner. Write a two page paper describing the following elements of a business plan: description of the business, factors affecting location, and product or service to be offered. This should be graded based on the rigor of the class and how much is assigned by the instructor for outside research. We recommend team discussion and specifics with regard to these items. 8 Joe Latte has completed a business plan and determined that it will take $120,000 to open the coffee and gelato shop. He has $30,000 of his own money and will have to obtain $90,000 in loans or grants. How should Joe go about getting financing? What is the probability that he can obtain a grant to start an Italian ice cream shop? Joe’s first step should be to complete a business plan and contact the local Small Business Association (SBA) and SCORE office to determine what financing is available. He should also check with local and state agencies for small business assistance. Depending on his credit rating and bank standing he can also contact local banks and financial institutions and shop for the best loan and interest rates. Chances of obtaining a grant for this type of business are very slim.