Assignment 2 Dealing With Risk, Asymmetric Information, And Incentives

Assignment: Dealing with Risk, Asymmetric Information, and Incentives

Earlier in the quarter we discussed Southwest Airlines’ use of game theory to create new strategy. Continue to research Southwest Airlines or a company of your choice and write a seven (7) page paper in which you:

1.Evaluate a company’s recent (with in the last year) actions dealing with risk and uncertainty.

2.Offer advice for improving risk management.

3.Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.

4.Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.

5.Identify a principal-agent problem in your company and evaluate the tools it uses to align incentives and improve profitability.

6.Examine the organizational structure of your company and suggests ways it can be changed to improve the overall profitability.

7.Use at least five (5) quality academic resources in this assignment. Note: One of your references regarding your should have been published within the last 6 months. Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

1.Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

2.Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Employment Discrimination & Labor Law

Lectures:

https://s3.us-east-2.amazonaws.com/murproduction/Online+Course+Files/CMR/CMR+108-2017/Labor+Unions/story_html5.html

https://s3.us-east-2.amazonaws.com/murproduction/Online+Course+Files/CMR/CMR+108-2017/Employment+Discrimination+Law+/story_html5.html

If you have not done so already, please review the Module Overview, read the required readings, and watch the lectures/presentations.

These are three short essay questions. Answers can be found in the text. (Do not use outside resources to answer these questions.) They are due on Sunday night by 11:55pm.

Please use bullet points if appropriate. For example, if a question asks for three things, use this format to answer –

  1. First point.
  2. Second point.
  3. Third point.

___________________________________________________________________

Question #1 (5 points):

Shelly thinks she is the victim of sexual harassment by a co-worker while working at DDS Dental Services.

1. Depending on the facts, list and explain the two types of sexual harassment for which Shelly may have a claim against DDS.
2. What three part test will the court use to determine if DDS, as the employer, may be liable for the co-worker’s behavior.

Question #2 (5 points):

Pear Electronics has been sued for violating Title VII of the Civil Rights Act. Depending on the facts, what are the three general defenses Pear can raise in the litigation? Explain each defense.

Question #3 (5 points):

Jon and Todd want to start a union in Smalltown Manufacturing Inc., the small factory where they work.

1. List and explain the four basic stages the employees will need to follow to get their union recognized as the exclusive bargaining unit for Smalltown’s employees.
2. List what Smalltown, as an employer, is legally able to do to respond; and what they cannot do.

Competitor Analysis

  • Purpose of Assignment

    The purpose of this assignment is to allow the student an opportunity to apply their understanding of cash flow management, break-even analysis, and short-term and long-term financing in starting and growing a business.

    Assignment Steps

    Resources: OECD Database, Corporate Finance

    Prepare a 12- to 15-slide PowerPoint® presentation with speaker notes requesting initial funding of $500,000 to start and run a start-up company. The proposed start-up company could be an existing business model (coffee shop, pet store, etc.) or could be something entirely new and exciting.

    Create the presentation in the following format, with at least one slide to cover each of the following areas:

    • Title Page
    • Table of Contents
    • Executive Summary
    • Information about the Industry
    • Marketing Plan
    • Competitor Analysis
    • 3 Year Income Statement (Profit & Loss) Projections
    • Include your assumptions for why and how you will achieve your sales growth and what significant expenses and investments you expect to incur to achieve your revenue goals.
    • 3 Year Proposed Funding Schedule (Sources and uses of the funds received.)
    • Break-Even Analysis
    • Academic and Business References

    Review the following scenarios and assumption, and explain how it impacts your decision to expand:

    • After Year 3, the investors are interested in your company expanding internationally to possibly outsource labor or to reduce manufacturing costs. What countries would you expand to first, and why? What factors would you need to consider in making this decision?
    • What is the corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally? (Use OECD Database or another resource to determine the corporate tax rate).
    • The investors want to see a decision tree detailing the decisions you would make if you received $300K now and $200K at the end of three years instead of $500K up front.
    • The investors would like your team to provide advantages and disadvantages of using debt financing versus selling company stock to raise capital for growth.
    • Briefly explain the venture capital process. Does it make sense for your company to raise funds through venture capital?

    Format your presentation consistent with APA guidelines.

    Two references or more

Business Law Quiz

Question 1

ABC Corp. has a popular product used by weekend athletes. When used properly, the product is safe. When used improperly, the product can cause significant harm to the user. Because the product is complex, users often use it incorrectly and are hurt. This cannot be resolved due to the design and nature of the product. Does ABC Corp. have a responsibility to remove this product from the market? What conflict would arise if the firm did remove the product?

Question 2

 

Johnny’s Furniture House has a contract with Ted’s Upholstery to purchase 1000 recliners.

1) Johnny’s Furniture House files a suit in a state court against Ted’s Upholstery, alleging breach of contract on the sale.

2) During the course of the suit, Johnny’s files a motion for judgment on the pleadings

3) Ted’s files a motion for a directed verdict

4) Both parties file motions for summary judgment.

Discuss when and for what purpose each of these motions would be made.

Question 3

US National Robotics LLC is preparing to sell a new product that they believe will be very profitable as it is based on over 5 years of research and development and a $7 million investment. One month before their product’s launch, it is discovered that a rival company, International Robotics SA, has been manufacturing and will begin to sell a nearly identical product within the week. US National learns from a reliable source that International paid a US National employee to obtain the plans for US National’s product while it was in development. Analyze the legal re¬course US National would have against International.

Question 4

BobsDiscountComputers.com is under attack. This web-based attack is significantly slowing the site, leading to over $50 million in damage in terms of lost revenue, lost work time and site repair. The unknown attacker or group is unable to profit from the attacks. Explain how this attack was most likely orchestrated. Explain who is most likely to engage in this act, that is, whose habits and limitations are clearly suited to such conduct and why?

Questions should be a minimum of 250 words and be supported by at least one reference from the readings or outside sources.