28) Which of the following statements by a restaurant owner refers to the law of diminishing marginal returns? A) "We can increase the number of meals we serve by just adding more kitchen staff, but each additional worker adds less meals than the previous worker because traffic in the kitchen will get worse." B) "The higher the quality of the ingredients we use, the higher the cost of producing each meal." C) "We can serve the same number of meals with less kitchen equipment, but we would have to hire more kitchen staff." D) "If we double the size of our premises and double everything else – kitchen staff, serving staff, equipment - we can increase the number of meals we serve, but not to double the current levels." E) "We can serve the same number of meals with fewer kitchen staff, but we would have to buy more labour-saving kitchen equipment."
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13. Fred is considering expanding his dress shop. If interest rates rise he is
a. |
less likely to expand. This illustrates why the supply of loanable funds slopes downward. |
b. |
more likely to expand. This illustrates why the supply of loanable funds slopes upward. |
c. |
less likely to expand. This illustrates why the demand for loanable funds slopes downward. |
d. |
more likely to expand. This illustrates why the demand for loanable funds slopes upward. |
14. You are thinking of buying a bond from Knight Corporation. You know that this bond is long term and you know that Knight's business ventures are risky and uncertain. You then consider another bond with a shorter term to maturity issued by a company with good prospects and an established reputation. Which of the following is correct?
a. |
The longer-term would tend to make the interest rate on the bond issued by Knight higher, while the higher risk would tend to make the interest rate lower. |
b. |
The longer-term would tend to make the interest rate on the bond issued by Knight lower, while the higher risk would tend to make the interest rate higher. |
c. |
Both the long-term and the higher risk would tend to make the interest rate lower on the bond issued by Knight. |
d. |
Both the long-term and the higher risk would tend to make the interest rate higher on the bond issued by Knight. |
15. In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazines. In 2006, a sandwich cost $4 and a magazine cost $2. In 2007, a sandwich cost $5. The base year is 2006. If the inflation rate in 2007 was 16 percent, then how much did a magazine cost in 2007?
a. |
$1.87 |
b. |
$2.08 |
c. |
$2.32 |
d. |
$3.00 |
16. An increase in the price of Irish whiskey regularly purchased by Americans will be reflected in
a. |
both the U.S. GDP deflator and the U.S. CPI. |
b. |
neither the U.S. GDP deflator nor the U.S. CPI. |
c. |
the U.S. GDP deflator, but not the U.S. CPI. |
d. |
the U.S. CPI, but not the U.S. GDP deflator. |
17. Which of the following would be human capital and physical capital, respectively?
a. |
for an accounting firm, the accountants' knowledge of tax laws and the number of hours worked by those accountants |
b. |
for a grocery store, grocery carts, and cash registers. |
c. |
for a restaurant, the chefs' knowledge about preparing food and equipment in the kitchen |
d. |
for a library, the building, and the reference librarians' knowledge of the Internet |
18. If a production function has increasing returns to scale, the output can be more than doubled if
a. |
labor alone doubles. |
b. |
all inputs but labor double. |
c. |
all of the inputs double. |
d. |
None of the above is correct. |
19.Suppose that an American company opens and operates a restaurant in Ireland. This is an example of
a. foreign direct investment. American saving is used to finance Irish investment.
b. foreign direct investment. American saving is used to finance American investment.
c. foreign portfolio investment. American saving is used to finance Irish investment.
d. foreign portfolio investment. American saving is used to finance American investment.
(Please Summerize the work down below, thank you) | |
Political | Economic |
Growing political influences on healthcare advances | Cost of living increases |
Global government influence on healthcare cost | Cost of insurance prices |
Government control of Medicaid, Medicare funding | Rise of forecasted interest rates |
Social/Cultural | Technical or Technology |
Increase average age of population | Demand on new medical treatments |
Patient expectations increase | Customize treatments |
Demographics are in constant change | More advance service facilities |
Environmental | Legal |
Growing need for green business | Constant change of government drug Regulations |
Environmental agenda and community awareness | Consumer laws |
Health and safety regulations | |
Porters 5 forces of business model | |
Competitive Rivalry | |
Growth opportunity for healthcare companies are expected to growing the next few years | |
Increase in new revolutionary drugs both in and outside of the US | |
Threat if New Entrants | |
Strict government regulations | |
Difficult to keep up due to constant change | |
Huge startup cost | |
Substitute Products | |
Threat of other substituting product and service at lower cost | |
Bargaining Power of Customers | |
Generic drugs offered at large discount to consumer | |
Larger less customized healthcare facility with lower housing costs | |
Several facilities offering similar services. | |
Bargaining power of supplier | |
Medical suppliers have a large pricing power | |
Bargaining power of physicians and nurses is huge because of large hospital benefits |
Swot Analysis
Strengths
Highly trained and capable employees
Market experience
Strong leadership
High level of organizational efficiency
Excellent facilities
Strong commitment to bettering the community
Weaknesses
Increased cost of healthcare could lower our clientele
Limited staff resources
Limited cash flow to hire and train new employees
Lack of resources
Opportunities
Fast growing technology opens new doors for using state of the art equipment to better serve the patients. Nursing and residential care is one of the fastest growing industries Aging population Threats Uncertainty in political and economic climate causes hesitation for receiving new patients. Funding constraints Highly competitive market Product or Service Analysis Our services will be used by patients who cannot afford experimental treatments and patients who have been abandoned by the system because hospitals can no longer provide medical assistance. At our facility, we will be able to work with the families and provide them with different payments options, such as low monthly payment plans. Our main goal is to be able to treat the patient at a very affordable cost; however, if any patient does not possess the means to pay for treatment, he or she would not be turned away; our facility will tap into government and private funding to cover treatment cost. The beauty of this service is that there isnât a charge of any kind to take part in our program because it is completely funded by government grants. Individuals that would take part would more than likely not have the means to pay a monthly deductible. Due to the nature of the business listed as a non-profit agency, there is no way to make a profit of any kind, as it would jeopardize the business in its entirety. Some of the market factors that create a demand for our services include the need of medical care after having maximized all resources, the number of low income families, and the number of patients facing health issues needed extended medical care. Opportunities that may derive from this business is the opportunity to expand and open multiple facilities, while extending a helping hand to many more in need. The risk, however, is the unstable funds deriving from grants. This can pose a huge treat to the business, as grants often times come and go and cannot be counted on as a constant income. After studying the healthcare system and current policies in place, data shows many individuals facing severe health issues usually go untreated and uncared for due to the outrageous cost of medical care. It is devastating to see how often people, especially the elderly, are sent home and forgotten for the mere reason that hospitals and doctors are not willing to care for patients without financial means. In fact, in 2009 Harvard news reported 45,000 annual deaths due to lack of health coverage in the U.S. alone, which is significantly higher than the 18,000 reported by USA Today in 2002. Financial Analysis Clermont will be a nonprofit organization, dedicated to help the most needed. To open the facility fully operational we must take in consideration some fixed expenses like the land acquisition, permits, interest, brokers, administration fees, professionals (facility setup), staff, reports (environmental, occupational, fire, FDA), electricity, water, phone, water & sewer , connections, taxes, insurance, management, security, advertising, accountants, food, lawn mowers, bank fees, etc. The facility will need have a total value of approximately three million dollars, but if we break the price of the land acquisition in to a thirty (30) year mortgage we can star up the business with an investment of approximately $ 233,944.61 USD to cover the first month of operation including all the startup permits and connections. After the first month the fixed expenses will be $184,444.00 USD with the exception of the months were taxes are due; taxes are around $ 43,000.00 USD paid quarterly will increase the tax month (depending on the facility fiscal year) for $ 10,750.00 USD approximately. We will fund all the costs with private and public funding, fundraiser, events, raffles, and most important with the help of the community. As we mentioned before, Clermont is a nonprofit organization and we will do everything in our power to give the relief to the families in need. No one will be rejected because they do not have the money or the insurance cannot help. No money will be required from patient and every single dollar received will be spent in the patients, and in improving our facility and our service every day. We believe our financial even breaking point will be a year after we begin operations, and be profitable soon after. There are many patients in need, and with the government and public grants each person will receive the treatment they need, and we will become the hope of many. |