What are the factors influencing the magnitude of a firm’s working capital needs? (500 words)
- Business size: Big companies have to maintain higher amounts of capital due to their larger operational volume compared to smaller firms. The figurate of the stock, accounts receivables and payables are bigger too.
- Nature of business: Corporates with manufacturing operations that encompass a longer cycle time and those offering credit sales terms generally have a high account receivables and inventory investment. Companies like automobiles and fast-moving consumer goods (FMCG) are the best place examples.
- Production cycle: Proper production cycles with more inventory investments, the longer they are endure. Importantly, the enterprise in question will be forced to have an increase in account receivables because of the longer credit.
- Credit policies: Lax credit policies for customers would compel higher allowance for receivables (payable amounts due). With good credit terms from suppliers, the level of required working capital is also significantly reduced.
- Growth rate: A dramatically expanding businesses must needs cash money to finance augmented sales that is inevitably accompanied by creditors as well as inventory. As high sales cause high working capital.
- Seasonality of operations: Seasons of sales peak and low, e.g. of toys, travel etc, demand high level of working capital in these businesses to manage (inventories and receivables) across (peak and non-peak) seasons.
- Industry characteristics: Working capital needs are a major factor determining the liquidity state among the industries due to the period of cash conversion. For example, what do we compare between fast food and automobile industries?
What are the different types of mergers? Explain. (500 words)
Intro (50 words)
- Briefly describe what venture capital means and the venture capitalist who finances the startups and the development of those that are in their early stage.
Stages (400 words)
- Seed funding stage
- Proving the concept and business plan in early stage financing, which is sometimes the only choice for innovation.
- Investors fall into the category of angel investors, friends, and family including themselves.
- Startup stage
- Provision of seed capital for the start-up, research, and production along with promoting the product.
- The first round of fundraising is called Series A, while the series B round follows.
- VCs provide capital and business knowledge, and in return, they get control in equity.
- Expansion stage
- The phase of Extreme growth where the business is to be scaled.
- This involves a necessity of more capital to get production increased, marketing etc.
- VC funding in growth stage as the solution to IPO (Initial Public Offering)
- Exit stage
- VCs' exit routes are mainly IPO, acquirement, or buyout.
- Objective is to earn a high profit.
- Typically, a vast majority of ventures aim for 3 to 7 years of continuance.
Conclusion (50 words)
- Explain the venture capital (VC) typical stages of financing it invests in and the exit options by which it usually liquidates its investments.
What are the stages involved in venture capital financing? (500 words)
Intro (50 words)
- Briefly describe what venture capital means and the venture capitalist who finances the startups and the development of those that are in their early stage.
Stages (400 words)
- Seed funding stage
- Proving the concept and business plan in early stage financing, which is sometimes the only choice for innovation.
- Investors fall into the category of angel investors, friends, and family including themselves.
- Startup stage
- Provision of seed capital for the start-up, research, and production along with promoting the product.
- The first round of fundraising is called Series A, while the series B round follows.
- VCs provide capital and business knowledge, and in return, they get control in equity.
- Expansion stage
- The phase of Extreme growth where the business is to be scaled.
- This involves a necessity of more capital to get production increased, marketing etc.
- VC funding in growth stage as the solution to IPO (Initial Public Offering)
- Exit stage
- VCs' exit routes are mainly IPO, acquirement, or buyout.
- Objective is to earn a high profit.
- Typically, a vast majority of ventures aim for 3 to 7 years of continuance.
Conclusion (50 words)
- Explain the venture capital (VC) typical stages of financing it invests in and the exit options by which it usually liquidates its investments.
Explain capital asset pricing method. (500 words)
CAPM is an economic theory which describes the relationship between risk and expected return of a financial asset.
- Model the model and then go into a more detailed look at its main unit – beta model.
- Explain how systemic risk and risk not based on any system are different.
- Analyze what the beta measures in line with systematic risk and how it correlates with the required return.
- Provide the investors with an overview of a SML and expected return of a particular investment.
- Discuss capital allocation line and optimum risky portfolios using different kinds of relationships.
- State assumptions of the economy: no taxes or transaction costs, perfect financial markets and so on.
- Concluding with some practical applications and also outlining the potential limitations of the CAPM model.
Discuss the theory: Markowitz Efficient Theory. (500 words)
- Begin with the theory of portfolio and Markowitz's main part in the development portfolio analysis.
- Include the expected return and risk ideas and the definition of risk as variance/standard deviation provided by Markowitz.
- Talk about the amounts and the investor's objective of getting the maximum return corresponding to a given risk level.
- Show diversification and explain that a portfolio based on the efficient frontier is in the best situation possible because these stocks have a low correlation and in a well-diversified portfolio, you don’t have all your eggs in one basket.
- Explain the optimization process to design a portfolio that is both risk-efficient and loss-trending.
- Enclose the essay by highlighting Markowitz’s main theory that is followed by modern portfolio theory.
Discuss simulation and its limitations. (500 words)
Intro (50 words)
- State how simulation models reflect real world scenarios (for experimentation of system properties).
Explanation (300 words)
- Mention the discrete events and Monte Carlo approaches.
- Illustrate how simulations create random numbers and random processes based on probability distributions.
- Talking about forecasting, optimization and particularly about the estimates with uncertainties using simulation methods.
- Explain limitations: reproducing real-world models is challenging with assumptions about data as inputs and computationally heavy, problematic in the same way.
Example (100 words)
- Mention the usage of simulations in any business of higher education (e.g. simulating the model of production system, financial forecasting)
Conclusion (50 words)
- Simulation section where all the consequences are being discussed as well as advantages and disadvantages.
Explain decision tree analysis with examples. (500 words)
Intro (50 words)
- Briefly talk about what a decision tree is and why it is used (to help decision-makers navigate through possible outcomes and form a decision).
Explanation (300 words)
- Explain the key components: arrows of decisions leading to nodes which representations for choses points, white arrows of chance with probabilities and and red arrows of outcomes.
- Illustrate the versatile gamut with two or three decisions, happenings, and results in the simplest easier example.
- Visualize an example of the decision tree that has branches and nodes.
- Compute final weights node and state how to convert decision path back to the tree in order to identify the optimal path.
Examples (100 words)
- Mention about using of decision trees in business (for instance, new product investing, buying tools) 2 times.
Conclusion (50 words)
- Develop decision trees -modeling, to which decisions and uncertainties can be used to guide businesses strategy
Does a business need a CPM and a PERT? Explain. (500 words)
Introduction (100 words)
- Point out that CPM and PERT are two important tools in planning and controlling projects.
Comparing CPM and PERT (250 words) (I am sharing only one sentence to clarify the written output) CPM is widely used in construction and other industries, while PERT is commonly applied in technology, aerospace, and other complex projects.
- CPM employed for projects where activity lengths are given; creating a critical path to concentrate the efforts.
- Uncertainty in project duration is one of the PERT cases; probability statement on deadline is its output.
- CPM generates a Gantt-chart which is prone to fluctuations; PERT finds opportunities where CPM cannot be applied.
- Not excluding them it is also breaking down projects into activities, is using network diagrams as well as identifying critical path.
When to Use CPM and PERT: A quick (100 words)sentence.
- CPM is good option for typical projects in case the complexity of the project and the time/resource estimates are reasonable.
- PERT is the best for a complex, irregular project that involves a lot of unknown variables.
Market for enterprise (50 words)
- The majority of firms would need a combination of CPM and PERT methods unless the work schedule is quite straightforward.
Rationale (200 words)
- Projects, even some regular ones, have some underlying uncertainty.
- Companies on occasion play a role of dealing with projects that are either straightforward or have multi-level complexities.
- CPM and PERT are used interchangeably as they allow the planner to use the planning methodology more flexibly.
- Combination gives realistically-based timeframes, discloses consequences, and demonstrates the interdependence of various project activities therefore.
Conclusion (100 words)
- Briefly explain through project the management metrics of CPM and PERT to make a business to plan every level of complexity and future projects.
What are involved in project planning? Give examples. (500 words)
Introduction (100 words)
- Transiently acquaint the planning process is defined as setting up the goals, bounds, timeline, resources, and risks that were to be used to achieve the project successfully.
Injection of Highlights in the Project Planning (300 words)
- Developing project objectives and indications of progress.
- Example: The first thing to identify is the want and necessity of the new software and the features it should have to meet the business needs that will explain what the software should do.
- The preparation of a project scope statement should be performed thoroughly.
- Example: Sketching all the tasks and processes should be followed for the software development.
- Such task-based structure
- Example: The desegregation of the software project into the module, code task, testing activity people etc.
- Whereas developing a scheduling plan with milestones may become realistic.
- Example: Developing a vertical Gantt chart with which all activities (requirements gathering to user acceptance testing) go through step-by-step and their timeframe is represented.
- Estimating resource needs
- Example: Allocating the right programmers, testers, devices and the necessary budget is necessary.
- Identifying and implementing the appropriate security measures in response to the existing risks.
- Example: Determining the technical problems or the source of constraints in a project that could result to the failure to deliver on time and therefore identifying the ways of minimizing them.
Conclusion (100 words)
- Putting an end to this question, you will have to summarize the key project planning components that have been addressed in the answer and stress the importance of proper planning to ensure successful project execution.
What are the techniques used in managing a global supply chain? (500 words)
- Let the learners know about a global supply chain.
- Discuss the nuances of the industry like how rules can vary from place to place and culture can be different.
- Global footprint of a company depends on its supplier/partner management or whether the strategic objectives of the company are in compliance with environmental, social and economic responsibilities during the integration of resources and value creation in the global business environment.
- Localization vs. standardization strategies can be applied in marketing strategies.
- Intercontinental and intra-continental transportation and warehousing (shipping) are at the core of any supply chain.
- The risk management of the company includes responding to the uncertainties in various ways.
- Collaboration, visibility, and flexibility engender rapid adaptation to new environments.
- Include such cases as best practice worldwide in supply network management.
