It is generally said by most of the investors that the cash flows are relatively more important than the accruals. Before taking the investment decision in particular shares, the investors focus on the cash flow statement more as compared to other financial statements such as; profit and loss account and the balance sheet. One of the reasons they assume of superiority of cash flows over accruals is that "Cash flows can not be manipulated" and thus show clear and fair results of the different activities of the business pointed out by the investors. 


Considering the above underlined statement as FALSE, List down four ways in which cash flows in a cash flow statement can be manipulated. 

Note:  Be concise and to the point. Your answer should be in “four” bulleted points and no detail is required. 

Answer: 

FIN622 GDB Solution 

1-Companies can bulk up their statements simply by changing the way they deal with the accounting recognition of their outstanding payments, or their accounts payable.
2-Another way a company might increase operating cash flow is by selling off its accounts receivable. This is also called scrutinizing.
3-A subtler steroid is the inclusion of cash raised from operations that are not related to the core operations of the company.
4-Also a subtle form of doping, we have the questionable capitalization of expenses.

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks

Name any ONE entrepreneurial venture in Pakistan and discuss how it has used innovation to create value in order to make it successful.

entrepreneurial venture in Pakistan

(Energy supply and economic stability are interlinked venture)

entrepreneurship opportunities are patronized in Pakistan, to encourage investments by the budding entrepreneurs in the power sector for electricity generation from small hydel plants, nuclear, wind and solar energy projects

Entrepreneurs have shown substantial interest in rental power plants to be installed in Pakistan. More private sector entrepreneurs must come forward to join hands with the government for power sector investment and projects. NEPRA has made considerable progress towards the development of the regulatory regime and future market design for the power sector

GOP guarantees protection against any change in duties and taxes, and against specified “political risks.” Exemption from income tax, including turnover rate tax and withholding tax on import is available to private power generation projects. For hydropower projects, hydrological risk is to be borne by the power purchaser.

Through following corrective action this one used innovation to creat value In order to make it successful:

Government support and Policies,Reforming the Educational Infrastructure,Raising awareness,Promoting equal opportunities,Encouraging and facilitating the international exchange of ‘good practice’,Creating awareness about Self employment,Availability of Financial instruments,Creation of National Commission

Encouraging young entrepreneurs to enhance networking

Establishment of Independent bodies

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

What is NFC award? What is formula for sharing financial resources between federal and provincial governments?

Solution Idea:-

The NFC Award or National Finance Commission Award, is the distribution of financial resources among the provinces of Pakistan by the federal government on annual basis. Certain types of taxes collected in each province are pooled, then redistributed according to the NFC formula. What taxes to include in the distribution pool and the distribution formula is a subject of debate. Pakistan has had five NFC awards formulas. The Fifth NFC Award, adopted in 1997, was supposed to be valid for five years but failure to reach agreement on a sixth has meant that the fifth is still in operation.
Taxes are pooled and distributed: Certain types of taxes collected in each province are pooled, then redistributed according to the NFC formula. What taxes to include in the distribution pool and the distribution formula is a subject of debate.

Taxes included in the pool are (1) income taxes, (2) general sales tax, (3) wealth taxes, (4) capital gains taxes, and (5) custom duties.

Most Tax Receipts are collected from Punjab and Sindh. Almost all custom duties are collected at the Port of Karachi.

new NFC Award can not be announced because the four provinces have failed to develop consensus. Consensus has not been reached because Punjab province insists resource distribution on the basis of population alone whereas the other three province, namely North-West Frontier Province, Sindh and Balochistan demand giving importance to the revenue generation by each province, level of poverty in smaller provinces and other related factors as well, while distributing the national resources among provinces through National Finance Commission

Finance Minister Shaukat Tarin stated in August 2009, that population won't be the only parameter used in calculating the next NFC award.[2] For the distribution of the new award, factors such as inverse population density and poverty have also been kept in mind.
 

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The groups are more productive and effective when they are in public area of Johri window. The aim of every Group must be to reduce the other quadrant size and increase the Public area. Comment.
Solution Idea:-
The groups are more productive and effective when they are in public area of Johri window. The aim of every Group must be to reduce the other quadrant size and increase the Public area. Comment.

Following data is from our Handouts of OD page # 162. But I cant understand Yet that what we have to comment. . .
Plz give your comments on GDB. Or give some tips to answer this GDB.

Disclosure and Feedback of Johari Window:
As indicated in Figure, movement along the vertical and horizontal dimensions enables individuals to
change their interpersonal styles by increasing the amount of communication in the public or shared area.
To enlarge the public area, a person may move vertically by reducing the closed area. As a person behaves
less defensively and becomes more open, trusting and risk taking, others will tend to react with increased
openness and trust. This process termed, disclosure, involves the open disclosure of one’s feelings,
thoughts and candid feedback to others. The openness of communication leads more to open and
congruent relationships.
The behavioral process used to enlarge the public area horizontally termed, feedback, allows us to reduce
the blind area. The only way to become aware of our blind spots is for others to give information or
feedback about our behavior.
The blind area can only be reduced with the help and cooperation of others, and this requires a willingness
to invite and accept such feedback.
Almost every organization finds that poor communication is the most important problem preventing
organizational effectiveness.

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

Question: Write only one page on the given topic below. “Impact of globalization on the future of international marketing”

Solution Idea:- 

we present more issues which will shape the future of marketing management in the changing global business environment. These are the latest findings from a study, using the Delphi method, in which senior executives from around the world rated key dimensions of the world economy that concern international marketing managementRising Consumer Power
Consumers have provided the underpinning of global economic growth over the past two decades, as globalization has helped to spread prosperity over larger parts of the planet. Individual purchasing power has increased greatly as marketers have embraced the concept of customer as king. Consumers have remarkable influence on business decision making as marketers seek to learn more about their needs, wants, desires, dreams and frustrations. As companies look to Asia, central and eastern Europe, Russia, Latin and Central America and Africa for increasing shares of revenue growth, the need for reliable research data is critical. Marketers must carefully weigh the costs of adapting products and marketing them to these growing markets.

At the same time, in the current economic crisis, real or feared job loss, depleted individual savings and shaken confidence have stunted consumer spending. Perhaps one of the most striking lessons learned in the past year has been how closely the world economies are linked. As individual insecurity has risen, so has the role of governments. Many eagerly seek dramatic solutions. Some in government look to import restrictions and “buy domestic” programs to keep home industries safe and to address global imbalances. In many of these approaches, the consumer may end up as the ultimate loser with less choice and increased costs.
Whether the current crisis will persist or the “green shoots” of recovery are actually sprouting, one thing is certain—the global consumer will be the ultimate source of recovery. Our experts offer some interesting insights about their expected behavior.
Consumer Behavior Issues1) Cultural adjustment. Our study revealed a seeming dichotomy in regard to cultural assimilation. While there is a strong belief that cultures around the globe will become more similar to one another—particularly in macro issues such as accountability, performance expectations, freedom accorded within society, and product preferences—there is also a perception that uniform ways of thinking, as influenced by the United States, will be less accepted due to increased assertion of regional and local idiosyncrasies and sovereignty.


The key task for governments is to identify cultural conflicts early on, and to prevent from becoming irreconcilable. There must be an ongoing search for ways to keep society cohesive, connected and ready for collaboration. Governments must understand the investment models driving the behavior of firms, and provide a platform that allows businesses to mitigate the sometimes harsh market dynamics created by high risk conditions. There is also a need to reconcile the benefits of corporate growth with consumer expectations for an increased role in the marketplace.

The corporate challenge is to take advantage of the opportunities of globalization, while reflecting unique cultural preferences, tastes and values. Asian tastes and preferences will increasingly influence product design and corporate business practices. Also, look for corporations to opt for more use of soft power (such as corporate philanthropy) in coping with local requirements in the global marketplace. A challenge for companies will be the increasing expectations of societies and governments related to the extent and nature of corporate social responsibility programs and practices. What was once voluntary is quickly becoming compulsory with sometimes retroactive enforcement—if not by law, then by sentiment.
2) Conservation and sustainability. Green gains global marketing muscle, as consumers exercise the power of demand in the environmental arena. In light of public concern about climate change, there will be a growing preference for energy-saving technologies and a reduction and limit to energy use. A stream of scientific and non-scientific proof will be offered for global warming. Public impressions and perceptions will lead to changes in living patterns and habits. Consumers will increasingly favor products and services from companies with strong sustainability practices.

While governments and companies adjust to both a stronger eco-consciousness and the realities affecting economic growth, there may emerge an uneven playing field.

In its drive to grow, China will demonstrate only limited concern toward the environment, even though environmental problems will have a major effect on its ability to compete as a global manufacturing center. At the same time, environmental, health and other social costs will dramatically reduce the advantages of firms to manufacture in China—with a resultant shift of investment to other locations, including the U.S. and Europe.
A major consequence of China’s and India’s rapid growth will be an ongoing depletion of natural resources. Aspirations for economic progress and better lifestyles will cause shortages in vital commodities. In response, governments will often be sorely tempted to worship the false idols of protectionism, administrative shelter, subsidies and price controls. Food shortages will result in the attempt to put more land into grain production, which leads to downstream problems of water shortages and land exhaustion. Additionally, the safeguarding of products consisting of increasingly valuable materials will grow in importance as prices for commodities such as copper and iron rise.
3) Information. As marketers seek local insights, local data will become even more essential. A greater diversification of information sources may typically provide for better knowledge evolution. But mergers, acquisitions, cost cutting or limited user willingness to pay will lead to fewer data sources offering increasingly similar data. Data users will demand more knowledge about the origin of information, in order to gauge its validity and trustworthiness.

Panelists also expect that there will be a decrease in the willingness of firms and people to offer information at no or low prices. Increased transparency requirements, along with laws and restrictions that raise the threat of law suits, will be coupled with a desire to participate in the financial benefits of knowledge transmission.
Trade Barrier Importance
Although our experts predict that consumers will continue to exercise more muscle, the increasing role of governments in the marketplace will inevitably have both positive and negative consequences. With growing global public anxieties over financial security and loss of domestic jobs, continued and increased protectionist policies may well result in decreased consumer options. The victims of these policies are not only global businesses but consumers as well. Whether it concerns Chinese families in need of banking services, American connoisseurs of Roquefort cheese, Europeans in need of a good American steak or Indian oenophiles, tariff and non-tariff barriers rob individuals of the opportunity to pursue product preferences. The commitment of governments to lowering trade barriers is the key fundament to a better life.

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

Question # 1 of 15 ( Start time: 11:14:04 AM ) Total Marks: 1

In a small open economy with a floating exchange rate, fiscal policy will be ineffective because: 

Select correct option: 

 Monetary policy will completely offset it.

 The exchange rate will remain constant.

 A fall in net exports will offset any increases in government purchases or consumption.

 The exchange rate will rise by the same amount as the interest rate.

    

Quiz Start Time: 11:14 AM  Time Left  86

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Question # 2 of 15 ( Start time: 11:15:19 AM )  Total Marks: 1 

Real interest rates are the: 

Select correct option: 

 Nominal interest rates plus the inflation rate.

 Interest rates quoted in the market.

 Interest rates quoted in the market minus the inflation rate.

 Interest rates quoted in the market plus the expected inflation rate.

    

Quiz Start Time: 11:14 AM  Time Left  87

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Question # 3 of 15 ( Start time: 11:16:29 AM )  Total Marks: 1 

The idea that government spending causes a reduction in private investment is called: 

Select correct option: 

 Fiscal drag. 

 Crowding-out.

 Investment blight.

 Accelerator effect.

Quiz Start Time: 11:14 AM  Time Left  87

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Question # 4 of 15 ( Start time: 11:17:43 AM )  Total Marks: 1 

In the steady state for the Solow model of economic growth with depreciation (ð), positive labor force growth (n) and technological change (a), we would expect Y/L to grow: 

Select correct option: 

 At the rate (a + n + ð). 

 At the rate (a + n - ð). 

 At the rate (a + n).

 At the rate a.

Quiz Start Time: 11:14 AM  Time Left  87

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Question # 5 of 15 ( Start time: 11:19:09 AM )  Total Marks: 1 

If people suddenly wish to hold more money at each interest rate: 

Select correct option: 

 The money demand curve will shift to the right.

 The LM curve will shift upward (to the left).

 Real income will fall.

 All of the given options.

Quiz Start Time: 11:14 AM  Time Left  84

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Question # 6 of 15 ( Start time: 11:19:47 AM )  Total Marks: 1 

The relative price of domestic goods in terms of foreign goods is known as: 

Select correct option: 

 Real exchange rate.

 Nominal exchange rate.

 Discount rate.

 Inflation rate.

Quiz Start Time: 11:14 AM  Time Left  87

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Question # 7 of 15 ( Start time: 11:20:08 AM )  Total Marks: 1 

An asset that is included in M3 but not in M2 is: 

Select correct option: 

 Currency.

 Checkable deposits.

 Small-denomination certificates of deposit.

 Large-denomination certificates of deposit.

Quiz Start Time: 11:14 AM  Time Left  87

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Question # 8 of 15 ( Start time: 11:20:53 AM )  Total Marks: 1 

If labor productivity per week is 200 units and there are 5 employees what is the total output? 

Select correct option: 

 40 units.

 95 units.

 1000 units.

 200 units.

Quiz Start Time: 11:14 AM  Time Left  86

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Question # 9 of 15 ( Start time: 11:21:31 AM )  Total Marks: 1 

Which of the following statements about net exports is correct? 

Select correct option: 

 The term C + I + G understate domestic production of goods and services because it leaves out exports, which must be subtracted out of GDP to obtain the correct figure.

 The term C + I + G overstates domestic production of goods and services because it contains imports, which must be subtracted out of GDP to obtain the correct figure.

 The difference between exports and imports is negative when the country is a net exporter.

 Before 1976, the United States was generally a net importer. Only after 1976, exports began to exceed imports.

Quiz Start Time: 11:14 AM  Time Left  86

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Question # 10 of 15 ( Start time: 11:22:48 AM )  Total Marks: 1 

Stock market boom or crash is an example of which of the following? 

Select correct option: 

 IS Shock

 LM Shock

 Demand Shock

 Supply Shock 

    

 Quiz Start Time: 11:14 AM  Time Left  87

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Question # 11 of 15 ( Start time: 11:23:35 AM )  Total Marks: 1 

If State Bank of Pakistan wishes to pursue a “tight” monetary policy it would: 

Select correct option: 

 Increase the minimum reserve asset ratio.

 Buy government securities on the open market.

 Lower interest rates.

 Sell government securities on the open market.

Quiz Start Time: 11:14 AM  Time Left  87

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Question # 12 of 15 ( Start time: 11:24:23 AM )  Total Marks: 1 

Which plays the most important role in increasing the rate of growth in real GDP per capita over time? 

Select correct option: 

 Increases in labor productivity

 Increases in the money supply

 Decreases in the level of inflation

 Increases in the real rate of interest

Quiz Start Time: 11:14 AM  Time Left  72

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Question # 13 of 15 ( Start time: 11:25:23 AM )  Total Marks: 1 

Which of the following is the closest definition of the term "investment"? 

Select correct option: 

 Investment is the purchase of financial assets, such as stocks and bonds

 Investment is the value of newly produced capital goods

 Investment is the purchase of goods for present consumption

 Investment is the accumulation of previous capital

    

Quiz Start Time: 11:14 AM  Time Left  85

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Question # 14 of 15 ( Start time: 11:26:50 AM )  Total Marks: 1 

Human wants are: 

Select correct option: 

 Always fixed.

 Limited.

 Unlimited. 

 Likely to decrease over time.

Quiz Start Time: 11:14 AM  Time Left  88

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Question # 15 of 15 ( Start time: 11:27:04 AM )  Total Marks: 1 

A common misperception about inflation is that it reduces real wages; this is: 

Select correct option: 

 True only in the short run.

 True only in the Long run.

 True only in Command economies.

 None of the given options.

    

Quiz Start Time: 12:29 PM  Time Left  87

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Question # 1 of 15 ( Start time: 12:29:15 PM )  Total Marks: 1 

If the U.S. real exchange rate decreases, U.S. ---------------- will fall and U.S. ----------------- will rise. 

Select correct option: 

 Exports; income 

 Exports; imports

 Income; imports 

 Imports; exports

    

Quiz Start Time: 12:29 PM  Time Left  88

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Question # 2 of 15 ( Start time: 12:29:42 PM )  Total Marks: 1 

In a macroeconomic model without foreign trade or government spending, aggregate demand is the sum of: 

Select correct option: 

 Personal saving and private investment.

 Personal saving and personal consumption.

 Personal consumption and personal income.

 Personal consumption and private investment.

    

Quiz Start Time: 12:29 PM  Time Left  86

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Question # 3 of 15 ( Start time: 12:31:08 PM )  Total Marks: 1 

The major difficulty in measuring economic growth in underdeveloped countries is: 

Select correct option: 

 Lack of skilled manpower.

 Lack of supply of empirical data.

 Preoccupation with other more important problems.

 All of the given options.

    

Quiz Start Time: 12:29 PM  Time Left  87

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Question # 4 of 15 ( Start time: 12:31:53 PM )  Total Marks: 1 

Which of the following is the best measure of the economic cost of higher unemployment? 

Select correct option: 

 The loss of potential exports for the economy.

 The loss of tax revenue.

 The increase in social security benefits paid by the government.

 The output of goods and services the unemployed workers could have produced

    

Quiz Start Time: 12:29 PM  Time Left  86

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Question # 5 of 15 ( Start time: 12:33:18 PM )  Total Marks: 1 

An increase of $1 in government purchases will: 

Select correct option: 

 Shift the planned expenditure curve upward by $1.

 Shift the IS curve to the right by $1/ (1 - MPC).

 Not shift the LM curve.

 All of the given options.

    

Quiz Start Time: 12:29 PM  Time Left  87

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Question # 6 of 15 ( Start time: 12:34:29 PM )  Total Marks: 1 

Inflation resulting from demand shocks is known as: 

Select correct option: 

 Demand pull inflation.

 Cost push inflation.

 Expected inflation.

 Food inflation.

    

Quiz Start Time: 12:29 PM  Time Left  86

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Question # 7 of 15 ( Start time: 12:37:49 PM )  Total Marks: 1 

Which of the following equations is correct? 

Select correct option: 

 Nominal interest rate = real interest rate - inflation

 Real interest rate = nominal interest rate + inflation

 Real interest rate = nominal interest rate × inflation

 Real interest rate = nominal interest rate - inflation

    

Quiz Start Time: 12:29 PM  Time Left  88

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Question # 8 of 15 ( Start time: 12:39:16 PM )  Total Marks: 1 

Which of the following statements best describes the definition of scarcity? 

Select correct option: 

 There are no buyers willing to purchase what sellers have produced

 There is more than enough money to satisfy consumers' wants

 Resources are limited in quantity and can be used in different ways

 There are not enough goods to satisfy all of the buyers' demand

    

Quiz Start Time: 12:29 PM  Time Left  87

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Question # 9 of 15 ( Start time: 12:40:20 PM )  Total Marks: 1 

Real GDP (Gross Domestic Product) is measured: 

Select correct option: 

 In the prices of a base year.

 In current dollars.

 At a constant output level but at current prices.

 As the difference between the current year’s GDP and last year’s GDP.

    

Quiz Start Time: 12:29 PM  Time Left  85

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Question # 10 of 15 ( Start time: 12:41:49 PM )  Total Marks: 1 

A sustained high rate of growth of an economy results in: 

Select correct option: 

 High rate of growth of the agriculture sector.

 Change in occupational structure in favor of industry.

 Rapid industrialization.

 All of the given options. 

    

Quiz Start Time: 12:29 PM  Time Left  58

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Question # 11 of 15 ( Start time: 12:42:14 PM )  Total Marks: 1 

During periods of poor economic performance, real GDP: 

Select correct option: 

 Declines but unemployment typically does not change.

 Declines and unemployment rises sharply.

 Is unchanged but unemployment rises sharply.

 Declines and unemployment rises moderately.

    

Quiz Start Time: 12:29 PM  Time Left  87

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Question # 12 of 15 ( Start time: 12:43:16 PM )  Total Marks: 1 

As risk premium ? increases, interest rate increases, investment decreases and IS* curve: 

Select correct option: 

 Shifts leftward.

 Shifts rightward.

 Does not change.

 All of the above are possible.

    

Quiz Start Time: 12:29 PM  Time Left  86

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Question # 13 of 15 ( Start time: 12:44:38 PM )  Total Marks: 1 

Which of the following is the largest component of total expenditures? 

Select correct option: 

 Consumption

 Investment

 Government spending

 Net exports

    

Quiz Start Time: 12:29 PM  Time Left  86

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Question # 14 of 15 ( Start time: 12:45:48 PM )  Total Marks: 1 

An increase in the money supply will shift the: 

Select correct option: 

 IS curve to the left and decrease both the interest rate and the level of income.

 LM curve downward (to the right) and increase both the interest rate and the level of income.

 IS curve to the right and increase the level of income but decrease the interest rate.

 LM curve downward (to the right) and increase the level of income but decrease the interest rate.

    

Quiz Start Time: 12:29 PM  Time Left  86

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Question # 15 of 15 ( Start time: 12:47:12 PM )  Total Marks: 1 

The socially optimal rate of growth is: 

Select correct option: 

 Zero.

 Negative.

 Where the marginal social benefit = the marginal social cost.

 Total social costs are minimized.