Managers, Management and the Management Environment Lab Report

Managers, Management and the Management Environment - Lab Report Example Effective management requires the organisation management to have a vision, objectives, policies and strategies that must be forecasted. Enhanced management practices have regularly being linked to diligence, superiority, involvement, and regulation of strategic-planning practice by the organisation’s leadership (Harrison, 2003). This discussion paper will focus on the impact of current management practices within the hospitality industry particularly the influence of culture, technology and parochialism in regards to their human resources function. The study will examine why diverse management practices in the industry have impacted negatively on employee turnovers and how modern management practises can offset this trend. There are three main managerial levels in organisations that encompass the top, middle and lower level management levels. The upper level is represented by the company board and managing director or the CEO who formulates the strategic plans for the entire organisation. The middle hierarchy of administration comprise of functional managers including the human resources, marketing, and finance department managers. The lower echelon is made of the front-line managers and their supervisors who must be endowed with commensurate technical skills that qualify them run the daily operations of the organisation. These strata nevertheless necessitate diverse skills to qualify for the particular level’s specific duties hence the top managers need conception or analytical skills to make strategic decisions while the mid-level managers require human skills to interact well with all stakeholders but the last level only necessitate appropriate technical acumen to discharge their duties effe ctively (Robin and Coulter, 2002). [See illustration below Figure: 1] Within the hospitality industry, the management has acknowledged the significance of having quality

The Needs And Demands For Laptop Features Marketing Essay

The Needs And Demands For Laptop Features Marketing Essay Apple plays an important role in the laptop industry. Though Steve Jobss empire maybe behind in the ranking but year after year, Apples market share is increasing (Mintel, 2009) and has recorded a annual sales rise of 12.5 % , achieving a turnover of $ 36.54bn in 2009. The successful launch of iPhone , iphone with 3g technology and increasing sales of Ipod helped Apple to increase its brand equity and awareness which helps them expanding in market. Apple offers a wide variety of products from ipods, mobile phones, iphone along with Imac and the MacBooks. In the process of staying competitive, apple announced in September 2009 at a special event, Keynote, that, they plan to further reduce their margins and offer affordable computers and by that be more competitive in terms of price positioning (Apple, 2009). In the constantly evolving PC sector the main players are HP, Acer, Dell, Lenevo and Toshiba. The companies in the highly competitive laptop industry offer best deals at best prices to the market with a wide range of innovative products to the consumers every day, thus responding to the needs and demands. Many advanced and fragile laptops have lately emerged in the market with cheaper price as well as finer design (BBC news, 2008). Apple, HP (Hewlett-Packard), Dell and other players in market have launched the series of light notebooks. But Sony proves to be a tough competitors with the launch of world lightest notebook 8, the 1.4 pound VAIO in 2009 (Sony, 2009). To prove to be innovative HP provides innovative personalisation through Personalize with HP Skins to reflect users personality and lifestyle (HP, 2009).Where Apple provides only white, grey and black laptop covers. Apple has been able to be competitive in the market as they offer facilities quicker than competitors. Therefo re, Apple manages to provide advanced technology to user which is bettered compared to its competitors.. It is necessary to define the business and update products to every single trend in the sector to supply to the inherent customer needs. Nowadays, in a constant volatile economical and social world, it is more difficult to predict, analyse and perceive consumers attitude towards a product than ever. (Randrianasolo, 2006). With the increasing usage of laptops on university campus in classrooms, libraries etc. this seems to be an effective target for laptop companies. Apples educational website has a wide variety of offerings for laptops and PCs with offers, discounts and services. Although, Apple laptop features need to be modified in order to suit the students needs. Sales in this segment can prove to be a fertilizer for improving Apples business. The Nature of the Management Issue: In order to sustain to the competition, it is necessary to be efficient to satisfy the customer needs and wants. The purchasing decision of MacBook can be affected by exploring the existing offerings in the market in terms of laptop and the studying factors that influence students desire for personalising laptops, features, softwares ( for course, gaming ,etc. ), portability, longer battery, as well as price . The busy students life, they need easy access to softwares, drivers etc. Students also demand for customizing or personalization of laptops according to the needs for self identity, study course, gaming, professional etc. This will help to increase the market share, sales of Apples laptops and create a positive image of the company in the industry. Decision problem: In order to achieve a sustainable competitive advantage, which new strategic methods should Apple consider? Understanding how adding values and features to laptops esteemed by students can help in increasing market share. Decision that Apple can make is: What features and aspects can Apple change in their laptops in order to expand its laptop sales among the University students in UK? Research Objectives or Hypothesis: Research should support the management issue, and develop solution further. The objective is to conduct a marketing research based on problem defined, which would be: To study the university students needs and demands for a new laptops and the extent to which the current market offerings satisfy those needs. This research shall include studying components like: What buyers seek in order to satisfy for the needs of university students? To find out needs considering factors like social acceptance, lifestyles, portability or a combination of various factors. Till what extend do current laptop offering in market meet the demands? Survey of what competitors brands provide that they are more desirable. What are the esteemed laptop features among university students? What features to be kept on priority while designing the package? Can the features be identified in terms of RAM, ROM, LCD screens, graphic cards, Personalization of laptop and laptop covers, portability, internet options, Wi-Fi connectivity, battery life as well as services and pricing? Do current products from Apple satisfy these demands? What is the buying behaviour, demographic as well as psychographic of the targeted market segment? To find out what strategies can be developed to influence the buying decisions of customers in the target market. The value of this work: The research shall help Apple to: Focus on product launch that in turn will accentuate the customers to buy Apple laptops. The research can help in improving brand equity and market share. Further, helping the company to establish itself as a benchmark for the other competitor companies. Understanding the psyche of focused group for the aspects like needs to buy a laptop, ideal laptop features, or important characteristics of Apples laptops and whether Apple adequately meets these demands. To draw relationship between students buying behaviour and factors that affects their purchasing decision. The research will also be important in aspect of social value in determining factors that can be benefit to students and thereby contribute in empowering the education system. Research Design: The research has to be carried out through various methods in order to investigate the actors that student consider while selecting a laptop and to understand the psyche of young consumer. The understanding will further help the company to launch new products in market as per the demands. Thus, identifying and understanding the new potential market for increasing laptop sales can lead to increasing market share. A Casual, conclusive research has to be designed to understand what the students demand and to what extent are they fulfilled. A) Secondary Research: Literature review and industry research form a part of secondary data and are more quantitative. Evaluating and analysing this descriptive data helps to diagnose and plan the research for primary data. Data Sourcing: Data can be sourced in various ways and varied sources as per the requirements of the mode of conduct of the research. Internal Secondary data: These are the sources help in getting internal records of the companies which can prove useful as they have relevant information which the research demands. Such Data can be available from the official websites of the companies can give information on the sales and figures, financial reports and statements, etc. External Secondary Data: these sources give a wide range of information and data from which the researcher can access to the information from the selected source. These include resources like books, journals, periodicals, press reports, and sources like keynote, Verdict Research etc. These sources provide general information on the business as well as business statistics. Intelligence sources like journals, newspapers etc. also help to acquire relevant data. This secondary data can lead us to develop an approach towards collecting primary data. B) Primary Research: Primary research will be useful to verify the students opinion. Primary survey gives the most recent data accurate and relevant through different ways such as questionnaires, surveys, observations. In order to collect the recent students opinion below methods can be used: Questionnaires. Focus Groups discussions. Interviews and observations : group discussions on university campus. Surveys: telephonic surveys, mail surveys, web surveys. Sampling design and Size: Simple random technique: The university students having equal probability of selection (Malhotra, 2009) through interviewing and filling questionnaires. Sample size has to be targeted should be approximately 300 students from different universities, Courses and level of education (Bachelors/ Masters). In order to get balanced information it is necessary that the survey should be done across all parts of the country. Questionnaire: The questionnaire should support the research objective in finding out students perspective on general information and knowledge about laptops, pricing, how important are laptops, what features do students demand for, students opinions and suggestion on Apple MacBook. The questions per section should not exceed beyond 15 and should have multiple choices to save time and interest. Field Work: The questionnaires, interviews and survey can be carried out in university classrooms, seminar, cafeterias, computer hubs, library, student residence halls. Emails with attached copy, questionnaires on Apples official website and students poll and blogs can also be helpful ways of conducting the research. C) Collection of data and data entry. This could be done manually using a software programme. D) Analysing and data interpretation using methods like cross-tabulation. E) Test the reliability of the data. In order to check whether the analysis is correct cross testing of data can be done. The company Apple can provide free services or softwares as incentives on completion of the survey. Theoretical Underpinnings: Brand Differentiation and Innovation Strategy : Schmalensee, Richard (1982) in his research Product differentiation Advantages of Pioneering Brands reflects the importance of brand differentiation and innovation concept will help to understand why there is a need for adding unique value to a product in category. Increasing differentiation in products compared to competitors will help to improve the market share as well as Innovation Strategy this helps, in creating new standards though product innovation. These are competitive strategies prove advantageous in the process of creating distinctive brand. Relation between Consumer and business: Vrontis, D., Thrassou, A. (2007) A new conceptual framework for business-consumer relationships draws the relationship between understanding Consumer demands and buying behaviour to the Business of any company. It explains why is it necessary to build strategies and provide the consumer the demanded product in order to perform better. 3) Branding strategy- consumer buying decision: Hamann, D., Williams Robert L. ,Omar ,M. (2007) in the paper Branding strategy and consumer high-technology product explain how consumer buying decision factors like Price, use, quality and culture affect the branding strategy . This helps to in research design to consider these points and investigate them through University students perspective. 4) Consumer Behaviour- Social class influences: Social factors can affect the purchasing decision of University students. In the paper Social class influences on purchase evaluation criteria the author Williams, T. (2002) investigates how social factors affect the consumer behaviour while buying products. 5) Need for portable computing: Studies have proved that there is change in teaching ways and students are subjected to more electronically available data. This proves that students need laptops on campus as the classroom, library and campus culture relation with students is changing. (Bazillion, 2001) 6) Technology and marketing: According to Moncrief, W. and Cravens, D. (1999) rate of change by technology affecting the buyers will increase. In order to grow and perform in the competitive market, companies need to be market driven. Hence, it is necessary to investigate the demands of the consumer so that companies can find out efficient and effective ways of reaching the market Administrative Constraints: There might be a few limitations which might hamper the process of research and data interpretation. Few constraints can be as below: Availability of students: Students have a busy life and lectures and project works. Hence it might be difficult. The research demands to study the University students from different cities in UK. This will increase the problems in data collection.. The sample size will affect the reliability of data. Also, as the research demands study of students from different universities which is a difficult job. The research will have to be limited to a selection of representative universities. This can constrains in the study of overall university student in the country. Data is collected from interviews, discussions and surveys. There can be errors while entering the data. The factors will have to be considered. Due to some incorrect data entering can affect the accuracy of data. Also, the sample size will be an important factor that can affect the data accuracy. REFERENCES: Apple (2009) work- Keynote 2009 [Internet]. Available from [Accessed on 19 December 2009]. Bazillion, R. , Braun, C. ( 2001) Classroom, library and campus culture in a networked environment. Campus- Wide Information systems, Vol. 18, no. 2, pp 61-67. BBC news (2008) Dell joins cut-down laptop market [Internet]. Available from: [Accessed 20th December 2009]. Hamann, D., William, R., Omar, M. (2007) Branding strategy and consumer high-technology product. Journal of Product Brand Management, Vol. 16, No.2, pp 98-111. HP (2009) Hp PC learning centre- Personalize with HP skins [Internet]. Available from . [Accessed on 17 December 2009]. Malhotra, K. (2009), Basic Marketing Research, 3rd ed. Upper Saddle River: Person International, Inc. Mintel (2009) PCs and Laptops [Internet]. Available from: [Accessed on 24 December 2009]. Moncrief, W., Cravens, D. ( 1999) Technology and the Changing marketing world. Marketing Intelligence Planning. Vol. 17, No. 7, pp. 329-332. Randrianasolo, H.  (2006) Changement de comportement du consommateur dans le commerce à ©quitable. [Internet]. Available from: [Accessed 28th December 2009]. Schmalensee, R (1982), Product differentiation advantages of pioneering brands,  The American Economic Review, pp.349-65 Sony (2009) P Series- Go lightly. [Internet]. Available from: [Accessed 19 December 2009]. Vrontis, D., Thrassou , A. ( 2007) A new conceptual framework for business- consumer relationships. Marketing Intelligence Planning, Vol. 25, No. 7, pp 789-806. Williams, T. (2002) Social class influences on purchase evaluation criteria. Journal of Consumer Marketing, Vol. 19, No. 3, pp 249-276. IMAGE REFERENCES: Image 1: Apple (2009) Which Mac are you? Apple advertising on the official website with its range of Macs, [Online Image]. Available from [Accessed on 8 January 2010] Image 2: Ackerman, D. (2009) Market Share of leading companies in PC sector in Apple drops to No.5 in laptop sales- are cheaper MacBooks the answer?. cnet News, 16 July 2009. [Online image].Available from [Accessed on 24 December 2009]. Image 3: iStyles ( 2009) HP provides Laptop skins: Bend it HP Mini skin , [Online image],Available from [Accessed on 8 January 2010]. Image 4: Reid, R. ( 2007 ) Dell offering 1420N in different colours in Dell multicolour laptops: XPS M1330, Inspiron 1520 and 1720 [Online Image]. Available at [Accessed on 8 January 2010]. Image 5: Albany Law School (2008) Students in classrooms with laptops: showing growing need of laptops in student life, [Online Image]. Available from [Accessed on 8 January 2010]. Image 6: Cooke John (2008) Relationship between Product, customer and Business, [Online Image]. Available From [Accessed on 8 January 2010]. Image 7: Smith Amy (2008) Apples aim Students with apple laptops, [Online Image]. Available from [Accessed on 9 January 2010]. Image 8: Secondary Data (2008) Reference model for understanding sources of primary n secondary data, [Online Image] .Available from [Accessed on 9 January 2010]. Image 9: Point Marketing Limited (2008) Identifying the target group for research sampling,[Online Image].Available from [Accessed on 2 January 2010]. Image 10: Vrontis, D., Thrassou, A. (2007) Framework of the classical business-consumer relationship In A new conceptual framework for business- consumer relationships. Marketing Intelligence Planning, Vol. 25, No. 7.

Summary of The Adventures of Huckleberry Finn One and Two :: Huckleberry Finn American Literature Essays

Summary of The Adventures of Huckleberry Finn One and Two "You don't know about me, without you have read a book by the name of â€Å" The Adventures of Tom Sawyer," but that ain't no matter. that book was made by Mr. Mark Twain, and he told the truth, mainly. There were things which he streched, but mainly he told the truth. That ain' nothing. I never seen anybody but lied, one time or another, without it was Aunt Polly, or the widow, or maybr Mary. Aunt Polly-Tom's Aunt Polly, she is-and Mary, and the Widow Douglas, is all told bout in that book-which is mostly a true book; with some, as I said before.†(Twain 1)   Ã‚  Ã‚  Ã‚  Ã‚  Any way I am here to tell you somethings bout this man that has write all these things bout our adventures. So listen an maybe you might even learn a little something bout this man. Now let me think....oh ya, now I recall it. I reckon it was a warm November ju's like any other, the 30th to be exact. But that ain't how Sam's Pa spoke of it. He had to go maki'n big, fancy speeches and things of that sort at the party. But after all that mubl'in we had a purdy good time. As a matter of fact as I recall that day it was almost pur'fect. If it warn't for me drunk Pa gettin arrested by the Sheriff that morn, it woudda' been real pur'fect. Course I reckon a boy's gota have a good time at his best friend's bert'day party. I was at Sam's house. Course I warn't de only one dare. His Pa, Judge Clemens and Ma, Miss Jane Lampton, till she married of course, was dare and I reckon his whole 'tire family must da been at dat house, can't barely remember it was only his fourth birthday back in 1839 (Howard 1). Ya, me and Sam been friends ever since he moved here, best friends too, he was born an lived in Florida, Missouri prior to now. He moved here at the start of this year. See lots of people don't give me much thought cause me bein uneducated and havin a Pa like I do an all. That all changed though, Sam was the type dat even liked the niggers, so I be surprised if he thought of me differently than any other (Paine 4). Sam's family had'nt got that much money either but his Pa sure was one of them educated types. He was a lawyer and a judge and people looked up to him

Taxation Reviewer

Business Law and Taxation Review Class Name:_____________________________________ Course:_____________________ Date:_____________________ INSTRUCTION: Write the letter of your answer in the box provided. The letter must be written in CAPITAL LETTER. D1. Which of the following statement is not correct? a. Taxes may be imposed to raise revenues or to provide disincentives to certain activities within the state b. The state can have the power of taxation even if the Constitution does not expressly give it the power to tax c. For the exercise of the power of taxation, the state can tax anything at any time d.The provisions of taxation in the Philippine Constitution are grants of power and not limitations on taxing powers D2. One of the characteristics of internal revenue laws is that they are: a. Criminal in nature b. Penal in nature c. Political in nature d. Generally prospective application C3. One of the characteristics of our internal revenue laws is that they are: a. Political in na ture b. Penal in nature c. Generally prospective in operation although the tax statute may nevertheless operate retrospectively provided it is clearly the legislative intent d. Answer not given C4.In case of conflict between tax laws and generally accepted accounting principles (GAAP): a. Both tax laws and GAAP shall be enforced b. GAAP shall prevail over tax laws c. Tax laws shall prevail over GAAP d. The issue shall be resolved by the courts C5. The following are similarities of the inherent power of taxation, eminent domain and police power, except one a. Are necessary attributes of sovereignty b. Interfere with private rights and property c. Affects all persons or the public d. Are legislative in implementation A6. Tax as distinguished from license fee: a. Non payment does not necessarily render the business illegal b.A regulatory measure c. Imposed in the exercise of police power d. Limited to cover cost of regulation B7. Which statement refers to police power as distinguished from taxation? a. It can only be imposed on specific property or properties b. The amount imposed depends on whether the activity is useful or not c. It involves the taking of property by the government d. The amount imposed has no limit C8. The distinction of a tax from permit or license fee is that a tax is: a. Imposed for regulation b. One which involves an exercise of police power c. One in which there is generally no limit on the amount that may be imposed d.Answer not given C9. Which of the following is not an example of excise tax: a. Transfer tax b. Sales tax c. Real property tax d. Income tax D10. Value added tax is an example of: a. Graduated tax b. Progressive tax c. Regressive tax d. Proportional tax C11. S1: The power of taxation is inherent in sovereignty being essential to the existence of every government. Hence, even if not mentioned in the Constitution the state can still exercise the power. S2: It is essentially a legislative function. Even in the absence of any c onstitutional provision, taxation power falls to Congress as part of the general power of law-making a.False, False b. False, True c. True, True d. True, False C12. Which of the following is not a scheme of shifting the incidence of taxation? a. The manufacturer transfers the tax to the customer by adding the tax to the selling price of the goods sold b. The purchaser asks for a discount or refuse to buy at regular prices unless it is reduced by the amount equal to the tax he will pay c. Changing the terms of the sale like FOB Shipping Point in the Philippines to FOB Destination abroad, so that the title passes abroad instead of in the Philippines d.The manufacturer transfers the sales tax to the distributor, then in turn to the wholesaler, in turn to the retailer and finally to the consumer A13. The proportional contribution by persons and property levied by the law-making body of the State by virtue of its sovereignty for the support of the government and all public needs is refer red to as: a. Taxes b. Special assessment c. License fee d. Answer not given B14. One of the characteristics of a tax is that: a. It is generally based on contract b. It is generally payable in money c. It is generally assignable d. Answer not given B15.Tax of a fixed proportion of the value of the property with respect to which the tax is assessed and requires the intervention of assessors or appraisers to estimate the value of such property before the amount due from each tax taxpayer can be determined is known as: a. Specific b. Ad valorem c. Special or regulatory d. Answer not given C16. Which of the following statements is not correct? a. An inherent limitation of taxation may be disregarded by the application of a constitutional limitation b. The property of an educational institution operated by a religious order is exempt from property tax, but its income is ubject to income tax c. The prohibition of delegation by the state of the power of taxation will still allow the Burea u of Internal Revenue to modify the rules on time for filing of returns and payment of taxes d. The power of taxation is shared by the legislative and executive departments of government D17. Which of the following has no power of taxation? a. Provinces b. Cities c. Barangays d. Barrios D18. A tax must be imposed for a public purpose. Which of the following is not a public purpose? a. National defense b. Public education c. Improvement of the sugar industry d.None of the above B19. The basic community tax of Php 5. 00 of an individual is: a. A personal tax b. A direct tax c. A national tax d. An ad valorem tax B20. In 2005, a person was given by a special law the privilege to operate a public utility (franchise), in consideration of which, he was required by that law to pay a franchise tax. This franchise can be amended by: a. An amendment of that special law only b. An amendment of that special law or a law of general application c. An amendment of a revenue regulation d. None of t he above B21. Which statement is wrong? A revenue bill: a.Must originate from the House of Representatives and on which same bill the Senate may propose amendments b. May originate from the Senate and on which same bill the House of Representatives may propose amendments c. Must have a House version and a Senate version approved separately, and then consolidated, with both houses approving the consolidated version d. May be recommended by the President to Congress B22. The state has complete discretion on the amount to be imposed, after distinguishing between a useful and a non useful activity a. Tax b. License fee c. Toll d. Customs duty B23.A tax on business is: a. Direct tax b. Indirect tax c. Property tax d. None of the above C24. Which is the correct and best statement? A tax reform at any given time underscores the fact that: a. Taxation is an inherent power of the state b. Taxation is essentially a legislative power c. Taxation is a power that is very broad d. The state can a nd should adopt progressive taxation B25. Which of the statement gives the correct answer? That a feasibility study needs or need not look into the taxes of different political subdivisions of government which may be alternative sites of the business is because: a.Provinces, cities and municipalities must have uniform taxes between and among themselves b. The local taxes of one political subdivision need not be uniform with the local taxes of another political subdivision c. Businesses that are subject to national business taxes are exempt from local business taxes d. Local business taxes may be credited against national business taxes C26. Which statement is wrong? a. A tax is a demand of sovereignty b. A toll is a demand of ownership c. A special assessment is a tax d. Customs duty is a tax B27. A fundamental rule in taxation is that the property of one country may not be taxed by another country.This is known as: a. International law b. International comity c. Reciprocity d. Inte rnational inhibition A28. In this power of the state, the person who is parting with his money/property is presumed to receive a benefit: a. Taxation b. Police power c. Eminent domain d. None of the above D29. In all, except one, there can be a classification of the subject matter being required to shoulder the burden. Which is the exception? a. Tax b. License fee c. Toll d. Eminent domain C30. There can be no tax unless there is a law imposing the tax is consistent with the doctrine or principle of: a. Uniformity in taxation . Due process of law c. Non-delegation of the power to tax d. The power of taxation is very broad and the only limitation is the sense of responsibility of the members of the legislature to their constituents D31. Which of the following is not an element of direct double taxation? a. Two taxes b. Same subject matter c. Same year d. Same amount D32. S1: The value added tax is a property tax S2: The estate tax is a direct tax a. True, True b. False, False c. True , False d. False, True B33. S1: Because the power of taxation is inherent in state, the inherent limitations on the power of taxation always appliesS2: Inherent limitations on the power of taxation must give way to constitutional limitations a. True, False b. False, True c. True, True d. False, False C34. Which statement is wrong? â€Å"The tax should be based on the tax payer’s ability to pay† a. As a basic principle of taxation, this is called â€Å"theoretical justice† b. As a theory of taxation, this is called â€Å"ability-to-pay-theory† c. No person shall be imprisoned for non-payment of a tax d. A graduated tax table is in consonance with this rule C35. S1: The power to tax can be delegated to units of local government, but with limitations as may be imposed by lawS2: The power to tax cannot be delegated to the executive department of the National Government a. True, False b. False, True c. True, True d. False, False C36. Which statement is false? a. A tax is a demand of sovereignty while a toll is a demand of property ownership b. Non-payment of a tax does not make the activity taxed unlawful c. A grant of police power to a unit of local government carries with it a grant of the power to tax d. Customs duty is a tax D37. Some franchise holders who are paying the franchise tax are being required by an amendatory law to pay the value-added tax, while others remain subject to the franchise tax.Which of the following constructional provisions makes the law unconstitutional? a. No law shall be passed impairing the obligation of contracts b. The rule on taxation shall be uniform c. No person shall be deprived of property without due process of law d. None of the above C38. Under this basic principle of a sound tax system, the Government should not incur a deficit: a. Theoretical justice b. Administrative feasibility c. Fiscal adequacy d. None of the above B39. That the legislative body can impose a tax at any amount underscores th e legal truism that: a. Taxation is an inherent power of the state b.Taxation is a very broad power of the state c. Taxation is essentially a legislative power d. None of the above D40. The City of Manila, claiming that it can impose taxes under the Local Government Code, imposed a tax on banks (in addition to the percentage tax on banks imposed in the National Internal Revenue Code). The banks within the City of Manila objected for the various reasons given below. Which would justify the objection of the banks? a. The power of taxation cannot be delegated b. The rule on double taxation c. Uniformity of taxation d. None of the above B41. The amount required is dictated by the needs of the government in: a.License fee b. Tax c. Toll d. None of the above C42. This is a demand of owners: a. License fee b. Tax c. Toll d. None of the above C43. No person shall be imprisoned for non-payment of this: a. Property tax b. Excise tax c. Poll tax d. None of the above C44. As a basic principle o f taxation, that â€Å"taxes must be based on the taxpayer’s ability to pay† is called: a. Equality in taxation b. Ability-to-pay theory c. Theoretical justice d. Equity in taxation C45. Which of the following may not raise money for the government? a. Power of taxation b. Police power c. Eminent domain d. None of the above D46.Which is not an essential characteristic of tax? a. It is unlimited as to amount b. It is payable in money c. It is proportionate in character d. It is a regular payment C47. S1: Direct double taxation involves two taxes by the same taxing authority (e. g. National Government) S2: Indirect double taxation involves two taxes by two different taxing authorities (e. g. National Government and a unit of local government) a. True, False b. False, True c. True, True d. False, False B48. S1: Direct double taxation is prohibited by the Philippine Constitution S2: Indirect double taxation is allowed by the Philippine Constitution a.True, False b. False, True c. True, True d. False, False A49. S1: Tax evasion, which is the use of means to escape a tax that is already a liability, is prohibited by law, and is punishable S2: Tax avoidance, which is the use of means to prevent an accrual of a tax, or to minimize a tax that may accrue is likewise prohibited by law and is punishable a. True, False b. False, True c. True, True d. False, False B50. Which statement is true? The prohibition in the Philippine Constitution on taxation of religious corporations is: a. A prohibition on imposition of excise taxes on the corporation b.A prohibition on imposition of property taxes on the corporation c. A prohibition on imposition of any and all local taxes on the corporation d. A prohibition on imposition of any and all national taxes on the corporation B51. S1: A tax amnesty that forgives tax delinquency of prior years is a legislative act of the Government S2: A tax compromise that lowers the delinquent tax due from a taxpayer is an executive act pursuant to a legislative grant of power to the Executive Department of the Government a. True, False b. False, True c. True, True d. False, FalseC52. S1: A revenue regulation must not be contrary to the provision of the law that is implements S2: A revenue regulation cannot expand the provision of the law that implements by imposing a penalty when the law that authorizes the revenue regulation does not impose a penalty a. True, False b. False, True c. True, True d. False, False D53. Which statement is false? a. A law that imposes a tax on sugar mills and centrals where the revenue collected will be used to improve the sugar industry is a tax for a public purpose, and the law is constitutional b.A law that imposes a tax on movie goers in a city, where the revenues will be used to improve flood control infrastructures in the low areas in the city is constitutional c. A law that gives tax privileges to manufacturers in defined industrial areas, which are not enjoyed by other manufact urers elsewhere is not discriminatory and is constitutional d. None of the above D54. If the taxpayer is a resident citizen of the Philippines, which of the following is not subject to income tax? a. Capital gain on sale of real property in the Philippines b.Interest on bank deposit in the Philippines c. Rent income from property outside the Philippines d. Capital gain on shares of stocks of a domestic corporation sold thru the Philippine Stock Exchange B55. On capital gain tax on real property, which of the following statements is not true? a. The tax should be paid, if in one lump sum, within 30 days from the date of sale b. The term â€Å"initial payment† is synonymous to â€Å"down payment† c. The installment payment of the tax should be made within 30 days from receipt of each installment payment on the selling price d.The tax may be paid in installment if the initial payments do not exceed 25% of the selling price A56. S1: Interest earned on Bangko Sentral treasu ry notes is subject to a final tax at 20% S2: Interest earned on customers trade notes is not subject to final tax a. True, True b. False, False c. True, False d. False, True D57. Which statement is wrong? a. A resident citizen and a resident alien has a final tax of seven and one-half percent (7. 5%) on interest on foreign currency deposit under the expanded foreign currency deposit system b.A non-resident citizen is exempt from income tax on interest on foreign currency deposit under the expanded foreign currency deposit system c. A non-resident alien engaged in business in the Philippines is subject to a final tax of twenty-five percent (25%) on gross income from within the Philippines from cinematographic films d. A non-resident alien engaged in business in the Philippines has a final tax of twenty percent (20%) on interest only if the interest is on bank deposits C58. A non-resident alien not engaged in business in the Philippines, but with income from the Philippines:S1: Is ta xed at twenty-five percent (25%) of gross income from within the Philippines S2: Is entitled to personal exemptions on the basis of reciprocity a. True, True b. False, False c. True, False d. False, True A59. The following, except one, may claim personal exemptions: a. Non-resident alien not engaged in trade or business in the Philippines b. Non-resident alien engaged in trade or business in the Philippines c. Resident alien d. Citizen D60. S1: If a taxpayer marries or has dependents during the year, or dies during the year, or his spouse dies during the year, he/his estate may claim personal exemption in full for such yearS2: If a dependent child dies within the year, or becomes twenty-one years old within the year, the taxpayer may still claim additional exemption a. True, False b. False, True c. False, False d. True, True A61. Who among the following is a non-resident alien? a. An alien who comes to the Philippines for a definite purpose which in its nature may be promptly accomp lished b. An alien who comes to the Philippines for a definite purpose which in its nature would require an extended stay c. An alien who has acquired residence in the Philippines d. An alien who lives in the Philippines with no definite intention as to his stay D62.All the following statements, except one, are correct. Which is wrong? a. April 15, August 15, November 15 of the current year, and April 15 of the succeeding year, are dates (last day) for filing the quarterly income tax returns of the individual who is self-employed b. April 15 is the last day for filing the annual income tax return of an individual who is self-employed c. April 15 is the last day for filing of the income tax return for individuals who have gross compensation income only, but whose income tax returns show income tax due or refundable d.The dates will be other than the dates mentioned in (a) to (c) if the individual has a fiscal year accounting period D63. One of the following statements is not correct. Which is it? a. For domestic corporations, the capital gain tax on sale of shares of stock are the same as the capital gain tax on such assets of resident citizens of the Philippines b. The final tax on interest on foreign currency deposit under the expanded foreign currency deposit system for domestic corporations is the same as that of resident citizens of the Philippines at seven and one-half percent (7. %) c. Dividends received by a domestic corporation from a domestic corporation subject to tax is exempt from the income tax of the corporation receiving the dividend d. Prizes exceeding Php 10,000. 00 received by a domestic corporation is subject to a final tax of twenty percent (20%) A64. S1: The minimum corporate income tax of a trading or manufacturing concern is based on net sales less cost of sales S2: The minimum corporate income tax of a service concern is based on net revenues or receipts less direct cost of services a. True, True . False, False c. True, False d. False, True D65. All the following are true, except one. Which is the exception: a. A domestic corporation is subject to the minimum corporate income tax on MCIT gross income from within and outside the Philippines b. A resident corporation is subject to the minimum corporate income tax on MCIT gross income from within the Philippines c. A non-resident corporation is not subject to the minimum corporate income tax d. The optional gross income tax (GIT) applies to domestic and resident corporations

Gibson Insurance Company

Overview Gibson Insurance Company has tasked Rebecca Hampton, the controller, with reviewing the company's allocation of corporate support costs in order to better assign the cost attributed to product lines and business units. This is important because it would help to provide better information for pricing decisions, sales compensation, and focus on areas in cost improvement. Gibson sells two categories of financial products: annuities and life insurance. They are both sold by in-house sales agents.Gibson decided to start purchasing other corporations in order to quickly grow the company’s customer base and its assets under management (AUM). GIC acquired Compton Insurance Services and Midwest Mutual Insurance Company, and although they all sold the same services, the prices and features were different. Gibson had a decision to make: keep the new acquisitions as separate legal entities, or completely absorb them into its corporate system. GIC chose to keep them as separate le gal entities, and treat them as wholly owned subsidiaries for legal and financial reporting purposes.Rebecca decided to re-evaluate the cost allocation structure. She chose to list them under 4 categories: Policy Acquisition, Customer Service, Sales and Marketing, and Corporate Overhead. All Relevant Issues Gibson Insurance main issue is its cost allocation system that allocates support costs to its various product lines based on total number of policies. This provided for an inadequate application of resources for each business unit and product line. For example, selling a new policy takes more resources and effort than maintaining an in-force policy.Another concern is a decline in profitability although the sales volumes are increasing. This is possibly due to hidden cost problems or incorrectly set prices. After a breakdown of support cost, Gibson also had a issue with possible inefficiency of processes. Hampton felt as though they used to many resources with selling new policies . Relationships Among Important Issues GIC’s current cost allocation system provides for a inadequate allocation of cost. With the true costs for each division and product line mis represented Gibson is unable to accurate set prices to match expenses of products.This also does not allow them to identify problem areas, or inefficient processes, in need of attention. With those two issues secretly effecting the books, GIC profitability has suffered. Relationships of Case Issues to Aim of the Company Gibson’s poor cost allocation and lost in profits has it wanting to develop a new allocation method. With this new method they will be able to more accurately apply resource cost and pricing to specific business units and products. After implementing the new drivers they will be able to streamline processes to lower costs.Making these changes will allow Gibson to get to gain control of costs and by affect its profitability. New Problem Statement Resulting from Case Analysis G ibson is concerned about its current allocation of corporate support costs. Currently it feels the resources of various business units are not properly assigned. Rebecca Hampton, the controller, must come up with a new allocation method to obtain a better handle on profitability, product pricing and agent compensation, and current costs. Objectives – verifying the old or developing new based on analysis Gibson Insurance main objective is to improve profitability.Its second objective is to better control pricing and resource allocation. To control pricing and resources, Gibson third objective is to develop a new cost allocation method based on different cost drivers. Finally Gibson aims to streamline its processes in the future to further lower cost to increase profit. Statement of Alternatives After analyzing the case we have come up with five possible alternatives for Gibson Insurance company. First, Gibson can choose to use the new cost drivers, developed by Hampton, to rea llocate costs to provide a more accurate picture of indirect costs.Second, Gibson can choose to reanalyze cost to come up with different cost drivers also to provide a more accurate picture of indirect costs. Third, they can redivide the support services to individual business units. This will help eliminate the simple allocation issue. Only the cost incurred in each department of the business entity will be attributed to the operations of the business entity. Fourth, Gibson can separate the individual product lines support. They can have have four separate departments for new and in-force insurance and annuities.This will dial in the cost not only to individual product cost but what status these products use the most resources. It can turn much of the indirect cost into direct costs. Lastly, Gibson can choose to do nothing. It can continue to use current method of allocation and make educated guess on what costs are incorrect and what prices are set correct. This option is not an i deal one because Gibson is currently losing money. After choosing and implementing one of the above options, Gibson can begin to work on underlying issues.They can use the new cost allocation analysis to see if any area of business is in need of adjustment. It can then decide if price meets the cost demands of division and product line. Action Plan We agree with Gibson’s controller that the new way of allocating costs is the best plan of action for Gibson. Under the old system, costs were broken up by separate legal entities and product lines. Using the old method, Midwest has $5,087,166 in total support costs, while Gibson has $5,080,997 and Compton has $3,751,837 totaling $13,920,000.The new method calls for the allocation of costs based on cost drivers, which Hampton divided into four categories: policy acquisition, customer service, sales and marketing and other corporate support. Each cost account is driven by a cost driver. Policy acquisition is driven by the number of steps required to move a new policy application to an in-force status. Customer service costs are driven by the number of incoming calls. Sales and marketing costs are driven by the number of solicitation needed to sell a product. Lastly, other corporate costs are determined by the dollar value of AUM.The total support costs of $13,920,000 is broken up into $4,375,000 in policy acquisition costs, $2,426,000 in customer service costs, $4,552,000 in sales and marketing costs and lastly $2,567,000 in other corporate support costs. The new cost allocation system allows Gibson to identify where the costs are emanating from. It helps them identify where they can cut costs and where to focus their resources to meet their aim. By employing the new system, the per units costs for each cost-driver is as follows: $42. 20 per step, $44. 06 per customer service call, $10. 2 per sales solicitation call and $14. 92 per policy for the overhead costs. Under the new system it was found that Compton h as the support highest costs, as opposed to the old system where Midwest had the highest cost. The costs for new life insurance policies makes up 40% of the total costs, which is $5,609,243. However, the new life insurance policies bring in $19,200,000 in AUM for Gibson. Yes, it is costing Gibson more to bring in new policies, but new customers are expensive because they take away from the profit. Therefore, we do not see any problem with this plan.Moreover, the new plan allows them to see that the in-force policies are not costing them anything, which tells them to focus their resources on the new-policies for both the product lines. By analyzing we decided that it is definitely costing Gibson more to bring in life-insurance policies than annuities. For example, it takes five steps to complete a policy acquisition for life insurance compared to only two steps for annuities. Also, it takes them 10 extra sales solicitations per policy for life-insurance compared to annuities. We also feel that 20 solicitation calls for one life-insurance is expensive.It costs $881. 22 to make 20 calls and the AUM for a new life-insurance policy is only $1500, so the profit margin is less than 60%. Perhaps they can train their sales employees to better perform each call and sell a policy with less number of calls. By doing this they will be able to cut their sales and marketing costs by 50% and increase their profits. Their total sales and marketing costs will go from $4,552,000 to $2,276,000 and it brings down the new life-policy costs from $5,609,243 to $4,326,989, which will make their product line more profitable and bring in more profits for Gibsons Inc.Knowing Constraints – Potential Problems Gibson Insurance Company also has to deal with potential problems. If they break up the costs into individual processes, they could possibly spend a lot more money and time than they need to. By gathering the data and breaking it up into many costs accounts will eventually cost them more in terms of management compensation, rather than helping them save. Also by implementing a new training program we may have resistance from current employees because they may feel that they are doing their job correctly without needing more training.Analysis’ Presentation Leads to Definition of Problem By analyzing the cost structure and re-allocation the costs with the new cost drivers, we have determined that the problem is the cost of sales solicitation and, possibly, the price that Gibson is charging for its insurance policies. Develops, Justifies, and Rank Objectives Gibson has five objectives. Their primary objective is to improve their profits, which requires that they prioritize other objectives, which will help them reach their goal of maximizing profit.By developing a new cost allocation method based on different cost drivers helps them to find places where they need control costs and resources, which helps them maximize profit. Develops and Weighs Altern atives We have listed five different options for Gibson to choose from. First option is to go with Hampton new cost drivers and reallocate cost on that basis. By choosing to go with the controller’s numbers we will save time and money on research vs Option 2. After we do that we will have a more accurate picture of cost and resource allocation. This will allow Gibson to work on specific reas of cost that may be hindering the company such as the number of sales solicitations. By implementing the new training program we can reduce sales and marketing by 50% by cutting the contacts needed in half. Second, Gibson can choose to reanalyze cost to come up with different cost drivers also to provide a more accurate picture of indirect costs. By going back and re-evaluating the drivers it would take more management resources. We would need to pull department heads off jobs and waste time possibly to return to the with same drivers that are already presented.So by choosing the first al ternative we can get the new cost implemented faster and begin work on fixing problems sooner. Third, they can redivide the support services to individual business units. This will help eliminate the simplify allocation issue. Only the cost incurred in each department of the business entity will be attributed to the operations of the business entity. This will not be ideal because it would require additional spending on recruiting new personnel including management. Fourth, Gibson can separate the individual product lines support.They can have have four separate departments for new and in-force insurance and annuities. This will dial in the cost not only to individual product cost but what status these products use the most resources. It can turn much of the indirect cost into direct costs. This will prove to be an inefficient method of allocating cost. Gibson would need to assign more resources to hiring personnel and restructuring processes. Gibson would possibly have to redesign it entire operating process to separate its departments and consolidating its different products line from different companies under one business entity.It would also have to deal with the backlash of current customers who may run into problems during the shift. Lastly, Gibson can choose to do nothing. It can continue to use current method of allocation and make educated guess on what costs are incorrect and what prices are set correct. This option is not an ideal one because Gibson is currently losing money. Selects Appropriate Alternative After analyzing the alternatives, we decided pick the first alternative that calls for to use the cost drivers developed Hampton.The costs are divided into four different costs namely, policy acquisition, customer service, sales and marketing and other corporate support. Each cost has cost driver, which decides the total cost for that cost account. Policy acquisition costs are driven by the number of steps required to move a new application to in -force status, which is two steps for annuities and five steps for life insurance. Number of incoming customer calls drive the cost for customer service while the number of sales solicitation drives the cost for sales and marketing costs.And finally, corporate overhead costs are driven by the dollar value of AUM. This plan will facilitate the decision process for the management because it helps them see where the costs are emanating and where they better turn their resources. For example, by allocating the costs differently they were able to see that Compton has the highest support costs at $5,100,202. 17 as oppose to the last plan where Midwest had the highest cost. It also allowed them to see that the in-force policies are not costing them anything in terms of policy acquisition and sales and marketing costs.This tells them which product line is more profitable and which is not, so they focus their resources accordingly. By finding where the costs are stemming from, they will be a ble to better control the costs thereby increasing their profits, which is their primary objective and that is that the first alternative is appropriate alternative for Gibson. Probability of Success This action plan will be successful for Gibson because it will help the managers realize where the majority of their costs stem from. It will also help them determine where they should be focusing their attention to.