Business 600 - Financing

Single minded focus can be detrlimental to Financial Evaluation. There are times where an industry or a financial instrument is Overvallued. Therefore, like in the Wall Street, Being able to detect a bubble and keep it from bursting is extemelry vital to our economy. I remember the .com era where the industry is blooming in an extremely fast past. When an overexpansion occurs, it is very likely that the field is growing at a rate more than it needs to be and employees are being hired more than the resource required. The result? Later on, this overhiring at the beginning of the boom and the over abundance of opening new comopanies will eventually create a supply or service that is more than the economy demands. Hence, several business of the field will shut down and those employees will lose their jogs. When this happens, these former workers will need to be trained to work in different fields and thus the economy will get a massive dose of layoffs which brings down our economy, Hence bursting the bubble. Several Types of Entities exist for individuals who would like to start a business for themselves. Corporation , partnerships, and proprietorships are all examples of different business entities. In turms of investment, Rate of Return is correlated with the risk involed of losing your initial investment. The Higher the risk, the higher the return. Being able to detect good investment and stay away from risky investment is also an important topic in finance. To detect a good investment is a difficult task since the nature of an investment instrument is volatile. An MBA is often hired during a merger or acquisitoin to help diversify the company, improve sales and earnings, and purchase an undervalued company.

Kevin's Most Anticipated games of 2010

Hi, Guys,
Here are some of the most anticipated video games of mine for 2010:
Top: Castlevania Lords of Shadow: You take the place of a vampire killer, who travels to Dracula's Castle to destroy the great vampire himself. The path is blocks by mythical beasts, monsters, and ghosts.

Middle: Lost Planet 2: A game where you are a space pirate who stumbled into a planet full of new life forms. Your mission is to defeat the monsters and make that planet habitable to humans. Also supports online Multiplayer.

Bottom: SUPER MARIO GALAXY 2: My favorite videogame character since child hood, Mario is on his way to save the Princess again??

Business 600 - Quantitative Analysis - Additional Tools

High and Low Method:
You take the highest and Lowest of 2 points in a set of data and divide it by its denominators. The denominators are determined by the relevance to their numerators.

http://www.allbusiness.com/glossaries/high-low-method/4948480-1.html

Scatter Graph Method:
You simply draw a dot for each data you collected from a data group and draw a line by visualizing where the trend is.

http://www.google.com/imgres?imgurl=http://www.statcan.gc.ca/kits-trousses/images/scatterGraph.jpg&imgrefurl=http://www.statcan.gc.ca/kits-trousses/univer7-eng.htm&usg=__yrP5NGcqIE1jSqES21DS2zRch3I=&h=488&w=513&sz=177&hl=en&start=2&sig2=2Md9netyg2UHooVIA1cG_w&um=1&itbs=1&tbnid=5oZD435P5jQ8HM:&tbnh=125&tbnw=131&prev=/images%3Fq%3Dscatter%2Bgraph%26um%3D1%26hl%3Den%26safe%3Doff%26sa%3DX%26tbs%3Disch:1&ei=V7PaS-CZFpzGswOKt7Bu

Business 600 - Quantitative Analysis

Decision Tree Analysis:
1. Determine all possible alternatives and risks associated with situation
2. Calculate the monetary consequences of each alternatives
3. Determine uncertainty associated with alternative
4. Combine the first three steps into a tree diagram
5. Determine the best alternative and non monetary aspects of problem
Must be able to determine Sunk Cost- Cost that has no affect on decision.
Must Determine Expected Money Value by multiplying dollar vale by probability to determine mutually exclusive alternatives.

Cash Flow Analysis:
1. Define the value of investment
2. Calculate the magnitude of the benefits
3. Determine the timing of the benefits
4. Quantify the uncertainty of benefits
5. Do the benefits justify the wait?
Depreciation and financing costs are not relevant in cash flow analysis.

Net Present Value:
We use the Table to determine how much a dollar is worth in the future with interest or how much a dollar is worth in the past.

Probability Theory:
Calculating the EMV.
Normal Curve
Cumulative Distribution Functions


Regression Analysis and Forecasting:
Y axis is the Fixed Cost.
X is independent variable, or # of units produced
The Slope is the Contribution Margin Per Unit
We use that graph to determine the profitability of the plant.
The R^2 tells us the percentage of data of the regression equation is correct. The Higher the R^2, the more we can rely on our data.

Business 600 - Self Evaluation with VCM Model

Evaluated Subject: Kevin Yuan
Field of Study: Accounting
Criteria: Vision, Commitment, and Management Skills

Performing Self-Analysis Simulation:

Vision: Test subject has several ideals and could be too creative at times. Refinement of ideas is mandatory. Test subject also need to stay focused to one common goal. Overall rating in this criteria: 6/10

Commitment: Test subject is willing to put in long long work hours for his job. However, still need to stay focused at times to avoid being side tracked. Overall rating in this criteria: 7/10

management Skills: Test subject has not yet developed any management skills nor have any experience. Serious business training is required. Also, test subject is proved to be a push over at times. Rating: 4/10

Overall VCM Model Score: 57%, Fail. Test subject still has a lot to learn before becoming a leader.

Business 600 - Organizational Behavior

Organizational Behavior deals with how a person acts in the work place.
The 3 Step technique to solve organizational problems are:
1. Problem Definition:
A manager must find out the gap where miss-communication begins and how many party is involved. We must define if the problem exists in a personal level or an organization level. We also need to figure out the cause and source of the problems.
2. Analysis:
MBA must then link the problem to its causes and ways to resolve the problem.
3. Action Planning:
Where a manager actually implements the solution for the problem and it can be defined in the following categories:
a. Set specific goals.
b. Define activities
c. Set a timetable for action
d. Forecast outcomes, develop contingencies.
e. Formulate a detailed plan of action
f. Implement, supervise, execute, and evaluate based on goals in step one.

Each MBA has a value system comprised of Expectations, Beliefs, and Values. These 3 factors will affect the way each MBA manages his organization. An MBA managing an accounting firm may put his value on ethics and integrity while a MBA managing a designing studio may emphasize on creativity. Either way, if an organization all have congruency among the goals they are sharing, this organization is more likely to succeed.

Expectancy theory of Motivation deals with how management captures the essence that their employees is sought after. In general, motivated employee is correlated with expectation performance and ultimately, the value of reward will be high. In general, each individual, as David Mcclelland puts it, has a need for achievement, power and affiliation. However, each manager must recognize and feed the need of their employees to obtain maximum output from each employee.

MBA Personality Traits:
Each MBA should possess the traits of Leadership (Comprised of Vision, commitment and Management Skills), and Creativity

It is also very vital for an MBA to deal with their boss. One must understand their boss and themselves in order to find a balance to work in a style that will fit both individuals.

Since the MBA holds key responsibility in an organization, every word they say or every action they take may result in dire consequences. Therefore, it is important that they think before they act.

Business 600 - Accounting Reflection

Accounting:

The Basic equation of Accounting is Asset = Liability + Owner's Equity. Asset's nature account Debit while Liability/Owner's Equity's Natural Account is Credit. Simply put, Debit simply means Left and Credit simply means right. Whenever there is a Debit transaction, there must be a credit transaction one one other accounts. There are different types of accounting, Financial and managerial. Financial accounting focuses on compliance with Generally Accepted Accounting Principles and are required to answer to external auditors. Managerial Accounting, on the other hand, does not follow the Generally Accepted Accounting Principles and instead, it focuses on Operations, and forecasts of a firm in general, and they only have to answer to internal auditors. Accounting is important because it is not only provide an objective review of a company's performance its external users (E.g. investors), it is also used by managers to determine how should they improve their company. Accounting records, however, can also be misstated intentionally or intentionally which can significantly impair an external user or management's judgement of a company. Enron Corp., is an example of using manipulated number or creative accounting methods to cover up liabilities. Hence, Auditing is extremely important.