BBA db-ex

Posted: September 3rd, 2013

Name:

Lecturer:

Course:

Date:

BBA db-ex

Question 1

Values in million dollars

The debt to equity ratio between the year 2010 and that for the projected year 2011 has shown a significant decrease of 0.03. The significance of making this comparison is that it reveals whether the management is funding its operations using debts or equity. The main problems I encountered in this process mainly involved gathering the necessary information to complete this task. McDonald’s’ financial statements are very complex and require strict analysis to disseminate. This also involved attempting to identify the materials the company will buy as well as the forecasted conditions of the economy. The major differences between my projected statements and the rest of the students’ arose because of the different mathematical approaches used to formulate the projections. The major difference existed in the format and values of the forecasted statements.

Question 2

I like this answer because it is concise and in my opinion, it is giving a detailed structure of how McDonalds is operating as well as its projected mode of operations. This answer in my opinion can be utilized to find relevant ways that can be used to alter any necessary predictions. This projection can be used to make necessary preparations it at all the considered factors such as the state of the economy will remain constant. In addition, I also like this answer because it has given me adequate exposure to the field of accounting. I was able to learn numerous things during the endeavor.

Question 3

I am in agreement with the message brought forward by the projected financial statements of McDonalds. This is because projected financial statements offer a summary of the revenue and expense component projections for a given budget period. The projected financial statements of McDonalds offer the same provision. I am also in agreement with the answer because it has a provision of the company’s overall performance. Moreover, it is in my opinion that a conclusion can be made from the projected statements by potential suitors as to whether invest in the company or not.

Question 4

i) Yes, according to Covey, I believe that high communication and trust levels lead to high levels of positive communication. This is because cooperation and trust between employees in an organization brings about a harmonious relationship. If they work in harmony, then communication is going to be undistorted and positive

ii) In a competitive culture, the environment may bring about a slight alteration in the manner in which cooperation and communication between employees is operating. This slight alteration may involve communication distortion as individuals try to out do each other. Trust is also affected because the mentality revolves around self-benefits therefore individuals do not fully trust each other.

iii) In my opinion, an organization can be able to compete fully with its rivals if its employees are competing internally. Competition among the employees fosters them to increase their output as they try to outdo each other. When all individual performance is raised, the overall output of the company is hence raised.

iv) In my case, competition brings out the most out of me. When competing with a counterpart, I am able to see my progress through the other person’s performance. If I am lagging behind, this brings out my performance because I have to struggle in order to reach and surpass them.