Stating your assumptions carefully, outline the likely impact of an increase in taxation on the interest rate.

Stating your assumptions carefully, outline the likely impact of an increase in taxation on the interest rate. Before discussing the effects of increased taxation on the interest rate, it is important to distinguish what type of taxation is being increased. Taxation is defined as any compulsory payment from an individual or institution to central or local government. There are two main types of tax - direct and indirect taxes. Direct taxes are taxes on income (a percentage of a worker's wage), profits (a percentage of a firm's profits) and wealth (for example a percentage of somebody's inheritance). Indirect taxes are taxes on consumption, for example Value Added Tax, which is a percentage of the price of a good sold. An increase in the rate of any of these taxes will have a similar effect on the economy as a whole. However the government can use taxation to target certain parts of the economy for taxation revenue. For example to reduce investment spending it could increase corporation tax. If the government were to increase income tax, the effect on the economy would be that the level of aggregate demand would fall, assuming that all other factors remained constant (ceteris parabus). This has the effect of reducing the economy's expenditure. This would have the effect of shifting the IS curve inwards, to the left, reducing the level of income and output in the economy. If

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How important are staff/management relations?

A good relationship between staff and management is one in which each party respects and trusts one another, communicates with and understands one another and understands clearly what is expected of each other. Each party must make a fair contribution towards satisfying the interests of the other party. Demands placed on each other must be reasonable. Compromise and co-operation both play important roles in safeguarding the interests of the business while also satisfying the conflicting interests of it's workforce. It is imperative to build and maintain healthy staff/management relations for the following reasons. Good relations help to prevent disputes and if conflict does arise it can be better resolved between staff and management who have already developed a good working relationship which helps to ensure as little disruption to normal operations as possible. Good staff/management relations lead to high morale amongst a workforce. A happy workforce is a more productive one. The employer will also find it easier to retain its employees. Poor relations can lead to an unhappy workforce and dissatisfied management which is likely to result in reduced productivity and the overall failure of the business. The interests of a company and the interests of it's workforce are often in conflict with each other. A number of practices must be in place in order to simultaneously

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Price Discrimination Essay

Price Discrimination is the practice of charging different consumers a different price for the identical good or service for example charging children, university students and old aged pensioners lower prices than other cinemagoers. There are three types of price discrimination, first degree, second degree and third degree price discrimination. The first price degree discrimination, involves charging each consumer the price they are individually prepared to pay. In first degree discrimination the seller or the firm would have captured the entire consumer surplus and this will now be producer surplus, thus a firm or seller earns a higher level of profit than simply charging a single price to all of its consumers. Second degree price discrimination involves charging different prices for different amounts consumed. Third degree price discrimination involves charging different prices to different groups of people such as charging students, children and the elderly different prices. The firm of a market where this type of discrimination occurs is capable of differentiating between consumers, such as student or senior discounts. A student or senior consumer will have a different willingness to pay than an average consumer. Thus the firm sets a lower price for that consumer because that consumer has a more elastic price elasticity of demand. In third degree price discrimination

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I am going to relate the stock control and forecasting techniques that Cadbury use

C3: The relationship between stock control and forecasting techniques Used in the production methods employed For this part of my assignment I am going to relate the stock control and forecasting techniques that Cadbury use with the production methods that Cadbury use. When Cadbury buy stock, it has to be considered carefully by Cadbury, the correct quantities of the stock should be purchased to reduce the amount of wastage should be controlled so that loses are controlled. Cadbury purchases its main ingredient cocoa beans from Ghana, which is then taken to marlbrook where the cocoa beans are cleaned and grounded. After this they are imported to the UK in the Bourn Ville factory where the production of the product is completed. Cadbury knows how much stock that has to be purchased due to the time series analysis that is done. The time series analysis shows historical data which Cadbury use to analyse and predict the future trends of the sales of products. This is the reason for why Cadbury needs to ensure that the time series analysis is accurate and up to date so that Cadbury can produce enough products so that there is no wastage or shortage of products, this is also meeting the customers demands. If Cadbury decided to purchase more stock than needed then Cadbury would be overspending its money and the wastage figure is likely to increase because more products than

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Explain the main factors which might determine the elasticity of supply of labour to an occupation such as computer specialist (10)

Explain the main factors which might determine the elasticity of supply of labour to an occupation such as computer specialist (10) The elasticity of supply of labour measures how a change in wage rate will affect the amount of labour supplied to a given market in this case computer specialists, it shows how flexible a labour market is to enter and exit. Both elastic and inelastic labour markets are shown below. As you can see a inelastic labour market has a steeper supply of labour curve as it is not easy to enter the market usually due to the high skill levels needed and how long the investment in human capital will take before the economic agent can enter the market with the required skill, however an elastic labour market has a much less steep labour supply curve showing that the market is easier to enter and exit due to the lower levels of skill needed and is usually jobs such as waiting or shop assistants. An increase in wage rate in an inelastic labour market will have little effect on the amount of labour supplied however in the elastic market a small wage increase leads to a large increase in the quantity if labour supplied. Elastic Labour Supply Inelastic Labour Supply The main factor that affects the elasticity of supply in the computer specialists market is the amount of training and education needed in the market these cause large barriers to entry within

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Cash flow. A cash flow forecast is a document that predicts cash requirements in the future. It helps a business save money for things it may need in the future

Cash Flow A cash flow forecast is a document that predicts cash requirements in the future. It helps a business save money for things it may need in the future. Financial problems may arise if the business has more outgoings than income, such as unpaid bills or sudden money loss making the business low on money. Another business could also owe money to yours and go bust. The business is most vulnerable to cash flow problems when they first start up as this is when there are more outgoings than money from customers. Certain areas, such as production, could have difficulties operating as the costs are too high. Businesses may also have cash flow problems due to other reasons, such as not selling as well as expected. A business can improve their financial situation by borrowing money from a bank, cutting costs or increasing sales. Businesses use cash flow forecasting to anticipate months where they may have a shortfall and get ready for them by taking action before they happen. It may help the business if they identify areas where the business was weak or strong and change strategy to deal with any problems and maximise potential. The five parts of a cash flow forecast are: Receipts, payments, excess of receipts over payments, opening bank balance and closing bank balance. Cash Inflow: This section shows how much the business (in this case, a garden centre) has loaned from

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Business in the UK case study. Adidas PEST analysis

Adidas PEST analysis Political Adidas need to be aware of the political state of the UK, the same for the all other countries where they have bases. As if the government is unstable, or there are any controversial policies, they may have a bad affect on Adidas. There is a stable political situation in the UK, as it has a democratic government, a democratic government is one that is decided, by people voting on who they want to run the country. This means that if a dictatorship was to emerge and started making decisions that the public didn't agree with they would simply be voted out at the next election. This is good for Adidas when operating in the UK, as it is fairly unlikely that the government would suddenly introduce any controversial policies. This will be good for my product as it gives it firm ground to work on.There are elections every five years in the UK, with the next one in 11 June 2015. This keeps everything functioning properly within the UK, as the government aren't very likely to introduce any controversial policies, as they would be voted out at the next election. This is good for Adidas, as it means that the government aren't very likely to introduce any drastic policies, which may affect them. The government also offers subsidies if organisations set up factories in areas of high unemployment, such as the north east of England and south Wales.An

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McGregor -Theory X and Theory Y

Introduction McGregor -Theory X and Theory Y McGregor, an American psychologist, built upon earlier studies into the psychology of the workplace. From these studies he constructed a model of management attitudes, and from this model demonstrated that managers, wittingly or unwittingly, strongly dictated the type and attitude of workers in their employ. McGregor firstly examined the work of Taylor. In the early 1900's the Classical and Scientific (Taylorian) schools of management, suggested that workers were to be given tasks in their simplest forms. Within such Taylorian businesses, the role of management was to ensure that the simplest, most efficient, and productive working methods were used. Employees would have nothing to contribute but their labour. It can be argued that the early success of Ford Motors was to a large part due to the implementation of this structure. The second element McGregor used was the more recently developed Human Relations School. Studies performed by students of the Human Relations School, such as Mayo, found that many employees would produce higher levels of output, and be more aware of quality issues, if they are brought into the decision making that affected their jobs, rather than being just told what to do, and how to do it . There was a recognition by the Human Relations School that employees would have needs over and above those of

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Financial analysis for a new business - Delight Lollies

Task One In task one, we have been asked to identify 4 different costs that James and Lucy have to pay, these costs are; start up costs, running costs, fixed and variable costs. Fixed Costs- Fixed costs do not change with production. No matter how much profit that you make you will still have to pay for things such as: rent, business rates, and interest on loan payments, insurance, salaries. Fixed costs always stay the same, even if you make no profit at all. Variable Costs- Variable costs change with the number of goods and how much a business tends to make. The costs increase as the more profit you bring back to the business. Examples of Variable costs are: raw materials, refreshments for customers, and wages Starts up costs- Start up costs are costs in which you only ever pay once, and that is usually at the start of the business. Examples of start up costs are premises, machinery, equipment, fixtures and fittings and market research to start up the business. Running Costs- Running costs are paid everyday to run the business, examples of these are wages, bills, raw materials and insurance. Fixed Variable Rent £40 Each Box purchased each day: £5.50 License for Trade £20 Block of Ice £50 Delivery Charge (weekly) £14 Total £124 Total : £27.50 Overall Total: £151.50 Fixed Variable Rent £40 Each Box purchase £55 License of Trade £20 Block of Ice

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McDonald's. What are the Management functions at McDonald's?

McDonald's INTRODUCTION TO McDonald's Mission Statement Mc Donald's vision is to be the UK's biggest, best quick service restaurant experience. Since McDonald's opened its first restaurant in the UK in October 1974, the Golden Arches have become a familiar symbol, now seen on high streets, alongside major roads, on cross channel ferries, in leisure and retail parks and at airports. During 2000, the company bought young people from communities all over the UK to perform on stage at the Dome in Greenwich as part of McDonald's Our Town Story. This explains the History of McDonalds. By the end of 2000, there were 1,116 McDonald's restaurant operating in the UK, representing a total investment in property and equipment of over £1.5 billion. The company employed just fewer than 50,000 people and 18,000 were employed by McDonald's franchises. Today, more than 2.5 million people in this country place their trust in McDonalds every day - trusting the Company to provide them with food of a high standard, quick service and value for money. E1 CLEARLY IDENTIFYING MANAGEMENT FUNCTIONS AND THEIR APLLICATION TO THE BUSINESS A restaurant manager makes sure that customers can come into the restaurant and enjoy the quality food and service they have come to expect from McDonald's. This takes in everything from the welfare of staff through to the performance of the restaurant

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