Answers to practise exercise 2:page 26

1.Non-current assests(fixed assets): 191

2.Currents assets: 57

3.Current liabilities: 26

4.Net current assets (working capital): 31

5.Non-current liabilities: 16

6.Net assets (total net assets): 206

7.Total equity(capital): 206

Group exercise 5:An armaments manufacturer saves 1000 jobs by supplying arms to North Korea!

Supplying arms is one of the main businesses for the Government.Therefore,Governments of many countries will be the main customers of this business.Especially in the countries that have wars,or cold wars,demand for arms will be price inelastic.So arms manufacture may make a big revenue by supplying arms to other countries.

They will have to invest in the defence army of the country.Therefore,thay have to buy arms for protecting,and suppliers will be satisfied because of the high demand in the war,the place of killing and fighting.So,this is an ethical problem as well.PEople who sell arms facilities will be against moral thoughts.They sell products and material which kill people,so they are killers as well.

In another hand,unemployment will be reduced as it will safe more than 1000 jobs.Which is quite a lot.So it improves country's economy because of reduction in redundancy and unemployment.Also,the government may put a high tax on it,and may increase their budget.So that this is the good way of making a budget surplus

Dilemma 7:The liar

Poor Zjamel.Her boyfriend seems to spend more time with Ethel than with her these days."Are you two having an affair?" she asks him,more by way of a reminder that she exists,than out of any real concern

But Bernand is having an affair with Ethel.On the other hand,he doesn't look on it as a "serious" affair.Ethel is married,and he is basically quite committed to Zjamel,who has been through a rough patch recently.He doesn't want to upset her,eventhough he doesn't like lying either.Gritting his teeth then,and remembering Nietzsche's dictum that "lying is a necessity of life",just part of the "terryfying and problematic character of 'existence",he says:"Of course not,darling",and gives her a big kiss.

Zjamel's heart picks up ,and she feels much better.And anyway,in a few months Bernand and Ethel have got bothered of the affair and no one ever thinks about the matter again

To discuss this,first of all,....I'm not married...how can I know???????????

But anyway,I think he did the right choice."Lying is a necessity of life"This makes sence as well.

Friedrich Wilhelm Nietzsche was a 19th century German philosopher and classical philologist. He wrote critical texts on religion, morality, contemporary culture, philosophy and science, using a distinctive German language style and displaying a fondness for metaphor, irony and aphorism. Nietzsche's influence remains substantial within and beyond philosophy, notably in existentialism and postmodernism.

"Lying is a necessity of life",just part of the "terryfying and problematic character of 'existence",especially in this case,probably this lie saves his future marriage and could be his life.Even though lying is negative but in some cases,it's needed.The easiest example of that is doctor's ethic.If the doctor recognised the patient has deadly illness,he can't say straight face to face with him that there's no way of saving him.If he told so,it will be the same as kill the patient.Therefore,he will have to lie to cheer him up and there could be chances to help him to escape from the illness.

According to the business,lie could be beneficial but also causes problems as well.Imagine every worker in a company cheats on the financial factor of the company,and reports fake reports to the manager,of course it won't be equily between workers and managers.This may affect the future of a whole company or the sales and profit of the company.
In my opinion the only person who can lie is the head of it.As they have the highest power of the business,therefore,they can do without affecting other members of the company

It's about philosophy+business,,,my brain is not for phylosophy...= =,,I hate it

Business Idea(Why not?)

Today when I was eating lunch,I and my friend were talking about how awful the breakfast is and how repitetive the lunch is!

And then I found out that why not open up a small fast-food restaurant right next to EF?Ok,Now I'll evaluate this idea.I think this idea is really relevant and reasonable for residence students

First of all,This fact is well known in EF.Everyone can interview any student who's living in EF residence..how awful the breakfast is...It's always always always the same!!!!Bread and cereals.I love cereals so much,but when I came here...I eat it everymorning...And I started to feel EWWW when I see it...Ok...Can u imagine everymorning FOR WHOLE 2 YEARS eating bread and cereals!!!!!!!!!!!!:(((((((((If you want to know detailed about breakfast u can see my old post)

And also,students complain about the lunch food is becoming worse and worse.What's the problem.Maybe because eating the same food for a year,like me, is tooo boring and all people who were studying here for a long period of time get tired of it...
Why???We paid a lot of money,to get awful breakfast and lunch...No WIFI in their own rooms,broken cases in the room,broken washing machines even though they have just been replaced..and totally new....= =

So by opening a fast food restaurant next to EF school will attract EF students very much in my opinion.They can exchange their meal.sometimes eating in the new restaurant with delicious and cheap food...and sometimes in EF.The main customers will be EF students.It can't be located right in the Pullens Lane because there are no people around to advertise.In another hand,it can be located in London Road right next to Pullens LAne,so the time to move to the restaurant won't be wasted a lot....

Nice idea isn't it?:D...Surely one thing,the demand for EF students will be price inelastic.

Mind Map:Business Studies A2 Unit 1 Chapter 1 Revision

Here is my mind map about the key points of chapter 1

How can EF increase their profit(continuos)

I just recognised that the first and the most important factor that EF may increase their profit is.......Increase the WIFI QUALITY!

Why not?.WIFi is one of the facilities that a school must have.For example,before I have a choice between 2 colleges.One in Reading and one EF Oxford.So I asked both of them,do they have WIFI?And the college in Reading they said,they just open it on weekends...not like in EF,WIFI is opened widely and full timed.So that's why I chose EF...but......
Well,Ef tried so well....to create a new assess point in new residences but...without turning on for a whole week!!!!!And from when I came to the school,there is no WIFI in my room!!!!!OMG!!!!.....
How about blogs???How about UCAS????How about tutor2u?????...Without WIFI..I cant come tot hose usefull websites:D........

Please......Please EF...I beg u....can u instal for us a normal WIFI access point...with normal quality...I can't do my daily blog!!!!!!!!!!!!!!!!!!

Beavis and Butt Head

HAhahahaha:)))BEavis and Butt Head is so funny:)))Recommend to all to watch this cartoon...
A big thanks to Mr.Chris=))))

Niall Ferguson-Historian and author

Reduce the national debt

There is usually a budget deficit in the country's economy,and UK is not the exception.UK has high economic growth ,but that doesn't mean that UK has a budget surplus.UK imports a lot form many countries such as China,or imports high technology products such as Japan.So the Organisation for Economics Co-operation and Development estimates that the UK national deficit will rise to 14 percent in 2010-the highest in the Western World.

Therefore as you can see how big is the debt for British economy.In longterm,this will cause many other problems.Furguson argues that the scale of this debt burden will cause interest rate on government bonds to rise,making long-term inflation likely.

So probably,Ferguson's way is quite reasonable for the situation like this.But the problem with this is the government will reduce their spendings and may raise taxes.It could be a direct tax or indirect,which will not be beneficial for people and this may lead to inflation as well.Because,with high tax,people will claim for higher wages.So the labour cost has increased and this may increase the price of all products.

Also,the government will reduce their spendings on national health service and education,or in infrastructure investment.Furthermore, ceteris paribus,the aggregate demand will reduce

High-speed rail

High-speed rail is a type of passenger rail transport that operates significantly faster than the normal speed of rail traffic. Specific definitions include 200 km/h (125 mph) and faster — depending on whether the track is upgraded or new — by the European Union, and above 90 mph (145 km/h) by the United States Federal Railroad Administration, but there is no single standard, and lower speeds can be required by local constraints.

High speed trains in the Midwest would be three times as energy efficient as cars and six times as energy efficient as planes. Additionally, trains pollute less than cars and airplanes, improving air quality.
At distances of less than 400 miles, high-speed trains can deliver you downtown-to-downtown almost as fast as airplanes at a fraction of the cost, and can do so in virtually all weather.But the problem is,is it neccessary for a short trip such as from Oxford to London?OF course not because the ticket fee is probably much higher than taking a coach,so it's more convinient to sit on a coach for just almost an hour to come London

Furthermore,to invest in those infrastucture such as high speed rail needs a big amount of money!So it will reduce government's budget.This will lead to a decrease in investment of the Government to NHS or education.
But The economic value of the improved mobility has been valued at $13.2 billion through 2030.But this is just expectation,with a credit crunch like now,people will not be easily to attract to this way of travelling.

Cost-effective

• Costs just $1 million per mile – less than 1/10th the cost of highway construction.
• Every dollar of cost yields between $1.70 and $2.50 of benefits

But this is a really good way of reducing congestion for the country's economy.Many people like travelling and also in the future high speed rail will be instead of underground system so there will be less public transports,such as normal trains or buses.And there will be less negative externalities because of pollution

WOW Finallyyyyyyyyyyyyyy!!!!!!!!!!!!!!!!

How EF can increase their profit?

Firstly,EF can increase their sales revenue.By that way,if the cost will be the same so the profit will increase.Therefore,EF can make or encourage people to come to learn.So there will be more customers for EF.There are quite many ways of attracting people to come to learn.Because EF is a global English learning system so advertising is quite important.Otherwise,other language learning schools will have opportunity to compete with EF.EF can advertise on the TV,and because EF is well known and in my opinion, it has a big benefit from finance,so the cost of advertising is not a big deal for EF.Or EF can advertise straight to people like providing and supplying school bags,pens,stationery stuffs with their brand name in it.And also they can add some interesting phrases in it to attract people to buy.
But the most important factor to consider about,especially in the period of the credict crunch is lower their PRICES PRICES PRICES.(especially fo books:D).Considering thi stationery stuffs,the main aim for supplying i could be just advertising.So it can provide those stuffs with low prices but high quality.
Or EF can create some activities and more facilities directly in schools.Some schools such as in Oxford they have machines for drinks already.So it will be beneficial if there will be game machines but you have to pay for it.Some game addicted people,demand for it will be inelastic....And I know in EF there are some:D
Also EF can reduce its cost.Reducing cost is easy,for example buy lower price facilities,such as EF Oxford billiard:D.It was broken for a short period of time,so maybe because it has a low quality and low price as well.
Anyway,the best way of increasing EF’s profict,is lower the price in everything...books,learning fees..Everything,then I will love EF so much:)))<3<3<3