Question: Aldina has identified conflicting authorities that

> Why is it important for a mission statement to be reconciliatory?

> Do an Internet search using the keywords “Balanced Scorecard Images.” Pick out two images among the hundred available. Compare and contrast the two images/processes as to effectiveness.

> List reasons why objectives are essential for organizational success.

> Explain why consumption patterns are becoming similar worldwide. What are the strategic implications of this trend?

> Strategy evaluation allows an organization to take a proactive stance toward shaping its own future. Discuss the meaning of this statement.

> In performing an EPS/EBIT analysis, where does the first row of (EBIT) numbers come from?

> What are four types of resources that all organizations have? List them in order of importance for your university or business school.

> Can you think of any reasons why not-for-profit firms would benefit less from doing strategic planning than for-profit companies?

> What is your college or university’s self-concept? How would you state that in a mission statement?

> Even though planning is considered the foundation of management, why do you think it is commonly the task that managers neglect most?

> If a firm has weak financial position and competes in an unstable industry, in which quadrant will the SPACE vector lie?

> Distinguish between the concepts of mission and vision.

> In developing a QSPM, if 10 strategies are being compared simultaneously, what would be a good scale for the AS scores? Why?

> Do some research on Singapore to determine whether you agree that the country merits its #1 ranking globally in attractiveness for doing business.

> Identify the types of organizations that may need to evaluate strategy more frequently than others. Justify your choices.

> Under what conditions are corrective actions not required in the strategy-evaluation process?

> When someone or some company is “on a mission” to achieve something, many times they cannot be stopped. List three things in prioritized order that you are “on a mission” to achieve in life.

> Women now make up 53 percent of the work force in Latin and South America. Do some research to determine how that percentage compares with other parts of the world. What are the implications for a business in doing business globally?

> How important do you think “being adept at adapting” is for business firms? Explain.

> BellSouth Services is considering putting divisional EFE and IFE matrices online for continual updating. How would this affect strategy evaluation?

> List four corporate wellness practices that could be especially effective for a company.

> For a firm that you know well, give an example WT Strategy, showing how an internal weakness can be matched with an external threat to formulate a strategy.

> List three firms you are familiar with and give a distinctive competence for each firm.

> Marketing is becoming much more technical as are the duties and responsibilities of chief marketing officers (CMO’s). Give four examples of increasing technical aspects of marketing.

> Called de-integration, there appears to be a growing trend for firms to become less forward integrated. Discuss why.

> For a firm that you know well, give an example SO Strategy, showing how an internal strength can be matched with an external opportunity to formulate strategy.

> BUSINESS WEEK magazine says firms should “base executive compensation on actual company performance, rather than on the company’s stock price.” For example, Target Corp. bases executive pay on same-store sales growth rather than stock price. Discuss.

> Distinguish between long-range planning and strategic planning.

> College football coaches get paid millions, presumably because there is so much money involved in college football the need to win is paramount. However, head coaches are often fired when a season goes badly, such as Gene Chizik at Auburn University in l

> Define halo error. How can halo error inhibit selecting the best strategies to pursue?

> In order of importance, list six “characteristics of objectives.”

> Rate the five websites provided under the “Sources of External Information” section of the chapter from best to worst for finding information about a company.

> Explain benchmarking.

> Why do you think the SWOT Matrix is the most widely used of all strategy matrices?

> List five financial ratios that may be used by your university to monitor operations.

> If a firm competes in a very unstable industry such as telecommunications, where on the SP axis of the SPACE Matrix would you plot the appropriate point?

> Give a hypothetical example where Company A buys Company B for a 15.0% discount.

> If a firm has the leading market share in its industry, where on the BCG Matrix would the circle lie?

> Define and discuss the “spam” problem in the United States.

> Consider developing a before and after BCG or IE Matrix to reveal the expected results of your proposed strategies. What limitation of the analysis would this procedure somewhat overcome?

> How can a firm best achieve sustained competitive advantage?

> Prepare a BCG Matrix for a two-division firm with sales of $5 and $8 versus profits of $3 and $1 respectively. State assumptions for the RMSP and IGR axes to enable you to construct the diagram.

> Envision a QSPM with no weight column. Would that still be a useful analysis? Why or why not? What do you lose by deleting the weight column?

> Explain why successful strategy implementation often hinges on whether the strategy-formulation process empowers managers and employees.

> Why is it that a firm can sustain a competitive advantage normally for only a limited period of time?

> Do you believe expenditures for childcare or fitness facilities are warranted from a cost/benefit perspective? Why or why not?

> What are the most important characteristics of an effective management information system (MIS)?

> If the CEO of a beverage company such as Dr Pepper/Snapple asked you whether backward or forward integration would be better for the firm, how would you respond?

> Minorities and women each hold less than 15 percent of board seats of S&P 500 companies. Why is this not good?

> Stephen transferred $15,000 to an irrevocable trust for Graham. The trustee has the discretion to distribute income or corpus for Graham’s benefit but is required to distribute all assets to Graham (or his estate) not later than Graham’s 21st birthday. W

> Barry transfers $1,000,000 to an irrevocable trust with income to Robin for her life and the remainder to Maurice (or his estate). Calculate the value of the life estate and remainder if Robin’s age and the prevailing interest rate result in a Table S di

> Tim is a plumber who joined a barter club. This year Tim exchanges plumbing services for a new roof. The roof is properly valued at $2,500, but Tim would have only billed $2,200 for the plumbing services. What amount of income should Tim recognize on the

> In constructing a keyword search, what should the keyword search include?

> Identify the sections in the Internal Revenue Code that authorize the use of qualified terminable interests (QTIPs) for gift and estate tax purposes, respectively.

> Explain why Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax.

> Paul is a widower with several grown children. He is considering transferring his residence into a trust for his children and retaining a life estate in it. Comment on whether this plan will prevent the value of the home from being included in Paul’s gro

> Using the IRS Web site (www.irs.gov/uac/The-Tax-Gap), how large is the current estimated “tax gap” (i.e., the amount of tax underpaid by taxpayers annually)? What group of taxpayers represents the largest “contributors” to the tax gap?

> Sandy has determined that her research question depends upon the interpretation of the phrase “not compensated by insurance.” What type of research question is this?

> Using the facts from the previous problem, how would your answer change if instead, Duff adopted the cash method of accounting to allow him to better control the timing of his cash receipts and disbursements?

> Explain why Congress allows taxpayers to deduct interest forfeited as a penalty on the premature withdrawal from a certificate of deposit.

> This year Gerry’s friend, Dewey, was disabled. Gerry paid $15,000 to Dewey’s doctor for medical expenses and paid $12,500 to State University for college tuition for Dewey’s son. Has Gerry made taxable gifts, and if so, in what amounts?

> Describe the type of event that qualifies as a casualty for tax purposes.

> All else being equal, should taxpayers prefer to exclude income or defer it? Why?

> Explain the argument that the deductions for charitable contributions and home mortgage interest represent indirect subsidies for these activities.

> Under what circumstances can a taxpayer deduct medical expenses paid for a member of his family? Does it matter if the family member reports significant amounts of gross income and cannot be claimed as a dependent?

> For each of the following situations, indicate how much the taxpayer is required to include in gross income and explain your answer: a. Steve was awarded a $5,000 scholarship to attend State Law School. The scholarship pays Steve’s tuition and fees. b.

> Identify the amount, if any, that these individuals must include in gross income in the following independent cases. Assume that the individuals are on the cash method of accounting and report income on a calendar-year basis. a. Elmer was an extremely di

> Devon owns 1,000 shares of stock worth $10,000. This year he received 200 additional shares of this stock from a stock dividend. His 1,200 shares are now worth $12,500. Must Devon include the dividend paid in stock in income?

> Explain why taxpayers are allowed to exclude gifts and inheritances from gross income even though these payments are realized and clearly provide taxpayers with the wherewithal to pay.

> One common argument for imposing so-called sin taxes is the social goal of reducing demand for such products. Using cigarettes as an example, is there a segment of the population that might be sensitive to price and for whom high taxes might discourage p

> The cash method of accounting means that taxpayers don’t recognize income unless they receive cash or cash equivalents. True or false? Explain.

> Explain how state and local governments benefit from the provisions that allow taxpayers to exclude interest on state and local bonds from their gross income.

> Cassie works in an office and has access to several professional color printers. Her employer allows Cassie and her fellow employees to use the printers to print color postcards for the holidays. This year Cassie printed out two dozen postcards worth alm

> Courtney recently received a speeding ticket on her way to the university. Her fine was $200. Is this considered a tax? Why or why not?

> Last year Nate opened a savings account with a deposit of $15,000. The account was in the name of Nate and Derrick, joint tenancy with the right of survivorship. Derrick did not contribute to the account, but this year he withdrew $5,000. Has Nate made a

> Approximately what percentage of tax returns does the IRS audit? What are the implications of this number for the IRS’s strategy in selecting returns for audit?

> Maurice has a client that recently asked him about the odds of the IRS detecting cash transactions not reported on a tax return. What are some of the issues that Maurice should discuss with his client?

> Sasha owes additional tax imposed in a recent audit. In addition to the tax, will she be assessed other amounts? If so, how will these amounts be determined?

> Using the same facts from the previous problem, how would your answer change if Randy estimates that there is only a 20 percent chance that the position will be sustained upon audit or judicial proceeding?

> Irene is disabled and receives payments from a number of sources (see below). The interest payments are from bonds that Irene purchased over past years and a disability insurance policy that Irene purchased herself. Calculate Irene’s gross income. Inte

> Benjamin, a new staff accountant for Local Firm CPAs, LLC, takes a CPA review course to help prepare for the CPA exam. Benjamin is not reimbursed for the cost of the course ($1,500), but his firm expects him to take and pass the exam. a. Use an availabl

> How do taxpayers determine whether they should deduct their itemized deductions or utilize the standard deduction?

> Explain why an insolvent taxpayer is allowed to exclude income from the discharge of indebtedness if the taxpayer remains insolvent after receiving debt relief.

> Based on the definition of gross income in §61, related regulations, and judicial rulings, what are the three criteria for recognizing taxable income?

> Shaun is a huge college football fan. In the past, he has always bought football tickets on the street from ticket scalpers. This year, he decided to join the university’s ticket program, which requires a $2,000 contribution to the university for the “ri

> Matt and Lori recently were divorced. Although grief stricken, Matt was at least partially comforted by his monthly receipt of $10,000 alimony. He was particularly excited to learn from his friend, Denzel, that the alimony was not taxable. Use an availab

> This year Dan and Mike purchased realty for $180,000 and took title as equal tenants in common. However, Mike was able to provide only $40,000 of the purchase price and Dan paid the remaining $140,000. Has Dan made a complete gift to Mike, and if so, i

> Paris was happy to provide a contribution to her friend Nicole’s campaign for mayor, especially after she learned that charitable contributions are tax deductible. a. Use an available tax service to determine whether Paris can deduct this contribution.

> What does it mean to say that a married couple filing a joint tax return has joint and several liability for the taxes associated with the return?

> Pierre recently received a tax penalty for failing to file a tax return. He was upset to receive the penalty, but he was comforted by the thought that he will get a tax deduction for paying the penalty. a. Use an available tax research service to determi

> As noted in Example 1-2, tolls, parking meter fees, and annual licensing fees are not considered taxes. Can you identify other fees that are similar?

> Katie recently won a ceramic dalmatian valued at $800 on a television game show. She questions whether this prize is taxable since it was a “gift” she won on the show. a. Use an available tax research service to answer Katie’s question. b. Write a letter

> What are the rewards of tax avoidance? What are the rewards of tax evasion?

> Lindley has become very frustrated in researching a tax issue using keyword searches. What suggestions can you give her?

> Last year Robert transferred a life insurance policy worth $45,000 to an irrevocable trust with directions to distribute the corpus of the trust to his grandson, Danny, upon his graduation from college, or to Danny’s estate upon his death. Robert paid $1

> Terry transferred $500,000 of real estate into an irrevocable trust for her son, Lee. The trustee was directed to retain income until Lee’s 21st birthday and then pay him the corpus of the trust. Terry retained the power to require the trustee to pay inc

> Walter owns a whole-life insurance policy worth $52,000 that directs the insurance company to pay the beneficiary $250,000 on Walter’s death. Walter pays the annual premiums and has the power to designate the beneficiary of the policy (it is currently hi

> This year Jeff earned $850,000 and used it to purchase land in joint tenancy with a right of survivorship with Mary. Has Jeff made a taxable gift to Mary and, if so, in what amount? What is your answer if Jeff and Mary are married?

> Using the Internal Revenue Code, describe two deductions for AGI that are not discussed in this chapter.

> Explain how a transfer of property as a gift may have income tax implications to the donee.