Long Term Investment Essay Example | Topics and Well Written Essays - 1250 words

Long Term Investment - Essay Example But for this expansion the selected company has to make some capital budgeting decisions. Merger is not an easy to do activity and involves incorporation of two big organizations. A company could decide for merge because of many reasons, like provide capacity utilization, to gain economies of scale, to gain access to new suppliers, distributors, customers, products etc. although merger is not always helpful to the society (Kaplan, 2006). Merger sometimes reduces competition and the most cited fact known by all is that consumers are always hard to attract in competitive environment (Saari, 2007). Mergers can often result in a great number of social benefits. They also can produce economies that can reduce cost, improve quality, and increase output. 1. Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation. The Samsung Company is trying to expand and gain dominance, but there a re certain regulations that the company has to follow so as to ensure zero breach of law against the regulations settled by the government. The rules and regulations set by the government for merger policy are strict enough to ensure that the merger proves beneficial for the society. The regulations are set by the government on the basis that the merging companies eliminate the competition between them (Saari, 2007). Merger can be for the competitive reasons or for an attempt by the large firms to create enough activity and exercise higher power in the industry (Chatterji & Kuenzi, 2001). To determine the industry sensitivity government actually encourages mergers. The role of government in market economy is very important. The current economic situation did not come out thin air, rather, it is because of the growth of incorrect policies and most of the time because of lack of effective policies by the main entities that mainly empower manages of the economy. If the government fails to perform its functions than negative consequences might be expected. Major reasons for government involvement in a market economy: The following are some of the major reasons for government involvement in a market economy system. Provide economy with legal structure: This is one of the most important functions a government needs practice. In order to perform this function, the government needs to furnish economy with regulations, legislation and mean that ensure product quality. Maintaining competition: Government involvement is another important requirement in order to maintain competition. Government needs to fight monopoly power and non-competitive behavior. Thus anti-monopoly laws are designed to regulate business behavior and promote completion. Redistribution of income: The government needs to design relief programs for poor, handicapped and unemployed lot. This could be a good support for poor people and this program can help in transferring income from high income groups to these limited income people. Stipulation of public goods: When all the market fails to promote the basis and the needed goods the government fills in the space. Promoting growth and stability: The government should promote macroeconomic growth and stability through changes in fiscal and monetary policies. 2. Justify the rationale for the intervention of government in the market process in the U.S.

ECO-FRIENDLY Essay Example | Topics and Well Written Essays - 1000 words

ECO-FRIENDLY - Essay Example 75% and remaining 25% remains unutilized. Because, the testing facility is not fully utilized, therefore, the fitting machine time can be increased, to produce more of higher power bulbs as it would lead to more profit, without increasing any other resource. Linear programming was used to model the problem. The decision variables x1 and x2 i.e. number of two kinds of light bulbs was used to formulate the profit function as well as the constraints of production for the two kinds of eco-friendly industrial light bulbs. The profit function was solved for maximum profit under the constraints of the production. It was found out that for maximum profit the company should manufacture 900 bulbs of very low energy and 600 bulbs with higher energy. This resulted in a total profit of 8700p, which is the maximum profit that can be produced from the given resources by their optimum utilization. This optimum solution of the problem, consumes all of the shells supplied as well as the entire assembly time. However, the testing time was utilized only up to 75% of its capacity. This is simply because; testing takes less time than assembly. Thus, there is unutilized testing facility. To utilize it fully, the fitting machines availability should be increas ed to produce more of higher energy bulbs as it would lead to more profit, without any additional resource other than increasing fitting machines availability. There are some options the company can look forward for increasing resources. One option can be to increase the availability of the fitting machine as well as that of the testing machine by 25% i.e. twelve and a half hour per day. In this case the company can produce as many as 1500 higher energy bulbs and increase the profit to as high as 10500 p. This amounts to ~22.1% increase in profit over what can be achieved by the present resources. But this will depend upon how costly it is to increase