Question 6:

a)

Natural resource: Oranges

Raw materials: Oranges, sugar and orange flavouring, containers
Labour: one employee running the new operation
Capital: Machines for juicing, filtering and packaging; trucks for
transporting the juice to supermarkets
Information: consumer preferences of juice flavours
Management: Happy Morning management

b)
i.
ii.
iii.
iv.

Purchasing: Happy Morning Orange Juice company buys all of its oranges
from one Florida orange grower: Stevens and Sons Citrus Farm.
Grading: U.S. Fancy standards oranges which are the highest grade for a
Florida orange.
Processing: Once the oranges arrive at the company, they are then
processed into juice and the juice is packaged into containers.
Quality control: Juicing, filtering and packaging machines to ensure quality

c)
i.
ii.

iii.
iv.

At the Stevens and Sons farm, Corry purchased a heating system to

eliminate frost during winter and it saves almost 100% of the crop.
The Happy Morning company had its one employee in operations go
through some intensive training to make sure operations at the factory
improve productivity.
The introduction of the just-in-time inventory control system ensures the
factory does not run out of oranges and it saves them money.
The automation of juice operations by the Happy Morning management
has also improved productivity

Question 7:
a)
Employee Rights(Employer
responsibilities)
At least the minimum wage for work
performed e.g. her pay was $10 per
hour

Regular hours of work e.g. she worked

Monday to Friday from 9 a.m. to 5 p.m.

Time-and-a-half pay for overtime work

Employer rights(employee
responsibilities)
Discipline, demote, or dismiss
incompetent, negligent, or
insubordinate employees e.g. Roberto
was given a two week notice of
termination
Set employment terms and conditions
(policies, wages, benefits, vacation
time, and so on) e.g. the firm gave all
new employees a two week paid
vacation
Insist that employees be reliable and

e.g. she received $15 per hour for

overtime
Double pay for working on statutory
holidays e.g. she received $20 per hour
for that work
Meal breaks and scheduled coffee
breaks e.g. two 15 minute breaks as
well as a half hour for lunch

punctual e.g. Roberto was summoned

by the HR manager for being late and
not performing his duties
Expect respect e.g. the company was
very accommodating but strict in terms
of forbidding any harassment of other
employees
Decide what its employment needs are
e.g. the company hired two
researchers, Tory and Roberto

b) Self-esteem and confidence: Participate in more presentations and interactive

activities. Taking up more internships to get more exposure to the workplace set
up.
c)
a)
b)
c)
d)
e)
f)
g)

Determining staffing needs

Workopolis
Pension
Orientation
Selection
Wellness programs
Bonus

vi) setting up a new business

iv) recruitment
vii) retirement
ii) training
i) interview
iii) retention
v) compensation

Question 8:
a)
i)
i.

ii.
iii.
iv.

Planning: Ms. Crisp is the department manager and her work is to come up
with functional plans for her department. She had schedules for each
person to be in the stockroom.
Organizing: Ms. Crisp had a team of sales clerks under her supervision.
She ensures there are clerks in the stockroom and the sales floor.
Directing: Ms. Crisp is a dictatorial leader who only has her way. She does
not allow her team to participate in decision making.
Controlling: Ms. Crisp loved order and yelled at the staff if the merchandise
looked untidy.

ii)
Ms. Crisp used the autocratic style of management. First of all, no one was
allowed to call Ms. Crisp by her first name. Secondly, her team was angry and
resentful during a sale instead of excited and pumped which resulted in them
taking unscheduled breaks and spending time in the stockroom instead of with
the customers. Thirdly, Ms. Crisp would yell at the staff and no one had ever
heard her say Good work to the staff. Lastly, the staff thought it was more

important to serve customers than spend time in the stockroom but no one could
question Ms. Crisp and things had to be done her way.
iii)
Ms. Crisps style of management resulted in a negative effect on her staffs
productivity. For example, whenever the department ran a sale, there was never
enough staff to handle the crowds which resulted in missed coffee breaks and
lunch and the staff getting angry and resentful instead of excited and pumped.
iv)
Ms. Crisps behaviour is unethical because she harassed Charlene a few time.
She has made Charlene cry a few times and she call her sloppy or lazy and with
no taste.
b)
i) The teams task was to research and complete a class presentation.
ii) A self-managed work team
iii) Advantage: There was more information for the presentation since every
person contributed what they researched individually.
Disadvantage: It took more time to get the presentation ready because of
conflict of opinions on what information should and should not be in the
presentation.
Question 9:
1. Working capital: current assets current liabilities
23000 36215 = -13215
The negative working capital means the company is not in a good position to pay
its suppliers (accounts payable).
2. Current ratio: current assets current liabilities
23000 36215 = 0.6
This indicates that the business is in a bad place since it is not capable of paying
its obligations and may have to liquidate capital assets to pay its debts.
3. Debt to equity comparison: liabilities owners equity
76215 3454 = 22
This ratio indicates that the owners contribution to the business is much less
than other sources of financing the business like loans. This is too risky.
4. Debt ratio: total debt total assets

76215 79669 = 0.96

This ratio indicates that the business has slightly more assets than debt.
However, the ratio should be less to ensure there is less risk of investment.

Question 10:
a)
i.
ii.
iii.
iv.

The total revenue for June fell from $31,000 in February to $20,000.
Salaries for June were up to $8,500 from $7,500 in February.
Advertising was up by $2,500 from $1,000 in February to $3,500 in June.
The net profit fell from $17,500 in February to just $3,000 in June.

b)
i.
ii.
iii.
iv.

The fall in revenue in June may have been caused by a reduction in the
number of DVD rentals in June.
The salaries were up in June by $1,000 due to an increment in wages for
the employees of the business.
Advertising expense increased in the month of June as a result of
increased advertising of the services of the business to boost sales.
Net profit fell significantly as a result of the reduction of revenue and the
increment of expenses in the month of June.

c)
February: Net profit margin = net profit total revenue
17500 31000
= 0.5645 100%
= 56.45%
June: Net profit margin = net profit total revenue
3000 20000
= 0.15 100%
= 15%