Megan’s Concerns, Essay Example

In any business transactions, there always lies the fear of uncertainty about what the future holds for the business. These uncertainties range from the costs of production of a product to the manufacturing process and most significantly the fluctuations in market prices. However, there are may arise unexpected terms and conditions from the customer that must be met by the client before the transaction of a business activity takes its course. One such case is of Megan, the vice-president of the International Microcircuits Inc. whom she is divided on what to do so as to have a better grip in the international market as well as meeting the conditions of her customer.

Overview and Objectives

The objective of the course is to familiarize the participants with how organizations should make financial decisions. For a firm, these decisions are:

* The real asset decision:

* How should the firm invest in real productive assets?

* How should the firm assess risk?

* The financing decision

To assist her reduce the risk of stretching past her company’s profit limit of 20%, the 50%percent of value of products bought on reciprocity is subtracted from the total percentage of value of products sold. The value obtained is divided by 40% of rebate, then multiplying by 20% of the profit margin fro the value obtained.