Case Study

Case Analysis # 4Elaine Decides to Try Her Hand at Investing Elaine Tolbert is a 28-year-old management trainee at a large chemical company. She is single and has no plans for marriage. Her annual salary is $34,000 (placing her in the 15 percent tax bracket), and her monthly expenditures come to approximately $1,500. During the past year or so, Elaine has managed to save around $8,000, and she expects to continue saving at least that amount each year for the foreseeable future. Her company pays the premium on her $35,000 life insurance policy. Because Elaine’s entire education was financed by scholarships, she was able to save money from the summer and part-time jobs she held as a student. Altogether, she has a nest egg of nearly $18,000, out of which she’d like to invest about $15,000. She’ll keep the remaining $3,000 in a bank CD that pays 3 percent interest and will use this money only in an emergency. Elaine can afford to take more risks than someone with family obligations can, but she doesn’t wish to be a speculator; she simply wants to earn an attractive rate of return on her investments. Critical Thinking Questions 1. What investment options are open to Elaine? 2. What chance does she have of earning a satisfactory return if she invests her $15,000 in (a) blue-chip stocks, (b) growth stocks, (c) speculative stocks, (d) corporate bonds, or (e) municipal bonds? 3. Discuss the factors you would consider when analyzing these alternate investment vehicles. 4. What recommendation would you make to Elaine regarding her available investment alternatives? Explain.

Tourism Marketing Essay Example | Topics and Well Written Essays - 2250 words

Tourism Marketing - Essay Example 'The private sector comprises individual tourism enterprises that operate in a competitive, commercial environment using a business ethos and private sector capital. The public sector comprises the State Tourism Organizations. Funding is provided by taxpayers and ratepayers' (Advance Tourism 2005). The private sector operates as small regional or locale unites with strategic marketing plans. However, tourism needs to be marketed effectively aiming at the regional and local tourist. This paper will render a supportive hand to the local and regional tourism initiators. There are number of factors that need to be at the back of ones head while sketching and implementing a tourism marketing project. 'Tourist activities involve an amplified utilization of vulnerable habitation and this utilization often leads to a degradation of resources' (UNCSD NGO Committee 1999). The above stated words only prove how tactful one needs to be while compiling marketing strategies to influence the locale community. Tourism brings forth swift changes in the host community. ... The private sector operates as small regional or locale unites with strategic marketing plans.However, tourism needs to be marketed effectively aiming at the regional and local tourist. This paper will render a supportive hand to the local and regional tourism initiators. There are number of factors that need to be at the back of ones head while sketching and implementing a tourism marketing project. 'Tourist activities involve an amplified utilization of vulnerable habitation and this utilization often leads to a degradation of resources' (UNCSD NGO Committee 1999). The above stated words only prove how tactful one needs to be while compiling marketing strategies to influence the locale community. 1.2 Change and TourismTourism brings forth swift changes in the host community. While the international tourists bring in a rapid evolution in the local cultures and behavioral patterns, it is important for the state owned and private service providers to let the locale and regional people feel that their traditions and values are safeguarded and exhibited before the world. This confidence must be encouraged and cultivated by the local and regional marketing strategies (Poon A 1993). Tourism is the system of leisure or holiday travel, away from home for the day or overnight. The components of tourism include activities, facilities, transport and (when overnight) accommodation as well as local and international tour operators' (Bruce D. & Hoctor Z. 2001). This statement beyond any doubts can be considered as an affidavit for the seriousness of influencing the local flock towards successful and sustainable tourism program and activity. It elucidates the hidden aspects of the domestic market for the success and

Petrol market Essay Example | Topics and Well Written Essays - 1500 words

Petrol market - Essay Example 105). The amounts of external costs incorporate the direct physical, psychological, as well as emotional damage to others. Along with this, treatment costs are sometimes borne by the third parties (who are directly affected by the Alcohol consumption) by means of private or public insurance. It has been estimated by researchers that the total amounts of costs associated with the alcohol consumption resulting from welfare as well as health services, and also from insurance, enforcement, as well as penal costs and also from loss of costs of production accumulate to the total social cost by the amount of 1–3% of GDP in different European countries, including Poland. These amounts of loss of GDP by creation of negative effects of car accidents on the generation of greater amount of social costs are creating negative externalities to the people of the country (Bielinska-Kwapisz and Mielecka-Kubien, 2010, p. 1). As an outcome of the higher level of road accidents people are getting scared of traveling by road and thus they are expected to demand lesser amount of petrol. This reduces the demand for oil given the price of the petrol. Hence, the demand curve for petrol will shift down from AD1 to AD2 (Figure 1). Thus the equilibrium market price of petrol will fall and the producers will end up producing lesser amounts of output, selling at lower level of price and thus making lesser amount of profit. This also hampers the consumers by reduction in the amount of sales tax generated from the sales of petrol. This reduction in tax earning of the government reduces the amount of government spending on the development of road infrastructures and creates the negative externality to the consumers (Veal, 2002, p. 190). The externality is considered to be negative due to the fact that greater levels of accidents by some of the consumers to lack of proper road protections and infrastructures, which are to be implemented by the government, consumers are getting worse off. And also this fact is regarded as externality because of the fact that the generation of greater amount of negative effects upon the utility level of the consumers has not entirely been reasoned with the inefficient behavior of the people, in general. Rather these negative effects are largely generated by the lack of efficient government intervention into the process of development of higher degree of secured and well-protected road infrastructure Batta, 2008, p. 81). However this negative externality is also related to the misbehavior of the consumers of alcohol also. Greater accidents are made by the drunken car drivers for which the innocent people are paying the price in terms of their lives. This fact is also regarded as the negative externality to a large number of people (Bielinska-Kwapisz and Mielecka-Kubien, 2010, p. 5). Figure 1: Negative externality in the Petrol market Answer 2: Figure 2: Tax on petrol and reduction in negative externality The level of negative externali ty can easily be removed with the help of greater level of tax imposed on the petrol consumption. This higher level of tax on the purchase and use of petrol will increase the amount of tax revenues earned by the government of the country under consideration. This higher volume of tax revenues will thus give the government of the country to make higher amount of public expenditure on the developmen