Start-up companies are known for being innovative, and one

Start-up companies are known for being innovative, and one of those innovations appears to be the way they are being managed. A number of these new firms are trying to minimize headcount and maximize agility by eliminating the management hierarchy. In place of managers, they’re turning to technology, including user-friendly software and low-cost web-based services such as’s Redshift for storing corporate data, analyzing the data, and presenting the results in the form of dashboards that anyone in the firm can use.

In the past such data were difficult to obtain, required more senior managers to organize and interpret, or could not be analyzed without expensive business intelligence systems costing millions of dollars. Today even small start-ups can afford to store and manipulate nearly limitless pools of data in near real-time. For example, Chubbies, a rapidly growing clothing start-up targeting college fraternities, doesn’t have a CEO. Instead, it has four co-CEOs, each in charge of his or her own business function. This structure is repeated all the way down the company’s hierarchy. All Chubbies employees have access to the same data as its top managers.

According to Tom Montgomery, one of the Chubbies co-CEOs, when you don’t have a traditional CEO and final decision-maker, you have to trust people to make the right decisions based on the information they see. Although it takes time to build up that trust, once you do, the company can move much more quickly. Montgomery points out that in the past, an associate specializing in events for clients might report to a manager in the marketing department in charge of thinking about why the company should be throwing events in the first place.

Today, the event planner working alone can use an array of dashboards to determine exactly how many Facebook likes, Instagram posts, and sales arose from a particular event, and she is able to decide on her own whether future events should be scheduled. With the right data and tools to back up her decision, she doesn’t need a manager to validate her choices. Web retailer Inc. announced in 2013 that it was eliminating managers in order to keep the 1,500-person company from becoming too rigid, too unwieldy, and too bureaucratic as it grows.

Zappos adopted a “holocracy” model in which workers manage themselves without the aid of middle managers. In contrast to a traditional corporate chain of command, holocracy organizes the business as a series of overlapping, self-governing “circles.” Instead of having jobs, holocracies have “roles.” Each role belongs to a circle rather than a department. The circles overlap, and individuals hold many different roles. Individuals assigned roles in these circles work together, and their meeting outcomes are recorded using web-based software called Glass Frog. This system allows anyone in the company to view who’s responsible for what role and what they’re working on.

Glass Frog provides a “to-do” list that teams use to define the work they’re supposed to be doing and to hold themselves accountable for those tasks. Although Zappos CEO Tony Hsieh continues to trumpet self-management, it is unclear if employees widely share his enthusiasm. Some employees welcomed the opportunity for more independence. With experience and expertise downplayed, less senior employees with fresh ideas receive more attention. Introverts have benefited from the expectation that everybody speak in meetings. Other employees were confused and frustrated by numerous mandates, endless meetings, and uncertainty about who did what. To whom would they report to if there were no bosses? What was expected of them if they did not have a job title, and how would they be compensated? Within weeks after Zappos embraced holocracy, about 14 percent of employees had left the company. The employee exodus has continued. Zappos’s turnover rate for 2015 was 30 percent, 10 percentage points above its typical annual attrition rate. Treehouse Island Inc., a Portland, Oregon, online coding school, also had a flat organization. Staff worked four-day weeks, worked only on projects they liked, rarely had to send e-mail, and had no direct bosses.

However, the business grew, with about 100,000 students enrolled in its online courses and 100 employees. Some projects weren’t being completed, and employees were unsure of their responsibilities. Treehouse wasn’t burdened by bureaucracy, but work still stalled nevertheless. Without managers to coordinate projects and supervise and encourage workers, Treehouse employees weren’t as productive as they could have been. According to Treehouse founder Ryan Carson, there was no real reason to work hard because no one knew about it.

Some of Treehouse’s best employees started believing that not as much was expected of them. Questions about which subjects to teach would spark much analysis and chatter but resulted in few answers or plans. Michael Watson, who headed Treehouse finance and operations, estimated that decisions about matters such as Treehouse’s website design took twice as long as they should have. Treehouse partially reversed course in the spring of 2015. Employees still work four-day weeks, but they now have managers. Since that change was made, revenue has increased along with the number of minutes of video courses the company produces. The time required for customer support employees to respond to students who have questions has dropped to three and a half hours from seven hours.

With roles now clearly defined and managers tracking assignments, e-mail is actually enhancing productivity. According to Quy Huy, professor of strategy at the Singapore campus of the prestigious graduate business school Insead, middle managers are often vilified as symptoms of corporate bloat, but things fall apart without them.

Case Study Questions

  1. How do flat organizations differ from traditional bureaucratic hierarchies?
  2. How has information technology made it possible to eliminate middle manager positions?
  3. What management, organization, and technology issues would you consider if you wanted to move from a traditional bureaucracy to a flatter organization?
  4. Can technology replace managers? Explain your answer.

Suppose you have a strong interest in physics education, and

Suppose you have a strong interest in physics education, and in pursuit of that interest you want to assess the effectiveness of two different strategies for running recitation sections in large introductory physics courses. The professor who runs the course agrees that both of your proposed strategies have educational merit and that you can try them out on two independent sections of the class. At the end of the term, you discover a clear difference in test performance between the students in the two different groups. You want to give a talk at an American Association of Physics Teachers meeting about your results.


• What steps do you need to take in order to ensure the privacy of the students is adequately protected?

• Do you need Human Research Approval in order to give the talk?

• If you receive permission to give the talk, what additional steps do you have to take to protect the privacy of your students?

• Are there consequences to giving the talk without asking about Human Research Approval?

 • Does this violate any ethical guidelines?

“To This Day” by Shane Koyzcan1. Create list of the

“To This Day” by Shane Koyzca

1. Create list of the most important lessons you’ve learned about any of the following: a. Love and relationships b. Sports c. Family d. Writing e. School f. Parents g. Siblings h. Jobs i. Music j. Success f. Traveling l. Other

2. What is interesting and powerful about this poem?

3. What are some of the lines or phrases that Koyzcan repeats? What effects are created through this repetition? Why does he do it?

4. What different emotions does Koyzcan express through his poem? How do his choices about subject, details, imagery, and tone of voice work together to build these emotions?

5. Choose one of the lists you created and use that to generate a poem that offers advice to a specific audience. Write the title for your poem by identifying three specific characteristics of your audience and using the phrase “Unsolicited Advice to . . ..” e.g. Unsolicited Advice to Teenage Boys who have been Cut from the Football Team, Unsolicited Advice to Crazy English Teachers who are Forcing Students to Write Poetry, Unsolicited Advice to Bored Students who are Being Forced to Write Poetry by Crazy English Teachers

6. Identify the best or most important piece of advice you wrote down when making your list. This will become a repeated line in your poem.

7. Be sure to include advice for a variety of experiences you expect this person to have.

8. Free-write for 10 minutes without stopping. If you get stuck, re-write  repeated line until you think of a new piece of advice. Or, write for as long as it takes to record at least 20 pieces of advice.

Consumer+, a Canadian company, is thinking about expanding

Consumer+, a Canadian company, is thinking about expanding their operations into either Brazil or the United States. Demand for the product in each of the countries could be High (H) or Low (L). The leadership team at Consumer+ believes that if they enter Brazil and the demand is High or Low, the resulting profits would be 5 million and 1 million, respectively. If Consumer+ enters the United States, they believe that under Low and High demand they will have resulting profits of 0.8 million and 5.5 million. 

a) If Consumer+ knows nothing about the probability of High and Low demand, what is their decision under: 


i) Optimistic Approach 

ii) Conservative Approach 

iii) Minimax Regret Approach 

If Consumer+ wants to maximize profit and believes that there is a 69% change that demand will be High, what is the recommended decision using the Expected Value Approach? Draw the tree and show your complete work. How much would Consumer+ be willing to pay for additional information? 

A common piece of research that many companies entertain when entering a new market is consumer research. 

Consumer+ is exploring whether they want to conduct a series of focus groups to see how consumers in Brazil and the United States feel about their product. 

The results of the res could be Pd (P) or Negative (N). The following probabilities are available: c) d) • 

When the consumer research report is positive there’s a 79% chance that demand will be high. • 

When demand is low there’s a 65% chances that the consumer research report will be negative. 

When demand is high there’s a 42% chances that the consumer research report will be negative.

1) When the consumer research report is negative what is the probability that the demand is low? 

2) When the consumer research report is negative what is the probability that the demand is high? 

3) What is the probability that consumer research report will be positive?

4) What is the probability that consumer research report will be negative? 

5) What is the expected value of Sample Information (EVSI)? -6) What is the decision strategy for Consumer+?

Sian Suds (a resident of Australia) and Luke Suds (a

Sian Suds (a resident of Australia) and Luke Suds (a non-resident) own a handcrafted soap shop in partnership and trade as ‘Suds’ Soaps’. Gross income for the current income year is $40,000. $8,000 of this amount was made on Suds’ Soaps’ sales outside Australia. No expenses are incurred for these sales. Business expenses of $25,000 include a salary of $5,000 paid to Sian. All expenses related to Australian source income.

Required B    

a). Assume that the assets of Suds’ Soaps are sold. How are capital gains or losses relating to partnership assets dealt with?

b). In your response give reasons and refer to sections of legislation and cases, where relevant.

Suman gained a Degree in Business when he was a

Suman gained a Degree in Business when he was a young lad and with skill and hard work, he has used that knowledge to start his own business
He operates his own business selling computers and related equipment. Over the last financial year, sales of computers and equipment were paid for at the time of sale. During the year ended 30 June 2019, Suman received $3,000,000 in cash for sales of computers.

Purchases during the year ended 30 June 2019 were $1,200,000 and at the end of the year ended 30 June 2019 his stock on hand was $950,000 (valued at cost). Suman’s closing stock for the year ended 30 June 2018 was $650,000. Suman took 2 computers from his stock for his own use during the year. These computers cost him $220 each and had a market value of $330 each. Suman also gave away another 10 similar computers to his friends during the year.

He paid wages of $1,420,000 to his 20 staff members. This included an amount of $30,000 paid to his brother, who is still at school. The work of the brother could have been done by an unrelated person for $10,000. He also paid $200,000 into his staff’s complying superannuation funds as concessional employer contributions.
Explain how you would calculate the income from his business and the amount of all deductions that would be allowed for the year ending 30 June 2019.

You must give reasons for your answer. Your discussion must include an analysis of the pertinent sections of the relevant legislation, rulings and the relevant case law. If relevant, you must show your calculation. Ignore residency, Fringe Benefits Tax and Goods and Services Tax issues. You must apply the law to the facts given in this question and provide YOUR OWN analysis of the issues. Calculations must be included where relevant.

One of Suman’s customers bought some computer equipment for $600 on credit on 21 June 2018 but could not pay the account, which was issued on the same day. The customer went bankrupt in November 2018. Suman wrote off the debt on 1 July 2019.

In May 2018, Suman decided to take a night off and go to Star City Casino. It was his lucky night. He won $300,000 playing the card game “blackJack”. His friends told him it was “beginners luck”.

Explain how you would account for these events from the perspective of the Income Tax return for the year ending 30 June 2019

What are the positions of the fund portfolio constructed in

What are the positions of the fund portfolio constructed in period 1? 

What is the value of this portfolio in period 2 when the noise trader sentiment deepens? 

What are the gains or losses due to the price movements?

Professional Arbitrage. We discussed a numerical example of the professional arbitrage model in class. This question asks you how the professional arbitrage model works and what its implications are in this context.

In the example, the value of the asset is set at V = 1. The size of the fund managed by the arbitrageur in period 1 is F1 = 0.2. The size of the fund in period 2 is F2 = F1 * G(x), where x is the gross return of the fund from period 1 to period 2 and G(x) = a * x + 1 – a with a = 1.2. The pessimism of the noise traders in period 1 is S1 = 0.3. The pessimism of the noise traders in period 2 is S2 = 0.4 when the pessimism deepens. It turns out that for these parameters there is a q* = 0.35 such if the probability that the pessimism of the noise traders widens in period 2, q, is less than q*, the arbitrageur would not hold cash in period 1. If q is greater than q*, the arbitrageur would hold some cash in period 1.

If q < 0.35, we have the following in the model:

Arbitrageurs are fully invested and D1 = F1 = 0.2; the first period price is p1 = 0.9;

F2 = 0.1636 and p2 = 0.7636 if noise trader sentiment deepens;

F2 = 0.227 and p2 = V = 1 if noise trader sentiment recovers.

1. How did the court answer the questions?2. What did

1. How did the court answer the questions?

2. What did the court decide?

3. EXPLANATION/APPLICATION-Do you agree with the court? Why or why not?

4. Can you change any facts to give a different result?

Requirements for HDC Status. FACTS: Dennis Bowling was a friend and neighbor of David Dabney. Bowling had no indication thatDabney was financially troubled. Indeed, by all evidence, Dabney was quite well off: he owned four grocery stores; he drove a Cadillac; his wife owned a new sports car; he had race horses and lived in an expensive home. In the fall of 1983, Dabney admitted to Bowling that he had “cash flow” problems and borrowed $40,000 from Bowling. At the same time, Dabney proposed they become partners in his grocery business, and discussions concerning this prospect ensued over the following weeks. At one point, Dabney asked Bowling for a signed blank check that would be de¬pos¬ited with a new grocery supplier as “security” and would never be used without Bowling’s consent. If it was, Dabney promised, he would reimburse Bowling’s account appropriately. Shortly thereafter, Dabney dated and filled out Bowling’s blank check for $10,606.79 and gave the check to his major supplier and creditor, 

E. Bierhaus& Sons. Dabney owed Bierhaus more than $400,000 for past deliveries; and after having received ten to twenty bad checks from Dabney, Bierhaus required cash or cashier’s checks from Dabney for any deliveries. Dabney had told Bierhaus about the supposedly imminent partnership with Bowling, and under those circumstances, Bierhaus’s agent accepted the $10,606.79 check from Bowling in payment for a delivery of groceries. Bowling’s check was returned to Bierhaus, as there were insufficient funds in Bowling’s account to cover it. By this time, Dabney had filed for bankruptcy protection. Bierhaus sought to collect the amount of the check from Bowling. ISSUE: Is Bierhaus a holder in due course? RULE/RESOLUTION: [E. Bierhaus & Sons v. Bowling, 486 N.E.2d 598 (Ind.App. 1 Dist. 1985)]

When the noise trader sentiment deepens in period 2, is

When the noise trader sentiment deepens in period 2, is the value of the portfolio constructed in period 1 the same as the size of the fund in period 2? Explain.
What are the positions of the fund portfolio constructed in period 2 when the noise trader sentiment deepens? What are the adjustments of the portfolio made by the arbitrageurs in period 2 in this case? What are the motivations for these adjustments? Are these motivations consistent with the market conditions?
What is the value in period 3 of the portfolio constructed in period 2 when the noise trader sentiment deepens? What are the gains or losses due to the price movements?

Do the arbitrageurs have gains or suffer losses overall from period 1 to period 3 if the noise trader sentiment deepens in period 2?

If q = 0.5, we have the following in the model:

D1 = 0.1743 and p1 = 0.8743;

If noise trader pessimism deepens in period 2, then F2 = 0.1766 and p2 = 0.7766;

If noise trader sentiment recovers in period 2, then F2 = 0.23 and price returns to V =1.

Comparing this case (q = 0.5) with the previous case q < 0.35, is the asset price in period 1 more or less efficient? Explain the reason.

1) Calculate the value of rights to publish sequel novels

1) Calculate the value of rights to publish sequel novels offered by DPN. Should VRE buy it? Use annual compounding’ in calculating ‘P’. 

2) One of the natures of risk associated with the e-publishing industry is the ability of authors to deliver publishable (marketable) works online. Perform a sensitivity analysis on the value of rights to publish sequel e-novels on this risk factor. You can range the probability to 10% scale (e.g. 0%, 10%, 20%, up to 100%). Interpret the implication of these numbers.

3) What is the minimum target (% of publishable e-novels, and also in number of e- novels) to push for VRE for these 60 authors to break even?

Real options analysis (18 points) Sequel rights to the ‘first hit novel authors: Digital Plus Novels Inc. (DPN) is a rather successful online publisher focusing on new talents in science fiction novels. To emphasize on the new talents, it constantly spin off its rights to publish subsequent works by authors within its portfolio. In the beginning of 2020, it is offering to sell the rights to publish subsequent works by a portfolio of 60 ‘first hit sci-fi authors under its umbrella (hits identified as 100,000 copies or more @ about $20 price each e-copy). The range of e-copies sold for these 60 authors range from 100,500 e-copies to as high as 900,000 e-copies (few extreme runaway hits) while the average number of e-copies sold is 200,000 e-copies. DPN sets the price to this exclusive right (on 60 sci-fi authors bundled together) as 50 million dollars. 

Virtual Reality Entertainment Plc. (VRE) is a bigger (and rather more diversified) e- publishing company that is considering DPN’s proposal. The financial manager of VRE has been gathering the relevant information as follows: 

– It will take time to work on and publish online the sequel novels of these 60 sci-fi authors. On average, this will lead to the cash flows received at the end of 2022 (for simplification). 

– Out of the whole lot of 60 authors (one author is targeted to produce one novel), it is estimated that only 90% will be able to produce something worth publishing online at the beginning of 2022. Of these publishable works, estimated sales are 200,000 eletronic copies per novel on average. The price of one e-copy to be sold to customers is about $25, on average. The discount rate used by sci-fi e-novel industry is 10%. 

– For the above to happen, decision needs to be made at the beginning of 2022. To be conservative, VRE secures a conditional offer from its e-production house and platform providers so that it will cost altogether $291.6 million for VRE to make and sell these e- copies (e.g. all costs covered regardless of the number of e-copies in the contract). This cost will incur at the beginning of 2022 ONLY if VRE decides to go forward with these sequel e- novels at that point in time. Also assume that costs (cash flow) will be incurred at the beginning of year 2022 (for simplicity) if the decision is made to go on with the publishing of this lot of publishable e-novels. 

– Risk free rate is 4% per year.

 – Uncertainty in sci-fi e-novel industry is quite high. Variance in the sales/returns of these 60 authors as recorded by DPN was 40%. VRE believes that such estimation will also be valid for the end of 2022.