Data and Managerial Reports - F.A.Q.

70.What business information is available for the firm without extra payment?
Answer: Financial statements and managerial reports are free - no charge.

71.What reports can be ordered at an extra cost? How can they be ordered and when are they received?
Answer: All market information reports can be ordered for an extra cost. These reports can be ordered from the student menu under the Market Info option. The reports can be viewed from the main panel by clicking on the 'Market Info' icon.

72.What is the credit interest rate and where is its rate written?
Answer: Credit interest rate is the interest rate the firm pays for a negative balance in the bank. The rate is listed in the managerial report which indicates the credit's cost.

73.What is the debit interest rate and where is its rate indicated?
Answer: Debit interest rate is the interest rate the firm receives for a positive balance in the bank. The rate is listed in the managerial report which refers to the credit's cost.

74.What is financial leverage and how is it set?
Answer: The Financial leverage is the ratio between bonds and shares. It is set in the 'Technology Screen'. After the third quarter this ratio may be changed by issuing more bonds or shares.

75.When is the firm required to return its bonds?
Answer: The firm is required to return its bonds at the end of the 2nd, 4th, 6th and 8th quarters. A quarter of the original amount of bonds is returned at a time.

76.When is 'Company Tax' paid and what is its rate?
Answer: The company pays 36% tax on its profits at the end of each calendar year.

77.How is the finished products inventory value calculated?
Answer: The finished products inventory is calculated by the market value or average cost of production, the lowest between the two.

78.What is capital depreciation? What does it affect and how can it be avoided?
Answer: Capital depreciation is the loss of monetarily value of assets, specifically, production machinery. This is due to the age and use of the asset. Capital depreciation affects both the efficiency of production machinery and the number of products produced and total cost of production and the company's book value. This can be avoided by selling old machinery according to their book value, buying new machinery and renewing machinery when possible.

79.What is the cost of running a simulation? Where can one see this cost?
Answer: The simulation cost is the payment (in zuz) the firm pays for each simulation session. This value can be seen in the 'Dates' screen. The actual total cost appears in the P&L report.

80.What parameters affect the firm's share price?
Answer: The share price is mainly affected by the performance of the firm (earning per share). However, dividends, IP and stability also have an impact on the share price.

81.What are the overhead costs and how are they determined?
Answer: Overhead are expenses of running the firms facility which are not directly related to the production. These expenses are a percentage of the overall expenses.

82.How is the insurance coverage set?
Answer: Three different insurance policies are available each possesses a different combination of the premium paid, the self payment and the amount covered by the insurance. For further information regarding the different policies, refer to the user manual.

83.How are dividends set and how do they affect the share price?
Answer: Dividends are distributed based upon management's decision.

84.How is the initial share price of the firm set?
Answer: Based upon the ratio between shares and bonds and relative to the total investment at the initial stage of the company.

85.How are marketing reports ordered and when are they received?
Answer: From the 'Student Menu', 'Market Info' option. The reports are received in the following quarter.

86. What is the bank balance at the beginning of the first quarter?
Answer: The bank balance at the beginning of the quarter is the bank balance at the end of the previous quarter.

87.Where can one find what is the interest rate on credit paid to one's his firm?
Answer: The managerial report which details the financial costs gives this information.