sept17 - Scenario 1: savings from temporary decline in oil...

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Scenario 1: savings from temporary decline in oil prices: $500,000 1 st choice: upgrading internet connection: $300,000 cost, but it’s an annual cost 2 nd choice: maintenance of Admissions building: $250,000 one time cost 3 rd choice: start a new German department: $300,000 annual cost Scenario 2: Posse Foundation is presented with an opportunity to receive major grant 1. not in their mission shouldn’t apply a. change their mission? 2. cut back on staff and focus on financial health of organization 3. the $5 million grant is restricted to the specific purpose of the Carnegie Foundation Scenario 3: $3 mil- Center for Environmental Research- self-sustaining; what to do with $3 million balance are there any restrictions on the $3 million should endowment be started? as a self-sufficient organization should they buy their freedom Budget director of university can pay for some element of the Biology Department if they do research in something useful for the Center (buying cooperation for organization) Scenario 4: University is trying to increase its ranking ( attract more competitive students and better professors) by increasing current tuition by 7% issue is subsidy: have wealthy students pay the 7% and provide scholarship for the less financially stable student winners? school, parents risks? negative profit losers? self-supporting studentse who can’t afford higher tuition fees short-term effects? not sure long-term? better reputation-stability
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Exam will have 2 questions like this. Make pro and con arguments.
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sept17 - Scenario 1: savings from temporary decline in oil...

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