Questions

1.

• * From the scenario, determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs. Recommend the key decision-making criteria that Katrina’s Candies should use for expansion decisions in the short run and in the long run. Provide rationale for your response.

• From the e-Activity, recommend whether the company in question should or should not continue to produce the good or service. Provide a rationale for your response.

2.From the e-Activity, provide a brief, two (2) sentence summary of the background of the case and the outcomes of the lawsuit. Examine both the positive and negative effects that the company in question experienced. Suggest two (2) actions that the company could have taken in order to mitigate the impact of the lawsuit on the company’s business operations and reputation. (Use the Internet to research a company that has been involved in a product liability lawsuit within the last five (5) years. Be prepared to discuss.)

• From the scenario, assess the importance of understanding tax laws and governmental regulations that may have an impact on the expansion plans for Walters Aeroworks. Predict the manner in which Walters Aeroworks’ potential pursuit of international expansion could impact these plans.