1. How interest rate affects bond price?

 Changing interest rates and the expectations about the future direction of interest rates are
probably the biggest single influence on the market price of bonds. When interest rates rise, the
market value of bonds falls. The market price of long term bonds may be more volatile than
shorter term bonds, because changes to the relative rate of return would have a bigger impact
over a longer period of time. A lower price, however, would improve the current yield for
perspective investors because if they can buy the bond for a discount, their overall return will be
higher.
2. Why do investors and companies care about intrinsic value?

 Intrinsic value is defined as real value of particular aspects. It’s one of the way to determine the
true value of particular asset. Intrinsic value of a particular asset or a company is. Investors and
companies care about the intrinsic value, but managers also need to understand how the
intrinsic value is estimated because managers need to know how alternative actions are likely to
affect stock prices, each models of intrinsic value will help to demonstrate the connection
between the decisions and firm value. Moreover it helps the investors in terms of decision
making as to what investment is lower than their worth.

3. How does nominal returns differ from real returns?

 Basically real rate of return define as annual percentage return realized on an

investment, which is adjusted for changes in prices due to inflation or other
external factors. While you adjust the nominal return to account for
considerations such as inflation, you can calculate how much of your
nominal return a real return is. In contrast, the nominal rate of return
excludes external variables that can impair output, such as taxation and
inflation. Moreover the nominal rate of return assists investors in
determining the performance of their portfolio, which may include
securities, shares, or other assets.
4. How is pre-emptive right beneficial to common stockholders?

 Preemptive rights generally are meaningful only to a major investor with a large stake in a
company and a vested interest in maintaining a voice in its decisions. Preemptive rights secure a
shareholder's voting authority as more shares are sold and the company's ownership dwindles.
Since the shareholder is receiving an insider's price for the new issue, there could be a clear
benefit motive. For instance, if the new issue is priced better, there is the possibility of
minimizing losses by exchanging common stock to more shares. In short, preemptive rights are
necessary for shareholders because they enable current shareholders of a corporation to
prevent involuntary dilution of their equity stake by providing them with the opportunity to
purchase a proportionate interest in any potential issuance of common stock.
1. How was the objectives of performance management be actualized?

Speaking of the performance management, it is defined as an organizational management techniques

that allows administrators to track and assess the work of their employees. In order to actualize the
major objectives of performance management in the company, the company should raise the ability and
competence of each individual to increase the organization’s goals and function in a way that reliably
and efficiently meet the company’s competitive objectives and create a high performance of every
employees and take the responsibility for the continuous improvement of the organization process of
their own skills and contributions within the structure set by the effective management.

2. Choose the best appropriate performance appraisal method be used in a construction company.
Why?

The best appropriate performance appraisal method must be used in a construction company is
Behaviorally Anchored Rating Scales (BARS) as define a combine major elements from the critical
incident and graphic rating scale approaches. This method will help the construction company to
identify the new technique and consists of a sets of behavioral statements describing good or bad
performance with respect to important qualities. Team building is also one the performance appraisal
method, team building can also use in a construction company to help to improve and develops the
company and build a strong teamwork in a workplace.

3. Cite a concise business situation for the aims and role of performance management systems.

4. Which type of teams do you think you belong? Why?

The type of team which I belong is Cross Functional Teams, because my main objective is to finish and
take a decision and work on a complex projects that necessitate a variety of inputs and skills. I always
collaborate with the team to achieve the optimal results of our projects. If the teams have been working
in a group up to the point of collaboration, this can be a daunting dynamic to overcome. It is important
to diverse personalities and backgrounds are respected, and that everyone on the cross-functional team
plays to their strengths.

5. Present a business scenario where the life cycle of team is highlighted.

Your group is participate the school event and you want to know each background and personality of
your group and wants to share their ideas. As a team leader you start to introduce yourself and after
that your member introduced each of them, this is called Forming. After they introduce their selves they
share their ideas about your topics and give their best strategies to win objective your desired goals, it is
called Storming. They start setting and interact among themselves to handle the problems, called
Norming and Performing. Lastly, after Adjourning with the team, the teams completed their ideas and
debrief on what went well and what could be improved it.

6. What instances where the factors for effective team be compromised?

7. How are constructive and negative behaviors be manifested?

All has opinions on a variety of behaviors, but they are not all negative. The effect that workers’
attitudes will have on those ground them is on part of their attitudes. People with an optimistic outlook
can raise their coworkers’ spirits, while people with a pessimistic attitude can drop their spirits or some
employees with a negative behaviors can easily show up their bad sides towards to the other
employees. Behaviors may have an effect on both an employee’s job success and the performance of
the coworkers.