With a net loss, we presumed that no dividends would be paid to common stockholders; however, there is evidence of a collection of outstanding equity that requires dividends. These securities are “company obligated mandatorily redeemable convertible preferred securities,” which require a $70 million dividend per year – although no funds have been available for
What was PacifiCorp Worth before its acquisition by Berkshire? Are we overpaying? We are not overpaying for PacifiCorp. We purchased PacifiCorp, from Scottish Power plc, for $5.1 billion in cash and $4.3 billion in liabilities and preferred stock, for a total of $9.4 billion. Since PacifiCorp is not a publicly traded company, we must use valuation multiples from comparable firms to determine the value of the firm.
E) A 130 million dollar judgment was ruled against Jim Bakker, and to be paid to the plaintiffs. Issues 1.Identify the ethical questions raised by the maintenance of PTL’s secret payroll account by laventhol partner. Does the fact the PTL was a private organization not registered with the SEC affect the propriety of the partner’s actions? The time line of H&L’s audit of PTL Club is: End of fiscal year (May 31, 1984), Audit Completion Date (Dual dated as August 31, 1984 and October 24, 1984). Based on the timeline and the above definition of subsequent events, I believe that it is a subsequent event.
Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Fetter Company by the bank on October 25. This memorandum has not been recorded by Fetter. The company’s ledger showed one Cash account with a balance of $21,877.72. The balance included undeposited cash on hand. Because of the lack of internal controls, Allan took for personal use all of the undeposited receipts in excess of $3,795.51.
The bank of Easipower [the defendant] gave a report of Easipowers financial position that they have enough resources for ordinary business proceedings, but stated that the report was given "without responsibility." Based on the report which was given by the respondents, Hedley added another orders on behalf of Easipower which later on were not covered by sufficient resources. It meant a loss of £17,000 for Hedley Byrne. Hedley sued the respondents for damages under the tort of negligence. Esso Petroleum Co Ltd v Marden [1976] 2 All ER 5 Mr Mardon entered a tenancy agreement with Esso Petroleum in respect of a new Petrol station.
Introduction Enron, the seventh top company in the United States until 2001, it collapsed because its’ executive officers: the chief executive officer, the chief operation officer and the chief finance officer used the tool: the accounting standard of “market to market” to accommodate the financial phenomena. “Market to market” is an accounting principle that the focus of its’ financial value is the present market price; however, the Enron’s independent directors independent directors did not audit the problem of the financial situation. “Sarbanes-Oxley legislation” highlights the responsibility of business directors to supervise accounting affairs; similarly, Smith, the Management Consultant from the U.S.A (2007) emphasized that to conform the financial phenomena is not for legal way. Sarbanes- Oxley legislation is a regulation for corporate governance. In Order to fill the gap between directors and accountants, independent directors have to work in audit committee, likewise, executive officers could not change the accounting standard to cover up the financial problems.
2) Discuss whether Enron’s officers acted within the scope of the authority. Enron’s officers did not act within the scope of their authority. The scope of authority only goes as far as the law will allow. When Enron acted dishonestly and unethically to benefit over its shareholder and members, they were no longer in the scope of their authority. 3) Describe the corporate culture at Enron.
These companies make a point of following the law to ensure that others cannot take legal action against them. For example, a company may create more waste than necessary, but it will remove of the waste in a legal method rather than dumping it illegally. Accommodating An accommodating stance signifies that a company believes social responsibility is important -- and perhaps as important as making a profit. These companies satisfy all legal requirements and attempt to meet ethical standards. An accommodating company does not
This test was examined in the Carparo Industries Plc. v Dickman case. The defendant had an account audited that didn’t reflect a previous loss and debts in the bookkeeping records, instead, profits, putting the claimants in a belief that, the company in question is worth investing in. Afterwards, the claimants found out the audited account didn’t reflect exactly the true previous and current status of the company financial dilemma. Based on the principles of the three-part-fold, the House of Lords ruled against the claimant that: the defendant owes no duty of care to the claimant in such circumstances.
Their negligence and careless washing method caused the explosion. 2- The principles of corporate socially responsibility that are applicable to the actions of the parties in question are: * Corporations have a duty to correct adverse social impacts they cause. For example, after the accident, Union Carbide should have been willing to compensate the citizens and cleaned the mess they cause. * Social responsibility varies with company’s characteristics: in this case, the industry, location and the internal culture play a big part in the accident. * Also the theory of moral unity is applicable: where business actions should be judged by the general ethical standard of society, not by a special set of permissive standards.