1. From your understanding of the Sarbanes-Oxley Act, explain how you feel it may negatively affect America’s stock exchanges. The higher than expected costs for many public companies caused some companies to abandon their public status. The costs of SOX compliance negatively affect companies, markets, investors, and economic growth. Fewer companies are willing to enter the market because of the SOX requirements that make going public too costly.
The weakness of Kudler Fine Foods is that an IPO (Initial Public Offering) has many inherent and potential weaknesses that must be examined prior to selection as a means for expansion. An IPO is the first sale of stock by a company. There are many advantages and disadvantages for the Kudler Fine Foods to go public through the IPO. The advantages include generating more capital needed to expand their three locations The IPOs are very expensive undertaking, and a large portion of any capital acquired will be lost to this cost. Because the company must produce all financial information to the SEC many businesses find it to be very stressful and time consuming which takes time and money away from a company that is thriving like Kudler Fine Foods.
AU1 Assignment 2 Task 1: Purpose of auditing a. Information risk is the risk that the financial statements cannot appropriately present business activities, and provide false and/or misleading information to the financial statements users. There are some causes that arise information risk, two of them are: The first one is Asymmetry of information. It arises due to remoteness of information, bias or motivation of those providing information, high volumes of transactions and data, and the complexity of transaction. The second one is errors from weak accounting system.
But if the amount left aside isn’t as much as the price of the building the business will have to use money from elsewhere. This will mean that another expense will not be paid. If the expense is not paid it will mean that the business will be in debt and the business will have to find a way to find more money or run the risk of going bankrupt. A way the business can do this is by getting rid of some of their members of staff to cut the amount spend on
In addition, such a development could cause financial and capital markets within and outside Europe to constrict, thereby negatively impacting our ability to finance our business, and also could cause a substantial dip in consumer confidence and spending that could negatively impact sales of vehicles. Any one of these impacts could have a substantial adverse effect on our financial condition and results of operations.” (www.sec.gov) I believe this statement represents the Political PESTLE force for Ford Motor Co. because it demonstrates the company’s vulnerability in the global economy based on the financial stability of countries and regions in which the company operates. Whether the financial instability is due to political unrest, economic turns, or other factors, it is a major contributor to the company’s success. Ford must pay attention to the well being of the countries in which it operates,
Political and Economic Environment * What type of risks do foreign firms face in trying to conduct business in this type of environment? Lack of transparency, corporate governance, Poor regulatory environment, Widespread corruption, Organized crime, money laundering, counterfeiting, trafficking (humans, drugs, arms), Conflicts of interest, Fraud, Theft of proprietary information, Industrial disputes. b. Why is corruption so prevalent in Indonesia? P.65 Because political and economic factor listed above; In addition, government bureaucrats salaries are very low, inevitably demand bribes from any company that cross their path meaning a long line of officials might require bribes.
If a company’s internal controls are not working properly customers and investors will be more doubtful and have second thoughts on their investments and money being safe which will lead to having less investor and the stocks will drop. It is very important for companies to have their internal controls up to date and making sure they are working properly because this can cause major setbacks financially. But there are some instances were internal controls cannot even stop unethical behavior from happening such as shoplifting in a shopping mall or even a bank
Increased use of gas during a tight economic time can cripple individual’s bank accounts, therefore, once again, ascertaining DST to be a handicap on society. With at least one
However this can also have its negative impacts on the community. Since the permitting of conditional fee agreements (CFA), statistics shown that there has been a drastic increase on the number of claims in the councils on accidents for compensation using legal processes. This can be a disadvantage for those with low incomes since solicitors will only take up cases which may have a large financial outcome to a client, thus denying the poor individuals access to justice even if they has a good
Bringing over not only their bodies but also their economic instability, they make it difficult for other immigrants to naturalize in our country. Therefore, certain individuals like Mr. Huntington are made to believe that economic prosperity is necessary for