A bank may choose not to implement an online-transfer delay if its customers view speed and efficiency a key factor. 2. What are the two primary lines of security defense and why are they important to financial institutions? The two primary lines of security defense are people and technology. Since banks deal with money they must offer the most advanced security features to keep their customers finances safe.
Banks have a reserve requirement, which is set by the fed. A reserve requirement is the minimum percentage of a bank’s total reserves that they are required to keep, for security reasons. (Schiller) The fed can change the reserve requirement to allow a bank to loan more/less money, which is used to control the economy. Many critics use this to determine that annual deficit spending has a negative impact on the economic stability of our country. The fed has to set a lower reserve requirement, which allows banks to loan out more money, which generates more interest, which could lead to periods of inflation and could have worse consequences if the government does not react quickly enough.
At this time, our foreign countries cannot be compared to United States because of the size of the marketplace of the country (Schroeder, Clark, & Cathey, 2011). The reasons are there is very little information on equivalent sets of accounting principles. The investors cannot measure the accounting from the international financial. The stocks seem to be more impound in stock prices. The international context appears to possess the information on high quality standards (Schroeder, Clark, & Cathey, 2011).
Process analysis is the explanation of how to do something or how something works. In my rough draft, when discussing ways to budget finances and make a plan for tracking purchases, I used elements of process analysis, but I did not give a step by step, detailed description. I gave examples and made suggestions, but did not write a complete process analysis. The reason I including this type of writing in my paper was to show that even though I support the topic that Americans should not use credit cards, there are many people that have them, and there needs to be a plan in place to help manage the debt that has been incurred on them. Because this is a persuasive essay, I tried to use terminology that conveyed my support and belief that Americans
They assess potential risks before making investment decisions which is shown through Bob and Maggie refusing to take out a loan when they don’t have the means to make repayments as the majority of their money is tied up to their inventory, and their inventory faces a huge unpredictable risk from the weather. In addition Bob and Maggie both have calculations and predictions made using information available to them showing efficiency and awareness of the market conditions; alongside this Maggie’s conservative nature in regards to cost saving has helped them garner up more cash. The company’s weaknesses seem to be their low liquidity levels, which could see them in financial difficulty in an unexpected change in the market conditions, or potentially hazardous weather that could damage their inventory. To add to this risk Maggie has a strong deterrence towards any type of debt financing. 2.
Huge technological and cultural challenges associated with diversification in the industry become the entry barriers. Stability and trust are important in banking industry, entering the industry with no brand name and compete effectively would be difficult. 2. Threat of Substitutes : Moderate There are many options for different financing needs, finance companies, mortgage companies, insurance companies, etc. However, many people will still go to a bank for deposit and major financing needs.
The loophole employed by Enron has since been plugged by the Sarbanes-Oxley Act, however, the external auditors’ failure to exercise professional judgment in relation to such dealings reflects poorly on the effectiveness of their audit practices. The external auditors’ inability to recognize the nature of these special entities and the transactions being entered into by Enron prevented the auditors from recognizing them as part of the larger Enron economic entity. As a result, revenues were significantly overstated while liabilities were
The welfare system in America is broken. It was originally designed to help people that cannot find jobs or cannot work but that is not exactly what it is doing. Not all people who are on welfare really need it and it is causing some people to be denied. Many families do not want to rely on the federal government because they do not want to be looked at as poor or that they cannot provide for their own family without extra help from others. A lot of people lie about what they do and do not do and conservatives and liberals ignore it when they know what is happening.
While the traditional accounting methods are good to measure past performance and financial stature, it does not allow for managers to see the impact or value that marketing has on the bottom line. For a manager to evaluate the impact of marketing they will need view the current marketing expenditures, sales, and profits to make a conscious decision on what methods are working. While I think placing marketing as an investment is a good concept, determining the value is too biased without a common measurement between all companies in a similar industry. Without understanding the current value of marketing, the marketing budget will be one of the first items cut when the business is in a downturn. Technology in all industries has increased dramatically over the past 10 years so being able to understand the current value of marketing methods should not be as strenuous as it has been in the past.
Nevertheless, could be really unsocial and unsustainable when it has to work in stable situation, because mainly his peers and subordinates they will not accept or tolerate that style for long periods of time. According to Amok his style could be title as Directive and Pacetting, which means that entails command and control behavior that at times became coercive. It also involves leading by example and personal heroics. The advantages of these styles are that it fuels innovation, productivity and growth but on the other side ultimately could erode organizational performance, demolishing trust and undermine morale. This type of style can be observd in Alex when he mention that he had been hired to shake up the product team and launch the product quickly.