Jones purchase the stock of Smithon outright leaving Smithon intact? The stock should not be purchase by Mr. Jones. Mr. Jones acquiring the assets, liabilities and also would inherit the contractual obligations of the selling corporation, would, be the results of the purchase. In lay terms, he has bought the existing Smithon Corporation and he is responsible of ensuring daily operations run efficiently but the tax aspect of acquisition he is responsible for existing and any future tax liabilities that the selling corporation had. It would be my advice for Mr. Jones to not buy the stock because of the liability of current and future tax obligations which Mr. Jones would incur from the purchase of the stock.
Auditor Crazy Eddie Question: What specific mistakes (apart from failure to notice “red flags”) did the auditor make? For each mistake, describe what the auditor should have done. If you were the Managing Partner for the CPA firm and had full knowledge of all the facts and events in this case, what changes in policy or procedures would you implement to make sure this audit failure does not occur in the future? The Crazy Eddie's financial statements had many fraudulent over and understatements done in many ways that the auditors should have caught. They created fictitious revenues by a number of means.
In August 1981, Reagan signed the Economic Recovery Act of 1981. This act brought reductions in individual income tax rates, the expensing of depreciable property, and incentives for small businesses and incentives for saving. Over the eight years of Reagan’s presidency there were twenty million new jobs were created, unemployment fell from seven point six percent to five point five percent, and inflation dropped from thirteen point five percent in 1980 to four point one percent in 1988. A second reason Ronald Reagan was the best president is because he was a long time of arms control with the Soviet Union. In the 1970’s Reagan believed the United States was losing
BP AND THE GULF OF MEXICO OIL SPILL Case Introduction and Background BP former known as British Petroleum is a British multinational oil and gas company. By the end of the twentieth century as drilling moved further offshore, BP became the dominant producer in the Gulf of Mexico. This is due to significant discoveries in deeper waters and this is linked with substantial rewards and risks. Former CEO John Browne pushed BP to generate return on investments by cost-cutting and tough financial targets for each top-manager of the company. In 2007 Tony Hayward took over as a CEO and boosted productivity and profits.
Barclays Plc There are many decisions that Barclays took according to the change in economic growth. When the global financial crisis began, Barclays avoided direct equity investment from the UK Government because it thought that maintaining its independence from the Government was in the best interests of its shareholders. They would have done this to make sure that they do not lose any investment during the tough financial crisis period. It also believed that independence would enable it to take advantage of opportunities that would arise in the crisis. This would therefore give them a competitive advantage as other banks preferred taking help from the government.
It also affects the externally because of the deceit corporate governance culture practices, it also fails as an outcome. 2. We think each of the individual stakeholders and components of the corporate governance system are acted to resolve the problems before they reached crisis proportions, because the senior management made an options other than debt options for additional external capital by their first employed concept of Cactus Fund in 1991 to support business development and took the concept to a new level, created by Andrew Fastow of having partnership deals with SPE, that resulting to appreciation in the value of the SPE and contributed significant earnings to Enron throughout 1990 and 2000. The failure of Enron business destroyed the wealth of investors and also the career, income and savings of the stakeholders. The solution that they did was only temporary.
It uses Public money unnecessarily and is unfair to taxpayers. It makes financial reform going forward much more difficult. Protecting the markets for derivative products like CDOs and CDSs allows for a repeat of the risky practices that got us into the current crisis. And finally, by guaranteeing the corporate existence of large banks, we are maintaining their power and priorities and thus are not likely to see gains on predatory lending, foreclosure abuse, and other areas where reform is sorely needed. If we want to help the people who are suffering in this crisis and recession, then we should make financial policies with them directly in mind.
Antitrust Claims against Microsoft Monopolies, Trusts and Government Regulations Monopoly occurs when a large corporation or business fixes price to eliminate competition because they are the only major provider of a particular product. Monopoly affects economic growth negatively because since the price cannot be determined by the market, business is restricted. Trusts in business enable confidence to be built so that business can be conducted in fairness. Antitrust policies are regulations by government to ensure that businesses can operate on a certain degree of trust thereby ensuring that the market is not monopolized. Since monopoly caused unreasonable price hike, government must be able to exercise control or consumers and the economy will both be affected.
Another goal of the Act was to eliminate the reliance on big banks by making sure strict financial guidelines are followed to bring some sanity into the financial system. The Act placed limitations on some of the activities of large banking institutions and detailed the powers of the Federal Deposit Insurance Corporation (FDIC) in cases of bank failures. The Dodd-Frank Act placed emphasis on reducing the possibility of future bankruptcies and sought to limit the exposure of large banks to risky trading activities. Analysis The Dodd-Frank Wall Street Reform and Consumer Protection Act was designed to offer a greater level of oversight to discourage high-risk behavior and avoid a repeat of the recent turmoil experienced in the financial markets. The act has had a significant impact on financial institutions, ranging from a possible decline in profit margins to increased staffing to address regulatory compliance concerns.
AIG charges insurance companies a premium in order to allow them to spread their risk so that they can sell insurance policies and grow more rapidly. In 1968 Maurice “Hank” Greenberg took over as CEO. By the end of the 1980S the company had become the largest underwriter of commercial and industrial coverage in the United States and the leading international insurance company. In the 1990s it was the first foreign insurance organization granted a license in China. AIG purchased American General Corporation in 2001.