Both overfilling and underfilling bottles are undesirable: Underfilling leads to customer complaints and overfilling costs the company considerable money. In order to verify that the filler is set up correctly, the company wishes to see whether the mean bottle fill, μ, is close to the target fill of 16 ounces. To this end, a random sample of 36 filled bottles is selected from the output of a test filler run. If the sample results cast a substantial amount of doubt on the hypothesis that the mean bottle fill is the desired 16 ounces, then the filler’s initial setup will be readjusted. a: The bottling company wants to set up a hypothesis test so that the filler will be readjusted if the null hypothesis is rejected.
This section requires management and the external auditor to report on the adequacy of a company’s internal control over all financial reporting. This is the most costly aspect of the legislation for companies to implement, as documenting and testing financial manual and automated controls requires a massive amount of effort. Looking at it from economic prospective, the individual investor was hit hard. Just because they might be able to diversify their investments, each company must spend significant amounts of money and their resources to be in compliance with Sarbox. This cost cannot be diversified; it will be multiplied for every investor.
This tool has been around for many years and the frauds get more complex every year. The major thing the triangle does not account for is if the person is capable of committing the fraud. Just like the fraud triangle three corners are: Incentive (or pressure), Opportunity, and Rationalization, but the fraud diamond adds one additional corner with Capability. Capability can be a little tricky to determine, because the person needs to have position and the knowledge to commit and cover up. Position and knowledge are equally important and will also determine the size of the fraud.
Allergan Inc. is a big company in the pharmaceutical industry and was involved in this unethical behavior making millions of dollar without thinking in the wellbeing of the society. To resolve this case Allergan has to admit the unethical issue and collaborate to advice the society about the issue. Then take out of the market all the promotions about the product. Then apologize to the consumers and paid the price to help solve the issue. Drugs and medicine are very sensitive products that can killed people if there are not control and approved to
Despite the success of Walmart its executive management team must the aware that the corporation is exposed to a variety of business risks. As the largest employer in the world one of the risk the company is exposed too comes from its own work staff. Employees can become a source of risk because acts such as injuries in the workplace can cost the company money in medical expenses and potential lawsuits. Employees can file a lawsuit against the employer for a variety of reasons including wrongful termination of employment, sexual harassment, and discrimination among other reasons. Another risk that the firm faces is legal.
Prior to polices established by Law of Commerce Henkel Iberica participated in aggressive pricing to increase market share. The consequences of this were a negative effect on margins, contribution margins, and profits on sales. To contend with its competitors, Henkel invested in promotions and additional product mix to increase sales, but due to lack of accuracy in long range forecast it was often left with either over stock that is difficult to reallocate or loss of sales due to out of stock products which eventually led to a decrease of net earnings in sales year before. Accurately forecasting demand is the key to every strategic, tactical, and operational decision designed to keep our business competitive. Obviously it is evident that Henkel Iberica current process isn’t working due to challenges of forecast exactness and demand variability for all the products it offers.
IMAN 635 Individual Research Paper Nike and International Labor Practices – India and China 10/31/2011 Introduction Globalization, along with its ups and downs of economic opportunity, has aggravated a stern debate over the international labor practices, mostly in developing nations. On one side where foreign companies invest in developing nations, which provides them employment, admission to foreign markets, crucial capital, and up and coming technology, which paves the way for allowing the developing countries to achieve their goal of becoming a first world country (a developed nation). But on the other hand, there has been a fierce debate over the labor practice in developing nations by MNCs (Multi-nation corporations). MNCs are seen as taking advantage of poor wages and fragile social regulations to manufacture low-cost products. Many reports have been published describing the poor work conditions in these MNCs factories in India and China, where the workers are paid hardly any dollars and made work extreme hours, sometimes in risky conditions.
Illegal immigration has been a very controversial topic for the past decade in the United States. Mainly, because how, what, and who it effects. In some senses it can be a good and a bad thing regarding the illegal alien and everyone surrounding them. The most controversial part of this situation is exactly where the illegal immigrants are coming from, Mexico, and also the rate at which they are coming. The fact of the matter is how much money is being spent on trying to stop it from happening.
Most of the occurrence of data records exposed was in the hundreds of thousands. The potential for extensive identify theft in the hands of expert criminals is enormous, resulting in the possible loss of billions nationwide. This paper will give an overview of the Legal, Ethical and Regulatory Issues for e-Business. It will explain how and why they are important, and the difference on the B2C website compared to a B2B website. The issue of honesty, integrity and trustworthiness are time tested values known to man.
Case Study: “Mini Case Airbus Dollar Exposure” Table of Contents INTRODUCTION......................................................................................................3 CASE STUDY ..........................................................................................................5 1) Forward Contracts………………................................................. 5 2) Economic Hedge .......……………................................................6 3) Future Spot Exchange Rate .......................................................... 7 4) Option and Money Market Hedge ............................................... 8 5) Advantages and disadvantages of hedging ….............................. 8 CONCLUSION ........................................................................................................ 12 REFERENCES ......................................................................................................... 13 Introduction During the course, we have been facing different situations where the foreign exchange market and their financial tools are the object of our analysis. Foreign Markets are very volatile and highly dependent of the income and currency of a country; therefore International and Transnational Companies face too many risks when doing business. This happens because all the different currencies that are involved in transactions; it is very important that companies are aware of their foreign currency exposure and know how to manage it. Investors and multinational corporations must manage economical risks and foreign exchange risk, including transaction exposure, economic exposure, and translation exposure. In this case we will analyze the following points in examples, therefore here we will see a brief exposure of each element: Forward Contracts- non-standardized contract between two parties to