Debt to assets ratio $1,202,134 (total debt) / $1,404,726 (total assets) = 87.4% B.) ROA is a measure of profitability or effectiveness of resource usage calculated by expressing a company’s net income as a percentage of total assets. As for Sepracor, its ROA is 4.5%. This means that Sepracor created 4.5 cents of earnings from each dollar of assets. The ROE for Sepracor is 33.07%, which means that 33.07 cents of assets are created for each dollar that was originally invested.
The first issue is that the reasonableness of Kim's compensation package is to be evaluated in the light of the five factors enumerated in the Elliot's case. The issue is will IRS evaluate Kim's compensation to be reasonable and if Kim's compensation package is reasonable under the test. The relevant case law is Elliotts, Inc. v. Commissioner (1983) that is used to ascertain reasonable compensation under section 162(a)(1). The five factors are employee's role in the company, external comparisons, character and condition of the company, conflict of interest, and internal consistency. IRS will not deem Kim's compensation to be reasonable.
Which is the MOST commonly used measure of corporate performance (in terms of profit)? • ROE • ROI • EPS • DPS 4. When a company determines a competency's competitive advantage, Barney refers to this issue as • value • rareness • imitability • organization Final Exam Answers just a click away MGT 498 Final Exam 5. If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process, operational managers must • change the strategic management model. • know about it so that they can correct the employee activity.
What is debt services default? (0.5 points) The failure to make payment 4. What is the Better Business Bureau? (0.5 points) An organization that reports on the reliability and ethics of companies and other organzations. 5.
The stress of the audit partner is tremendous and choosing that profession is one that I would prefer not to undertake. The anxiety and pressure to certify that a company’s financial records are in good standing can be daunting. 3.) Independent auditors are sometimes perceived as the “necessary evil” by corporate executives because of the possibility of exposing corruption. To change this point of view an auditor can try to explain their intent to educate and improve the company’s policies, which can in turn lower costs.
Name as many as possible. Any businesses that are distributing any unlawful actions like fraud. Financial statements shows what the company make for the year as well as what the company is bringing in. The owners are affected by this because if something is wrong it could fall back on them. The employees are affected because if something was to go wrong they may lose their job because of the company faults or not get paid like they should.
Linex contracted with the accounting firm, Simpson, Lafferty, and Co., to audit its financial statements. In 1993, Linex went public. In 1995, Linex was named as a defendant in a patent infringement suit by a competitor. The disclosure of the litigation uncertainty created an environment of risk whereas the owners felt that the litigation could hamper the ability to finance operations for expansion. The amount of the lawsuit was $5 million.
Star River Electronics Ltd. Team 14 Constantine Brocoum Courtney Delia Stephanie Doherty David Dubois Radu Oprea December 19th, 2009 Contents Objectives 1 Management Summary 1 Financial Health 1 Financial Forecast for 2002 and 2003 3 Key Driver Assumptions 5 Star River WACC 5 Free Cash Flows of the Packaging Machine Investment 7 Appendices 7 i. Objectives This report seeks to answer the following five questions about Star River Electronics Ltd.: 1. Assess the current financial health and recent financial performance of the company. What strengths and/or weaknesses would you highlight to Adeline Koh?
Case Study, Jack Carlisle, CIO Executive Summary IZL Corporation hired Jack Carlisle to restructure and reorganize the IZL IT department. The company was going through major turmoil in which the CEO Chuck Hansen was replaced by CEO Jim Giles and another SVP, Carl Strati. Jack Carlisle must assess the problems within the company and implement tactical and strategic changes. Carlisle must align the current business strategy with an aged information department that does not support business strategy. Other problems include the company having a lackadaisical business strategy, internal conflicts among upper management, an information technology department that has not been well run and is frequently criticized by peer executives, and a lack of integrated business objectives that do not align with information technology objectives, the inability to prioritize projects due to unclear business objectives.
The competitor lost $5 million in a sexual discrimination suit. Sands executives believe that an experienced HR team can prevent this. They counter that front line supervisors are not knowledgeable enough in employment law to prevent legal issues that can be costly for the organization. 2. Do you believe that managers should be given more autonomy to make personnel decisions such as hiring, appraising, and compensating subordinates?