"30 Young J, in Pioneer Concrete Services Ltd v Yelnah Pty Ltd,31 on his part defined the expression "lifting the corporate veil" thus: "That although whenever each individual company is formed a separate legal personality is created, courts will on occasions, look behind the legal personality to the real controllers. "32 The simplest way to summarize the veil principle is that it is the direct opposite of the limited liability concept. Despite the merits of the limited liability concept, there is the problematic that it can lead to the problem of over inclusion, to the disadvantage of the creditors. That is to say the concept is over protected by the law. When the veil is lifted, the owners' personal assets are exposed to the litigation, just as if the business had been a sole proprietorship or general partnership.
Why do corporations distribute constructive dividends? What are the motives behind distributing other form of payments to shareholders other than distributing regular dividends? “Tax savings” is the answer to the above questions. Dividends are subject to “double taxation” where the distributions are taxed at both the corporate and individual taxpayer (shareholder) level. By
The American Institute of Certified Public Accountants (AICPA) has published guidance on various ethical issues that may possibly arise from the shift in business strategy in this firm. The following paragraphs will explain this firm’s plan for ethical and economic success. Economics and Pricing Economic issues tend to dictate many aspects of business, including the pricing of services and products. Land values, inflation, access to healthcare, the cost of living, and unemployment are examples of key issues that indirectly affect economy as a whole. Inflation and cost of living change the way consumers spend their money.
It appears not to be the case. Some could argue that the interest rates are not sensitive to the demand for money. Would an upward sloping LM curve still be applicable?. Explain your reasoning. The LM curve would not be applicable seeing as though the decision to reduce the federal funds is a monetary policy affect the IS curve solely.
Friedman has a traditional view of corporate responsibility that urges a worldwide economy that has minimal government regulations. However, Carroll proposes business has four responsibilities which include: economic, legal, ethical, and discretionary. Friedman argues against the social responsibility concept. “A business person who acts “responsibly” by cutting the price of the firm’s product to prevent inflation, or by making expenditures to reduce pollution, or by hiring the hard-core unemployed, according to Friedman, is spending the shareholder’s money for a general social interest” (Wheelen & Hunger, 2010, p. 72). It is Friedman’s opinion that even at the shareholder’s urgency, a business person who acts from any other motive beside economic, may actually harm the society they are trying to help.
Identify the needs of the stakeholders in this case study. The needs of the taxpayers would be that they would rely on income and financial support from having an investment in the business. In this case the taxpayers own 83% of RBS and 41% of Lloyds demanding for an increase in the value of their investment. Tax payers may withdraw their share of the company if the actual or projected financial return is no longer profitable for them. Identify the possible causes of conflict which may arise in this situation.
Question 2 of 100 (2B5-LS53) Flag for Review A manufacturer with seasonal sales would be most likely to obtain which one of the following types of loans from a commercial bank to finance the need for a fixed amount of additional capital during the busy season? *Source: Retired ICMA CMA Exam Questions Insurance company term loan. Transaction loan. Unsecured short-term term loan. Installment loan.
So if the economy picks up firms will tend to lag a little bit in hiring workers at least permanent workers. Firms can use the information from leading and lagging indicators to make decisions. If a set of economic indicators suggest that the economy is going to do better or worse in the future than they had previously expected, they may decide to change their investing strategy. A lagging indicator is immensely significant because of its ability to confirm that a pattern is happening or about to occur. Firms need to look out for economic indicators.
Walton highlighted the mutual dependence between business and society (Davis, 1967) and the importance of the willing as opposed to coercive character of CSR respectively. Perhaps most importantly, Walton began also, the discussion that the CSR costs may be difficult to assess in terms of a direct measurable economic return. According to (Lee, 2008), in these two decades, CSR research was carried out at a macro-social level. Also, this research has an explicit ethical obligation orientation and superficially discusses the relationship between CSR and corporate financial performance (Sheehy, 2014). By 1970, Milton Friedman had accepted that some social demands can be integrated into the company only if the company benefits from them in the long-term (Friedman, 1970).