Although he made over 1 million dollars the work that was put in, in order to achieve this was not worth the money. It took 5 years for him to capitalize on this with hours and hours put in to each week. Grant has 3 reasons why he feels that bitcoin is not a good investment. Firstly, it is difficult to put a value on bitcoin as the value varies daily and can sky rocket or plummet really quick. Another reason is that he feels that bitcoin may not hold any value as block-chain technology can easily be replaced.
e. Although its stockholders are insulated by limited legal liability, the corporation's legal status does not protect the firm's managers in the same way; i.e., bondholders can sue its managers if the firm defaults on its debt, even if the default is the result of poor economic conditions. 3. Which of the following statements is CORRECT? a. In a regular partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business.
It is hard for tax assessors to evaluate the value of payable taxes by a business that has incomplete records. Financial aid is usually refused to such businesses with incomplete financial records, because there is no way the financial institution may be ensured of getting the funds back other than by analyzing the financial statements of an organization. However, for businesses using single entry records, it does not require a lot of knowledge from the accountant; hence it reduces on the cost of labor for the business. And also the single entry and incomplete records can be regarded as a solution in case of loss of records through accidents such as flood, fire or even deliberate intention as a result of fraud. Some businesses are still using this practice for their bookkeeping
In our opinion, the company is possibly with intension to understate the revenue and avoid the tax. Second Issue The second issue is regarding the machinery that being sold by the company but the transactions did not record. In our opinion, the company is trying to conceal the sale proceed of fixed assets and thus it will overstate the assets of the company in financial statements. Supplier can creditor of the company may mislead by the financial statements and do not make a wise decision. Furthermore, in tax perspective, the company can continue to claim capital allowance as the company still possessed the ownership of the assets.
In previous years, the United States believed that paper money was a percentage of the public debt, however in current times the paper money is referred to as a certain type of obligation. It is called an obligation because the paper money is not able to be paid with silver, gold, or any other definite objects of important significance. The government of a country has the responsibility for the public debt. Even though citizens have the obligation as taxpayers to pay funds for compensation of interest and principal, these individuals property cannot be attached to meet the requirement if the government is unsuccessful in doing so. On the same note, property owned by the government is not usually able to be taken to meet these obligations.
Discuss how Greater Providence Deposit & Trust might improve its control procedures over the disbursement of loan funds to minimize the risk of this type of fraud. In order for any organization to avoid any type of fraud would be to have good internal controls in place. Good internal control requires that no single employee be given too much responsibility over business transactions or processes (Romney & Steinbert 2010). An employee should never be given the opportunity to be in a position to commit and conceal fraud. In the case of Greater Providence Deposit & Trust the organization did not have proper internal controls in place.
3.) Even though Wee Corporation is a nonpublic or public SEC registrant, still it is not allowed or ethical that the service fee would be based on contingent on the findings or results of the service. CASE 12 1.) First, I would examine disbursement book of Rojo Company if the amount reflected on the said account was the same written on the invoice amount. If it confirmed that the amount paid is the same in the invoice, then I would inform the Accounting Manager about the discrepancy.
Steelcase management was not used to additional requests for information so they held a defensive posture towards inquisitive analysts and investors. This approach was not the best idea especially when it came to concerns that arise when they purchased Strafor. This lack of communication contributed to the approximately seventy (70) percent drop in their stock price and with not having a relationship with sell-side analyst it did not make the situation better. Not understanding how Strafor runs its operations and how it will impact on the operations of their company is what contributed to the weakening of their profits. When the company became public they did not take into consideration the necessary changes they would have to make in pertaining to their major constituents.
The Federal Reserve Board did not have any set regulations to control the actions of any independent banks, so they could maintain other people’s money any way they wished, and forgo the advancements of loaning. The loaning could not be controlled by the Federal Government as attempted, because they had no laws upon controlling any exchange terms that greatly affected the Stock Market, nor did they have a way to protect the banks from corruption. Banks are essential for the American economy, since no growth can be achieved unless savings are efficiently conveyed into investment. Because of this, the lack of a fully functional banking system has often been identified as a major weakness in the economy. They have always played a large role in the rise and fall of the Stock Market.