1. From your understanding of the Sarbanes-Oxley Act, explain how you feel it may negatively affect America’s stock exchanges. The higher than expected costs for many public companies caused some companies to abandon their public status. The costs of SOX compliance negatively affect companies, markets, investors, and economic growth. Fewer companies are willing to enter the market because of the SOX requirements that make going public too costly.
Economic costs of deflation- deflation has proved to have several economic costs, the main cost is that it encourages differed expenditure where people’s expectations change and they delay spending in the hope of getting a better deal. This then results in a decrease in AD causing business revenues to fall and confidence to decrease delaying business investment and cutting costs, i.e. increasing unemployment, all of which could slow economic growth and force a recession as evidenced in the 1930s depression. Additionally deflation increases the real value of debt leading to
The business cycle is a series of cycles that define the economies and a business’s stages of expansion and contraction. The first stage of the business cycle is the Boom stage, this is where there is high level of customers spending, there are high levels of business confidence, and an increase of profits & investment. Unemployment is also low as the business creates jobs. The next stage is the Recession stage, this is where the high levels of customer spending start to decrease and business confidence means that lower profits and the business will have to start cutting back on investments which starts to increase unemployment as the business is forced to cut back on resources. The next stage is Depression, this is where there is a lengthy period of declining Gross Domestic Product (GDP) – this is where there is little to no customer spending (there is some increase in the rise of employment).
Recession- The recession is an opposite of boom stage. The unemployment increase, most of firms are losing confidence and stops invest or expand. They may change their planning and started to survive. The customers are likely to save money then spend and the percentages of loans are high and may increase. Individuals are losing jobs and the government have to spend more money of benefits.
401(K) has become ineffective because of the corruption of big business, the misunderstanding of and as a result a mishandling of the 401(K) accounts, and its correlating dependency on the market’s success. Making profit is important to people. Most of all, improving the bottom line is the primary objective for major companies. “For Robert Shively, learned that his employer, Occidental Petroleum Corporation, or also-known-as Oxy Pete,” wanted to forgo the guaranteed-employer pension plans for the less demanding 401(K) system where it is based on contributions from employee’s pay rather than from the employer’s profit. This forces the employee to save without any effort but, due to this, workers began to neglect the social security and entirely dropped the use of the original pension plan.
The strength of the Aussie dollar impacts on exporting, metal prices effect profits, and a slowdown in the global economy will reduce the demand (particularly from China) for the metal produced in BH. The BH mine recently made 440 employees redundant which had a huge effect on the local economy and saw many families leave the region in search of employment Ageing Population: BH has an ageing population which in the short term has a positive effect through construction of aged
On one hand, it’s simply a supply and demand issue. As wages rise, the demand for labor decreases. In other words, employers will simply stop, decrease, or slow down their hiring. Economists estimate that a ten percent increase in the minimum wage relative to the prices of goods and services decreases total employment of those affected by one or two percent. If the minimum wage increases too much, then it could even force some smaller firms out of business.
Inflation damages businesses because it causes uncertainly. A rise in the rate of inflation might reflect a rise in the cost they have to pay; for example: * Employees will want more wages * Costs of materials may go up * Cost of fuel and energy may also rise. These rising cost will eat into the business profit. This keeps businesses to then have a choice to either keep prices constant or to see profits fall or raise to raise prices and perhaps lose out on competitors. The
The unemployment was on the rise, and the job market was declining at a high rate. This was going on before he got in the White House. I feel like it is up to the owners' to stay or leave. Companies are taking their businesses overseas to have employees work for lower salaries, paying lower tax rates, better tax credit, or to have more money in the their pockets. Some businesses feel like they are not making money here in the United States.
Tieaisja Nicole Powell Unit 9 Final Project Minimum wage essay College Composition 2 Minimum wage is considered low income. It affects the lives of people making minimum wage and also small business owners. It affects the employees because the cost of living continues to rise and minimum wage doesn’t. Small business are affected because raising minimum wage would mean they would have to hire less employees and raise the prices on the company’s products. Minimum wage is unacceptable because the cost of living will continue to increase.