More and more companies are doing business in China due to the lower production costs. When doing business in a different country, they could have some policies and regulations that are different than the ones in the United States. They are many officials in these countries that will take a bribe in order to ensure a fast turnaround time in order for your company to receive a license. The Foreign Corrupt Practices Act of 1977 (FCPA) was empowered by the United States to investigate allegations of bribery anywhere in the world and are stepping up their activities in China (Roberts 2010). Technically, China does have some laws against taking bribes but there is a fine line between bribes and gift giving.
Second, financially stressed companies that go dark are the very companies’ shareholders need to monitor usually and where transparency is most important. Clearly, SOX has both positive and negative effects. However, the implementation problems of the Act do not provide sufficient reason to weaken or eliminate SOX requirements or to adopt significant exemptions based on company size. 2. What advantages would China offer foreign companies to list on its exchanges?
Hong Kong became an international city that can handle a large number of capital and goods from all over the world. The Special Economic Zones like Shenzhen, have the convenience access to Hong Kong, therefore, they are developing a better economic market than inner periphery. These are the preconditions make the economic development of China’s inner periphery left behind. Chinese interior periphery development is left behind, which is because some obstacles
If we do not buy imported goods then they will not buy ours and without export revenue and foreign investments we would not be able to function financially. When exports increase so does the Gross Domestic Product (GDP). GDP is the dollar amount of all goods and services produced within the United States. When the GDP is high it signifies that our economy is healthy and stable. When companies can produce more due to demand they are able to hire more workers, which can lower the unemployment rate.
Competitors – they will be only interested if the Business means “ASDA” is not doing so well as this will mean more business for them , because they are offering the same services within the same area. They can use the financial statement of “ASDA” as a “bench mark” for their own performance. Owners- they are the most important stakeholders, because they have established the business and they devoted a lot of their time for the company success. They are the stakeholders, who have the higher interest for the business to raise on profit and value. Employees and Managers- their interest is that the company provides them with decent live hood.
Pro forma financial information is generally used to illustrate the effects of transactions such as business combination, and change in capitalization. There are countless reasons on why companies use pro forma statement in their business, the most significant is the planning and control received when using pro forma. The process of using pro forma statements are less time consuming, they help businesses evaluate and make a better distinction between business plans (Scarborough, Wilson, & Zimmerer, 2009, p. 196). Pro forma statements are an excellent outlet for resources that will help a business forecast expected earnings should the company chose to merge with another company or even if the company wanted to sell off part of it operations (Scarborough, Wilson, & Zimmerer, 2009, p. 196). The pro forma statements are commonly used when applying for a business loan.
New laws and regulations come about because of social and political changes. Organizations abiding by state and federal laws and regulations may result in the organization spending more money on additional taxes, new technology development, and legal fees. Competition may consist of the startup of a new organization offering similar services and products in the same marketplace, which presents a new challenge. The customers are the most critical in the environment. As the end-users, they will usually improve the organization’s image in the community because of satisfaction with the product or service, or ruin the image of the organization in the community because of dissatisfaction with the product or service.
In this scenario the pro’s outweigh the con’s and therefore it would be a great idea to form a corporation. Choosing the proper formation to conduct business is crucial for an organization. Whether one believes that personal liability, limited liability, or double taxation will increase their chances of surviving in the business world each organization has the ability to choose a specific formation. Formations of a business are unique, some benefit some organizations more than others and so forth. However, in most cases if circumstances
Target is also a discount store, but they offer a different spin. They are more focused on the style. Target’s corporate strategy is one that has changed little over the years: to provide high-quality, stylishly designed items plus all the essentials for life, displayed in a clean, organized and welcoming environment. Target’s size is most beneficial because they can cater their services and products to change with trends more quickly and at prices that are affordable to the customer. Target appears to run on a functional organizational structure.
In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient