One common reason for partnerships to convert to a corporate form of organization is that the partnership: A) faces rapidly growing financing requirements. B) wishes to avoid double taxation of profits. C) has issued all of its allotted shares. D) agreement expires after ten years of use. E) None of the above A) 4.
Economic Goals of Business and Government VS Social Goals of Consumers Milton Friedman suggests that the social responsibility of a business is to increase its profits (Boardman, Sandomir and Sondak 221). While increasing profits is certainly one of the most important factors in a successful business, is it considered a social responsibility, or better yet, the only social responsibility of a corporation? Friedman seems to think so. But why is increasing profits a corporation’s social responsibility? According to Friedman, “A corporate executive is an employee of the owners of the business.
Barclay’s ownership is a PLC company that this means that it is not owned by just one person as in a PLC organisation people can buy shares and this means that people own parts of the business. Therefore Barclays has shares on the London stock exchange for people to buy and it has many owners. Barclay’s aims and objectives are to: * Make sure that make profit- they do this by making customers take out loans, mortgages and giving them a credit card. They make profit mainly from these 3 services because customers pay them back with interest. * To make sure their customers are happy with the products and services
As business operations declined post the 1st quarter in 2000, CFO Sullivan used the following accounting tactics to achieve targeted performance: 1. Accrual releases: Accounting principles require companies to estimate expected payments from line costs and match them with revenues in the income statement. Throughout 1999 and 2000, Sullivan told staff to release accruals which too high compared to the relative cash payments. Over a 7 quarter period between 1999 and 2000, Worldcom released $3.3 billion worth of accruals. 2.
To go public is defined as the process of selling ownership in a company to the public. And the companies use investment banks to raise money by selling shares of stock to investors so that the company can then use the money to grow their operations. Pros Going public is a quick way for a company to get access to a lot of money. The benefits of going public are that it raises money from the company and makes it easier for employees to cash in and out of their shares. There are several main advantages of going public.
Executive Summary The primary intent of the financial analysis of Apple Inc. is to identify the profitability of the company. The objective of a company is to maximize the value of the firm which is measured by the present value of the firm’s future net earnings. The stock price is the most visible public indicator of the company’s ability to procure future earnings. Apple Inc. has consistently beaten analysts’ forecasts and its stock has been consistently prominent on the Nasdaq. Although Apple is notorious for its financial success the true performance indicator is its ability to innovate.
Solution: The primary disadvantage of the corporate form can be the agency problem or the double taxation to shareholders of distributed earnings and dividends for some shareholders. Some advantages include: limited liability, ease of transferability (sell/issue shares very easily, cf. sole proprietor: hard to sell business), ability to raise capital (bond and shares), and unlimited life (wind up, receivership). *1.6. Agency problems.
Current Operating Strategy and its impact There are a few of components of Hill Country’s operating strategy. The first one is that the simple and clear goal of the entire especially board of management is to maximize shareholder value. Meanwhile, the one-sixth of the shares that held by the CEO and management insiders can be regarded as a stimulation to develop management. The second component should be the efficient operations, lean and aggressive operating and capital budgets, and tight cost controls in this highly competitive industry. The third one could be the managerial philosophy of caution and risk aversion, especially to the decision-making process like introducing new products into market.
- To be the preferred provider. Strategies to achieve the above mentioned goals: 1) Invest in projects that increase shareholders values : This object is one of the financial goals to invest properly. Marriott used discounted cash flow techniques to evaluate potential investment. It is beneficial because it is considered present time value. Projects which increase shareholder value could be formed with benchmark hurdle rates, the company can ensure a return on projects which results in profitable and competitive advantage.
Computed by deducting the cost of capital from the after-tax profit, it is said to be the best measure of the true profitability of an enterprise because it is tied to cash flow and not earnings per share. Many analysts would agree that EVA is more positively associated with a company’s stock price than ROE or EPS. Keith confirmed his findings with an industry analyst, which posed him with the decision of whether of not to implement this calculation into OSI accounting practices. Furthermore, would it be a beneficial tool to be used for evaluating the new manager’s incentive compensation plans? The EVA trend seems to be almost mandatory for the larger companies, but there is no reason that it shouldn’t work just as well for their smaller firm.