CRITICAL ISSUES * lack of smart and strong decision making because of owner and CEO’s different perspectives/priorities * sales have increased, but profitability have decreased * ineffective management of A/P and A/R have made the company insolvent * may lose loans because bank requires current ratio of 1.25 SITUATION ANALYSIS The major decisions for the company are taken by the owner rather than the CEO. The owner lacks business sense and his decisions are based on emotional feelings, not for the benefit of the company. The owner is not willing to outsource operations and wages are above industry average. From 2001 to 2005 sales have increased by 186%; whereas, COGS and selling and admin has increased by 199% and 166% respectively. High operating expenses and ineffective management of A/R have led the company to insolvency by demonstrating a quick ratio of 0.38.
Introduction to Federal Contracting 339 Scenario Essay Topic 2 Invoicing blunder, contractors often make when working with the government. Contractors often make billing mistakes that cost the company millions of dollars each year; contractors and employees are faced with submitting payments and inputting the wrong numerical routing department number on invoice and this can cause problems to contract agreements and even embarrassment to the company. To correct invoice problems, should the government enforce a tougher penalty for contractors? According to “The Prompt Payment Act”, government contractors are required to pay within a certain time frame. Government contractors often make mistakes on their invoices For instance, the financial person who processes the data is responsible processing the payment and has no way of knowing if the data is incorrect.
They work on U.S. construction sites and farms, in restaurants and hotels, even in homes. Foreign workers, lured by false promises of good jobs in America, soon find themselves enslaved in plain sight as victims of labor trafficking, according to a new report published by the nonpartisan Urban Institute and Northeastern University. About half of these workers pay "recruitment" fees to traffickers -- often thousands of dollars -- that can leave them stuck in debt for years. And while some victims are smuggled here, a majority - or 71% - actually enter the United States with a visa, the report found. The International Labour Organization estimates that there are roughly 21 million people worldwide who are victims of forced labor, but there
How Goldman Sachs Created CDOs, sold them so AIG, forced AIG into bankruptcy, got A $20 Billion bailout, and paid themselves billions in bonuses. When insurance giant AIG nearly went bust, one of the reasons it was bailed out by the US government was it was too big to fail. What was going to make them fail? All the credit default swaps (CDSs) sold to Goldman Sachs in case counterparty’s credit declined. So, guess who got billions of dollars in the taxpayers’ bailout of AIG?
The previous decade has been host to numerous and extraordinarily costly lawsuits as well. The damages sought and won in those lawsuits range from tens of millions to billions of dollars. In order to rise above the tide of litigation and ensuing government regulation, GEICO must adopt a practice that protects
It has also been pointed out by Richard Dreyfuss, writer for the Manhattan Institute, that “...pension obligations now threaten to outstrip the government’s ability to pay, since the investment risk and any resulting deficits are the responsibility of the taxpayer”(2). Dreyfuss’ point helps to highlight the fact that the entire economy will be impacted by the impending pension crisis. Taxpayers will be forced to make up the difference that remains once the government decides it cannot afford to
What is life worth? * The value of life cannot be summed up in a dollar amount. * Although a family member's death can bring some financial problems to the family, those do not even compare to the feeling of despair by the personal loss and the government check is nearly offensive. * * this article speaks about putting a price tag on a human life. * Ripley speaks about how the government had created a method to compensate the families of the victims of 9/11.
Regardless of what someone may do everyone needs to be accountable for his or her actions. If a physician or its staff makes false claims against a patient’s insurance it could put the organization as a whole at risk. The healthcare industry is a billion dollar industry and is valued to the public. Without accountability employees jobs can be lost and can make many employees suffer and cause harm to those that are responsible for their own actions. Employees need to be accountable for their actions and to ensure the employees are accountable the management needs to measure their accountability.
Today millions of Americans cannot afford the sufficient health care they need. The price of health insurance is costing us the people thousands of dollars. Therefore, I believe the government should provide health care to all citizens regardless of their ability to pay for that care. Some rich people may prefer to pay for medical treatment, while the government must necessarily subsidize the health care for children, senior citizens, the unemployed and the homeless, as these groups cannot provide for themselves and, are extremely financially vulnerable. However, working adults can use the benefits of the medical insurance, which will give them an opportunity for a decent medical service and reduce the general taxation burden.
He went to garment industry employers and offered them contracts that gave workers the minimum wage in exchange for bribes paid directly to Johnny. The companies were protected from organizing efforts of other unions, but workers were locked into lousy wages by their own union. Corruption hurt union members directly and dragged the image of organized labor into the gutter. And due to the fact that minorities tend to be disproportionately represented in unions, the growth of unions can also lead to higher levels of disparity in income. Unions not only lead to higher average wages among their employees, but they also contribute to higher levels of unemployment among those who are not members.