Although the Sarbanes-Oxley Act was passed by Congress for positive reasons, there are many disadvantages that come along with it. A major issue is the cost of regulation, especially for smaller companies. Expanding internal controls delay the timeliness of financial statements by adding processing time to accounting functions. To follow the SOX, companies would need to separate duties, causing an increase in personnel. The SOX also calls for additional audits which increase business costs.
The weaknesses that Kudler may face would be the financial burden of going public. Sometimes expenses pile up just from seeking help from outsiders to protect the investments. The economy has fluctuated over the years; therefore the company needs to ensure they have contingency plans in place when business may not be as stable. There are ample opportunities that can come about from selecting an IPO. A company's debt-to-equity ratio will usually improve after going public, which tends to result in more favorable financing arrangements (2014, Going Public, para 1).
As it determines the price of the product, and the price based on absorption costing does ensure that all costs are covered. Absorption can provide management with accurate information concerning product cost. The variable method is beneficial by providing an output that is closer to the cash flow of the company that may be short on cash flow. Variable costing aids in the analysis of cost-volume – profit by separating the variable and fixed in the income statement is another benefit. Which method would lead to the best decision when a competitor is submitting a lower bid for your product?
So to be able to have a productive and successful business, business owners may want to look into maximizing their profits by way of the profit maximization concept. Profit maximization is when a company comes to a conclusion on the price and output level that will turn the maximum profit by using this particular process (Wikipedia). Granted there are many different approaches to this problem; however in this essay we will be considering the TR to TC method and the MR MC method. Tiffany C Wright expressed that the total revenue to total cost method is dependent on the fact that profit equals revenue minus cost. Total revenue equals price time’s quantity.
Compare the economic prosperity of your nation to the amount of arable land and resources it has. Do you see a relationship? When you get together as a group, compare this data. Is there a trend? How can the presence or absence of natural resources and arable land affect a nation’s economy, regardless of the type of economic system?
Minimum wage represents a government involvement in a nation economy, although businesses are often wary about the prospect of the government making major economic decisions. In the U.S., Congress sets a federal minimum wage that businesses must follow. Individual states can also create separate minimum wage laws above the federal law. Intervention from the federal and state government can create a difficult business environment. Governments may choose to increase minimum wage on an arbitrary basis, making it difficult for companies to hire individuals at a consistent market rate.
These arguments may seem to be valid to many people; however, they are almost overwhelmingly false. President George W. Bush’s Council of Economic advisors has confirmed that 90% of the US-born population benefits from the presence of immigrants (Gold 409). Immigrants contribute to America’s economy, retirement system, and highly demanded workforce skills. Immigrants contribute to the American economy by increasing the share of jobs overall. They take jobs in labor-limited regions, and
There are several parallels that lead us to believe that history may be repeating itself. Today’s U.S. economy is producing 2.2% more goods output then before the economic recession started in the late 2000’s, but with 3.8% fewer workers. This can be attributed to our modern day recession stimulating huge productivity and efficiency gains as business let mediocre employees go to save on labor costs. They have learned to do more with less. Unemployment rates were steadily on the rise just a few months ago and corporate profits are at all time highs.
For a company to retain talent it must offer more incentives for the employees than that of its competitors. Your company encourages the decisions and ideas of the employees but more programs could be put in place to help retain employees. Implementing a program that offers rewards for time and cost savings not only benefits the employee but also the company by projecting a positive image of employee worth to the company. Keeping the companies hiring practice on the national level is required for all employees that work in the retail stores but if there is a need for technology or manufacturing of a particular product I would recommend global labor. The ability to tap into the global labor market will make the company more competitive by being able to offer competitive prices on products due to lower overhead cost associated with the offset in the labor cost.
The local economy and the global forces and economic pressures have affected people’s prospects in achieving a rich lifestyle and rely heavily on government entitlements and programs which so many criticize as going in the wrong direction. But in reality, entitlements like Medicaid, food assistance (SNAP), Medicare and Social Security have helped so many Americans survive through these hard times, although many of these programs do not form part of the American Dream in many minds. In the past many Americans depended on manufacturing jobs for their livelihood. When they got a job, there was a great amount of certainty that they could rely on it to progress and sustain a healthy lifestyle for their family to buy a home, car and everything that came with it. Today those jobs have gone to other developing nations who can afford to hire employees at low wage.