Sarbanes Oxley came into force mainly due to the financial scandals committed by corporate giants like Enron, WorldCom, etc. Since then the Sarbanes Oxley act had been the most important piece of legislation which seriously affects the corporate governance, financial disclosures and total accounting pattern in the companies. After the Sarbanes Oxley act came into force, accounting system and financial statements disclosed by the companies made tremendous progress. This improvement has been possible due to rigorous requirements stated in the Sarbanes Oxley act. Due to this improvement it helps to protect investor confidence in the companies and the US legislature as well.
In this task, I will be describing how political, legal and social factors are impacting upon the selected business activities. The two businesses which I have chosen are, Oxfam and also Tesco. Political factors for Tesco Taxation Large business such as Tesco is largely affected by the government taxes, such as income taxes and business rates. Tesco is a large business which means that a lot of corporation tax taken away from their profits. Corporation Tax is a tax on the taxable profits of limited companies and other organisations.
Part A: Analysis Business Model Seagate and Deal Rationale #1: Why is Seagate undertaking this transaction? How suitable is an LBO for a technology firm like Seagate, and what are the potential sources of value creation in the transaction? Motivate your answer. The Seagate management believes that the company needs heavy and intensive that are not feasible if Seagate Inc. remains a public company. Other capital re-organizations alternatives involve significant tax liability and considering the present state with Seagate being a public company, tax liability will result in loss of wealth for the shareholders since it involves corporate taxes as well as personal tax liability.
These RIAs helped DFA offer its high net worth investors the same low cost small and microcap investment vehicles, while making these investments relatively more liquid in the secondary market. Furthermore, in the late 90s, when the tax laws became fairly harsh on individual investors, DFA started offering tax managed funds to lower the overall tax burden on the gains from those funds. However, compared to DFA’s other funds, these tax managed funds were relatively more challenging for DFA to manage, as DFA had to continuously balance the funds while considering tradeoffs between tax benefit and transaction costs to determine net benefit to the portfolio. 5) Explain the DFA small and value
Ownership Sainsbury’s PLC is a Public limited company which means that they have their shared bought and sold on the stock exchange. An advantage of being a plc is that large amounts of capital can be raised quickly but a disadvantage of it is that the control of the business can be lost by the original shareholder if large amounts of shares are purchased but also is costly to have shares quoted on the stock exchange. In order to be a limited company, you have to be registered before the business can operate. Owners of the limited company elect directors to represent their interests Size of Sainsbury’s There are two main formats, regular Sainsbury’s supermarkets and local convenient stores. Sainsbury’s is a national business with a market share of 16.8% and at the end of 2012, Sainsbury’s had 583 supermarkets and 523 convenient stores.
Credit scores are basically a track record on how well you manage your financial responsibilities. If I was a financial institution, and I saw that a customer wants to borrow money but was always late on payments, I would be a little hesitant at lending that customer money. It is very important to take your credit score seriously. Your credit score is one way to come up with an unbiased decision. Financial institutions and companies can provide credit for majority of the population by using the unbiased formula called the Credit Score.
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.
Programs like the FDIC and the Social Security Act are both great programs still used in today’s world and are well appreciated. Because of the FDIC, people are able to trust banks more with their money because they know that it is safe and secure. People still know their rights as Americans and what can and cannot be done with their money by banks. The Social Security Act is one of the most appreciated acts still in effect because this means that if your company was to go out of business or the economy was to collapse, you can still receive an unemployment check so that you can still get by until you find another job. Also, old retirees can receive checks as
We are going to discuss the level of business risk for some of those factors. In the later part we will also calculate the volatility of some important accounts of the financial statements from the historical data given in the case to get the overall idea about its business risk. Centralized Authority:It has both pros and cons depending on the size of an organization. In a small organization the more the authority is centralized the less it faces business risk. But following centralized organizational structure in a huge corporation like AHP is questionable.
Although they are all external factors, companies can take advantage of the different turns they bring about and have more control over the direction the company is taking; and some industries have a little more power over some of these cited factors than others. My selected industry is the Money Center Banks, which is a subdivision of the big financial sector, and regroups companies such as Bank of America Corporation, Citigroup Inc., JPMorgan Chase & Co., State Bank Financial Corporation and many others. First of all, the General economic condition affects all the components of life in general and businesses in particular. When taken at a local, state, national or even international level, factors such as rate of economic growth, unemployment, interest, saving and inflation rate, trade deficits and surplus, GDP and so forth, affect every single aspect of the economy on both the supplier and consumer side. Concerning our selected industry for instance, a low interest rate will stimulate loan and business enterprises; while a very bad economic