Company Q’s current mind-set on social responsibility appears to be quite negative, uninformed, and antiquated. It would appear that the company chose to close stores in high risk areas without first investigating how they could provide service to this under-served segment of society while still maintaining a profit margin and ensuring the safety of its employees. The company’s veiled attempt to make quick profits by providing only a small, high margin sampling of the customer requested health-conscious or organic products has likely served only to alienate and diminish their customer base. Lastly, the company’s response to the local food bank’s request for donations appears to a feeble attempt to create a valid reason to avoid the extra work that may have been associated with this endeavor. This response likely had the added effect of offending their employee base by suggesting that their employees would utilize the program to steal from the company.
He didn’t think he needed to ask Express the moral problem so that everyone will believe that his or her moral concerns have been recognized and included. * This is a moral problem because his actions of using company funds for personal use wasn’t economically efficient productive system, it didn’t produce more of the products that people most want an less use of the resources people least value, which is a definite value to society. In addition to this, his actions wasn’t informed to everyone. * Effective use of resources, What are the economic benefits? * What are the legal requirements?
Allocating cost this way would not be accurate since DOP could not see the improvement in cost control from electronic order and desktop delivery. The company should use the ABC approach which is recognized costs by their activities and drivers for its pricing system. The cost drivers are used as bases to allocate costs to the product and thus would reflect more accurate product costs than using traditional cost pricing system. Table 1.1 Dakota Office Products: Income Statement CY2000 Sales | $42,500,000 | | 121.4% | ($42,500,000/$35,000,000) | Cost of items purchased | $35,000,000 | | 100.0% | ($35,500,000/$35,000,000) | Gross margin | $7,500,000 | | 21.4% | ($7,500,000/$35,000,000) | Warehouse personnel expense | $2,400,000 | | 6.9% | ($2,400,000/$35,000,000) | Warehouse
Suppose that Cornelius believes that Elliot is not a good hire for Pharma. Can he fire Elliot? Although Adams may have had the legal right to hire Elliot without the consent of the others, it was a morally wrong decision not to seek the consent of the other shareholding partners. As a privately held corporation which is small in size, the promotion of business efficiency is an objective best served by enabling the owners to arrange the organization of the enterprise as they choose unless such decisions are outside the scope of the partnership business which would make it impossible to
• Significant debt issue is a concern as it is risky and in conflict with the company’s culture and managerial of low-risk attitude. Hence, 20% debt-to-capital restructure is recommended as it is not significant amount as opposed to other alternatives. • Other effects, including financial distress, signaling, investment and clientele considerations, are difficult to measure but predictable to balance out to a mildly optimistic set of considerations. • An alternative approach is to increase debt in order to use the proceeds to pay dividends, however it is not recommended. In conclusion, if Hill Country were to engage in the leveraged recapitalization, this report would highly recommend the 20% debt-to-capital ratio be used to repurchase shares.
On the other side, for the entity, hiring the same firm as both consultant and auditor can save it audit expense, since the CPA or CPA firm has already known a lot about it when performing consulting, thus decreasing its audit hours. For example, in the case, after receiving the copy of SAS No.50 report, E&Y did not perform any meaningful separate analysis in deciding
Furthermore, his calculation of full unit cost, which only added up material cost and direct labor cost, is not that convincing. Probably the manager of the company would also take the other costs such as state tax and inspection cost into consideration when evaluating the whole project. Thus, the result of the inventory holding cost using the formula H=iC could not have the accurate number for the estimation. 3. The relationship Lynn Rosen was talking about was the relationship between customer-service level and inventory investment.
Consequently we should take the average of all three models, because every model has it´s pros and cons against the other and we can´t decide which model calculates the right price. Because for the DDM we have to estimate the Dividends, because a non-publicly traded company does not give out dividends. The price-ratio model needs to compare the ratios of each company to similar companies within the industry. This could be tricky if Citrus Glow has the biggest market shares. The Corporate Value Model, also known as Free Cash Flow model also has it´s limitation regarding to the spending today and not in the past.
The paradox of efficient market hypothesis is that some investors have to believe that market for the market to continue to be efficient. Explain your understanding of the above paradox. Include in your discussion the forms of market hypothesis. The paradox of efficient market is that if every investor believed a market was efficient, then the market would not be efficient because no one would analyze securities. In effect, efficient markets depend on market participants who believe the market is inefficient and trade securities in an attempt to outperform the market.
Any objectives agreed upon by a management coalition would inevitably be highly ambiguous goals, enfeebling the ability of a top manager or entrepreneur to truly control the direction of the firm. Cyert and March argued that while ‘individuals have goals; collectivities of people do not’ (1992, p.30), and thus the firm could not have well-defined objectives. Premised on this weak (or the absence of) leadership, The Behavioral Theory posits that the firm’s strategies and learning processes are short-term in focus with adaptations induced by crises. Management is unable to reconfigure internal resources because of the immutability of standard operating procedures and the ambiguity of coalition goals. In his discussion of firm strategy, Oliver Williamson notes that in Cyert and March ‘the firm resembles a fire department more than a strategic actor’ (1999, p. 14).