| | | | | * Question 3 0 out of 2 points | | | You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction?Answer | | | | | | | Correct Answer: | This is an example of a direct transfer of capital. | | | | | * Question 4 0 out of 2 points | | | Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?Answer | | | | | | | Correct Answer: | Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization. | | | | | * Question 5 2 out of 2 points | | | Money markets are markets forAnswer | | | | | | | Correct Answer: | Short-term debt securities.
Analyses The biggest question is what should Morgan do with all the takeover bids? Being that Morgan is a retired dean of Boston University business school, he is well versed in the business world. From this, he should consider Odak’s comment about doing what is best for the shareholders of Ben & Jerry’s. If we simply look at the P/E ratio of B&J in Exhibit 6 of the case, which is 19.8, and compare that to the offers being presented by the four bidders here’s what we have: • Dreyer’s Grand - $31 / $1.06 = 29.24 (stock) • Unilever - $36 / $1.06 = 33.96 (cash) • Meadowbrook Lane - $32 / $1.06 = 30.18 (cash) • Chartwell – minority investment of $30 - $50 million The P/E numbers above show that Unilever would bring in a large investment and also be right for shareholders of B&J. Unilever would be paying a $15 premium over the pre-offer announcement share price of $21.
Mr. Wallace continues direct operational control over the Electronics Group. Several years ago, Wallace and the Board embarked on a strategy of diversification into plastics and chemicals in order to decrease the company’s dependence on defense-related business. Presently, the morale within The Wallace Group has deteriorated to the point where some of the employee stockholders made an attempt to force Wallace’s resignation. As a result of this crisis, Wallace has hired YOU, a management consultant, to
Executive Summary Kenneth Jones, the president of Viscotech, has a handful of regulatory issues to resolve before moving any further with operations. Ideally, the company would have considered SEC regulations before raising the $976,000 in December 1997 from 34 investors through the MIFT pool. Most importantly, Viscotech was desperate for money, so they did not notify the SEC, and accepted money for securities offered under Regulation A, which had not been finalized by the SEC staff. Viscotech advertised the MIFT as a trust, when it appears to be a contract to buy securities at a future date, but we argue that the security vehicle is exempt under Regulation A (see Exhibit 1) for the following reasons. Under the Securities Act of 1933, the MIFT does not automatically fall into the category of exempt securities, so the company must still file a offering statement with the SEC to avoid penalties.
The memo should request a set-timed conference call amongst decision makers to evaluate new information and answer questions. The call should suggest developing a plan to disassociate the Taco Bell brand from the consumer health violation, as well as reevaluate current use of approved genetically modified substances in its restaurants. Kraft Foods, Inc. should be second in the communication pipeline. Being late on a Friday, a direct telephone call would be the source of communication in order to streamline answers to this external crisis. The main point delivered should be to get in touch with Aventis and come to a conclusion as to how this contamination occurred.
Noah Wind 10/07/2010 MGM's Creditors Voting on Debt Plan The movie studio MGM has been around for a long time so to hear that they are declaring bankruptcy was a shocker to me. This move will allow them to clear all their debt, but it is going to be taken over by a rival movie studio. Step number one is going to be presenting its restructuring plan to debt holders. This will let people know where they stand with the company and let them know that they are going out of business and will be bought out by Spy Glass Entertainment. Creditors for MGM have to approve the deal by October 22nd, and they hope to gather enough voters so that when they do go bankrupt the other company can start it right back up.
Alex Montana at ESH Manufacturing Co. EXECUTIVE SUMMARY The report describes the dilemma faced by Alex Montana on whether he should accept the position of the Global VP at ESH Manufacturing Co. Evidences gathered from the case have been analyzed using parameters such as if Alex can meet his need for achievement, whether his wife would be able to pursue his career aspirations and others. After critical evaluation, it can be recommended that Alex should defer his promotion till his wife conceives their second child.The report also outlines the plan of action and the contingency steps. TABLE OF CONTENTS SITUATIONAL ANALYSIS 5 PROBLEM STATEMENT 5 OPTIONS 5 CRITERIA FOR EVALUATION 6 EVALUATION OF OPTIONS 7 RECOMMENDATION 7 PLAN OF ACTION 7 CONTINGENCY PLAN 8 SITUATIONAL ANALYSIS Alex Montana was the director of the Industrial Components and Equipment (ICE) North America division of ESH Manufacturing. He had started his career as a Junior Engineer in the firm and quickly rose in ranks to reach the present position. His quick promotions were the result of his exceptional performance, initially in the manufacturing roles and later in the managerial roles.
Bob was a legend in the rental business and was known all over the world for his keen business abilities. Only a year and a half ago, some of the executives of Rentall and some additional outside investors offered to buy Rentall from Bob. Bob was close to retirement, and the offer was unbelievable. His children and their children would be able to live in high style off the proceeds of the sale. Folley, Smith, and Christensen developed the contracts for the executives of Rentall and other investors, and the sale was made.
But by getting Apple to focus on making just four computers, he saved the company. “Deciding what not to do is as important as deciding what to do,” he told me. “That's true for companies, and it's true for products.” After he righted the company, Jobs began taking his “top 100” people on a retreat each year. On the last day, he would stand in front of a whiteboard (he loved whiteboards, because they gave him complete control of a situation and they engendered focus) and ask, “What are the 10 things we should be doing next?” People would fight to get their suggestions on the list. Jobs would write them down—and then cross off the ones he decreed dumb.
In 2002, an internal transfer pricing dispute involving three divisions came to a head in a meeting called by the companies managing director, Mr. Rolf Fettinger. Mr. Fettinger needed to hear the details of the dispute so he could decide on the best possible outcome for the organization while taking into consideration each division managers’ concerns. The three divisions involved were heavily impacted by the Imaging Systems Division’s (ISD) manger, Conrad Bauer’s, decision to outsource a component of a new product, X73. The Heidelberg division was asked to provide a bid for the needed component and was subsequently outbid by two outside organizations. ISD was one of Heidelberg’s major inside customers and its manager, Paul Halperin, was furious that ISD was taking its business elsewhere.