1. From your understanding of the Sarbanes-Oxley Act, explain how you feel it may negatively affect America’s stock exchanges. The higher than expected costs for many public companies caused some companies to abandon their public status. The costs of SOX compliance negatively affect companies, markets, investors, and economic growth. Fewer companies are willing to enter the market because of the SOX requirements that make going public too costly.
Enron also engaged in transactions that inflated its earnings, such as selling time on its broadband system to a partnership at inflated prices at a time when the demand for broadband was plummeting. Enron then recorded a substantial profit on such transactions. The partnerships agreed to such transactions because Enron management seems to have exerted disproportionate influence in some instances over partnership decisions, although its ownership interests were very small, often less than 3 percent. Curiously, Enron's outside auditor, Arthur Andersen, had a dual role in these partnerships, collecting fees
Case Analysis: Utiliscan Webster University HRMG 5000 March 6, 2013 Case Analysis: Utiliscan Introduction By looking at the survey conducted by Paul and his team at Utiliscan, we can see several areas that need to be reviewed for improvement by the management there. Talented employees are difficult to attract and some would say even more difficult to retain. Unless solutions are found to the problem areas facing the company, we can surmise those difficulties could become more challenging to resolve. Since profits have been reinvested at the company, the financial position is dire, and now the management must decide how much of the actual profit can be put invested back into making the working conditions better without forcing other key areas of the business to do without, or deal with shortages. These concerns would be especially hard hitting on the R&D division of the organization.
The business cycle is a series of cycles that define the economies and a business’s stages of expansion and contraction. The first stage of the business cycle is the Boom stage, this is where there is high level of customers spending, there are high levels of business confidence, and an increase of profits & investment. Unemployment is also low as the business creates jobs. The next stage is the Recession stage, this is where the high levels of customer spending start to decrease and business confidence means that lower profits and the business will have to start cutting back on investments which starts to increase unemployment as the business is forced to cut back on resources. The next stage is Depression, this is where there is a lengthy period of declining Gross Domestic Product (GDP) – this is where there is little to no customer spending (there is some increase in the rise of employment).
Internal economic changes result from investors either increasing their investments in the company or pulling off their investments. On the other hand, external economic changes are driven by market forces and national economies. The global economic crunch had negative effects to many multinational corporations Apple included. The main reason was because of the high inflation rates experienced in the American economy. During this time, many customers could not afford to buy luxury products under the category which Apple products fall in.
There are lots of facts and stats. It tell us the problems that Sainsbury’s are having Which part of the syllabus does this article cover? List the evidence to support your view They have cheaper and more competitive competition. The company has made a loss as they are constantly losing money Could there have been a better solution for this business. Justify your answer.
Every market including the financial industry can be evaluated through the use of Porter's five-force theory. Porter's uses the five forces, supplier power, barriers to entry, threat of substitutes, buyer power, and the degree of rivalry, as tools that help analyze a company's position against its competitors (QuickMBA site, 2003). Threat of New Entrants: Startup costs are extremely high so the probability of new entrants is low. The existing companies have capitalized on the distribution channels and have created strong branding awareness that makes it difficult for new comers to compete. The probability of success is so low that competitors pursue niche markets rather than trying to compete with the bigger companies.
1. Introduction WorldCom was the United States’ second largest telecommunications company. It grew largely by acquiring other telecommunications companies. At the beginning of 1999, the CEO Bernie Embers, CFO Scott Sullivan and Controller David Myers, used fraudulent accounting method to mask its declining earnings as the market was facing difficulties. They showed false financial statements, inflating growth and profitability to increase WorldCom stock prices.
Ethical and unethical aspects of the accounting activities Within the WorldCom case, it became evident that there were multiple unethical actions and decisions made by many individuals. The unethical actions began with the upper management of WorldCom when they falsie booked line rental expenses. The unethical actions continued to the accounting department when they recorded inaccurate entries without any reason or backup. The last unethical aspect occurred when Scott Sullivan and management attempted to cover up the falsified accounts while discouraging Cynthia Cooper’s investigation. The ethical aspect came from Cynthia Cooper and her team.
1.a. Summary of the case identifying the key issues and its stakeholders Moody's, the oldest and more recently most profitable credit rating agency in the world, underwent strong criticisms for misjudging the inherent risks of complex, asset backed securities in an already flawed financial structure that inevitably helped fuel the 2008 global financial crisis. Instead of being arbiters of risk Moody's business model had over time adjusted itself to meet the needs of its market stakeholders; a colorful variety of hyper optimistic lenders, investors, bankers, issuers, governmental sponsored organizations, and Moody's stockholders and employees. Equally symptomatic to the defect financial structure were the influential non market stakeholders like the US government and its regulatory arms and oversight committees. Shorty after Moody's started rating asset based securities, especially subprime mortgages, they started defaulting and eventually were downgraded.