...Introduc)on to financial management WEEK 1 Chapter 1 & 2 1 Expectations • A#end all classes with copies of slides. • Read the text book. • A#end all tutorials and par)cipate. • Complete the weekly quizzes and assignments. • If you are struggling • A#end consulta@on • A#end PAL. • Don’t leave it to the last week. 2 The objective of managers • Should be to maximise the wealth of the shareholders • A company also has other stakeholders that rely on it, for example: • Managers: salaries, bonuses • Employees: wages • Creditors: interest & principle • Suppliers: pay for goods/services • Government: tax The role of the =inancial manager • A firm generates cash flows by selling goods and services produced by its produc)ve assets and human capital • When the cash flows generated from the produc@ve asset exceed the cash ouQlows (such as opera@ng cash flows) the remaining cash is called residual cash flows • The company can choose to pay any profit to the owners as a cash dividend, or reinvest the cash in the business Cash =low diagram 5 The role of the =inancial manager It is all about cash flows: • A company is unprofitable when it fails to generate sufficient cash inflows to pay opera@ng expenses, creditors and taxes. • Firms that are unprofitable over @me will be forced into bankruptcy by their creditors. • In bankruptcy, the company will either be reorganised, or the company’s assets will be liquidated. ...
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...Case Studies of Cybercrime and Its Impact on Marketing Activity and Shareholder Value Katherine T. Smith Department of Marketing Texas A&M University 4112 TAMU College Station, TX 77843-4112 Tel: 979-845-1062 Fax: 979-862-2811 Email: Ksmith@mays.tamu.edu L. Murphy Smith, CPA* Mays Business School Texas A&M University 4353 TAMU College Station, TX 77843-4353 Phone: 979-845-3108 Fax: 979-845-0028 Email: Lmsmith@tamu.edu Jacob L. Smith Grace Bible Church College Station, TX 77845 JacobSmith@grace-bible.org *Corresponding author Forthcoming in Academy of Marketing Studies Journal Electronic copy available at: http://ssrn.com/abstract=1724815 CASE STUDIES OF CYBERCRIME AND ITS IMPACT ON MARKETING ACTIVITY AND SHAREHOLDER VALUE Katherine T. Smith, Texas A&M University L. Murphy Smith, Texas A&M University Jacob L. Smith, Grace Bible Church ABSTRACT Cybercrime, also called e-crime, costs publicly traded companies billions of dollars annually in stolen assets and lost business. Cybercrime can totally disrupt a company’s marketing activities. Further, when a company falls prey to cyber criminals, this may cause customers to worry about the security of their business transactions with the company. As a result, a company can lose future business if it is perceived to be vulnerable to cybercrime. Such vulnerability can lead to a decrease in the market value of the company, due to legitimate concerns of financial analysts, investors, and creditors. This study examines...
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...FINAL EXAMINATION CASE STUDY “A RESEARCH OF GENDER DISCRIMINATION IN THE WORKPLACE” 1. Abstract Smith Barney (now part of Citigroup Global Markets) was ordered by the court to evaluate the climate for personal development and advancement through promotion in not only Smith Barney but, as a comparative, in other financial services firms. The case describes the methodology used to sample both men’s and women’s beliefs and attitudes, as well as revealing some of the basic findings. 2. The Scenario In 1996 Pamela K. Martens, Judith P. Mione, Roberta O’Brien, and 22 others filed a class action suit in U.S. District Court, New York, against Smith Barney and former Garden City, New York, office manager Nicholas Cuneo, citing a rash of complaints. These included “intimidation, retaliation, and humiliation,” as well as lack of fairness in pay, denial of promotion, demotion due to maternity leave, unfairness in distribution of accounts and discharge without cause. Initially Cuneo was discharged, but when the plaintiffs did not drop their suit, he was reinstated as a sales agent. In May of 1998, Judge Constance Baker-Motley approved a settlement, which had been accepted by 23 of the 25 plaintiffs. As part of the settlement in Martens, et. al. v. Smith Barney (S.D.N.Y., 96 Civ3779), Smith Barney was charged with paying for a study of the issues underlying the suit. The female judge ordered a research project done by “Catalyst or other similar firm,” one which understood...
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...Case Study: Absence of Parents and its Effect on Families Eric Anderson New Mexico State University This case will shed light on the challenges of substance abuse and family that is affected while a head family member is dealing with the corrections system. This case also shows the challenges faced by such a family as they struggle to keep their well-being when the provider is away, and the important role resiliency plays in the families ability to survive, and the why the family is affected just as much, if not more, by the absence of the provider. On January 24, 2014, I was able to interview the Smiths family for the purpose of including the results in a case study needed for my CJ 300 class. Andrew Smith is the father that has been taken away from his family for over a year because of a DWI that he received in 2013. Left outside of the system is his wife Angela Smith, Tyler Smith, 12, and his brother Paul Smith, 14. Last year Andrew was caught for a DWI and incarcerated as it was his 5th DWI offense. He has been in and out of jail for DWI and this has caused much financial strain on the family as DWI’s are hard on a low income family. Alcoholism has run in Andrew’s side of the family and his father even died from complications of being a long time alcoholic. The two boys are enrolled in school and Angela is working two minimum wage jobs to keep the family going financially. The boy’s friend’s parents must take the boys to and from school and they are left at home unsupervised...
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...Introduction Liquidity and profitability are two major elements for judging company day to day performance. Company has liquidity means it is able to pay off short term loan, and its cash flow is positive to ensure business running into a profitable future. How much cash that a business hold in stock is crucial for the business, it can indicate whether a company can continue without going concern problem. Working capital is subtractive between current assets and current liabilities, and it is helpful to increase firm’s profitability in the short term but taking a risk of insolvency. Manager of a firm are desired to find a balance between liquidity and profitability to improve cash flow and maximize shareholder’s wealth. As soon as a company starts to run its business, it comes the decision and strategy about how much cash or inventory should be hold, how to financing and investing funds, how much debt to take and how long for the payment periods. Those decisions have serious influences on business cash flow and profitability. The Meaning of Working Capital The way to calculate working capital is: Working capital = Current Assets – Current Liabilities “Current assets may include inventories of raw materials, work-in-progress and finished goods, trade receivables, short-term investments and cash, while current liabilities may include trade payables, overdrafts and short-term loans.” (See table 1) “Working capital is the result of subtracting current liabilities from...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/0951-3574.htm AAAJ 21,2 Strategic management accounting: how far have we come in 25 years? Kim Langfield-Smith Monash University, Melbourne, Australia Abstract Purpose – The purpose of this paper is to provide a review of the origins of strategic management accounting and to assess the extent of adoption and “success” of strategic management accounting (SMA). Design/methodology/approach – Empirical papers which have directly researched SMA and prior review papers of the adoption and implementation of SMA or SMA techniques are reviewed. As well as assessing the extent of adoption of SMA and the reasons underlying an apparent low adoption rate, the role of accountants in adopting and implementing SMA is considered. Finally, the success or otherwise of SMA is discussed. Findings – SMA or SMA techniques have not been adopted widely, nor is the term SMA widely understood or used. However, aspects of SMA have had an impact, influencing the thinking and language of business, and the way in which we undertake various business processes. These issues cut across the wider domain of management, and are not just the province of management accountants. Research limitations/implications – There is limited value in conducting future surveys of the adoption and implementation of SMA or SMA techniques. Rather, the focus should be on how SMA-inspired techniques and processes diffuse into general...
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...Cash Flow Analysis Instructions: Analyze the case study, "Frank Smith Plumbing." Analyze the "Frank Smith Plumbing's Financial Statement" spreadsheet. Compare the cost of the truck to the cash flow records Compile your calculations in a Microsoft® Excel® document Develop a 1,050-word analysis and include the following: • Explain why limited leverage is good for business. Show the profitability of the project so that Stephanie can convince her father to purchase the truck by borrowing money. • Explain how Stephanie should convince her mother that it is inappropriate to call the bank manager and his wife for assistance in getting the loan approval? • Analyze whether the investment in the truck is profitable. • Explain whether it is more beneficial for Frank to close his business. • Explain what you would do in this same situation. Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignments. Supporting Material: Frank Smith Plumbing Case Study Frank Smith Plumbing Case Study Excel Spreadsheet Cash Flow Analysis Grading Guide Find The Complete Answers just a click away FIN 370 Complete Answer About Author This article covers the topic for the University Of Phoenix FIN 370 Week 4 Cash Flow Analysis the author is working in the field of education from last 5 years. This article covers the basic of FIN 370 Complete Answer from UOP. Other topics in the class are as follows: FIN 370 WEEK 4 CASH FLOW ANALYSIS ...
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...Case Study 1: Mr. Nathan Question 1: In my opinion, the most suitable breed (from the list provided) for Mr. Nathan’s needs would the Giant Schnauzer. Mr. Nathan is looking for a dog that can protect him and his auto repair shop, where he lives and conducts business. The Giant Schnauzer is an extremely intelligent dog, who loves his owners and feels great responsibility to protect them and enjoys having a job to do. Due to the breed’s size and looks a GS would be very intimidating to someone who might be considering to harm or steal from Mr. Nathan. Giant Schnauzers are able to easily distinguish between friend or foe, which is an important necessity due to the fact that customers and vendors will be coming and going throughout the day during business hours. Mr. Nathan’s property is also fenced in so that when the business is closed, he will be able to provide an adequate place for his dog to be exercised. He is also financially able to provide for a dog that will need a fair amount of grooming as well all other needs. Question 2: In my opinion, the least appropriate breed (from the list provide) for Mr. Nathan would be the Golden Retriever. Although, they are an intelligent, friendly and devoted breed, which would be an asset for Mr. Nathan and his customers and vendors coming and going during the day. Goldens do not necessarily ‘strike fear’ into someone with the intention to do harm. Case Study 2: Mrs. Smith Question 1: In my opinion, the most suitable...
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...The Case Study of Business Model of Veolia Water (Vivendi) Author: Xinyue Wang Student number: 1299580 Year: 2014 Supervisor: Prof. Dr. Patricia A. Adam Table of Contents 1. Introduction 1 2. Brief introduction of Business Model 1 2.1 Business model canvas 1 3. Business Model of Veolia 2 3.1 Customer Segments 2 3.2 Value Propositions 2 3.3 Channels 3 3.4 Customer Relationships 3 3.5 Revenue Streams 4 3.6 Key Resources 4 3.7 Key Activities 5 3.8 Key Partnership 5 3.9 Cost Structure 5 4. Conclusion from the study of business model of Veolia Water 6 4.1 Unbundling business models 6 4.2 Multi-sided Platforms 7 5. Assessment and Conclusion 7 Bibliography 8 Statutory declaration 10 Abstract Nowadays, with the development of economy, the problem of lack of resources came to sharper. Thus the issue of how to protect environment and save resources has gained much emphasis recently. Therefore, some enterprises have become more heating due to their outstanding business on environmental-friendly aspect. Vivendi is a company whose business involves water supply and water management, waste management, energy and transport services. Veolia Water is a subsidiary of Vivendi, it is committed to providing clean drinking water, and collecting and treating waste water or sewerage water. Because of its advanced technology and strong brand image, nowadays...
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...Forensic Accounting in Practice Gabrielle Bryant Dr. Carolyn Green Contemporary Business 11/17/2013 Determine the most important five (5) skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations Although forensic accounting is not a new field, it has become more talked about since cases like Enron came to light. For someone interested in the Forensic Accountant profession they should know that this field can be time consuming, but very rewarding. People who work in this career investigate white collar crimes such as company fraud, fraudulent financial record reporting, and illegal investment schemes. In a recent study by the Federal Bureau of Investigation shows that white collar crimes have cost the United States and estimated 300 billion dollars (DiGabriele 2008). I think five of the skills that a forensic account would need are communication skills, detail oriented, professional and ethical behavior, sound judgment and discretion. Communication skills are vital in any profession. It allows you to convey information for others to receive. The problem with communication is that it can be interpreted differently by other intended parties. As a forensic accountant, communication skills, verbal and non-verbal, are important when it comes to conducting interviews and gathering information. After gathering the records, forensic...
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...summery This literature review discusses objectives of financial development and economic growth as well as existing relationship of this concept. Financial development is strongly connected with economic situation, but we do not know for sure if this always implies economic growth. There are many factors which influence relationship between financial development and economic growth and its effects such as financial liberalization, government ownership of the banks, monetary policy and rate of inflation, institutional and regulatory framework of financial markets in particular countries. Many researchers are trying to give the right questions and explanations on this field but still there are unresolved issues and implications which give open space for future investigations. Table of Contents 1. Introduction………………………………………………………….2 2. Literature Review……………………………………………………2 2.1. Relationship between Financial Development and Economic Growth………2 2.2. Empirical methodologies……………………………………………………..5 2.3. Effects of Merger and Acquisitions in Bank Industry on relationship between financial development and economic growth…………………………………7 3. Conclusion…………………………………………………………....8 4. Reference List………………………………………………………..9 1. Introduction Financial system is a basis of current economic trends and there is no possibility...
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...6. Assessment Tasks Assessment Task 1: Assessment Task Case Study: IKEA: A Long March to the Far East Schedule Week 4 Performance Criteria: Outcomes Assessed 1.1,2.1,2.2, 4.1 Also addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: From its humble beginning as a small general retail store in a village situated in the south of Sweden, IKEA has grown into the world's largest furniture retailer with 279 stores in 36 countries today. Specialising in furniture and home decoration, IKEA has an annual turnover of 19.8 billion euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA catalogue is printed in 52 editions with 25 languages, with a global distribution in excess of 160 million copies. IKEA sees the Far Asia as an emerging market still in its infant stage. Its number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai and Hong Kong are very small and comprises a mere 3% of the company's total sales. These stores were expected to be more successful in the near future. IKEA's imminent strategic expansion into this region exemplified its ambitions to dominate this emerging market. This Case Study illustrates how IKEA's ventures into China and Japan are laden with unique marketing challenges which it had not encountered before in other international markets. Read the attached case (Case Study: "IKEA: A Long March to the Far East" - Source: Oxford University Press) and ...
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...easier for computer hackers and frauds to gain access to confidential information from anybody. It could be passwords and social security numbers of individuals, to databases and network systems of large corporations. For businesses, the main supply chain areas at risk are the processes and controls for various departments, such as human resources, finance and accounting, procurement, and marketing. One of the processes at bigger risk is procurement. Majority of companies use other businesses outside their own, like manufacturers and distributors, as part of their purchasing process. All this information is stored in the company’s computer system, and “the need to procure materials…through a network…exposes an organization to network risk” (Smith, Watson, Baker, and Pokorski, 2007). This kind of risk can cause serious damage to the company’s assets, transactions, and reputation. Even worse, a company “may lose the confidence of customers who worry about the...
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...Case Study Introduction The Smith Family (TSF) is a national charity which supports disadvantaged children and families in Australia. It devotes to creating a better future for disadvantaged young Australians through providing education opportunity for them (TSF 2012). This case study aims to assess TSF’s strategic position using SWOT analysis. The analysis reveals that TSF holds strengths of comprehensive sources of funding and being able to provide transparent information. The popularization of social network and the future education reform plan may give an opportunity to TSF. On the other hand, TSF is weak in utilizing the funds efficiently and effectively. A cut in universities funding may be considered as a threat. The finding is that the strategic position of TSF is to offer long-term holistic support in education for children in need and what TSF is doing is in line with its strategic position. The second part of the case study will present detailed SWOT analysis and the last part is the conclusion. Analysis Strength TSF builds a strong partnership with corporation, foundations and universities and has comprehensive sources of fundraising. The annual report of TSF (2012) shows that TSF has more than 200 business partners, over 120,000 individual supporters, and is supported by government. TSF also runs an own Recycling Operation which can produce 2 million dollars annually. The extensive sources of fundraising give TSF a solid financial base with which they could easily...
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...WorldCom Case Study1 By Dennis Moberg (Santa Clara University) and Edward Romar (University of Massachusetts-Boston) (The original of this document can be found at the Santa http://www.scu.edu/ethics/dialogue/candc/cases/worldcom.html#one. Clara University website at An update for this case is available at http://www.scu.edu/ethics/dialogue/candc/cases/worldcomupdate.html . Note that this update is not part of the syllabus for the PRM or Associate PRM exam. It is included for reference and explanation only.) 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. But none of these other companies had senior executives as colorful and likable as Bernie Ebbers. A Canadian by birth, the 6 foot, 3 inch former basketball coach and Sunday School teacher emerged from the collapse of WorldCom not only broke but with a personal net worth as a negative nine-digit number.2 No palace in a gated community, no stable of racehorses or multi-million dollar yacht to show for the telecommunications giant he created; only debts and red ink--results some consider inevitable given his unflagging enthusiasm and entrepreneurial flair. There is no question that he did some pretty bad stuff, but he really wasn't like the corporate villains of his day: Andy Fastow of Enron, Dennis Koslowski of Tyco, or Gary Winnick of Global Crossing.3 Personally, Bernie...
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