...I. Summary A CBI Holding Company was a New-York based parent company for several wholly-owned subsidiaries. These marketed an extensive line of pharmaceutical products that were purchased from drug manufactures, warehoused in storage facilities and then resold to retail pharmacies, hospitals long-term care facilities and related entities. CBI’s chairman and president Robert Castello was the seat of the CBI‘s troubles and principal implementer of fraudulent schemes. When in 1991 he sold 48 % ownership to TWC, both companies agreed that TWC would have the right to take control of CBI in case of any so-called triggering events. Shortly after this deal in following 1992 and 1993 Castello and his subordinates were intentionally misrepresenting operating results and financial conditional for the end of fiscal years mainly for enlarging Castello bonuses. To be more specific CBI understated payables at the end of fiscal 1992 and 1993 due to its large vendors by millions of dollars particularly by developing the “advances” ruse. These fraudulent activities were thoroughly concealed from TCW’ s appointees to the board and it’s management and CBI auditor- Ernst & Young that from 1990 till 1993 issued unqualified opinions. After the fraud was disclosed E&Y withdrew its 1992 and 1993 unqualified opinions. But in this case E&Y was held responsible for CBI’s bankruptcy. Even though it classified CBI’s engagement like close monitoring due to its higher than normal audit risk and identified...
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...Ben & Jerry’s Analysis By:Group 2 The case presented on Ben & Jerry’s Homemade ice-cream is complex and produces a considerable amount of deliberation. In the following pages we hope to give you a synopsis of Ben Cohen & Jerry Greenfield, as well as the company they created, while attempting to carefully construct answers to the questions posed on specific issues raised by Mr. Brasel in the power point slides he provided to the class. The history of Ben Cohen and Jerry Greenfield can be dated back to when the men first met in the seventh grade. Both Cohen and Greenfield grew up in Merrick, Long Island and quickly became friends during Junior high school. After high school, Jerry finished college. His goal was to attend medical school to become a doctor, but he could not get in. (benjerry.com). On the other hand, Ben applied and was accepted to several colleges, but always dropped out of them. The beginnings for the development of Ben & Jerry’s Homemade were launched in 1977 from the front porch of Jerry’s parent’s house. Neither Ben nor Jerry knew anything about running or opening a business, but both men knew about food and shared the great passion of eating. They pondered on what type of business they would start. The men came across an AD in the local newspaper for an ice-cream-making course offered through a local college. There was a $5 fee associated with the course. Due to the extreme poverty...
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...THE BOSAL HOLDING CASE The Bosal Holding Case 1 July 2, 2014 # TABLE OF CONTENTS • Overview • Analysis • Conclusion The Bosal Holding Case 2 July 2, 2014 # Overview Bosal Holding BV or “Bosal” is limited company established in the Netherlands and owner of holdings in various Netherlands and foreign companies (inside and outside European Union or “EU”). Those holdings range from 50 up to 100%. Bosal business consists in holding, financing and licensing activities. In 1993, Bosal filed an application to the competent Netherlands tax authority to deduct interest charges amounting to 3.9 million gulden in connection with the financing of its holding in companies established outside the Netherlands but inside the EU. Throught 1993 corporation tax assessment, the competent Netherlands tax authority was refused to grant such deduction, thus Bosal lodged an appeal in cassation to the Hoge Raad (Supreme Court). Then, the Hoge Raad requested a ruling to the European Court of Justice (ECJ). The Bosal Holding Case 3 July 2, 2014 # Overview The following is the ruling seek by the Hoge Raad to the ECJ related to the Bosal case: Does Article 52…………………………………………preclude a Member State from granting a parent company subject to tax in that Member State a deduction on costs relating to a holding owned by it only if the relevant subsidiary makes profits which are subject to tax in the Member State in which the parent company is established...
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...Cooperative Case Study 1. How might transport vehicles be utilized more effectively? Should crews be scheduled differently on peak days? More crews should be scheduled in the bagging station during peak days The fourth bagging station should be utilized during peak hours (instead of just three of the four being used at a given time) An additional 2,667 bbls per 12-hour period could be processed with these changes At receiving plant no. 1 (RP1), trucks would arrive randomly throughout the day, with a random amount of berries, anywhere from 20 to 400 bbls. In order to utilize transport vehicles more effectively, there should be crews scheduled differently on peak days. It only takes 5 to 10 minutes to unload a truck into a Kiwanne dumper, but the backup would occur when the holding bins were full, causing drivers to have waits up to 3 hours. The backup is not occurring in receiving, so now additional crews are necessary at that station. All feed conveyors are in use during peak times so no new crews need to be added there. However, there seems to be a backup occurring in the bagging station. Instead of keeping the fourth bagging machine as a spare, they should add another five-member team to operate the fourth bagging machine during peak hours. This would result in an additional 2,667 bbls per 12-hour period, or a total of 10,667 bbls per 12-hour period. The additional crews and adding of a bagging station would reduce the number of berries that need to be in holding, and...
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...lessons earlier. They indicated that many announcements in everyday make them feel this is wasting times. And they have said that frankly, these were nothings of their businesses, because they barely joined any clubs or competitions. If any schoolmates really need information from those announcements, the clubs or competitions instructors should announce them privately, but not do it in the morning assembly that holding other students’ times. Or if there are businesses all students ought to know, it is better hold during breaks in order to not deferring lessons. Schoolmates prefer join it at classrooms. Despite in summer or winter, we, students are all stand on the playground for the morning assembly without any shield. We stood under severe sunshine and we trembled with chilly wind. Further more, we need to be prepared for rainy day, and to worry if the rain fell. Moreover, it spends us a lot of times taking turn to go to classrooms. Therefore, we would like to ask to change it into conducting morning assembly at classrooms. Finally, schoolmates ask for holding morning assembly alternately is also regarded. Each form of students is also bustle with the process of syllabus. Meanwhile, we need to spend about 30 minutes on the morning assembly each day, inevitably. And 30 minutes are doubtless helpful to our progresses on the syllabus. If...
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...Caso 3er Parcial Nike, Inc: Cost of Capital Equipo número 3 Karen Saavedra A01128884 Margarita Menéndez A0112 Ana Karen Jáuregui A0112 Diana Reyes A0112 INTRODUCTION History and Background of NorthPoint Group Founded as an importer of Japanese shoes, Nike has grown to be the world's largest marketer of athletic footwear, holding a global market share of approximately 37 percent. In the United States, Nike products are sold through about 22,000 retail accounts; worldwide, the company's products are sold in more than 160 countries. Both domestically and overseas Nike operates retail stores, including Nike Towns and factory outlets. This is a mutual fund management firm that invests money mostly in Fortune 500 companies. Its top holdings include Exxon mobile, General Motors, McDonalds, 3M and other large-cap. The stock market declined over the last 18 months. NorthPoint large-cap Fund performed extremely well, actually, in 2000, the fund earned a return of 20.7% even as the S&P 500 fell to 10.1%. At the end of June 2001, the fund`s year to date returns stood at 6.4% versus -7.3% for the S&P 500. It was considered the athletic shoe manufacturer. Since 1997, its revenues had landed at around $9 billion dollars. On the other hand, the net income had fallen from almost $800 million to $580 million. The market share in U.S. athletic shoes had fell from 48% in 1997 to 42% in 2000. This was caused by the adverse effect of a strong dollar...
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...Institutional holding and market friction Ping-Wen Sun Louisiana State University psun1@lsu.edu Abstract This study investigates the relationship between the institutional holding and the stock’s market friction measure. According to Sun’s (2007) findings, I use Hou and Moskowitz’s (2005) price delay measure (D1) and Liu’s (2006) liquidity measure (LM12) to proxy for a stock’s market friction. I find that a higher total institutional holding tends to decrease a stock’s price delay measure, but institutional holding exhibits a U-shaped relationship with a stock’s LM12 measure. However, as the number of institutions increases, the stock’s market friction decreases. In terms of different types of institutional holdings, higher total block holding or higher top five institutional holding of a stock increases a stock’s market friction level. Furthermore, in contrast to Agarwal’s (2007) findings, higher independent long term institutional holding and risk averse institutional holding tends to decrease a stock’s market friction level. Institutional holding and market friction Abstract This study investigates the relationship between the institutional holding and the stock’s market friction measure. According to Sun’s (2007) findings, I use Hou and Moskowitz’s (2005) price delay measure (D1) and Liu’s (2006) liquidity measure (LM12) to proxy for a stock’s market friction. I find that a higher total institutional holding tends to decrease a stock’s price delay measure, but institutional...
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...ebony blanket, not a single glittery beads or shining emerald could be seen. Then my gaze flicked on the alarm clock beside me. 0330 was the number plastered on the plastic surface of the square alarm clock with red lights. “Papa should be here” I uttered the words with my little child voice. As I laid myself in a fetal position, holding close to my chest the picture-perfect moment captured by the piece of paper, was my beloved family. Mummy was wearing a vermillion dress that showed her slender figure smiling timidly with her eyes closed as daddy land a kiss on her forehead, standing handsomely with the black tuxedo. I stood in the middle, focusing on the camera with my eyes widen as big as I could as I feared that the flash of the camera make me blinked my glistened jovial eyes. Out of the blue, I heard footsteps coming from downstairs and before I could move, the light from outside loomed into my bedroom as he door has a slither opening. I ran towards the door with my small steps and the seconds I hold the knob, there standing in front of me was my father. “I’m sorry dear, I should read you a bedtime story now” he said with a penitent smile, holding me inside his embrace. Sunlight kissed my eyelids and soon my retinas started accustomed to the piercing ray of the eye of heaven. The tranquil ambiance filled my bedroom as I land my gaze to the lush green leaves dangling from the pine tree next to the window. I darted to the veranda, slamming the door open to see if the sleek...
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...estratégico de la compañía, interpretar la estrategia corporativa, aplicarla en la cadena de suministros de tal forma que se logre la rentabilidad esperada por la compañía. La planeación estratégica es el proceso secuencial que debe realizar la empresa para proyectarse y lograr desarrollarse en un ambiente turbulento, veloz, exigente y violento. Para poder afrontar el reto de competir en los mercados, deben adaptarse e interactuar de manera armónica con el entorno. Ejemplo: Holding Se refiere a la compañía socia o dueña de un grupo de empresas con fines comunes, éste se conforma con el fin de controlar sus actividades de un mismo mercado, lo cual asegura que las empresas que forman parte del Holding tengan acceso a materia prima, logística, transporte, financiación, etc. Los Holdings son considerados como una forma de integración y colaboración empresarial, pueden controlar toda la cadena o proceso de un bien o servicio, teniendo en cuenta que se deben minimizar riesgos y maximizar utilidades. Holding dedicado a la fabricación y comercialización de productos de construcción, se aplicará el modelo de planeación estratégica logística. Una vez analizado el direccionamiento estratégico de la compañía, es importante las macro actividades de cómo deben interactuar para lograr las utilidades esperadas por los socios. Siendo estas: planeación para el cliente, abastecimiento, producción, almacenamiento, distribución y transporte donde cada una aportara con actividades como conocer...
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...The Effect of Running on Holding a Plank For my groups experiment we decided that our experimental question is going to be “Can you hold a plank longer if you run.” Hypothesis- My hypothesis in this experiment is that if you run before you hold your plank, the plank will not last as long. I think that the plank will not last as long because you will be tired from the running and also you will not have that much energy left. Method and materials- In this experiment I did not really need that many materials because we were testing people to see if the hypothesis was correct or not. In this experiment the dependent variable would be how long you would be able to hold the plank when you were running and how long you were holing the plank without running. The independent variable would be to see how the running affects the amount of time you can hold the plank. To make the test consistent each person has to run for exactly two minutes and then immediately without taking a break go into a plank. To also make the test fair and true I would have to make sure that everyone is on the same type of surface when holding the plank. In this experiment there will four people testing my experiment. There will also be doing three trails. Everyone would be doing the same thing. First, they would run and then hold a plank and then the second time they will not run but just hold the plank. Discussion and conclusion-The conclusion was my hypothesis was correct. I thought that the plank...
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...different motives. According to Keynes (1936) these motives are: a transaction motive, precautionary motive and speculative motive. Based upon these three motives we explain why U.S. firms hold a lot of cash. The first motive for holding cash is the precautionary motive (Keynes, 1936), which tells us that firms hold extra cash to be prepared for sudden uncertainty - a risk which cannot be hedged. Bates et al. (2009) states that an increase in idiosyncratic risk leads to an increase in cash flow volatility. This volatility increase evolves in an increase in the volatility of unhedgeable risk. A reaction to unhedgeable risk is to hold more cash. You want to have some savings when you have to do unexpected expenses. Research (Bartram, 2009) shows that U.S. firms are more exposed to idiosyncratic risk than foreign firms. This is due to several country characteristics. Because U.S. firms face larger exposures to idiosyncratic risks than foreign firms do, they will have more cash holdings. Moreover, there has been an increase in earnings volatility for U.S. firms over the past decades (Boileau and Moyen, 2012). This increase in volatility and, thus, risk is compensated by an increase in cash holdings and credit lines. So one might say that U.S. firms are holding too much cash, but this is seems quite legit when looking at their exposures to unseen losses/ sudden risks. Another precautionary motive (Keynes, 1936), but also a speculative motive, to hold cash is to use real estate. Real...
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...RE: GUIDELINES FOR THE APPLICATION TO STRIKE-OFF A NAME OF A DEFUNCT COMPANY UNDER SECTION 308(1) OF THE COMPANIES ACT 1965 DURING MORATORIUM PERIOD (1 JULY – 31 DECEMBER 2012) This guideline serves to inform the procedures and requirements for the application to strike off names of defunct companies under section 308(1) of the Companies Act 1965 (CA (1965) during moratorium period. BACKGROUND 2. The Companies Commission of Malaysia (SSM) has on 11 January 2007 issued a set of guidelines for the application to strike off the name of a company pursuant to section 308 of the CA 1965. 3. Notwithstanding, SSM has decided to relax the requirements for the the name of dormant companies application for striking off names under section 308(1) of the CA 1965 to facilitate the application to strike-off from the Registry. 4. The effective date of the relaxation of the requirements for application takes effect from 1 July to 31 December 2012 (moratorium period). 5. Applicants who apply to strike-off the name of dormant companies during the moratorium period are not required to submit the management account and companies‟ resolution. 6. Companies with outstanding penalties or compound issued prior to (a) (b) a flat fee of RM200.00 for the company; and a flat fee of RM200.00 for each offence committed by each director of the company. the moratorium period will only be required to pay: WHO MAY APPLY? 7. The application may be made by either the director...
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...PART 1- An entity’s status as VIE/non-VIE has changed? ASC 810-10-35-4 identifies five specific types of events that lead to reconsideration of VIE status, and ASC 810-10-35-4 also provides guidance on the circumstances in which the entity has incurred operating losses since the initial determination date, stating, “A legal entity that previously was not subject to the Variable Interest Entities Subsections shall not become subject to them simply because of losses in excess of its expected losses that reduce the equity investment” (emphasis added). Consequently, if the amount of the equity investment at risk at the entity’s inception (or when a reporting entity first became involved with the entity) was determined to be sufficient, losses later incurred by that entity do not by themselves require a reporting entity to reconsider whether the entity has sufficient equity in accordance with ASC 810-10-15-14(a). A reporting entity must consider all pertinent facts and circumstances in assessing whether an event that meets the criteria in ASC 810-10-35-4(a) through 35-4(e) has occurred. Insignificant events do not always result in a reconsideration of an entity’s VIE status. An event’s significance depends on whether the event appears to have changed the sufficiency of equity investment at risk or on whether the characteristics of the holders of equity investment at risk have changed. (For guidance on isolating the impact of a change under ASC 810-10-35-4(a) through 35-4(e), see...
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...name which competed with GM. ➢ *H discovered that the former service agreement provided that he would not, at any time, solicit customers of GM. ➢ *A company was incorporated in the name of H’s wife, which then conducted the business. ➢ *Although H was not a shareholder of the company, he conducted its affairs. ➢ *The company sent circulars to GM’s customers, seeking their business. ➢ The company was formed for the purpose of avoiding existing contractual obligations ( it was a “mere cloak or sham” used as a device ( corporate veil was lifted. Agency relationship of holding company & subsidiary ❖ Adams v Cape Industries: Subsidiary companies will be treated as separate legal entities. ➢ *C, holding company, set up subsidiaries in US specifically to evade US product liability laws. ➢ Holding company was not present in the US even though its wholly owned subsidiaries were ( holding company’s assets cannot be attacked. ➢ [Unlike Gilford’s...
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...Week 3: Leadership and Power Paper LDR/300 The Prime Minister’s Powerful Better Half Mini Case Ho Ching, the wife Lee Hsien Loong, Singapore’s current prime minister and son of a founding father of the country, is the Chief Executive Officer at Temasek Holdings; who according to the text, “was ranked 18th of Asia Most Powerful Business People and 24th of Forbes World's Most Powerful Women” (Hughes, Ginnett, Curphy, 2009). While this demonstrates the power capacity of Ho Ching as a leader; it does not establish the level of influence that she commands or her skills to apply influential tactics necessary to be able to modify followers’ attitudes and behaviors in the desired direction. In order to determine whether Ho Ching is an influential and competent leader or simply a positional leader; one must review and establish what are the sources of power that she possess, as well as her individual characteristics, and her capacity to apply the influence tactics to change the attitudes, values and behaviors of others. Ho Ching is a Stanford-educated electrical engineer, this in itself already demonstrates that Ho Ching is an intelligent individual, and intelligence is a commonly used characteristic to describe potential leaders. Furthermore, according to Nahavandi (2009), “It is clear that the complex task of leading requires a person with cognitive ability to remember, collect, and integrate information, analyze problems, develop solutions, and evaluate...
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