...Case Analysis: Loewen 1. Loewen was able to grow between 1990 and 1995 through pre-need sales, or sales of cemetery plots for future use. While the pre-arranged funeral service revenues could not be recognized immediately, revenues from the pre-sale of cemetery plots could be. With the Baby-Boomer generation aging into their 50s and 60s, this market represented the major source of growth in the early 1990s. We do not believe Loewen created value with this source of revenue as it was simply benefitting from these customers earlier than otherwise would have been expected.(What about investment income on Cash in Advance?). We feel that pre-selling the cemetery plots only served to steal from revenues that would have normally been expected in the future (may need to add quantitative analysis here). 2. Financial comparison between Loewen and SCI from 1996 to 1998: a. Gross Margin – While SCI enjoyed stable gross margins ranging from 31.08% to 30.58% from the period of 1996 to 1998, while Loewen’s gross margins over the same period declined from 36.54% to 25.68%, reduction to GM of 29.72% (see Financial Comparison Table below). Both companies shared the strategy of growing through acquisition, however SCI focused more on owning acquisitions outright and seemed to realize operational efficiencies and shared fixed costs demonstrated by their consistent GM. Loewen took a less invasive approach and almost requiring original management to remain in place for certain time...
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...discharge. The Federal Bankruptcy Act of 1898 had 3 principal objects in view: 1. To prevent preferences and ensure equality in payment as between the creditors of insolvent debtors; 2. To punish and discourage commercial fraud; and 3. To discharge honest debtors from their debts when overwhelmed by financial misfortune through no fault of their own. The act gave creditors collectively full power over the administration of insolvent estates and placed upon them the responsibility for enforcement of the act. New Legislation The new Legislation enacted by Congress called the Bankruptcy Abuse and Consumer Protection Act was intended to make it more difficult for debtors to file a Chapter 7 Bankruptcy under which most debts are forgiven or discharged and instead force debtors to file a Chapter 13 Bankruptcy under which debts are discharged only after the debtor has repaid some portion of these debts. Herbert Addison reports, On October 17, 2005 President Bush’s bankruptcy reform law goes into effect forever changing the rules of debt collection in this nation. Consumer advocates and the public appear to be...
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...two types: liquidation and reorganization. The U.S. Court of Bankruptcy (2015), states that among the popular proceedings are chapters 7, 11, 12, and 13, which individuals and businesses use to file. Chapter 7 bankruptcies normally fall into the liquidation category. This means that an individual’s own property can be taken away and sold in the process of liquidation in order to pay back the debts. Conversely, chapter 13 bankruptcies fall under the reorganization category, meaning that the individuals will probably be able to keep their property, but they must submit and stick to a plan that will allow the person to repay some or all of their debts within 3 to 5 years. A case filed under chapter 11 of the United States bankruptcy code is frequently referred to as a reorganization bankruptcy. Its bankruptcy proceedings are usually employed by struggling businesses as a way to get their affairs in order and pay off their debts. In addition, some individuals also file for chapter 11 bankruptcy when they are not eligible for chapter 13 bankruptcy or own large amount of non-exempt property (like a home). However, chapter 11 can be much more expensive and time consuming when compared to chapter 13, and the individual will probably need to speak to a lawyer to decide whether chapter 11 is the right pick for them (U.S. Court for Bankruptcy, 2015). The chapter 12...
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...years (www.pbs.org/3.25.05). The bill will make it harder for consumers to eliminate their debt with the use of bankruptcy. There are now new restrictions and a “means-test”, which determine if consumers can have their debts erased by Chapter 7 bankruptcy or Chapter 13 bankruptcy. The bill also makes attorneys liable for any inaccuracies in their clients’ bankruptcy filings. This bill has several controversial issues associated with it and will be explained later, along with the actual provisions of the bill. To understand the controversy, one must first understand what bankruptcy is and the difference between Chapter 7 and Chapter 13 bankruptcy filings. Chapter 7 bankruptcy is a liquidation proceeding in which the debtor turns over all of their non-exempt property to a bankruptcy trustee who converts it to cash to pay off the creditors. Within four months, the debtor is usually relieved of all obligations. In many cases, the debtor has no assets to lose, so Chapter 7 gives the individual a relatively quick “fresh start” (www.bankruptcyaction.com). The most common reasons for filing Chapter 7 bankruptcy include: unemployment, large medical expenses, extremely overextended credit, marital issues and other large unanticipated expenses. Chapter 13 bankruptcy is not as simple. Individuals who wish to pay off their debts in a three to five year period...
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...individual Chapters, each dealing with a different type of bankruptcy) but the bankruptcy laws of each state also play an important part; consequently, though there are bankruptcy kits, you will probably need a lawyer to successfully file and a lawyer search should focus on a bankruptcy attorney or bankruptcy law firm licensed in the debtor’s state of residence. The attorney licensed in your state can tell you how to file for bankruptcy in a federal court within your state. American bankruptcy is actually a form of relief granted by a court, so it is not so much a matter of a debtor “declaring bankruptcy”; rather, someone files a petition requesting that the court discharge or reduce or restructure debts in bankruptcy. In American bankruptcy, a federal court manages a debtor’s property to protect the debtor from his/her creditors and to benefit the creditors as much as possible under the circumstances. While bankruptcy is designed for long-term relief, one of the most important features of filing for bankruptcy is the “automatic stay.” When a petition is filed for bankruptcy, either by the debtor (“voluntary bankruptcy”) or by one of his/her creditors (“involuntary bankruptcy”), most collection efforts such as utility shut-offs, foreclosures, evictions, garnishments and lawsuits, are immediately stopped. There are types of bankruptcy covering all sorts of debtors but the 4 types used by most American debtors are Chapter 7, Chapter 11, Chapter 12 and Chapter 13. Addressing...
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...Environment of Business There are three types of bankruptcy – Chapter 7, Chapter 11 and Chapter 13. This discussion board post will discuss who can file Chapter 7 bankruptcy. Also discussed will be reasons why people file bankruptcy and how interest rates on loans and credit cards are affected by bankruptcy. The Chapter 7 bankruptcy is also referred to as liquidation, Chapter 11 bankruptcy is the reorganization of debt and Chapter 13 bankruptcy is the adjustment of debts of an individual with regular income (Types of Bankruptcy, 2011). An individual may file bankruptcy if they reside in the United States, within the last 6 years must not have been approved for a Chapter 7 release, and must not have been dismissed for bankruptcy filing within the last 180 days (Chapter 7, 2012). Within 6 months of filing for Chapter 7 bankruptcy, a person must also complete debt counseling classes and must pass a means test. A means test is a financial test given to see if a person qualifies for bankruptcy (Chapter 7, 2012). Although there are many reasons why a person would file for bankruptcy, only a few reasons will be mentioned in this discussion. The number one reason for filing for bankruptcy is medical expenses. Forty-two percent of those who filed for bankruptcy in 2010 were due to medical expenses. Twenty-two percent of bankruptcies were due to job loss, 15% for uncontrolled spending, 8% resulting from divorce and 7% due to unexpected disasters (Leading Causes of Bankruptcy, 2010)...
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...Chapter 7 Bankruptcy Chapter 7 Bankruptcy is a “liquidation form of bankruptcy under federal law (Twomey & Jennings, 2014, p. 747)”, in which one can convert property into money to pay a debt or to satisfy other financial responsibilities (Twomey & Jennings, 2014, p. 747). Consumers, such as Andy, must exhibit their inability to repay their debt, as well as, satisfy the requirements outlined in a “means test” in accordance with The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCA) (Twomey & Jennings, 2014, pp. 748-749). A Chapter 7 Bankruptcy “means” test is performed by the state in which one is filing for bankruptcy. In shaping his voluntary decision, in which Andy petitions the court and files for a Chapter 7 Bankruptcy on his own accord, Andy’s “means” testing would be determined by the state of Florida’s median family income. If Andy’s disposable income is equal to or less than Florida’s median family income, then Andy could move forward to petition the court for Chapter 7 Bankruptcy. For the purpose of this case study, we will use the median income for Orange Park, Florida and consider Andy’s household to be 1 since it is not known if Andy claims his dependent child on his federal income taxes. The Bankruptcy Means Test Calculator for Orange Park, Florida (Clay County) calculated Andy’s median income at $2222.22 monthly based on his annual salary of $40,000. In Clay County, Florida the median income for one member household is $3445.00...
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...- All Possible Questions 1) Long-term objectives represent the results expected from pursuing certain strategies. 2) Objectives provide direction and allow for organizational synergy. 3) Strategic objectives include those associated with growth in revenues, growth in earnings, higher dividends, larger profit margins and improved cash flow. 4) Strategic objectives include larger market share, quicker on-time delivery than rivals, quicker design-to-market times than rivals, lower costs than rivals, and wider geographic coverage than rivals. 5) "If it ain't broke, don't fix it" refers to managing by crisis. 6) The overall aim of the Balanced Scorecard is to balance financial objectives with strategic objectives. 7) Since a combination strategy bears no risk, many organizations pursue a combination of two or more strategies simultaneously. 8) Horizontal integration is seeking ownership or increased control over competitors. 9) Divestiture is selling all of a company's assets, in parts, for their tangible worth. 10) A chief executive officer is located in the divisional level of a large firm. 11) Gaining ownership or increased control over distributors or retailers is called forward integration strategy. 12) Franchising is an effective means of implementing forward integration. 13) A growing trend is for franchisers to buy out their part of the business from their franchisees. 14) McDonalds currently owns more than 50 percent...
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...through reorganization or liquidation. Most cases are filed under the three main chapters of the bankruptcy code. They are Chapter 7, Chapter 11, and Chapter 13. Federal courts have exclusive jurisdiction over bankruptcy cases. This means that a bankruptcy case cannot be filed in a state court. Below is a high-level summary on each bankruptcy code: Chapter 7 – Liquidation under the bankruptcy code: The chapter of the Bankruptcy Code providing for "liquidation," ( i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.) Chapter 11 - Reorganization under the bankruptcy code: The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.) Chapter 13 – Individual debt adjustment: The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) To some extent, Chapters 11 and 13 are similar. Both types of bankruptcy allow debtors to continue in business and propose plans to restructure their finances. Subject to legal requirements and limitations, a Chapter 11 or 13 plan can: * allow you to retain property needed to operate your business ...
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...October 13, 2009 Bankruptcy Fraud What is Bankruptcy? Bankruptcy is a way for individuals or businesses to satisfy debts. There are four types of bankruptcy. There is Chapter 7 which is a complete liquidation for individuals. Chapter 7 bankruptcy liquidates assets that are not exempt and uses the proceeds to pay creditors. In this bankruptcy creditors may be paid in full or a percentage based on the assets that were available. There is Chapter 11 which is for a business. Chapter 11 allows a business to reorganize its operation and finances so that it can pay its creditors. Sometimes in Chapter 11 another entity may take over the original entity in the reorganization. Creditors are told to give the entity time to reorganize and pay the debts. Then, there is Chapter 13 which is reorganization for individuals. Chapter 13 gives individuals a chance to pay creditors over 3 to 5 years through a Bankruptcy Trustee. Most assets can be kept depending on what percentage of the debts will be paid. If the debtor is paying the creditors in full then they would be able to keep all of their assets. This is only available for debtors with verifiable disposable income. The last type is Chapter 12 which is for farmers and fishermen (LII / Legal Information Institute). After completion of whichever chapter used, the creditor gets a “fresh start”. White Collar Crime Why is this considered white collar crime? Although there are people in blue collar positions that file bankruptcy...
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...- All Possible Questions 1) Long-term objectives represent the results expected from pursuing certain strategies. 2) Objectives provide direction and allow for organizational synergy. 3) Strategic objectives include those associated with growth in revenues, growth in earnings, higher dividends, larger profit margins and improved cash flow. 4) Strategic objectives include larger market share, quicker on-time delivery than rivals, quicker design-to-market times than rivals, lower costs than rivals, and wider geographic coverage than rivals. 5) "If it ain't broke, don't fix it" refers to managing by crisis. 6) The overall aim of the Balanced Scorecard is to balance financial objectives with strategic objectives. 7) Since a combination strategy bears no risk, many organizations pursue a combination of two or more strategies simultaneously. 8) Horizontal integration is seeking ownership or increased control over competitors. 9) Divestiture is selling all of a company's assets, in parts, for their tangible worth. 10) A chief executive officer is located in the divisional level of a large firm. 11) Gaining ownership or increased control over distributors or retailers is called forward integration strategy. 12) Franchising is an effective means of implementing forward integration. 13) A growing trend is for franchisers to buy out their part of the business from their franchisees. 14) McDonalds currently owns more than 50 percent...
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...Corporate Fraud and Schemes ACC 571 – Forensic Accounting October 20, 2014 Russell Wasendorf was the owner and chief executive officer of Peregrine Financial Group based in Cedar Falls Iowa. He stared the business in 1967 in Iowa and later decided to move the company to Chicago. Not long ago, he decided to move the company back to Iowa convincing many of his colleagues to move with him. Peregrine Financial Group had many customers and clients who trusted that the money invested and managed by Peregrine would be safe and potentially provide strong dividends in the future. In July 2012, the company filed for Chapter 7 bankruptcy and Russell Wasendoff was arrested for corporate fraud. According to the IRS (irs.gov), Wasendorf stole more than $215,000,000 from more than 13,000 victims over the course of nearly 20 years. The fraud that was committed was misappropriation of funds and falsifying bank statements. National Futures Association, the regulators for Peregrine, came to the harsh realization when they decided to change the audit procedure to online. According to New York Times (www.nytimes.com) “The N.F.A. was in the middle of changing part of its audit process to an online platform, where bank statement information would feed directly to the regulator. This month, Peregrine was facing its first audit under the new system, called confirmation.com, and Mr. Wasendorf was opposed to the system”. Previously, Wasendorf was the only person...
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...Chapter 1 Introduction to Information Technology Investment Decision-Making Learning Objectives After completing this chapter, you should be able to: • • • • • Describe different types of IT investment decisions manager face. Briefly describe some of the methodologies that are used in IT investment decision-making. Explain why IT investment decision-making is important as a subject to study. Explain some of the limitations that should be considered when using IT investment methodologies. Explain the role of IT investment decision-making within organizational planning. Prologue Information technology (IT) investment decision-making impacts all industries but sometimes in different ways. For example, Karadag et al. (2009) explored the importance of IT investment decision-making methodology in lodging industry. The research found that evaluation activities for hotel IT investments have not been performed widely and consistently and that some types of hotels tend to use more financial and non-financial IT evaluation methods, since all investments are expected to show a positive return on investment. The research findings highlight the importance of the use of IT investment evaluation techniques and the 3 4 Information Technology Investment: Decision-Making Methodology major differences in their use require a substantial need for understanding a wide variety of IT investment methodologies to satisfy decision-making needs. To provide useful decision-making in IT...
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...Computer Organization and Architecture CHAPTER 01: Basic Concepts of Architecture and Assembly Language CONTENTS: CHAPTER 1.1: Basic Concepts of Computer Architecture Computer Organization and Architecture CHAPTER 1.2: Basic Hardware Components of a Computer System John Vee MI P. Martinez, CSIT Instructor College of Information and Computing Sciences KING’S COLLEGE OF THE PHILIPPINES CHAPTER 1.3: Assembly Language CHAPTER 1.4: Programmer's View of a Computer System Computer Organization and Architecture CHAPTER 1.1: Basic Concepts of Computer Architecture Instructor: John Vee MI P. Martinez CHAPTER 1.1: Basic Concepts of Computer Architecture ASSIGNMENT #01: LEARNING OUTCOME #01: Next Learning Outcome: After engaging in each topic, students should have: 1) Differentiate Computer Organization and Computer Architecture? ¼ Yellow Paper, to be submitted next meeting. LO-01: Distinguished the difference between Computer Architecture and Computer Organization, and discussed the different types of architecture. 1) 2) Computer Organization and Architecture Instructor: John Vee MI P. Martinez Computer Architecture vs. Computer Organization Types of Architecture Computer Organization and Architecture Instructor: John Vee MI P. Martinez LO 1.1 – Computer Architecture vs. Computer Organization LO 1.1 – Computer Architecture vs. Computer Organization COMPUTER ARCHITECTURE: COMPUTER ARCHITECTURE: ...
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...2/15/2013 MGMT 2006 Module 1 Introduction to MIS Objective • By the end of this module you will be able to: • answer the question "What is an MIS?“ • answer the question "Why MIS?“ • distinguish between data, information, knowledge and wisdom • differentiate between Information Technology and • Information Systems • describe systems in use in typical organizations • relate information systems to strategy and • competitive advantage. What is an MIS? • An Information Systems is a system that captures, stores and processes data, transforming it into useful information. • The Information Systems exist in the context of the organization, which in turn exists within the winder environment. • Data is captured from events in and out of the organization. Information is disseminated in and out of the organization 1 2/15/2013 What is an MIS? Data • Data refers to raw facts lacking in context. – Bar code – Student ID number – Price – Telephone number – Etc. • Often times, raw data is not very useful for decision making. Data • A listing of students registered for MIS this semester . • The list only provides me with raw data. 2 2/15/2013 Information • Information can be produced from data by summarizing, categorizing, sorting and by adding context. Input Process Output Information Female Male Information Global Oil Production 3 2/15/2013 Knowledge “Knowledge is a familiarity with someone or something, which can include information, facts, descriptions, and/or skills acquired...
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