...ASSIGNMENT QUESTIONS: 1. Identify the administrative agency (full name, not just the acronym) which controls the regulation. Briefly explain why this agency and your proposed regulation interest you. If this proposed regulation will affect you or the business in which you are working, please explain how. It is not required that the proposed regulation affect you professionally or personally. You can use any regulation for this assignment so long as you are able to answer the questions posed here (Questions 1-5). (10 points) Answer: National Oceanic and Atmospheric Administration. I’m interested in environmental and animal conservation and this agency ensures stewardship of natural resources and the wildlife within. 2. Describe the proposal/change in your own words. (10 points) Answer: The proposal aims at classifying the Sakhalin Bay-Amur River stock of beluga whales as depleted which would offer them additional protections under the Marine Mammal Protection Act. 3. Write a comment which you would submit to the administrative agency regarding this proposed regulation. (For example, are you in favor of the proposed regulation or against it? Why?) If the deadline for comments has already passed, write the comment you would have submitted had there been time. Also, explain briefly what you wish to accomplish with your comment. (10 points) Answer: I support this proposal of enacting ‘depleted’ status for Sakhalin Bay-Amur River stock of beluga whales. Already the Alaska beluga...
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...The stock market for long-term investment no longer, rather, in 1928, the stock market had become a place where everyday people truly believed that they could become rich. Stocks had become the talk of every town. Discussions could be heard at every corner about stocks. Newspapers reported average people making millions off of the stock market. With so many people buying, the prices increased. Over a series of several days in October 1929 the market dropped a few times, but banks and companies were still loaning money and investing in the market leading people to believe everything was okay. Investors were now unable to invest confidently and banks had no regulations on their financial statements. The accounting profession was pressured to establish more uniform accounting standards after this stock market crash of 1929. Some people felt that misleading or, incomplete if you will, financial statement information made the stock prices inflate contributing to the stock market crash and the depression that followed. The Securities Act of 1933 and the Securities Exchange Act of 1934 were designed to restore that confidence in the investor. The 1933 act sets accounting and disclosure requirements for initial stocks and bonds, while the 1934 act applies to secondary transactions and mandates reporting requirements for companies whose securities are publicly traded. The 1934 act also created the Securities and Exchange Commission (SEC). The 1934 act gave the SEC both the power...
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...1 1. If you bought a share of stock, what would you expect to receive, when would you expect to receive it, and would you be certain that your expectations would be met? A: When you purchase a stock, you expect to receive dividends plus capital gains. Not all stocks pay dividends immediately, but those corporations that do, typically pay dividends quarterly. Capital gains (losses) are received when the stock is sold. Stocks are risky, so you would not be certain that your expectations would be met—as you would if you had purchased a U.S. Treasury security, which offers a guaranteed payment every 6 months plus repayment of the purchase price when the security matures. 2. If most investors expect the same cash flows from Companies A and B but are more confident that A’s cash flow will be close to their expected value, which should have the higher stock price? Explain. A: If investors are more confident that Company A’s cash flows will be closer to their expected value than Company B’s cash flows, then investors will drive the stock price up for Company A. Consequently, Company A will have a higher stock price than Company B. 3. When is a stock said to be in equilibrium? At any given time, would you guess that most stocks are in equilibrium as you defined it? Explain. A: Equilibrium is the situation where the actual market price equals the intrinsic value, so investors are indifferent between buying or selling a stock. If a stock is in equilibrium then there is no...
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...1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interests you (briefly). Will this proposed regulation affect you or the business in which you are working? If so, how? Submit a copy of the proposed regulation along with your responses to these five questions. The proposed regulation can be submitted as either a separate Word document (.doc) or Adobe file (.pdf). This means you will submit two attachments to the Week 2 Dropbox: (1) a Word doc with the questions and your answers and (2) a copy of the proposed regulation you used for this assignment. (10 points) Federal Department of Energy – I have always been interested in the stock market and companies that are in secret trade deals. Also, understanding how trade secrets and “privileged” information is supposed to be kept from the public. 2. Describe the proposal/change. (10 points) The proposal proposes to standardize across its various programs procedures for the submission and protection of trade secrets and commercial or financial information that is privileged or confidential. These changes require at the time of submission, to identify and assert a claim of exemption regarding information it considers to be trade secrets or commercial or financial information that is privileged or confidential such that the information would be exempt from disclosure under the Freedom of Information Act. Also, on each page containing such data, there must...
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...ownership stake of 33% with no other shareholders having a significant ownership stake in the corporation so that the CEO has effective control over decision making in the organization. What are some of the advantages of the CEO having such a large ownership stake in terms of controlling agency costs? (3 pts) As this particular CEO essentially wears two hats, manager and large shareholder, there is an incentive to maximize the value of the firm. Every decision this CEO makes as a manager will impact the value of the company and thus his own personal wealth. As this CEO has a significantly greater vested interest in the performance of the company, he or she is likely to keep agency costs at a level that allows for a greater margin of profit. Also, as stated in the book, Corporate Governance, Third Edition, by Kim, Nofsinger, and Mohr, “a person whose wealth is significantly tied to a firm and is also directly responsible for running the firm…minimizes conflict of interest problems between owners and managers”. In effect, the duality of these roles cause owner and manager to be one in the same. b) What are some of the disadvantages of the CEO having such a large ownership stake in terms of agency costs? (3 pts) A disadvantage to a CEO being the majority shareholder is that his managerial decision making...
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...Riding a Tiger… Wipro Infotech, is the leading IT Company offering integrated IT solutions to various clients in India, the Middle East and Asia-Pacific. The present Chairman of the company, Azim Premji was reelected as the Chairman of Wipro Infotech for a period of 2 years, i.e. end of July 2011. His reappointment was unanimously supported by the shareholders of the company. Majority of shareholding of the company, i.e., 79.32 percent of shareholding in Wipro Infotech was held by the Premji and his family members. The company reported a profit of Rs.79/- crore in the first quarter of 2009 under his leadership. The success of the company is attributed to ethics that are practiced in the company in addition to the timely strategic business decision made by the management. The chairman practices ethics in the business and they only preaches. Premji strongly believes that ordinary people are capable of extraordinary things and that the key to this is creating highly charged teams. He takes a personal interest in developing teams and leaders and invests significant time as a faculty in Wipro’s leadership development programs. Premji is firmly committed to the belief that business organizations have deep social responsibility, and such responsibility shall be discharged by conducting ethical and fair business, by involvement with community issues and by building an ecologically sustainable business. It’s that kind of integrity that has catapulted Premji and Wipro to unprecedented...
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...Table of Contents Type chapter title (level 1)1 Type chapter title (level 2)2 Type chapter title (level 3)3 Type chapter title (level 3)3 Type chapter title (level 3)3 Type chapter title (level 3)3 Type chapter title (level 3)3 Type chapter title (level 1)4 Type chapter title (level 2)5 Type chapter title (level 3)6 TARGET MARKET:- BANK AL HABIB limited has conservative credit approach. They provide loan to those customers who are already their customers and have accounts with bank. We can say that they are solely focusing on relationship oriented lending for major corporate exposure. Thus it is clear that bank has mitigated their risk. This is the main reason that credit department have zero non performing loan. BANK AL HBAIB while providing loans to their existing customer’s bank pledge some security against that loan. So the risk is minimized. Against the loan the the security which is pledged by borrower should not be used by bank, but the pledged should be only for the purpose of security. For corporate sector bank also keep some proprety as a mortgage. Bank can use mortgage security. Procedure for mortgage is bank hire human resource for the legal opinion in which assigend person should prepare legal documents regarding the mortgage security, transfer letter. Assigned company also find the forseable value of the mortgagae security. For corporation bank also create a charge (portion). This is basically claimed of bank on the company assets. This charge...
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...UWA Plastics evaluates its capital expenditure proposals by classifying a proposal under one of four categories, namely: new product or market, product or market extension, engineering efficiency and lastly safety or environment. If a proposal falls into one of the first three categories listed it must satisfy a number of performance hurdles in order to be considered a viable option. Any proposal that does not satisfy at least three of the four hurdles will not be considered by senior management. If, however, the project does satisfy at least three out of the four performance based hurdles the project’s initiators can submit it to senior management for consideration. Although the capital evaluation scheme is relatively complicated it does, however, allow and ensure that the projects that are being considered by senior management are of a feasible nature. Time is money in business and by ensuring that valuable management time and attention is only focused on proposals that meet a required minimum standard management and therefore the firm as a whole will operate more effectively. Earnings-per-share (EPS) is a firm’s net income divided by the total number of shares outstanding. Shareholders who invest in the company do so in the hope of earning a return on their investment. If the firm is not generating a positive earning per share shareholders and prospective investors are less likely to be involved with the firm. Ensuring a project has a positive impact on the earnings per share...
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...Sample Request for Proposal The following sample Request for Proposal (RFP) was provided by NPower Seattle. Please note that the project described here is for example only and should not be reused verbatim. For more information on how to build an effect RFP, please see TechSoup's RFP Library at: http://www.techsoup.org/emcf/rfp Copyright 2003 NPower Seattle. All rights reserved. Agency XYZ REQUEST FOR PROPOSAL WEB SITE DESIGN, DEVELOPMENT & HOSTING MAY 2, 2003 Table of Contents 1. Summary ............................................................................................................................................ 2 2. Proposal Guidelines and Requirements ........................................................................................ 2 3. Contract Terms................................................................................................................................. 2 4. Purpose, Description and Objectives............................................................................................ 3 5. Timeline ............................................................................................................................................. 4 6. Budget ................................................................................................................................................ 5 7. Background of Organization ..........................................................................................................
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...1. Be able to analyze the financial data Finance: It is the study of the management of the funds. Key domains of financing are: * Business finance. * Private finance (personal loan). * The public finance. Finance deals with the savings of money and frequently deals with the lending matters. The field of the finance offers with the time concepts, money, the risk and how they are secured. It takes care of how money used in budgeting. The one of the main source of the financing is through individuals and organizations that deposit or invest money. The banks issue money to other natural or lawful people for the expenditure and charge interest. Why the businesses need the financing Commencement of a new business A business needs a financing to buy the equipment, machinery and to spend on personnel. Money will be so necessary to cover the routine functioning expenses. Finance for the expansions of production capacity As growing a business, it has to be able to produce a newer technology and the machinery and to reduce costs and to live a day competitors. To develop product and to market the products A business has to spend money for the development and marketing of products. To enter in newly market Whenever ventures grow, they sell its products on new business markets. It can be new geographic areas to sell or types of customers. That costs money in a way of investigation and of marketing, for example advertising campaigns and the creation of...
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...a. Why is corporate finance important to all managers? Answer: Corporate finance is important to all managers because it helps managers decide how to finance an organization . It teaches managers how fix financial problems, evaluate proposals, and determine which projects are financially beneficial to a company and its investors. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Answer: A company may start off as a proprietorship, than advance to a partnership before forming a corporation below are some advantage and disadvantages of each form: 1. Proprietorship: This type of organization is individually owned and has the following advantage; it is easy and inexpensive to form, its income is not subjected to corporate taxes and it is subjected to few government regulation. Some disadvantages for proprietorship are the owner has unlimited personal liability for the business debts, it is usually difficult for proprietors to obtain capital for growth and the life of the business is limited to the life of its founder. 2. Partnership: This type of organization is formed when two or more individuals or entities come together to conduct a non-corporate business for profit. Partnerships have the same advantages as proprietorships i.e. they are easy and inexpensive to form, income is not subjected to corporate taxes and they are...
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...On 21 December 2001, the United Nations General Assembly by approving Resolution 56/183 endorsed the holding of the World Summit on the Information Society (WSIS) to discuss on information society opportunities and challenges.[9] According to this resolution, the General Assembly related the Summit to the United Nations Millennium Declaration to implement ICT to facilitate achieving Millennium Development Goals. It also emphasize on the multistakeholder approach to use all stakeholders including civil society and private sector beside the governments. The resolution gave ITU the leading managerial role to organize the event in cooperation with other UN bodies as well as the other international organizations and the host countries and recommended that preparations for the Summit take place through an open-ended intergovernmental Preparatory Committee – or PrepCom – that would define the agenda of the Summit, decide on the modalities of the participation of other stakeholders, and finalize both the draft Declaration of Principles and the draft Plan of Action.[10] In 2003 at Geneva, delegates from 175 countries took part in the first phase of WSIS where they adopted a Declaration of Principles.[11] This is a road map for achieving an information society accessible to all and based on shared knowledge. A Plan of Action[12] sets out a goal of bringing 50 percent of the world's population online by 2015. The second phase took place from November 16 through 18, 2005, in Tunis...
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...Products Inc. is an important manufacturer of boating gear and accessories. The textbook case under consideration centers on the clerical assistant - Loren Seguara employed by the company’s accounting department. Another personality in the case is Mr. Dale Johnson employed in the company’s shipping department in the position of packager. The dilemma in the case concerns the complaints of Dale and Loren’s discussion during their lunch break concerning profits and stock dividends. Dale grumbled that even though he was working hard to keep overhead costs down in his department; he did not feel the company was recognizing his efforts. While performing his duties Dale feels he is putting his best efforts toward his perception of cost control by not wasting packing supplies and as well as using company property in an efficient and in a cost-effective manner. However, even though Dale feels he is carrying out his work with full efficiency as is his group of co workers in his department, the result is a downturn in the company stock price by almost $2 a share over the last nine months. What should the management of Sports Products, Inc. pursue as its overriding goal? Why? The overriding objective of the company management of Sports Products needs to focus on how to maximize the assets of the shareholders in the business. The corporate objective task of making the most of shareholder wealth presupposes that company management work in the best interests of stockholders and not just their...
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...Table of Contents I.) INTRODUCTORY PRINCIPLES 2 A.) Efficiency and Other Concepts 2 B.) Agency and Partnership Law 2 II.) INTRODUCTION TO THE CORPORATE FORM 16 A.) Formation and Structure 16 B.) Debt, Equity, and Valuation 22 III.) CONTROL OF CORPORATE DECISIONS 32 A.) The Role of the Shareholder 32 B.) Management Obligations 50 1.) Duty of Care 51 2.) Duty of Loyalty 56 3.) Duty of Fairness: Parent-Subsidiary Relationships 63 4.) Duty of Good Faith 64 5.) Management Obligations Under Federal Securities Laws 67 C.) Shareholder Litigation 76 IV.) Structural Changes 85 A.) Transactions in Control 85 B.) Mergers and Acquisitions 86 1.) Mergers 87 2.) Sale of Assets 93 3.) Asset Purchase or Tender Offer 94 C.) Public Control Contests 96 1.) The Poison Pill 100 2.) Enhanced Review When Business is Up for Sale 103 3.) Proxy Contests for Corporate Control 106 4.) Protecting the Deal: Shareholder Lockup Agreements 109 I.) INTRODUCTORY PRINCIPLES • Definitions o Corporate Law: The allocation of rights and power within a corporation; the internal body of law ▪ Addresses the creation of economic wealth through the facilitation of voluntary, ongoing collective action ▪ Flexible- expectation that market discipline will weed out what is not working ▪ Principle aim- reduce agency costs of all sorts o Securities Law: Regulates capital markets that corporations use to obtain funding ...
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...Brandel Hopkins Professor Alston Business Law February 19, 2014 Federal: Legislative Agency Article I of the United States Constitution created the Legislative Agency/Branch which is one of three agencies: Judicial, Executive, and Legislative. The Legislative Division of the Federal Government is a combination of the House of Representatives or House of Rep's, which has 435 elected representatives over the 50 states, and the Senate, which together, form the United States Congress, as well as the Legislative Branch. A power granted to the Legislative Agency from the U.S. Constitution gives Congress the authority over creating Laws by voting on them, and to declare war if necessary. The Legislative also has the authority to agree on, or disagree with, Presidential decisions and use their investigative power when necessary. The Proposal I chose from the 113th Congress (2013-2014) H.R.437 SEC. 3. Indicates that restrictions on assault weapons and large capacity ammunition feeding devices be prohibited. I'm for one, am very pleased with this proposal because although we have the right to bear arms such as rifles and shotguns, civilians should not be permitted to own assault weapons or be able to buy the applicable ammunition. This proposition interests me because I’m all for bearing arms but I do not agree with people stock piling large amounts of automatic weapons or automatic weapon ammunition. Simple and plain, there’s no reason...
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