...Chapter 1 (page 4-19) Taking Risks and making Profits within the Dynamic Business Environment Business: Any activity that seeks to provide goods and services to others while operating at a profit. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the business operation. Goods are tangible products such as computers, food, clothing, cards appliances and services include intangible products which cannot be held in your hand such as education, health care, insurance, recreation, travel and tourism. Entrepreneur is a person who risks time and money to start and manage a business. (Sam Walton started Wal Mart, Bill Gates started Microsoft) Revenue is the total amount of money a business takes in during a given period by selling goods and services. Loss occurs when business expenses are more than its revenues. Risk is the chance an entrepreneur takes of losing time and money on business that may not prove profitable. Higher the amount of risk, higher is the profit. Standard of Living: The amount of goods and services people can buy with the money they have. Business provides employment, employees pay tax and the tax is used by the government to build the infrastructure. Quality of Life: The general well being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time and everything else that leads to satisfaction and joy that goods and services provide...
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... Anatomy of Risk Management Practices in the Mortgage Industry: Lessons for the Future Clifford V. Rossi Anatomy of Risk Management Practices in the Mortgage Industry: Lessons for the Future Clifford V. Rossi Robert H. Smith School of Business University of Maryland May 2010 2 9946 Anatomy of Risk Management Practices in the Mortgage Industry: Lessons for the Future © Research Institute for Housing America May 2010. All rights reserved. Research Institute for Housing America Board of Trustees Chair Teresa Bryce, Esq. Radian Group Inc. Michael W. Young Cenlar FSB Nancee Mueller Wells Fargo Edward L. Hurley Avanath Capital Partners LLC Steve Graves Principal Real Estate Investors Dena Yocom IMortgage Staff Jay Brinkmann, Ph.D. Senior Vice President, Research and Business Development Chief Economist Mortgage Bankers Association Michael Fratantoni, Ph.D. Vice President, Research and Economics Mortgage Bankers Association Anatomy of Risk Management Practices in the Mortgage Industry: Lessons for the Future © Research Institute for Housing America May 2010. All rights reserved. 3 Table of Contents Executive Summary 1. Introduction: Findings and Recommendations 2. A Model for Mortgage Risk Taking: Growth, P / E and the Fallacy of ROE 3. Data and Model Limitations Data Integrity Economic Environment Mortgage Products and Risk Layering Borrower and Counterparty Behavior 4. Governance, Corporate Culture and Risk Taking: A Behavioral...
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...Newcastle Business School Faculty of Business and Law ASSESSMENT ITEM COVER SHEET Student Name: May Han Thein Last name First Name 0 3 7 9 0 7 8 (Your studentmail account) Student Number: Email:c3087097@uon.edu.au Business Strategy N M 0 0 2 1 T G Course: ode Course Code Course Title Campus of Study: PSB Delta,Singapore Assessment Item Title: Assessment Item 3 Essay A5 24.10.2010 1451 Tutorial Group: Word Count (If applicable): Due Date/Time: Lecturer/Tutor Name: Param Alahakone X Extension Granted: Yes No Granted Until: Please attach the approved copy of your extension approval. Include here any instructions / checklist for submission I verify that I have completed the Faculty of Business and Law online Academic Honesty Module and adhered to its principles (please tick the box) Y I declare that this assessment item is my own work unless otherwise acknowledged and is in accordance with the University’s plagiarism policy available from the Policy Library on the web at http://www.newcastle.edu.au/policy/academic/general/academic_integrity_policy-new.pdf I certify that this assessment item has not been submitted previously for academic credit in this or any other course. I certify that I have not given a copy or have shown a copy of this assessment item to another student enrolled in the course. I acknowledge that the assessor of this assignment...
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...THE ROLE OF ENTREPRENEURIAL OREINTATION ON ENTREPRENEURIAL INNOVATIVENES: A CASE STUDY OF SMALL AND MEDIUM SCALE ENTREPRISE IN LAGOS STATE, NIGERIA BY FATOYE, MUSTAPHA OBI 08S04/046 BEING A RESEACH PROJECT SUMITTED TO THE DEPARMENT OF BUSNESS ADMINISTRATION, FACULTY OF SOCIAL AND MANAGEMENT SCIENCES, AJAYI CROWTHER UNIVERSITY, OYO IN PARTICAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF BARCHELOR OF SCIENCE (B.S.C) DEGREE IN BUSINESS ADMINISTARTION (MANAGEMENT OPTION) JULY, 2012 CERTIFICATION This is to certify that this project was written by FATOYE MUSTAPHA OBI (MARICULATION NUMBER 08S04/046) in partial fulfilment of the requirement for the award of bachelor of science (B.S.c) degree in business administration (management option) of the department of business administration, faculty of social and management sciences, Ajayi Crowther university, Oyo, Oyo State. MR. P.A Akanbi ....................... (Project supervisor) Date DR. O.E Ofoegbu ........................ (HOD, Business Administration) Date PROF. S.O. Akano ....................... (Dean, SMS) Date .............................. ........................ EXTERNAL EXAMINER Date DEDICATION This work is dedicated to God Almighty who generously gave me the strength, health and other resources to successfully accomplish this research. ACKNOWLEDGEMENTS This period of my life had been a period of trials and revelation but...
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...The Role of Corporate Law in Preventing a Financial Crisis: Reflections on In re Citigroup Inc. Shareholder Derivative Litigation Franklin A. Gevurtz* TABLE OF CONTENTS I. INTRODUCTION .................................................................................................. II. CITIGROUP AS A CASE STUDY IN EXCESSIVE RISK-TAKING .............................. III. TOOLS FOR CURBING EXCESSIVE RISK-TAKING AND THE ROLE OF CORPORATE LAW ............................................................................................... A. The Tools for Curbing Excessive Risk-taking ............................................. 1. Regulation of Business Activities .......................................................... 2. Capital Requirements ........................................................................... 3. Compensation Rules ............................................................................. 4. Liability for Unreasonable Risks .......................................................... 5. Selection of Management (Rules of Corporate Governance) ............... B. Dividing the Tools Between Banking and Corporate Law .......................... IV. WHY IT MATTERS: CITIGROUP AS AN ILLUSTRATION OF THE LIMITATIONS OF STATE CORPORATE LAW ........................................................ A. Citigroup As a Case Study In Weak Corporate Law................................... 1. Overview ..................................................
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...Omosolape Olakitan and Akanbi Paul Ayobami Department of Business Administration. Ajayi Crowther University, Oyo, Oyo State Corresponding Author: Owoseni Omosolape Olakitan __________________________________________________________________________________________ Abstract Various personality variables determine entrepreneurial intentions and ultimately entrepreneurial success. This paper investigated the influence of personality on entrepreneurial success. We examined the impact of gender, locus of control and risk-taking behaviour on the success of an entrepreneur. The participants in this study were thirty-five solo entrepreneurs located around Agbowo, University of Ibadan area, Ibadan, Oyo state, igeria. 34.3 percent were males and 65.7 percent were females aged between 21 and 60. Six hypotheses were tested using various statistical techniques including independent ‘t’ test, analysis of variance and multiple regression. The results showed that risk-taking behaviour and locus of control had no significant interaction effect on entrepreneurial success. There was also no significant difference between risk-taking behaviour and entrepreneurial success. The findings showed that a significant difference existed between internal locus of control and entrepreneurial success. The study also showed that there was no significant difference in the entrepreneurial success based on gender differences. Finally, locus of control, risk-taking behaviour did not collectively predict or determine...
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...1. Preliminary analysis to understand the client‘s business and risk - Understanding the auditee’s business, environment, and risks - Mature company, has been around for more than 15 years, simple business structure – manufacturing and merchandising, heavily based on inventory sales, however it is highly prone to competition in this industry. The intensity of rivalry is very high in this industry. - MIT is taking initiative in differentiating their products as they are seeking out new opportunities, such as importing from Italy. This would most likely allow MTI to be differed from the competitors in the industry, and improve brand image and gain customer loyalty. This industry has very high threat of substitute products as well as the barriers to entry are very low for this industry. These high level threats in the industry due to competition chip away the sales of the existing companies. These are business risks that MTI face due to the nature of the company and the industry. - The newly implemented sales strategy (importing from Italy) creates a new product line, and the business risks related to this addition are: getting familiar with the legal policy requirements for imported product requirements, exchange rate risks. The customers are newly introduced to this product line as well therefore the company is unfamiliar with the demand and needs of the Canadian customers with regards to internationally imported products. The uncertainty of the demand in the Canadian market...
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...INTRODUCTION CEO duality happens when the same person occupies both the CEO and chairing the board in a corporation. On the other hand, if different individuals serve in these two pivotal positions, the firm can be said to adopt a separate leadership structure. The fundamental question surrounding CEO duality leadership is whether the chairperson‘s position should be filled by the CEO or by a different person (Daily & Dalton, 1997). The all round concern has been whether one person‘s positioning at the corporate pivotal positions of CEO and board chairperson weakens corporate governance effectiveness, leading to managerial opportunism and resulting in reduced firm performance (Brickley, Coles, & Jarrell, 1997; Finkelstein & D‘Aveni, 1994). From the agency theory perspective, having one individual in charge of both management implementation and control is not consistent with the concept of checks and balances. However, from an organization theory perspective, CEO duality may enhance organizational efficiency in corporate leadership. Most theoretical arguments against the practice of CEO duality leadership have centered on the issue of power concentration on dual CEO (Brockmann, Hoffman, Dawley, & Fornaciari, 2004; Daily & Dalton, 1997). Duality has been described as a concentration of power on the dual CEO, enabling dual CEOs to dominate the board, reducing board effectiveness in monitoring and controlling the management’s performance. CEO duality leadership...
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...Understanding Concepts Finance 100 June 10, 2012 Imagine you are a small business owner. Determine the financial ratios that are important to the business. Compare your ratios with those that are important to a manager of a larger corporation. A financial ratio is a simple mathematical comparison of two or more entries from a company's financial statements. Business owners and managers use ratios to chart a company's progress, uncover trends and point to potential problem areas in a business Financial ratios are relationships determined from a company's financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), return on assets (ROA), and debt-to-equity, to name just three. These ratios are the result of dividing one account balance or financial measurement with another. Usually these measurements or account balances are found on one of the company's financial statements—balance sheet, income statement, cashflow statement, and/or statement of changes in owner's equity. Financial ratios can provide small business owners and managers with a valuable tool with which to measure their progress against predetermined internal goals, a certain competitor, or the overall industry. In addition, tracking various ratios over time is a powerful means of identifying trends in their early stages Explain the advantages and disadvantages of debt financing and why an organization would choose to issue...
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...personality, business skills and lifestyle preferences Personal Assessment “The key ingredient to being a successful entrepreneur is to get off your butt and do something” – these are the words of the founder of Atari and Chuck E. Cheeses, entrepreneur Nolan Bushnell. Having your own business is not just like deciding you want to become a self-employed individual and become a master of your own. There is more to it like being a hardworking man, learning how to become dedicated and to preserve with everything that is about to happen during the start of the business. According to entrepreneur Nolan Bushnell, it is not just the three mentioned things though (hard work, perseverance and dedication), a successful entrepreneur needs to have goals too and the desire to succeed with it. To run a business is not just by accident but is something that needs to be worked on. It needs to be studied and it needs time. Being in the business world is like leading a nation just like world leaders we have before and today. Leaders and entrepreneurs are common in some things especially when it comes to running a business and running a country, there are traits the both possess and needed in order to succeed with their responsibilities. They must be willing to risk things, are motivated and are always putting the people first before their own happiness. For business people, being innovative is very crucial part of running the business especially...
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...Working Group on the Issues and Concerns in the NBFC Sector Report and Recommendations RESERVE BANK OF INDIA August 2011 2 ABBREVIATIONS AND ACRONYMS AFC ALM BIS CIC-ND-SI Asset Finance Company Asset Liability Management Bank for International Settlements Systemically Important Non-Deposit Taking Core investment Company Capital Market Exposures Certificate of Registration Commercial Paper Capital to Risk Weighted Assets Ratio Commercial Real Estate Financial Companies Regulation Bill Foreign Direct Investment Investment Company Inter Corporate Deposits Infrastructure Finance Company Initial Public Offering Insurance Regulatory and Development Authority Joint Parliamentary Committee Know Your Customer Loan Company Liquidity Coverage Ratio Lender Of Last Resort Micro Finance Institution CME CoR CP CRAR CRE FCRB FDI IC ICD IFC IPO IRDA JPC KYC LC LCR LOLR MFI 3 M&A NBFC NBFC-ND-SI Mergers and Acquisitions Non Banking Financial Company Systemically important Non Deposit taking Non Banking Financial Company Deposit taking Non Banking Financial Company Non Deposit taking Non Banking Financial Company Non Banking Financial Institutions Non-convertible debentures Net Owned Funds Non-Performing Asset Over-the-counter Public Financial Institution Priority Sector Lending Reserve Bank of India Residuary Non Banking Company Return on Assets Return on Equity Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Scheduled Commercial Bank...
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...Making the decision to start a business is not a decision to make lightly. The video reviewed for this assignment provides an insight into the company iContact. This company was started by two college students who had a vision and the determination to take risk. Ryan Allis and Aaron Houghton knew what each other had to offer to start this email marketing and social media business. During the development of this business, Ryan and Aaron understood how to identify the risks at stake and the five elements for a successful business. One of the first steps of entrepreneurship is finding a need and figuring out how to fill it. The need they found was to actually support entrepreneurs and small businesses in distribution of their marketing materials via email and social media. Another step in starting a new business is to determine how best to generate revenue that is greater than the cost to do business. Once the business starts to grow it is important to find investors that are willing to fund the business until the profitability is reached. There are risk factors involved such as personal finances and time and not all businesses are successful. Ryan and Aaron were able to develop a business model that quickly identified a lower risk method to make a profit. They determined what it would cost to service each customer and then what to charge the customer to offset the financial risk. They each came in with the expertise to get the business going. Ryan and Aaron were...
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...Introduction to Business (2) – Sept. 7th 2015 – Jan van der Ende Innovative Management * Innovation = The generation, development and commercialization of products, new services or new business models by a firm. * Business model = The way a company creates, delivers and captures value. Innovation – Mostly fails (40%) * Radical innovation * Non-radical innovation No innovation = die (Kodak) Innovation: * Teamwork (Multiple perspectives) * No communication No product * Concept development Prod./Serv. Development Commercialization (process) * Innovation process in the book on page 347 Design-driven innovation * Propose the customer, without recognizing a problem. * Social process Innovation funnel (product screening) * Think 5 years ahead Product life cycle Disruptive innovation – Business model * New product with a different set of performance attributes * Underperforming on the attributes that mainstreams customers value * High improvement potential on these attributes Newspaper Website Model Christensen – The Innovator’s dilemma Problem for traditional brands. Customers think the service of the budget service is good enough. Problem for traditional brands. Customers think the service of the budget service is good enough. Solution: Brands like Air France-KLM makes a budget brand (EasyJet). Sustaining innovation * Bigger airplanes * Add service to a product (3) – Sept. 9th 2015...
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...Week Six Learning Team Reflection Law/531: Business Law John Fossum November 11, 2012 Introduction: With the current economy the markets are expanding and taking companies globally. Laws in on how business is conduct varies vastly from country to country. It is important that the laws are understood and not confused with others. There are global practices that have been put in place as well to help protect businesses that conduct business globally. The Foreign Corrupt Practice Act of the 1970’s is just an example of the United States law that was put in place to protect companies. Team C elaborates on these practices through the review of several articles. Future of Anticorruption Laws Stricter laws against corruption in international business transactions gained momentum during 2010. In reaction to fraudulent practices abroad, the United States authorities collected larger fines and imposed stiffer penalties in concordance with the Foreign Corrupt Practices Act (Morley, Hadley, & Saulnier, 2011). FCPA violations are a new law enforcement priority and are concurrent with the emphasis on fighting global terrorism. In addition, the United Kingdom revised their anti-bribery laws to impose greater regulations than the FCPA (Morley, et al. 2011). In response to the increase in number of cases, the United States adopted more aggressive enforcement measures, expansive jurisdiction, and bounty payments to whistle-blowers (Morley, et al. 2011)...
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...entrepreneur and also highlight the characteristics which they possess. It will thereafter discuss with valid points raised on both angles of whether entrepreneurs are born or made. It will therefore justify with persuasive evidence that entrepreneurs are made. Finally a conclusion will be drawn. The entrepreneur character is one of the characters which strongly influence business around the world. This explains the need to understand the profile of such a character. An entrepreneur is a person who creates a new business, taking risks in achieving the objectives which they propose, to make profits and growth by identifying some important opportunities. An entrepreneur manages important resources, which he or she draws from different sources on a major power to persuade those who hold them. Many experts have sought to understand and describe the personality of the entrepreneur, because, although many people have good ideas to start a business, some turn these ideas into concrete businesses (Shapiro 1975). Burdus (3, 2007) An entrepreneur is said to be "a person with leadership qualities, able to take risks in order to exploit certain opportunities, their enthusiasm is based more on personal forces which leads to the development of strategies based almost entirely on personal interests. Entrepreneurs exist and are able to maintain their existence because they possess certain characteristics”. Burdus (2007) highlighted some characteristics which enable...
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