...Chapter C:2 Formation of the Corporation Discussion Questions C:2-1 A new business can be conducted as a sole proprietorship, partnership, C corporation, S corporation, LLC, or LLP. Each form has tax and nontax advantages and disadvantages. See pages C:2-2 through C:2-7 for a listing of the tax advantages and disadvantages of each form. A comparison of the C corporation, S corporation, and partnership alternative business forms appears in Appendix F. pp. C:2-2 through C:2-8. C:2-2 Alice and Bill should consider forming a corporation and making an S corporation election. An S corporation election will permit the losses incurred during the first few years to be passed through to Alice and Bill and be used to offset income from other sources. The corporate form allows them limited liability. As an alternative to incorporating, Alice and Bill might consider a limited liability company that is taxed as a partnership. pp. C:2-6 through C:2-8. C:2-3 The only default tax classification for the LLC is a partnership. Because the LLC has two owners, it cannot be taxed as a sole proprietorship. The entity can elect to be taxed as a C corporation or an S corporation. If the entity makes such an election, Sec. 351 applies to the deemed corporate formation. The entity would have to make a separate election to be treated as an S corporation. pp. C:2-8 and C:2-9. C:2-4 The default tax classification for White Corporation is a C corporation. White can elect to be...
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...One of the critical problems confronting management and the board of Pioneer Petroleum Corporation in July 1991 was the determination of a minimum acceptable rate of return on new capital investments. The company's basic capital budgeting approach was to accept all proposed investments with a positive net present value when discounted at the appropriate cost of capital. At issue was how the appropriate discount rate would be determined. The company was weighing two alternative approaches for determining a minimum rate of return: (1) a single cutoff rate based on the company's overall weighted average cost of capital, and (2) a system of multiple cutoff rates that reflected the risk-profit characteristics of the several businesses or economic sectors in which the company's subsidiaries operated. The issue had assumed increased importance because of management's decision to extend the use of the cutoff rate to the evaluation of existing operations and investments. It was planned to evaluate divisional managers on the basis of their net profits after the deduction of a charge for capital employed by the division. Pioneer Petroleum had been formed in 1924 through the merger of several for merely independent firms operating in the oil refining, pipeline transportation, and industrial chemicals fields. Over the next 60 years, the company integrated vertically into exploration and production of crude oil and marketing refined petroleum products, and horizontally into plastics,...
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...Consolidated Rail Corp. by Benjamin C. Esty Airbus A3XX: Developing the World’s Largest Commercial Jet by Benjamin C. Esty American Chemical Corp.by William E. Fruhan, John P. Goldsberry American Home Products Corp.by David W. Mullins AQR’s Momentum Funds by Daniel B. Bergstresser, Lauren H. Cohen, Randolph B. Cohen, Christopher Malloy Arundel Partners: The Sequel Project by Timothy A. Luehrman AXA MONY by Andre F. Perold, Lucy White Beta Management Co. by Michael E. Edleson Butler Lumber Co. by Thomas R. Piper Cartwright Lumber Co.by Thomas R. Piper Citigroup 2007: Financial Reporting and Regulatory Capital by Edward J. Riedl, Suraj Srinivasan Clarkson Lumber Co. by Thomas R. Piper Cooper Industries, Inc. by Thomas R. Piper Cost of Capital at Ameritrade by Erik Stafford, Mark L. Mitchell Debt Policy at UST, Inc. by Mark L. Mitchell Dell’s Working Capital by Richard S. Ruback DermaCare: Zapping Zits Directly by Richard G. Hamermesh, Lauren Barley Diageo plc by George Chacko, Peter Tufano Dimensional Fund Advisers–2002 by Lauren H. Cohen Dividend Policy at FPL Group, Inc.by Benjamin C. Esty Dividend Policy at Linear Technology by Malcolm P. Baker, Alison Berkley Wagonfeld Equity International: The Second Act by Nicolas P. Retsinas, Ben...
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...Business Analysis Part II Anikki Manasseh MGT/521 October 29, 2012 Richard Bowman Business Analysts Part II Introduction In the world of business one has to try and stay ahead of the next company especially if they are in the same league. Nothing is ever guaranteed and in a world that is constantly changing it is best to stay one step ahead of the competition. The Fortune 500 list has companies who have made an impact on the economy and have continued to grow over the years to show improvement. One such company is ExxonMobil who retained the prestigious spot of number one for this year. However, there are other companies in the same field that are considered rivals but they also continue to strive and push forward. This paper will discuss the comparisons with the other companies in the same field. Also the financial health of said company, any technological advances, how globalization has affected the company’s business strategy and a bench marking analysis. Hess Corporation As one of the more notable competitors for ExxonMobil, this is a company that does have some extensive history behind it as well. It does have its place on the Fortune 500 list, however the number is quite down and not as high as s tome might think. This is a company that has marketed gasoline throughout more “1360 Hess gas stations in 16 U.S. states and operates a 50% owned oil storage terminal in the US Virgin...
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...Martin Neil Baily Douglas J. Elliott The Brookings Institution July 11, 2013 The Role of Finance in the Economy: Implications for Structural Reform of the Financial Sector Executive Summary The U.S. financial system is critical to the functioning of the economy as a whole and banks are central to the financial system. In addition to providing substantial employment, finance serves three main purposes: Credit provision. Credit fuels economic activity by allowing businesses to invest beyond their cash on hand, households to purchase homes without saving the entire cost in advance, and governments to smooth out their spending by mitigating the cyclical pattern of tax revenues and to invest in infrastructure projects. Banks directly provide a substantial amount of credit in the U.S., but, unlike in almost any other economy, financial markets are the ultimate providers of most credit. Liquidity provision. Businesses and households need to have protection against unexpected needs for cash. Banks are the main direct providers of liquidity, both through offering demand deposits that can be withdrawn any time and by offering lines of credit. Further, banks and their affiliates are at the core of the financial markets, offering to buy and sell securities and related products at need, in large volumes, with relatively modest transaction costs. This latter role is particularly important in the U.S., given the dominance of markets, but is often under-appreciated. Risk...
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...Branding in Soccer Light and Shadow Branding in Soccer Light and Shadow Introduction “Some people think football is a matter of life and death. I assure you, it's much more serious than that.” (Gloves, S. 2012) This much quoted comment of the former, British football manager Bill Shankly describes exactly my view of football. I am a big fan of the most popular sport in the world. Sure I know that this comment is exaggerated, but football becomes more and more important. Not only for the fans and the sportsmen, also for the global economy. (Hamil, S. and Chadwick, S. 2010) In professional football the success goes hand in hand with money. Today it is almost impossible to win a big trophy like the UEFA Championsleague without investing lots of money. The FC Barcelona is ranked as the best team in the world and invested in the last five years an average of 40 Million Euros per annum in new players. (Transfermarkt 2011) But where does all that money come from? According to Uli Hoeneß, the president of German football club FC Bayern Munich, only 15% of the twelve million DMs (6.1 Million Euros) revenue were out of broadcasting, marketing and sponsoring when he began in 1979 his career as a manager. (RP online 2011) His aim was to make his club independent from earnings from the spectators. As you can see in the following diagram he achieved his aim. In the year 2010 Bayern’s matchday earnings were only 21% of the total revenue. The biggest part is now coming from the commercial...
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...17. If the spot rate of the Malaysian ringgit is $.30 and the six month forward rate of the ringgit is $.32, what is the forward premium or discount on an annual basis? A. premium; about 14.5% B. discount; about 14.5% * C. premium; about 13.3% D. discount; about 13.3% E. premium; about 16.7% Solution: use Equation (5-4) [(.32 - .30)/.30] x (360/180) = 13.3% 18. If the spot rate of the Israel shekel is $.32 and the six month forward rate is $.30, what is the forward premium or discount on an annual basis? A. discount; 11.5% B. premium; 11.5% C. premium; 12.5% * D. discount; 12.5% E. premium; 22.5% Solution: use Equation (5-4) [(.30 - .32)/.32] x (360/180) = -12.5% 19. If the Canadian dollar is equal to $.86 and the Brazilian real is equal to $.28, what is the value of the Brazilian real in terms of Canadian dollars? * A. about .3256 reals B. about .3568 reals C. about 1.2 reals D. about 1.5 reals E. about .5600 reals Solution: cross rate .28/.86 = .3256 20. If the Japanese yen was worth $.0035 six months ago and is worth $.0045 today, how much has the yen appreciated or depreciated? * A. appreciated; about 29% B. appreciated; about 25% C. depreciated; about 20% D. depreciated; about 18% E. appreciated; about 15% Solution: use Equation (5-1) (.0045 - .0035)/.0035 = 29% 21. Assume: (1) the US annual interest...
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...finance TEST BANK Chapter 1 Introduction 1. Which of the following is the primary objective of a firm? A. employees' benefits B. satisfaction of customers C. satisfaction of suppliers D. prompt payment to creditors * E. maximize stockholder wealth 2. Financial risk involves ___. A. fluctuation in exchange rates B. different interest and inflation rates C. balance of payments position D. A and B * E. A, B, and C 3. Three sweeping changes include ___. A. the end of Cold War B. industrialization and growth of the developing world C. the creation of the North American Trade Agreement D. increased globalization * E. A, B, and D 4. Managers are generally defined as ___. A. stockholders * B. agents C. creditors D. suppliers E. customers 5. Which of the following is not one of seven principles of global finance? A. market imperfection B. risk-return tradeoff C. portfolio effect D. comparative advantage * E. company advantage 6. Incentives for multinational company managers include the following except ___. A. stock options B. bonuses C. perquisites D. salary increases * E. vacation 7. Environmental factors affecting international operations are as follows except ___. A. foreign customs B. foreign economic factors C. foreign political situations D. foreign legal aspect * E. international distance 8. Three major risks in international business are ___. A. political, financial and weather ...
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...ECO 550 Managerial Economics Strayer University To Purchase Complete Quiz Bank for ECO 550 Strayer University Follow this Link http://www.researcherclub.com/product.php?id_product=192 Chapter 1 Quiz: 1. The form of economics most relevant to managerial decision-making within the firm is: a. macroeconomics b. welfare economics c. free-enterprise economics d. microeconomics e. none of the above 2. If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable if: a. it increases revenue more than costs or reduces costs more than revenue b. it decreases some costs more than it increases others (assuming revenues remain constant) c. it increases some revenues more than it decreases others (assuming costs remain constant) d. all of the above e. b and c only 3. In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ____ discounted at the stockholders' required rate of return. a. profits (cash flows) b. revenues c. outlays d. costs e. investments 4. Which of the following statements concerning the shareholder wealth maximization model is (are) true? a. The timing of future profits is explicitly considered. b. The model provides a conceptual basis for evaluating...
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...THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RICE UNIVERSITY THE INTERNATIONAL OIL COMPANIES BY AMY MYERS JAFFE WALLACE S. WILSON FELLOW IN ENERGY STUDIES JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RONALD SOLIGO, PH.D. PROFESSOR OF ECONOMICS, RICE UNIVERSITY RICE SCHOLAR, JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY PREPARED IN CONJUNCTION WITH AN ENERGY STUDY SPONSORED BY JAPAN PETROLEUM ENERGY CENTER AND THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY NOVEMBER 2007 International Oil Companies THIS PAPER WAS WRITTEN BY A RESEARCHER (OR RESEARCHERS) WHO PARTICIPATED IN THE JOINT BAKER INSTITUTE/JAPAN PETROLEUM ENERGY CENTER POLICY REPORT, THE CHANGING ROLE OF NATIONAL OIL COMPANIES IN INTERNATIONAL ENERGY MARKETS. WHEREVER FEASIBLE, THIS PAPER WAS REVIEWED BY OUTSIDE EXPERTS BEFORE RELEASE. HOWEVER, THE RESEARCH AND THE VIEWS EXPRESSED WITHIN THIS PAPER ARE THOSE OF THE INDIVIDUAL RESEARCHER(S) AND DO NOT NECESSARILY REPRESENT THE VIEWS OF THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY NOR THOSE OF THE JAPAN PETROLEUM ENERGY CENTER. © 2007 BY THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY OF RICE UNIVERSITY THIS MATERIAL MAY BE QUOTED OR REPRODUCED WITHOUT PRIOR PERMISSION, PROVIDED APPROPRIATE CREDIT IS GIVEN TO THE AUTHOR AND THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY. 2 International Oil Companies ABOUT THE POLICY REPORT THE CHANGING ROLE OF NATIONAL OIL COMPANIES IN INTERNATIONAL ENERGY...
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...INFOANALYTICA FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS SUMMER INTERNSHIP REPORT ANANDARUP GHOSHAL 2008 ICFAI BUSINESS SCHOOL, AHMEDABAD SUMMER INTERNSHIP PROJECT FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS IBS AHMEDABAD 2|Page SUMMER INTERNSHIP PROJECT REPORT PROJECT AREA: FINANCIAL AND ECONOMIC RESEARCH AND INDUSTRY ANALYSIS FACULTY GUIDE: PROF. AMIT SARASWAT COMPANY NAME: INFOANALYTICA COMPANY GUIDE: ULLAS UNNIKRISHAN MARAR IBS AHMEDABAD SUBMITTED BY: ANANDARUP GHOSHAL ENROLLMENT NO: 07BS0024 MOBILE NO: 9913815561 E-MAIL: anandarup99@yahoo.co.in 3|Page I am thankful towards my company INFOANALYTICA a division of the Agarwal management consultants for giving me this great opportunity to work into the company for the summer internship project. It was a very good learning experience for me. I am thankful to the CEO of the company Mr. Amit Gupta. My project guide Mr. Ullas Marar has helped me a lot whenever I needed. My regards to my college faculty guide Mr. Amit Saraswat for being extremely helpful during the project. For him this was working as well as a learning experience. During my project I have got help from many other faculties. I am very thankful to Dr. Rashid Saiyeed, Prof. Toby Mammen, Dr. Saji Kumar and Mr. Ravi Gor. I am thankful to our director Prof. Bala Bhaskaran for providing me this great opportunity of the learning. 4|Page Table of Contents INTRODUCTION: ....................
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...Case Study: The Red Bull GmbH Marketing Strategy Prepared For: Prof. Dr. Christian Schuchardt GLOBAL MARKETING STRATEGIES IMBA 2014/15 International Graduate Center (IGC) Hochschule Bremen University of Applied Sciences Prepared By: Bakaa Chkeir Sahil Sabharwal Eric Branson Smith Khandaker Nazmul Alam Table of Content Part – 1: Introduction Part – 2: Red Bull’s General and International Strategic Approach By Sahil 1-2 3-6 Sabharwal 7-10 Part – 3: Red Bull’s Branding & Segmentation Strategy By Eric Branson Smith 11-15 Part – 4: Red Bull’s BCG & ANSOFF MODEL By Bakaa Chkeir By Bakaa Chkeir Part – 5: Market entry and distribution strategy By Khandaker 16-24 Nazmul Alam 25-26 Part – 6: Bibliography PART 1: INTRODUCTION A Brief History of Red Bull from Red Bull Inspired by functional drinks from the Far East, Dietrich Mateschitz founded Red Bull in the mid 1980's. He created the formula of Red Bull Energy Drink and developed the unique marketing concept of Red Bull. In 1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home market Austria. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. Today Red Bull is available in more than 166 countries and around 40 billion cans of Red Bull have been consumed so far. As of the end of 2013, Red Bull employed 9,694 people in 166 countries - compared to the end of 2012 when we had 8,966 employees...
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...CHAPTER 2 CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING Show Me the Earnings! The growth of new-economy business on the Internet has led to the development of new measures of performance. When Priceline.com splashed onto the dot-com scene, it touted steady growth in a measure called “unique offers by users” to explain its heady stock price. To draw investors to its stock, Drugstore.com focused on the number of “unique customers” at its website. After all, new businesses call for new performance measures, right? Not necessarily. In fact, these indicators failed to show any consistent relationship between profits and website visits. Eventually, as the graphs below show, the profits never materialized, and stock prices fell. The lesson here: Although the new economy may require some new measures, investors need to be careful not to forget the reliable traditional ones. PRICELINE.COM Net unique offers by users 3.0 million 2.0 1.0 0 I II III IV 1999 I II III IV 2000 DRUGSTORE.COM Unique customers 2.0 million 1.5 1.0 0.5 0 I II III IV 1999 I II III IV 2000 Stock price $120 a share 80 40 0 I II III IV 1999 I II III IV 2000 2000-IV close $2.13 Stock price $40 a share 30 20 10 0 I II III IV 1999 I II III IV 2000 2000-IV close $1.03 Source: Story and graphs adapted from Gretchen Morgenson, “How Did They Value Stocks? Count the Absurd Ways,” New York Times (March 18, 2001), section 3, p. 1. 34 Copyright ©2008 John Wiley & Sons, Inc. Preview of Chapter 2 ...
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...ch03.qxd 9/27/04 4:06 PM Page 86 CHAPTER Q1 Q2 Q3 Q4 Q5 Q6 Cost-Volume-Profit Analysis In Brief Managers need to estimate future revenues, costs, and profits to help them plan and monitor operations. They use cost-volume-profit (CVP) analysis to identify the levels of operating activity needed to avoid losses, achieve targeted profits, plan future operations, and monitor organizational performance. Managers also analyze operational risk as they choose an appropriate cost structure. This Chapter Addresses the Following Questions: What is cost-volume-profit (CVP) analysis, and how is it used for decision making? How are CVP calculations performed for a single product? How are CVP calculations performed for multiple products? What is the breakeven point? What assumptions and limitations should managers consider when using CVP analysis? How are margin of safety and operating leverage used to assess operational risk? ch03.qxd 9/27/04 4:06 PM Page 87 COLECO: FAULTY FORECASTS n the early 1980s, personal computers were still somewhat a novelty. At that time, Coleco manufactured a small computer called Adam. In addition, it sold Colecovision games for home computers. Coleco marketed Adam and its computer games heavily, hoping in 1982 for a hot seller during the Christmas and holiday gift season. However, Adam and Colecovision did not sell well. Coleco found itself close to bankruptcy. Then in 1983 Coleco purchased the license to manufacture Cabbage Patch Dolls. It began production...
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...Dictionary of Economics A & C Black London First published in Great Britain in 2003 Reprinted 2006 A & C Black Publishers Ltd 38 Soho Square, London W1D 3HB © P. H. Collin 2003 All rights reserved. No part of this publication may be reproduced in any form or by any means without the permission of the publishers A CIP record for this book is available from the British Library eISBN-13: 978-1-4081-0221-3 Text Production and Proofreading Heather Bateman, Katy McAdam A & C Black uses paper produced with elemental chlorine-free pulp, harvested from managed sustainable forests. Text typeset by A & C Black Printed in Italy by Legoprint Preface Economics is the basis of our daily lives, even if we do not always realise it. Whether it is an explanation of how firms work, or people vote, or customers buy, or governments subsidise, economists have examined evidence and produced theories which can be checked against practice. This book aims to cover the main aspects of the study of economics which students will need to learn when studying for examinations at various levels. The book will also be useful for the general reader who comes across these terms in the financial pages of newspapers as well as in specialist magazines. The dictionary gives succinct explanations of the 3,000 most frequently found terms. It also covers the many abbreviations which are often used in writing on economic subjects. Entries are also given for prominent economists, from Jeremy...
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