Firms hold cash for 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
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I. Various Modes of Entry that can be used by companies to enter foreign markets 1. Exporting: Exporting is the process of selling of goods and services produced in one country to other countries * Direct Exports * Indirect Exports A brief discussion on the advantages and disadvantages and the legalities involved in the export process. 2. Licensing: An international licensing agreement allows foreign firms, either exclusively or non-exclusively to manufacture a proprietor’s product
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Modes of entry into an International Business:- There are some basic decisions that the firm must take before foreign expansion like: which markets to enter, when to enter those markets, and on what scale. Which foreign markets? -The choice based on nation’s long run profit potential. -Look in detail at economic and political factors which influence foreign markets. -Long run benefits of doing business in a country depends on following factors: - Size of market (in terms of demographics)
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Abstract This paper will discuss a company profile for Berkshire Hathaway. This profile will include a brief history of Berkshire Hathaway's humble beginnings as a textile manufacturer, and subsequent diversification into a successful powerhouse holdings company that has spread it's risk into a variety of industries. These industries include insurance, utilities, building materials, furniture, jewelry, apparel and food companies. This paper will examine Berkshire's recent financial situation over
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husband’s opinion. Ho Ching is also influential because of her position as the chief executive of Temasek Holdings where she manages a portfolio of $50 billion. She acquired this position through influence gained from education, experience and in part through family connections. Ho Ching has the power to influence many markets throughout Asia as the chief executive of a powerful holding firm. Based on the excerpt from Ho Ching’s speech, what type of tactics did she use to influence the behavior
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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
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Problems on Aggregate Production Planning 1. Planners of a company have obtained information regarding the forecasted demand of a product as follows: Period 1 2 3 4 5 6 Total Forecast 200 200 300 400 500 200 1800 Costs Regular time: $2/unit Overtime: $3/unit Subcontract: $6/unit Inventory: $1/unit Backorder: $5/unit They now want to evaluate a plan that calls for a steady rate of regular-time output, mainly using inventory to absorb the uneven demand but allowing some backlog. Overtime
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------------------------------------------------- Nirma Limited * Nirma is one of the few names - which is instantly recognized as a true Indian brand, which took on mighty multinationals and rewrote the marketing rules to win the heart of princess, i.e. the consumer. * Nirma, the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a classic example of the success of Indian entrepreneurship in the face of stiff competition. * Starting as a one-man operation in 1969, today
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Topic 9 Question 4: The measures that can be adopted to prevent tax revenue losses from multinational companies are as follows; a) Thin Capitalisation Legislation is were a country prevents interest deduction if the ratio of debt to equity is in excess of a permitted amount. Some countries even limit the amount of debt that a subsidiary may borrow in relation to its equity base. When the interest exceeds the specified limits the interest paid from the excess debt is not tax deductible and
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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
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