...1. When shares of common stock are issued to satisfy the exercise of employee stock options, are the shares issued from the Company’s “authorized but previously unissued shares” or from the Company’s “treasury stock”? Where in the financial statements do you find this information? (page 44) According to the 10-K, the Company’s common stock remains the same in 2011 and 2010 (75.5 million) while the treasury stock increased from 2615.2 to 3210.3 million, which means the Company didn’t issue any “authorized but previously unissued shares” this year but satisfied the exercise of employee stock options by using the treasury stock they bought in fiscal year 2011. 2. Based on the assumptions used for the Black-Scholes option-pricing model as disclosed in the notes to the financial statements, as well as the market price of the stock on the last day of fiscal years 2011 and 2010, determine whether the change in value of each assumption (and stock price) between 2010 and 2011 positively or negatively impacts the estimated fair value of the options granted during 2011. (page 33) As disclosed in General Mills’ 10-K, the market price of the stock on the last day of fiscal years 2011 and 2010 are $37.38 and $27.99, respectively, while the estimated fair value of stock options in 2011 and 2010 are $4.12 and $3.20, respectively. The increased market price can be a strong supporter to the increased estimated fair value. Then the change in value of each assumption in Black-Scholes option-pricing...
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...payable (-171m). A/P, indicates they paid their supplies quicker resulting in a negative cash flow. PAGE 14 1. GRAPH 2. In September 2011, our Board of Directors authorized the repurchase of up to $2.0 billion of our outstanding common stock. Additionally, in November 2013, our Board of Directors authorized the repurchase of up to an additional $2.0 billion of our outstanding common stock. At December 31, 2013, we had approximately $2.3 billion available under these repurchase programs. Stock repurchases will take place from time to time at management’s discretion depending on market conditions. Stock repurchases also include shares surrendered by employees to satisfy tax withholding obligations in connection with restricted stock awards, restricted stock units and stock options issued to...
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...Pay System In the beginning of 1990s, a high level of executive compensation has already been regarded as an effective measure to solve the principal-agent problem within a company, that is, to align the benefit of shareholders and executive managers. It’s believed that the rise in executive pay serves as strong incentives, and conceivably, it could be stronger with a larger sum of money (Jenson, M and Murphy, K). Derived from the previous viewpoints and experiences alike, the current executive compensation usually comprises base salary, performance-based bonus and long-term incentives. The system is supposed to furnish executives not only with a large amount of money, but also some equity-based compensation such as stock options and restricted shares (Bebchuk, L. A. and Fried, J. M. (2006), for the purpose of minimizing the interest conflicts and mitigating agency problem. 3 The loopholes of the current system Unfortunately, under the current context of economy, several loopholes are exposed and...
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...LIMITED Indiabulls Securities restricted was incorporated as GPF Securities non-public restricted on June nine, 1995. The name of the corporate was modified to Orbis Securities non-public restricted on Dec fifteen, 1995 to vary the profile of the corporate and later on attributable to the conversion of the corporate into a public restricted company; the name was any modified to Orbis Securities restricted on Jan five, 2004. The name of the corporate was once more modified to Indiabulls Securities restricted on February sixteen, 2004 thus on take advantage of the complete image of the term “Indiabulls” within the name. ISL may be a company member of capital market; by-product phase of The National securities market of...
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...Is Management a Science or Profession To conclude whether management is science, art or profession, we must understand the features and meanings of science or profession and compare them with management meaning and features. Management as a Science: Science can be defined as a systematic and organized body of knowledge based on logically observed findings, facts and events. Science comprises of exact principles which can be verified and it can establish cause and effect relations. Main characteristics/features of science are: 1. Systematic body of knowledge: In science organized and systematic study material is available which is used to acquire the knowledge of science. Like science in management also there is availability of systematic and organized study material. So first feature of science is present in management. 2. Scientific principles are derived on the basis of logical and scientific observations: The scientists perform logical observation before deriving any principle or theory. They are very objective while doing the observations. But when managers are observing they have to observe human beings and observation of human being cannot be purely logical and objective. Some kind of subjectivity enters in the observations so this feature of science is not present in management. All the scientific principles have same effect, wherever we try them whereas effect of management principles varies from one situation to other. 3. Principles are...
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...financial statements to a client or to third parties. Establishing an Understanding .02 The accountant should establish an understanding with management regarding the services to be performed for compilation engagements1 and should document the understanding through a written communication with management. Such an understanding reduces the risks that either the accountant or management may misinterpret the needs or expectations of the other party. For example, it reduces the risk that management may inappropriately rely on the accountant to protect the entity against certain risks or to perform certain functions that are management's responsibility. The accountant should ensure that the understanding includes the objectives of the engagement, management's responsibilities, the accountant's responsibilities, and the limitations of the engagement. In some cases, the accountant may establish such understanding with those charged with governance. .03 An understanding with management and, if applicable, those charged with governance, regarding a compilation of financial statements should include the following matters: • The objective of a compilation is to assist management in presenting financial information in the form of financial statements. • The accountant utilizes information that is the representation of management (owners) without undertaking to obtain or...
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...MISS. LUVENDRAN PRIYADHARSHINE PERSONAL STATEMENT As an experienced Senior Fund Administrator, my tenacious and proactive approach resulted in numerous important contract wins. After four years in reconciling, currently seeking a new challenge which will utilize my meticulous attention to detail, and friendly, professional manner. Skills Profile Leader Ship I am currently acting as a leader for a small team which contain of seven people who newly migrated RWC funds as from April 2015. Learning from my success on the hedge fund field, I have further developed my leadership skills in this Current role. Motivation and ambition I am able to perform well in high-pressure environments as I am very competitive with a strong motivation to succeed. An example of this is the way able to balance work and study. As a full time employee I meet my targets for the week days while also meeting all assignment deadlines required motivation, prioritization and organizational skills. Communication, presentation and networking Throughout my studies I have developed my oral communication skills, contributing to seminar and debates in classes. I was accessed on my presentation skills on a number of occasions and received feedback confirming that I am a confident presenter. I experienced in communicating with a variety of people, something I do daily in my Current job in HSBC. Team Working I am an active team member and will contribute to a team’s ideas and outcomes. I recognize...
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...Functions of Management American Intercontinental University Abstract Being an Inventor with an idea to invent an Electrical House Mop, now needs to find an optimal approach of manufacturing process, which he can manage within the limitations of little knowledge and skills about finance and management. The Inventor has restricted availability of funds and also has little experience and skills of managing operational function, thus the Inventor needs to evaluate which manufacturing approach will be suitable for the business, such as all in-house manufacturing, only assembly or complete outsourcing. Among available alternatives and limitations associated with the Inventor the best option seems to be the complete outsourcing approach, which requires minimal investment, lower risk and high flexibility in changing product plans. The Inventor attempts to identify the probable manufacturing system and the functions of management for the new invention made. As the Inventor has little knowledge of financial and management skills the Inventor needs suggestions about appropriate manufacturing approach for new inventions where functions of the management can be applied effortlessly and effectively. Four prime functions of the management are considered to be planning, organizing, leading and controlling. Planning can be defined as numerous steps and task that the business...
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...| Subject Code - 101 | | MANAGEMENT PROCESS AND PRINCIPLES | ASSAM UNIVERSITY, SILCAHR ASSAM UNIVERSITY, SILCAHR 2013 [scope of management] | An Assignment submitted to the Department of Business Administration in partial fulfillment of the Master of Business Administration course curriculum. | Submitted By- Nabadeep UrangRoll Number- 41First Semester, MBA | Submitted To-Professor H. R. Singh | TABLE OF CONTENTS SUBJECT | PAGE NUMBER | Definition | 2 | Subject-matter of management | 3-6 | Functional areas of management | 7-9 | Management is an inter-disciplinary approach | 10 | Universal application | 10 | DEFINITION OF MANAGEMENT Management may be defined in many different ways. Many eminent authors on the subject have defined the term "management", some of these definitions are reproduced below: In the words of Henry Fayol - "To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control". In the words of Koontz and O'Donnel - "Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals". From the definitions quoted above, it is clear the "management" is a technique of extracting work from others in an integrated and co-ordinated manner for realising the specific objectives through productive use of material resources. Mobilising the physical, human and financial resources...
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...four sections, which are the description of methodology used to obtain information, the results of the investigation, the analysis of the findings and conclusions. The investigation is specified in one organisation. Hence, the findings in this report cannot represent any other organisations. Methodology 1. Interview I managed to interview the general manager (Mr. Bi) of the chosen organisation by video chat. The face-to-face interview is flexible. Questions can be adjusted during the interview, and there are no confusions about the answers. The information gathered by interview is reliable and easy to use, although the subjectivity is inevitable. 2. Questionnaires A questionnaire is sent to every employee that does not do any management work in the chosen organisation. The questions are mostly related to the degree of formalization and centralization. The results of questionnaires indicate the opinions about structural control from employees’ point of view. Not only one employee did...
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...MBA 723-41D 1. The idea of separation of ownership and control is fairly straight forward. If a manager has 100% ownership of the firm, then they always act in a manner they perceive to be in the best interest of shareholders because they are the only shareholder. As we have noted in the notes and discussions, large American corporations had evolved to the point that the top managers/executives have very little ownership of the company (less than 1% in most cases). a) Assume that we have a CEO that does not have 100% ownership of the company but has an 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...
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...Corporate Governance A. Board of Directors Corporate Governance Guidelines are established by the Board of Directors to provide a structure within which the directors and management can effectively pursue objectives for the benefit of its stockholders. The Board intends that these guidelines serve as a flexible framework within which the Board may conduct its business, not as a set of binding legal obligations. A corporation is a legal entity created either under federal or state law and "board of directors” are associated with companies organized as corporations. The minimum and maximum number of board members is usually specified by state law; three is a typical minimum membership; the maximum may not exceed the number of shareholders. A board of directors is a group of persons elected by the shareholders of a corporation to govern and manage the affairs of the company. They are the group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management related policies and to make decisions on major company issues. Board is generally made exclusively of outside members. Occasionally the CEO is a member, but this is usually the exception. Their responsibility is to oversee the activities, budgets and performance of a company and this is best done by outsiders. The 12-member Board of Directors includes Chairman and 11 independent members. Board members participate on six permanent committees: Audit, Nominations...
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...In a comprehensive management restructuring, Maruti Suzuki India Ltd (MSIL) has brought the key functions of finance and human resource directly under the purview of the managing director and the joint managing director of the country’s biggest carmaker. Kenichi Ayukawa is the company’s MD and Toshiaki Hasuike is the joint MD, who joined MSIL in April 2013 alongwith Toshio Ozawa, was appointed adviser for human resources. In the process, three Indians in the top management have seen their roles being redefined and restricted. The changes come close on the heels of parent Suzuki Motor Corporation (SMC) announcing plans to set up a wholly-owned subsidiary to manufacture vehicles in Gujarat, a move that had to subsequently shelved in the wake of dissent by minority shareholders. On the new management restructuring, though, the head of investment with a leading fund house that is a minority shareholder in MSIL, said that it does not seem to directly impact the shareholders’ return and therefore is unlikely to be raised as an issue by the domestic institutional investors. However, if at a later date the change in management were to impact the company’s performance or investors return, there is the possibility that the institutional investors could take a view on it, he added. While the administration function has been dismantled and hived off, all of the other five verticals — marketing and sales, quality, production, supply chain, engineering and research & development — continue...
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...ventures and limiting the local partner to choose companies to partner. Q. Discuss the possible motives for UPS plans? Expand its express-delivery service network on mainland China UPS plans to open 18 new offices in a 50-50 joint venture agreement with Sinotrans Intents to sign an agreement with Sinotrans to invest and transfer information technology and management Q. From the perspective of UPS what competitive advantages and disadvantages characterize China’s inward FDI regime Advantages Capture market size and growth prospects Economies of scale, fuelled by abundance of cheap labor Mitigate the possible problems of foreign exchange Risk sharing by JV Transfer core management expertise In China’s drive to join the World Trade Organization, China has promised to phase out prevalent restrictions Overcome barrier to entry Disadvantages Lack of “soft” financial infrastructure (e.g. credit ratings agencies, managerial skills…) The non-existence of appropriate investor protection mechanisms Sinotrans has joint ventures with UPS competitors An area of restricted investment. The Chinese government prohibits controlling stakes in joint ventures and limits the local partner from which to choose Q. Suggest alternatives to the organic growth UPS intends to pursue. Acquisitive Growth where one firm buys controlling interest in another firm and the acquired business is integrated within current operations or becomes a subsidiary...
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...Wilfrid Laurier University Scholars Commons @ Laurier Theses and Dissertations (Comprehensive) 2010 Three Essays in Corporate Governance Vishaal Rabindranauth Anand Baulkaran Wilfrid Laurier University Follow this and additional works at: http://scholars.wlu.ca/etd Part of the Management Sciences and Quantitative Methods Commons Recommended Citation Baulkaran, Vishaal Rabindranauth Anand, "Three Essays in Corporate Governance" (2010). Theses and Dissertations (Comprehensive). Paper 1121. This Dissertation is brought to you for free and open access by Scholars Commons @ Laurier. It has been accepted for inclusion in Theses and Dissertations (Comprehensive) by an authorized administrator of Scholars Commons @ Laurier. For more information, please contact scholarscommons@wlu.ca. 1*1 Library and Archives Canada Bibliotheque et Archives Canada Published Heritage Branch Direction du Patrimoine de I'edition 395 Wellington Street Ottawa ON K1A 0N4 Canada 395, rue Wellington Ottawa ON K1A 0N4 Canada Your file Votre reference ISBN: 978-0-494-75409-2 Our file Notre reference ISBN: 978-0-494-75409-2 NOTICE: AVIS: The author has granted a nonexclusive license allowing Library and Archives Canada to reproduce, publish, archive, preserve, conserve, communicate to the public by telecommunication or on the Internet, loan, distribute and sell theses worldwide, for commercial or noncommercial purposes, in microform, paper...
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