...I Select? Six months ago, you were hired as a Special Assistant to the President of First Local Bank. First Local Bank is a privately held Bank, and its President, Charles Buck, was an initial investor who currently owns a 21% share of First Local Bank. The Bank initially succeeded and grew based on its retail banking services (Checking, Savings, Small secured and unsecured consumer loans, etc.) to individuals and small local businesses. As the bank grew over the past decade, it began to expand, first on a regional basis, and most recently into larger Commercial Banking in which they made loans to medium size businesses. The commercial banking business loaned sizable amounts of money to businesses in a three state region (average loan size projected to be in excess of $7,500,000). Loans of this size were secured with assets of each business, and therefore, First Local Bank would be required to evaluate the Effectiveness of each business that applied for a loan, determine the value of the borrower’s assets to be used as collateral, etc. before they loaned money to these commercial borrowers. Initially, Mr. Buck managed this new commercial lending operation himself, but having gotten it started successfully, he now wanted to hire a new Vice President of Commercial Banking, and two Assistant Vice Presidents for the Commercial Lending Division of First Local Bank. Mr. Buck was so impressed with your work in your first six months as his Special Assistant, he promised you...
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...RISK MANAGEMENT CHANGES IN CONSUMER PREFERENCES AND TASTES * We are a consumer products company which operates in a highly competitive market and rely on continued demand for our products. * Significant changes in consumer preferences * Inability to anticipate changes and respond to consumer trends * Develop new products that are responsive to consumer preferences * Consumer concerns regarding health effects and ingredients. * Damage to the company’s reputation * Consumer’s willingness to purchase our products. * Launching successful new products * Product Innovation * Effectiveness of product packaging. FINANCIAL PERFORMANCE RISK * Highly competitive market * Major international beverage companies operating in multiple geographic areas * Brand recognition * Satisfy consumer preferences * Unable to compete effectively with other leading brands * Impact on revenues and profit margins ECONOMIC CONDITIONS * Slow down in the country economy’s * Changes in interest rates * Tax laws and tax rates * Commodity markets * Inflation * The effects of government initiatives to manage economic conditions * Reduced demand for our products resulting from a slowdown in the global economy * Affect critical customers * Affect in suppliers and distributors * Reduced borrowing capacity * Price risk associated with forecasted purchases of raw materials * Financial results ...
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...what business wouldn’t want that? Labor costs are generally a business’ largest expenditure and eat into profit margins. But how do you get cheap labor when the labor force needs to earn enough to survive and raise a family? Slavery is option, but one that is illegal and was abolished 150 years ago. Indentured servitude? No, can’t use that, also illegal. You can try to pay below market wages, but doing that will probably result in less than stellar employees and the eventual end of your business. Here is an option, what if this labor was provided by prison inmates who had no choice but to work for mere pennies compared to the regular work force? Sounds like good idea right? Cheap labor for you and prison inmates get a chance to earn a buck, learn a skill, and contribute to society. However, using inmate labor presents several ethical dilemmas. Do we have the right force inmates to work if they don’t want too? Is it fair to only pay them a few dollars a day when the same work would earn a free man $10 an hour? Is it a fair business practice when one company can use inmate labor when another company conducting the same business cannot? What is the effect on the regular work force and the economy in general? These are all questions that must asked and answered. According to a Huffington Post article, prison labor is back with a vengeance. It can be found across broad stretches of the American economy and around the world. Fortune 500 corporations like Chevron, Bank of America...
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...Week 9 Final Kim Rosnik 6-21-15 Over the course of our semester, we have went over many different aspects that deal with accounting. In week 4 we had to pick a company and look at the public assets that they have and describe them per the questions that were required. For the final we have to add to the paper by answering more questions about the same company. The company that I have chosen from is still General Motors. However, we will be focusing more on the assets of the company rather than sales and company worth. We will be analyzing the company’s assets and liabilities. We will then look at these and decipher if the company would be a good investment for private investors, banks, and employees. Taking a look at the GM’s assets I can see that the company has listed their assets in the right order. A company should list their assets in this order; cash & cash equivalents, stocks and investments, accounts receivable through services, Inventory, and fixed assets. GM has listed their cash & cash equivalents first, as of March 31, 2015, as 17,190,000. They then list their Short term Investments as 8,409,000. Next are net receivables as 37,400,000. Inventory is 14,051,000. Lastly is other assets and this shows as 6,181,000. This totals to the amount of 83,231,000 in total assets. While liquid assets play a huge role, classification of the assets play a huge role as well. The classifications of assets are as follows; current, investments, property...
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...an immigrant owned business with the idea to gain money by loaning it out to people at interest. They blew up around the depression for their practice in “investment trust”. They offered stock and made the average guys feel like they were investing a lot but they knew little of the process. Once they invested, the company bought their own stocks to make it look good. Then they get another investment in their “new, better” stock than before, and repeated the process. Eventually somewhere in the chain it broke and Goldman owned everything under fake practices. When the depression hit these people found out these investments were worthless and suffered while Sachs excelled. I agree with the author in the way that the practices were morally wrong and should have been illegal. Goldman knew what was happening and pushed back investment on people. I disagree that it’s all their fault though. Goldman at the time was only being ethically wrong, since none of the practices were outlawed. In the end it is the person’s responsibility to know what is actually going on with your money. Tech Stocks 65 years later they picked up where they left off and began to scam again. This time Goldman attempted to pump up or down IPO on startups no matter how crap or great. With help from big players and the media Goldman would sell terrible and non-profitable stocks of companies to people claiming high rewards. The payoffs were good for a very short while and you could make money, but it was only a...
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...Alexander, with his knowledge of law and business, drafted the US Constitution, the documents that make up our laws. Alexander also became the first secretary of the treasury under the new US constitution, and came up with a plethora of ideas to pay off the war debt. He did this by using his expanded knowledge of business and law to create the first US bank. He argued that an American version of this institution could issue paper money (also called banknotes or currency), provide a safe place to keep public funds, offer banking facilities for commercial transactions, and act as the government’s fiscal agent, including collecting the government’s tax revenues and paying the government’s debts.”(The First Bank of the United States by Andrew T. Hill) Without Alexander Hamilton, we would not have the country of freedom and independence we have today. Without him, soldiers from the Revolutionary War would not have had the courage, and the fire for independence, against Great Britain. Without Alex, we would not have the laws and structures that make America one of the greatest countries in the...
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...the leading retailer and brand of coffee in each of its targeted markets. Starbucks is committed to demonstrating excellence in their customer service. They have created such a warm and friendly environment so that if you walk into any star bucks in the world you feel it. Starbucks is well known throughout the world, and their standard of satisfaction does exist even on foreign soil. They are typically located in high traffic and visibility locations, because they can vary in their size and format. They are also embracing the need to buy, sell, and use environmentally friendly products as they seek to satisfy customers all of the time. Starbucks has directed their guidance to their stakeholders, by trying to effectively address issues that are important to them. Statistically it was stated in the annual report that Starbucks Corporation has over 130,000 shops in 35 countries. They have “145,000 partners worldwide, our ability to communicate effectively and passionately about what star bucks is doing to be a good company in both a personal focused manner-is absolutely essential and a top priority for us” (Starbucks fiscal 2007 report). Starbucks has embraced diversity as an essential component in the way that they do business, as they recognize that...
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...Marquette’s Market, corner of Main St. and 1st St, Midtown, Minnesota for a possible burglary. I arrived on scene and made contact with the owner, Speedy Marquette. The owner provided the following statement. Mr. Marquette stated he left around midnight on the night of the burglary. Mr. Marquette advised he locked the rear door, counted the register money ($910.00) and secured the money in a tan cloth bag labeled “Midtown State Bank” along with a Canadian five-dollar bill. Mr. Marquette stated he returned around 0025 hours to find the cash register broken and left opened and the cloth bag including the money and Canadian bill ($910.00) missing, He stated he found the rear lock door broken. Photographs were taken on scene for evidence and attached to this report. I conducted a fingerprint analysis of the entry door, cash register, rear door and hammer all with negative results for latent prints. The market did not have video surveillance on the premises. While conducting my investigation the following information was obtained. Witness Waters advised he observed defendant Riff running from the rear door of Mr. Marquette’s business, dropping two dollars in the alley. He further advised Defendant Riff was wearing blue jeans and a blue band jacket. Witness Ripple stated he observed a male fitting the description of Ronnie Riff exiting the market around 0015 hours on the night of the burglary. Based on eyewitness testimony Defendant Ronnie Riff was identified being on the scene...
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...say you own a portion of a company. More broadly speaking, all traded securities, from futures to currency swaps, are ownership investments, even though all you may own is a contract. When you buy one of these investments, you have a right to a portion of a company's value or a right to carry out a certain action (as in a futures contract). Your expectation of profit is realized (or not) by how the market values the asset you own the rights to. If you own shares in Sony and Sony posts a record profit, other investors are going to want Sony shares too. Their demand for shares drives up the price, increasing your profit if you choose to sell the shares. Business The money put into starting and running a business is an investment. Entrepreneurship is one of the hardest investments to make because it requires more than just money. Consequently, it is also an ownership investment with extremely large potential returns. By creating a product or service and selling it to people who want it, entrepreneurs can make huge personal fortunes. Bill Gates, founder of Microsoft and one of the world's richest men, is a prime example. Real Estate Houses, apartments or other dwellings that you buy to rent out or repair and resell are investments. The house you live in, however, is a different matter because it is filling a basic need. The house you live in fills your need for shelter and, although it may appreciate over time, it shouldn't be purchased with an expectation of profit. The mortgage...
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...people — the equivalent of 90 percent of Taipei City residents — are without a home. Support for the "Occupy Wall Street" movement is growing rapidly, as protesters across the United States and around the world make a ruckus about the uneven distribution of wealth and the way the rich use their money to make more money. Target No. 1 in the protests is the epitome of capitalism: the banking industry, and the governments that bailed out the banks with taxpayers' money during the last financial crisis. The protesters began to occupy Zuccotti Park at the end of Wall Street in mid-September. When we visited in October the number of blue tents pitched in the park was still growing. To me the scene looked like a disaster zone. Sitting in front of a glitzy investment bank, a shabbily dressed homeless man held out his hand for a cigarette, while warning with a threatening look in his eyes that he does not want to be photographed. But just around the corner white-collar workers sporting fashionable neckties pay the equivalent of NT$ 1,500 for a sandwich lunch at Trinity Place bar and restaurant. Housed in a remodeled old bank building, the restaurant is famous for its 70-centimeter thick, 35-ton bank vault doors that deliberately create the impression of a bastion of iron. Which impression is the true America? And why do people harbor such deep-seated anger? Civil rights activist Martin Luther King moved the entire world with his "I have a dream" speech. But now the...
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...crime refers to illegal offenses that are generally committed in the business or professional setting (white collar versus blue collar jobs) to achieve financial gain. Crimes that do not involve physical violence, and that relate largely to financial matters, are often called white collar crimes. Corporate corruption is out of control for two main reasons. First, big companies are now multinational, while governments remain national. Big companies are so financially powerful that governments are afraid to take them on. It is very important to study the cause and the possible solution for the increase in numbers of white collar crime; our focus needs to shift from Blue Collar Crimes to White Collar Crimes. U.S.A spends nearly $50 billion on fighting Blue Collar Crimes, not even quarter of that amount is spent on fighting White Collar Crimes. Hardly a day passes without a new story of malfeasance. Every Wall Street firm has paid significant fines during the past decade for phony accounting, insider trading, securities fraud, Ponzi schemes, or outright embezzlement by CEOs. A massive insider-trading ring is currently on trial in New York, and has implicated some leading financial-industry figures. And it follows a series of fines paid by America’s biggest investment banks to settle charges of various securities violations. They are essentially "paper crimes" in which the perpetrator uses deceit to obtain money, property or some professional advantage. White collar crime encompasses...
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...10 Internet Scam 1. Phishing scams Phishing email try to trick the intended victim into visiting a fraudulent website disguised to look like a valid eCommerce or banking site. The victim thinks they are logging into their real account, but instead everything they enter on the fake site is being sent to the scammers. Armed with this information, the scammer can wipe out the victim's accounts, run up their credit cards, or even steal their identity. 2.Nigerian 419 Scams Nigerian 419 scams (aka Advanced Fee Fraud) date back to the days when fax machines and snail mail were the primary business communication tools. Today, email is the preferred method of these scammers and there are more Nigerian 419 Advanced Fee Fraud scams - and victims - than ever before. 3. Lottery Winning Scams Lottery winner scams attempt to trick recipients into believing they have won large sums of cash, and then bilks them out of their own dough in a similar fashion to the Nigerian 419 scam. 4.Scareware Scams Scareware erroneously claims the system is infected and instructs the user to purchase a 'full version' in order to clean the bogus infections. Sometimes, fake antivirus software gets installed by the user who became a victim to an advertising scam. Other times, a rogue antispyware scanner may be installed by exploit, a so called 'drive-by install'. Regardless of how the rogue software gets installed, the user is often left with a hijacked, crippled system. To avoid becoming a victim, before installing...
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...“Pop” Culture “If there are 12 million people with our stuff, let’s have them be 12 million 18 year olds.” Says Dave Burwick vice president of marketing for Pepsi-Cola(Hey Kids Buy This pg. 98), and why not, child spending has risen from $122 billion to $172 billion in the past 5 years(familyed.org). In a time when advertising agencies are trying to get the most for their buck, and who isn’t, the smartest thing to do is target the ever growing population of children. In today’s society children’s average weekly allowance is just $5(Children and Money pg. 1), amounting over $260 a year, if you multiply this number by the number of children in the US today, it is outrageous, close to $5 billion. Seeing as children only save about half a billion dollars a year(Children and Money pg. 1), that’s a lot of money being spent on clothes, video games, toys, soda and candy. The funny thing is, marketers that had long ignored children, now systematically pursue them. Today, as well as clothing and toys, it’s also computers, airlines, hotels and banks(Hey Kids Buy This pg. 97). Pepsi, being one of the major soft drink companies in the United States today, has the right idea. By using a different pop icon, such as Brittany Spears, Christina Agulara Johansson 2 and Beyonce Knowles in each new advertisement, they are guaranteed to have the attention of the younger...
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...find exactly what they are looking for but do find each other, creating a family which is essential for each character's survival. Eddie Adams if first introduced working in a night club. He is not typical. Jack notices this as the entire scene cuts from Jack's gaze to Eddie, “whose unique talent is about to be spotted and put to use” (Smith). He immediately follows Eddie to the kitchen where he questions him on his background. Here the audience sees Eddie as a young man seeking a goal. Jack asks, “So what do you wanna do?” You take the bus from Torrance to work in Reseda, why don't you work in Torrance?” Why work in Reseda as a bus boy? He still lives at home and he doesn't pay rent so he doesn't need the money. Yet he makes the long trip for something money can't buy—fame. Eddie asks Jack, “So $5 or $10?” Here we first discover that Eddie is a gay prostitute. Again, strange because he is...
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...Yet, this post-war boom was not representative of the catastrophe that awaited. One issue that existed was the unregulated stock market and investment funds that rose out of the post-war boom. The American economy in the 1920s was built upon credit, where Americans borrowed money from banks to reinvest into the stock market with the expectation of always making money. In this practice, called buying on margin, it gave businesses money to expand their manufacturing beyond what was needed for the economy. As the economy seemed to rise infinitely, the average American thought of it as an infinite amount of prosperity. However, economists and financial expert tried to warn banks and the American people that what goes up must come down. However, it was too little too late. An article by the Great Depression and the New Deal Reference Library describes the crash due to speculation and buying on margin like this: “Eventually a house of cards developed, one holding company on top of another. When the stock market crashed, there were no more cash investors, and people could not afford to buy the goods of the operating companies. The operating companies could not make enough profits to support the various levels of holding...
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