...Khalid, Abate #1_Style Analysis Virginia M. Rometty, president and CEO of International Business Machines (IBM), writes a letter to shareholders containing an annual report (2001) of the company. In this letter Rometty, aims to convince her readers of how well the company is doing even in a recession. She did that by means of presenting facts (plain) and also reaching to them in a softer more informal tone (persuasive). Rometty begins her letter by adopting a very positive and optimistic tone. “I am pleased to report that IBM had another strong year in 2011” by doing this she is able to capture the readers interest, making them eager to read more about this great news. In her very next sentence she lets her shareholders know of their importance by saying “your company...” rather than just saying the company. This shows her understanding of who her audiences are; by choosing her words carefully she is able to instill confidence into the shareholders, letting them know that the company was able to achieve this great success because of them. Using the pronoun “your” she is also letting them know, this is their company and the actions they take impacts its performance. Shortly after capturing the readers interest in her persuasive style introductory, Rometty shifts her writing style to plain by introducing small paragraphs stating facts about the company’s revenue and income, margins, earning per share, cash flow etc. what’s interesting is that she’s not only presenting facts...
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...with managing the company in such a way as to maximise the benefits to shareholders and other stakeholders, whilst ensuring that the company complies with all applicable laws and regulations. It is, therefore, a serious matter for the company if a director is underperforming or if he or she is at odds with the strategies which the majority of the company’s management have adopted. In such circumstances, there may be no option for the company other than to seek the removal of such a director from office. In many companies, the power to remove a director from office is granted to the board of directors or to a majority shareholder under the company’s Articles of Association. For these companies, removing a director will be a relatively straightforward matter, usually requiring the board or majority shareholder to simply serve written notice on the director in question. For companies which do not have these powers enshrined in their Articles, company law provides a statutory procedure to allow shareholders to remove a director by passing an ordinary resolution at a general meeting of the company. Statutory Procedure The procedure for removing Ian by ordinary resolution is set out in sections 168 and 169 of the Companies Act 2006. A shareholder wishing to propose a resolution to remove a director must give special notice of his intention to the company. On receipt of the special notice from the shareholder, the board of directors of the company must call a general meeting of the...
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...journey as an investor at the age of 13, continued to cross hurdles of his business carrier. It's annual report season, which includes announcements from the CEO and/or chairman of every public U.S. company. Given that Warren Buffett, the chairman of Berkshire Hathaway, is the most successful investor of all time, you might expect that a 23-page communication from him would be jargon-packed and over most people’s heads. In actuality, Buffett's annual letter to shareholders is famously down-to-earth, conversational, and witty. Never mind for now the specific points he makes: how he communicates his message is a lesson for all of us. Warren Buffett writes his letter to shareholders as a letter to his sisters - then crosses out "Dear Doris and Bertie" and replaces it with "To the Shareholders of Berkshire Hathaway". It’s not enough that Warren Buffett has become one of the richest men in the world. He’s also a world-class communicator – and nowhere does this gift go on public display more than in his annual letter to shareholders, to the CEOs and the public events that he attends like auction event, different functions. And all these activities offer terrific lessons for startup ventures in shaping their communications. Lesson No. 1: One Must Converse Like a Real Human Being There’s something about a position of power that often causes perfectly normal executives to embrace “corporate speak.” Their communications...
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...ADVANCE FINANCIAL REPORTING EXAM QUIZZES To purchase this visit here: http://www.activitymode.com/product/acct-321-advance-financial-reporting-exam-quizzes/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACCT 321 ADVANCE FINANCIAL REPORTING EXAM QUIZZES Which of the following is not a required component of financial statements prepared in accordance with generally accepted accounting principles? 1. Balance sheet. 2. Notes to financial statements. 3. Income statement. 4. President's letter to shareholders. When should an expenditure be recorded as an asset rather than an expense? 1. Always 2. If the amount is material. 3. When future benefit exists. 4. President's letter to shareholders Recognition of expense related to amortization of an intangible asset illustrates which principle of accounting? 1. Historical cost. 2. Expense recognition. 3. Full disclosure. 4. Revenue recognition. Allowing firms to estimate rather than physically count inventory at interim (quarterly) periods is an example of a 1. Trade-off between timeliness and verifiability. 2. Neutrality and consistency. 3. Verifiability and faithful representation. 4. Faithful representation and comparability. Which accounting assumption or principle is being violated if a company is a party to major litigation that it may lose and decides not to include the information in the financial statements because it may have a negative impact on the company's stock price? 1. Going concern. 2. Historical cost. 3...
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...[pic] |The Importance of Good Communication | | | | | | |Communication is simply a method of sending a message from one person or group of persons to another. It is| | |of vital importance to a business because it involves all the persons and organizations connected with the | | |business - employees, customers, shareholders, suppliers, creditors, debtors - and a whole range of people | | |outside - journalists, television reporters, tax authorities, local government and national government | | |officials, the European Union and, indeed, any person or organization throughout the world with which the | | |business has any contact. | | | | | |Good communication will ensure that all these persons and organizations understand the message sent. They | | |will also be more likely to respond favourably to the message if it appears to be reasonable and fair to | | |both the receiver and the business. ...
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...are the costs associated with earning the revenue. When a company sells one of its assets, it can experience a capital gain or loss. Revenues minus expenses, plus gains minus losses, equal net income or net loss. The dollar amount of net income listed on the income statement is also found on the cash flow statement under the operating activities section. • Balance Sheet The Balance sheet has two main purposes. First, it presents a snapshot at a point in time. Second, it helps to improve understanding, as companies group similar assets and similar liabilities together. The balance sheet reports assets and claims to assets at a specific point in time. It includes the elements of the accounting equation: assets equal liabilities plus shareholders’ equity. It also lists assets first, followed by liabilities and stockholders’ equity. The assets on a balance sheet are classified as either current or fixed assets. Current assets are the most liquid, meaning they easily convert to cash. Fixed assets are long-termed assets. Similar to assets, liabilities are also classified...
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...government authorities. In recent years many Public sector companies have become Private Sector organisations. This has been done through the Stock markets and shareholders. Private Sector Within the Private sector businesses are owned by private individuals, these can be in the form of individuals running a business or as a firm. I will now elaborate further on the different types of forms this can take within the Private sector. These are outlined below. Sole Trader: A sole trader is a single person who runs a business, for example one person with a Jewelry business. This type of business has unlimited liability. Private Limited Companies: This type of company offers limited liability to its shareholders. It places certain legally on it shareholders on it ownership. These restrictions are set out and defined by law and regulations. The restrictions are in place to avoid any hostile takeovers. This restrictions are as follow; share holders must not sell or transfer their share of the business without first offering that share first to current shareholders, these shares can not in any way be offered to the general public in way of the stock exchange and finally the amount of shareholders cannot exceed a certain figure which is normally 50. These companies are generally distinguished by the letters Ltd. For example New look Ltd or Warburton’s. Public...
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...|Plain English Examples |Appendix B | | | | | | This appendix contains “before” and “after” examples from participants in the Division of Corporation Finance’s plain English pilot. The Division’s staff added marginal notes to show how aspects of the plain English rules apply to specific documents. These annotated examples are excerpted from the booklet, Before & After Plain English Examples and Sample Analyses, prepared by the Division of Corporation Finance. Although we revised the presentation and wording of the marginal notes in this appendix, the filings remain identical to those from the booklet. To get a complete copy of the book-let, please call the SEC’s public reference room at (202) 942-8090. Differences between the proposed and final amendments to Item 501 When the issuers prepared these documents, they relied on staff interpretations for filings in the plain English pilot and the proposed amendments to Item 501. The following information was not required under Item 501 as proposed, but this information is required under Item 501 as adopted: • the market(s) and the trading symbol; • the underwriter’s over-allotment or similar option, if applicable; • a prominent cross-reference to the risk factors section including the page number; ...
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... On the 25th June 2012, farmer shareholders in the Co-Op Fonterra, voted in favour of implementing TAF. TAF allows outside capital in the form of buying units; in return for rights to dividends, but not ownership or votes. When researched; there is no agricultural co-op in the world that has taken outside capital and still primarily focused on maximising returns to the supplying shareholders, (ourco-op.co.nz) as primary focus becomes the share price and dividend, eventuating in the demise of the co-operative. A co-operative is set up by its shareholders to maximise the price for the suppliers milk. Shareholders invest their share capital into a co-operative in return they give loyal supply of the raw material (milk). Farmers will want to supply Fonterra because they own them. When you introduce outside investors you introduce different drivers to the business. Outside investors invest capital to receive a good dividend. The Directors are torn what do they do with company profits, do they retain funds to make the balance sheet strong, do they maximise the milk price or do they maximise the dividend? This divergence of interests will eventually lead to the demise of the co-op. For example Satara and EastPack in the kiwifruit industry. Historically they were both co-ops competing against one another for a number of years. Satara then listed its investor shares on the NZAX. It now had supplying shareholders and investing shareholders. This was fine until Satara wanted...
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...CHAPTER 5 CORPORATIONS: REDEMPTIONS AND LIQUIDATIONS SOLUTIONS TO PROBLEM MATERIALS Problems 30. a. Teal Corporation would have a taxable gain of $150,000. The gain would be ordinary or capital depending on the type of property distributed. The E & P of Teal Corporation would be increased by $150,000 (the amount of gain to Teal) and decreased by $250,000 (the FMV of the property distributed). Teal’s E & P also would be decreased by the amount of tax due on the gain recognized. Grace would have dividend income of $250,000 and a basis in the asset of $250,000. b. The tax consequences to Teal Corporation would be the same as in a. Grace Corporation would have dividend income of $250,000, but only 20% of the $250,000, or $50,000, would be taxed to Grace. Because Grace Corporation has a 20% or more ownership interest in Teal Corporation, the 80% dividends received deduction is applicable. Grace Corporation would have a basis of $250,000 in the property. c. The tax consequences to Teal Corporation would be the same as in a. Grace would have a capital gain of $170,000 [$250,000 (value of the property) - $80,000 (basis in stock)] and a basis of $250,000 in the property received. d. The tax consequences to Teal Corporation would be the same as in a. Grace Corporation would have a capital gain of $170,000 [$250,000 (value of the property) - $80,000 (basis in stock)] and a basis of $250,000 in the property received. ...
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...I’ll not put up with interference from shareholders’. Discuss the legal and governance issues which may suggest that Mr. Morris is incorrect in what he said to his accountant. 3. Critically evaluate the recommendations of the Cadbury Committee. ANSWERS. 1. In any question on corporate governance (CG), start by explaining what the term means. According to the OECD definition (p372 your textbook), CG is the system by which companies are directed and controlled. It means the distribution of powers and duties within a company between its principal stakeholders. It is the mechanism by which a company’s strategy and objectives are set. CG also means the distribution of powers between the main stakeholders. These are shareholders, employees, customers, directors, creditors, the tax authorities. Remember, one of the goals of CG is to align the interests of the providers of capital- the investors and shareholders- with those of the managers of that capital- the directors of the company. This is the basis of ‘agency theory’. The risk is always that the managers will run the company for their own personal gain, at the expense of the owners (the shareholders). So, if we give directors share options (the right to buy shares at a certain lower price if they can get the price on the stock exchange to rise to a certain level), they will run the business for their own gain but also for the gain of the shareholders because they will benefit if the value...
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...Understanding the role of perceptions, personality and emotions in the workplace Perceptions, personality and emotions cannot be ignored when discussing the workplace because quite simply, the workplace is made up of people who come with different personalities, subject to different emotions and ways of looking at things. A successful company will understand this and its managers will work to create a positive atmosphere. Emotions, personalities and perceptions all have an effect on how employees interact with one another, how decisions are made, how managers are able to motivate their employees to increase productivity, and how conflicts and negotiations are handled. It stands to reason that if employees are happy and enjoy coming to work then they will be more productive. According to Barsade and Gibson, “…the evidence is overwhelming that experiencing and expressing positive emotions and moods tends to enhance performance at individual, group, and organizational levels” (Barsade & Gibson, 2007). Frost describes a mechanism of “emotional contagion” where when the leaders express positive emotions, the staff will be influenced by this and the outcomes tend to be positive (Frost, 2004). It would stand to reason then, that in a company with displays of negative emotions, the opposite would result. Affect is an umbrella term used by Barsade and Gibson as a range of discrete emotions (fear, anger, joy), moods (cheerful, sad), dispositional traits (negative, upbeat)...
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... 1. Remove the front cover of the workbook and identify: Student Name:ASHLEY K BINEGAR Term: SPRING 1 2011 Selected Company: TARGET Instructor: 2. Print your completed electronic template. 3. Attach the following: • This page completed with all required information. • Completed Word template. Template boxes expand as you input responses. Adjust page breaks as necessary to submit a professional representation of your work. CHAPTER 1 - INTRODUCTION Select a Company and Gather Documents Chapter 1: Select a Company and Gather Documents – Question 1 Identify with an “X” the primary source of data for this project. Annual report to shareholders X Annual report to shareholders with a letter from Chief Executive Officer and SEC Form 10-K as part of the annual report to shareholders. The annual report may include additional...
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...the leading hedge fund and private equity fund practice in the Cayman Islands, advising the best-known asset managers, promoters and institutional investors in the investment world for five decades. Our global presence means we are always open and accessible to our clients – in all time zones. The purpose of this Guide is to offer a comprehensive, commercial and concise guide to the key aspects of structuring and establishing an offshore hedge fund – starting with a broad overview of hedge fund structures, and concluding with a short section on listing. We have also addressed some of the defensive mechanisms that can be deployed to stabilise a hedge fund in difficult times, including a section on the use of synthetic side pockets and side letters. The Guide is not a substitute for seeking appropriate onshore and offshore commercial and legal advice and should not be relied on in this manner. Introduction to hedge fund vehicles The key constitutional features of hedge funds to address from an offshore perspective are three-fold: 1. 2. 3. the types of vehicle used; the structural configurations of such vehicles which are familiar in the market; and the regulatory treatment of such vehicles in the jurisdiction of their establishment. Although these three areas necessarily overlap, it is helpful to address each separately as, individually, they are variables which determine the particular nature of a given fund and may distinguish it from, or align it...
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...|Q1a) |Advantages / Disadvantages of Sole Trader, Partnership, Limited Company | | | | |Ans.: | | |Advantages Partnership or sole proprietorship |Disadvantages of Limited Company | |A company has to be formed and registered pursuant to the |A company has to be formed and registered pursuant to the | |provisions of the Companies Ordinance (Cap32), whereas a |provisions of the Companies Ordinance (Cap 32), more | |partnership is just and agreement between the partners, which |restrictions should be followed. | |may be oral or even inferred from conduct. | | |A sole proprietor can carry out business without having to | | |comply with any formality. | | |The administration and management of a company is governed by |The administration and management of a company is governed by | |the Companies Ordinance, which does not apply to a partnership...
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