...The Executive Angel was setup as a sole proprietorship in the state of Florida. After comparing sole proprietorship versus Limited Liability, the owner decided on sole proprietorship. The reason for setting up The Executive Angel as a sole proprietorship was it had one owner with little assets and profits. Because the company was set up this way there is no legal distinction between the owners profit versus the company. The company is taxed and liable just as if it was an individual. As The Executive Angel grew over the past few years the owner explored converting the business to a different type entity to protect her from personal liability. In addition, The Executive Angel had done a lot of business with Design on a Dime. The two owners of both companies decided to combine both of their talents and capital to form a partnership under the name The Executive Angel. As the company experienced massive growth the owners decided to change the company in to a Limited Liability company to further protect themselves. By changing the partnership to an LLC the owners were now protected against any creditors coming at them personally for any outstanding debts. Also by forming the LLC The Executive Angel’s owners had a better outcome financially at tax time. After years of growth and our profits exceeded 2 million dollars per a year we decided to sell off small shares of our company to investors and become a major corporation. Due to selling company shares, The Executive...
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...Chapter 2 Company Mission Chapter Summary Defining the mission statement for a company is often one of the most slighted tasks in strategic management. It is much easier for many executives to emphasize operational aspects of long-term management activities rather than making sure short-term activities are in sync with the long-term goals. The principal value of the mission statement is its specification of the firm’s ultimate aims. A firm gains a heightened sense of purpose when its board of directors and its top executives address these issues: “What business are we in?” “What customers do we serve?” and “Why does this organization exist?” Ambiguous generalizations are not enough to address these questions. A firm must clearly articulate its long-term intentions if it expects its goals to serve as a basis for shared expectations, planning, and performance evaluation. A mission statement that is clearly articulated can promote a sense of shared expectations among all levels and generations of employees. It consolidates values over time and across individuals and interest groups. The firm’s sense of worth and intent can be clearly identified by outside stakeholders. Lastly, it asserts the firm’s commitment to responsible action in symbiosis with the preservation and protection of the essential claims of insider stakeholders’ survival, growth, and profitability. Learning Objectives 1. Describe a company mission and explain its value. 2. Explain why it is...
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...governing those who have been granted power. A law can be found to be constitutional and still violate the principles of admin law. Judiciary what laws govern the judiciary Statute and CL Judicial Review based on the principle of Parliamentary Sovereignty the cts have an inherent supervisory role to review the actions of ‘inferior’ public authorities. ensures legislative delegates do not exceed the limits of their defined jurisdiction is concerned with the legality of the executives actions, not the merits vests significant power in the judiciary over executive administration – interpreting legislative intent of statutes that create delegate bodies rests with the cts stirs significant controversy – more gov’t flexibility vs. less gov’t intervention in individual rights. Rule of Law Regular law and ordinary cts will predominate over the gov’ts exercise of arbitrary power Executive what laws govern exec Admin Law governs procedural and substantive exercise of power. No branch of government is omnipotent, a breach of authority, either substantively or procedurally,...
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...This is a sample of the instructor resources for Louis C. Gapenski, PhD, Fundamentals of Healthcare Finance, Second Edition. The complete instructor resources include Test Bank PowerPoint slides Sample course syllabus Solutions to the end-of chapter questions and problems Solutions to the online cases This sample includes the following resources for Chapter 2: Answers to end-of-chapter discussion questions PowerPoint slides If you adopt this text, you will be given access to the complete materials. To obtain access, email your request to hapbooks@ache.org and include the following information in your message: Book title Your name and institution name Title of the course for which the book was adopted and season course is taught Course level (graduate, undergraduate, or continuing education) and expected enrollment The use of the text (primary, supplemental, or recommended reading) A contact name and phone number/e-mail address we can use to verify your employment as an instructor You will receive an e-mail containing access information after we have verified your instructor status. Thank you for your interest in this text and the accompanying instructor resources. Copyright and distribution of this PDF is prohibited without written permission. For permission, please contact Copyright Clearance Center at www.copyright.com Healthcare Business Basics Chapter 2 8/1/12 ANSWERS TO END-OF-CHAPTER QUESTIONS 2.1 a. A business is an entity that obtains financing from the...
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...standards are maintained. The ICAEW is a founding member of the Global Accounting Alliance with over 775,000 members worldwide. © ICAEW 2010 All rights reserved. Laws and regulations referred to in this document are stated as of December 2009. No responsibility for any persons acting or refraining to act as a result of any material in this document can be accepted by the ICAEW or the Audit Firm Governance Working Group. January 2010 ISBN 978-1-84152-863-2 THE AUDIT FIRM GOVERNANCE CODE A PROJECT FOR THE FINANCIAL REPORTING COUNCIL Audit Firm Governance Working Group Chairman: Norman Murray January 2010 Contents Page Introduction A B C D E F Leadership Values Independent non-executives Operations Reporting Dialogue 2 5 5 6 7 9 10 Appendix 1: Involvement of independent non-executives Appendix 2: Independence considerations Appendix 3: Working Group members and terms of reference 11 13 14 Contents 1 INTRODUCTION The Audit Firm Governance Code (the Code) is intended to assist in promoting continuing confidence and choice in the market for the audit of listed companies and should be relevant to everyone who sees audit as playing a vital role in a market economy. The primary purpose of the Code is to provide a formal benchmark of good governance practice against...
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...CAP study guide – 1. Who is responsible for establishing the rules for appropriate use and protection of the subject information (e.g. rules of behavior)? a. System owner 2. Who has the authority to formally assume responsibility for operating an information system at an acceptable level of risk? a. Accrediting Authority 3. Who is responsible for ensuring that the appropriate operational security posture is maintained for an information system and in many organizations is assigned responsibility for the day-to-day security operations of a system? a. Information System Security officer 4. Who is responsible for conducting a comprehensive assessment of the management, operational, and technical security controls employed within or inherited by an information system to determine the overall effectiveness of the controls? a. system owner, and/or the senior agency information security officer 5. Who is the highest-level senior official or executive within an organization with the overall responsibility to provide information security protections commensurate with the risk and magnitude or harm? a. The head of agency (or chief executive officer) 6. The six steps of the Risk Management Framework and what occurs on each step. a. Step 1: Categorize i. Categorize the information system and the information processed, stored, and transmitted by that system based on an impact analysis. b. Step...
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...Everyone agrees that business managers must understand finance and marketing. But is it necessary for them to study ethics? Managers who answer in the negative generally base their thinking on one of three rationales. They may simply say that they have no reason to be ethical. They see why they should make a profit, and most agree they should do so legally. But why should they be concerned about ethics, as long as they are making money and staying out of jail? Other managers recognize that they should be ethical but identify their ethical duty with making a legal profit for the firm. They see no need to be ethical in any further sense, and therefore no need for any background beyond business and law. A third group of managers grant that ethical duty goes further than what is required by law. But they still insist that there is no point in studying ethics. Character is formed in childhood, not while reading a college text or sitting in class. These arguments are confused and mistaken on several levels. To see why, it is best to start with the question raised by the first one: why should business people be ethical? Why Should One Be Ethical? There is already something odd about this question. It is like asking, “Why are bachelors unmarried?” They are unmarried by definition. If they were married, they would not be bachelors. It is the same with ethics. To say that one should do something is another way of saying it is ethical. If it is not ethical, then one should...
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...Strategies for Sustainable Channel Relations in Mobile Telecom Sector The main objective of the study is to provide an accurate role for the company executive in developing channel relations. The constructs identified for developing sustainable relationships were Setting distribution objectives, Channel design, Logistics, Image Building, Inventory management, Channel management, Payment & credit, Promotional assistance, Setting targets, Coverage frequency , Motivating channel members to perform. The sample selected contained distributors from the Mobile telecom sector and company executives/channel managers of leading telecom companies. Factor analysis and Friedman’s test was applied. The findings revealed a correlation in attitude between distributors and the executives. Motivating distributors was rated as the most important strategy by the company. The distributors felt that all channel partners needed to have positive attitude towards the channel while company executives felt that aggression made channel members perform effectively. Such findings will be of use to mobile telecom companies who are new entrants to the Indian market and to existing companies who plan to expand their coverage There are 4 GSM and 2 CDMA players, 4800 distributors (Cellular Operators association of India), having 260 company executives. In case of distributors ,the total sample size 240 distributors from the Mobile telecom sector, out of which 120 were high performing( with Rupees 80-90...
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...CORPORATE GOVERNANCE The need for corporate governance is not something typical to our country or economy .even in countries where regulatory mechanism are more demanding in their content and more vigilant in its implementation. Flagrant violation under the corporate veil have generated the demand for better governance . The advent of information age has created an awakened shareholders , vigilant public and almost predatory journalistic fervour. Depending upon the model of corporate disclosure followed by different legal framework, right to information has forced corporation to divulge more than they ever did. Corporate governance is derived from Latin term ‘corpus’ which means ‘body’. governance means administering the process and system placed for satisfying stakeholders expectations . when the two terms are combined it together brings out set of system procedures , policies , practices , standards put in place by a corporate to ensure that relationship with various stakeholders is maintained in transparent and honest manner. One of the basic feature of corporate governance is that there is a separation of ownership and management. The board of directors work and operate as trustee and agent of shareholders and they have to safeguard the interest of shareholders and other stakeholders It may also be considered as a network of legal provisions , regulations, practices to bring accountability and transparcy in functioning of the body corporate. It specifies the distributions...
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...Agency Conflicts: An agency relationship arises whenever someone, called a principal, hires someone else called an agent, to perform some service, and the principal delegated decisions making authority to the agent. In companies, the primary agency relationships are between: 1. Conflicts between stockholders and creditors 2. Conflicts between Inside Owner/Managers and outside owners 3. Conflicts between managers and shareholders Conflicts between stockholders and creditors Conflict between shareholders and creditors is common for the company which use debt capital to form an optimum capital structure. As mentioned earlier, agency relation exist when one party works as an agent of the principal. In an organization management works as a agent of owner or share holders. When managers work for the company they can be influenced by the own interest so that they prefer their own interest rather than the interest of the company, on the other hand creditors interest is to provide credit and get the principal amount and interest timely. For ensuring their credit return creditor always concerned whether the company is doing business in the right manner or not. By monitoring the financial performance of the company creditors actually want to ensure their interest. So if there is any dispersion then creditors works to resolve the issue by taking necessary steps. Creditors have a claim on part of the firm’s earnings stream as well as a claim on the firm’s assets in the event...
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...Ethical Perspectives: Drucker, Friedman, and Murphey Business Ethics Ethics in business is an extremely important matter that continues to be discussed in many organizations today. There are even many businesses that offer formal ethical training and believe in it vital to their business’s success. However, it can be proven that several professionals have different views on what is exactly ethical in business. Three professionals with different points of views regarding what is ethical in business include Peter Drucker, Milton Friedman, and Patrick Murphy. Peter Drucker Peter Drucker’s view on all ethical dilemmas is primum non nocere. This motto, taken from the medical profession, can be translated to mean “Above all do no harm” (Jennings, 2012). In other words, Dr. Drucker believed that people should make decisions that would not bring harm to other people. He, like many other management professionals, understood the many approaches philosophers have taken to understand ethics. However, he wanted to show how and where business ethics fit into the conflicting rules of ethics and human behavior. Ethics of Prudence and Self Development Dr. Drucker used his experience as a philosophy and a religion professor as well as his experience answering difficult ethical political questions as a method of drawing his conclusion regarding ethics in business. He believed that a major tradition of ethics in the West, Ethics of Prudence” would prove to be valuable in understanding...
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...Project Charter GenRays’ Human Resource Information System Project Charter GenRays September 16, 2014 Table of Contents Project Title 3 Purpose 3 Description 3 Objective 3 Success Criteria or Expected Benefits 4 Funding 5 Major Deliverables 5 Milestone Schedule 9 Approval Requirements 9 Project Manager 11 Authorized by 11 References 12 Project Title GenRays’ Human Resource Information System (HRIS) Implementation Purpose The main purpose of the GenRays’ HRIS project is to replace the primitive legacy system by centralizing and streamlining Human Resource’s (HR) functions, and improving the current HR processes while facilitating growth and saving money across the organization. Description A human resource information system is a centralized tool, which facilitates collaboration within the organization by improving and streamlining such processes such as allowing employees to create and track their career goals, providing more transparency in hiring, being able to identify well-qualified applicants, and automating the processing of paychecks and expense reports. It captures all data related to Human Resources and Payroll and provides the tools necessary for management to monitor and track this data, so they can better align their departmental goals with the goals of the organization. Objective The major objectives for introducing an HRIS are to: • Select and implement an HRIS across the enterprise that will enable standardized HR business...
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...In recognition of the member’s responsibility and obligation to Customers, Land Owners, fellow members, the public and the country, the Executive Committee of the Real Estate Housing Association of Bangladesh 2008-2009 exercising the power conferred upon it under clause VI. B of the Memorandum and Articles of Association of the Real Estate Housing Association of Bangladesh incorporated under the companies ACT, 1913 (new 1994) does hereby approve and adopt the Bye-Laws on Code of Business Conduct with the tenets set forth hereunder to be followed by its members. Violation of the Code of Business Conduct by any member of Rehab shall be considered to be prejudicial and detrimental to the interest of the Real Estate Sector and the association and the Executive Committee may issue a show cause to the offending member. Such notice shall specify the date, place and time of hearing so as to allow the member an opportunity to defend himself before the Executive committee. If the Executive Committee finds enough grounds to conclude that the said member has violated the Code of Business Conduct as outlined in this Bye-Laws, then the Executive Committee may impose an appropriate financial penalty on the said member or may even suspend or cancel the membership of the offending member provided that the meeting of the Executive Committee so convened shall be attended by at least two-third members of the Executive Committee and four fifth of the members present shall vote in favour of the resolution...
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...responsibilities”? * What is the rationale behind such expectations? * What is the role of corporate responsibility in a free enterprise system? Purpose: Purpose is to clearly define the primary responsibility of a corporation and point out the impacts such ideas can have on a capitalist society. Relevant information: Information about the roles of the Government and the roles of the corporate executives are relevant for this discussion. Assumptions: Assumption is that the owners want the best possible profit that can be achieved by following the law. It is also assumed that fulfilling the expectations of social responsibilities will reduce the maximum possible profit. Implications: A clear understanding of a corporation’s responsibility will avoid the creeping of any collectivist principle into a capitalist society. Businesses will not be forced to take on any corporate responsibility if their owners do not wish to do so. Concept: The concept is a need for a well-functioning free-enterprise society with no obligation to fulfill social responsibilities unless the owners feel that it is necessary for their business. Point of view: Point of view is that the negative impact of the expectations around corporate social responsibilities on laissez faire capitalism. Solution: The business of business is business. The responsibility of the corporation is to make the maximum possible profit, playing by the rules. THE FRIEDMAN DOCTRINE –PROBABLY TOO SIMPLIFIED “Business...
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...of the purpose & policies of firm. Answer: * According to Henry Mintzberg, most organizations can be divided into 5 basic parts. The, Apex, Techno Structure, Support Staff. These are the people that do the basic work of producing the products or delivering the services. In the simplest organizations, the operators are largely self-sufficient, coordinating through mutual adjustment. In those organizations, there is almost nothing but operating core. As the organization grows the need for direct supervision increases. This results in the development of a strategic apex, which in the simplest case is just a single manager. The apex is charged with ensuring that the organization executes its mission. They are responsible to the owners, government agencies, unions, communities, etc. The techno structure’s mission is to effect coordination through standardization. For example, the industrial engineers standardize work processes; the strategic planners standardize outputs; and the personnel trainers and recruiters standardize skills. The apex, middle line, and operating core are known collectively as line positions. In contrast, the techno structure and support staffs are known collectively as staff positions. Originally, the meaning of these terms was that line positions had formal authority to make decisions, while staff positions did not: they advised those who did. Today, that meaning has shifted. Line refers to people that work directly on the main products of the...
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