...the organization. This crisis involves a recent explosion at one of the plants at the XYZ Corporation and will require the development of an external relations strategy in order to rebuild the corporate image of the organization. The goal of the XYZ Corporation will be to develop a communications and external relations strategy to explain the events that led up to the explosion at the plant and explains the steps that will be taken to fix the problem. The external relations strategy will coordinate the dissemination of information and effectively manage the crisis. An effective communication channel is needed to establish positive feedback throughout the organization. So then, a team is created specifically to implement these channels. This communications team will be responsible for assessing the situation, developing and implementing the communication plan and following up on the success of the plan. The communication team will develop a plan of action that will result in a more positive corporate image. This team will consist of: top executives from the XYZ Corporation, a PR person will be identified and the communication nodes will be determined. The PR will be used to establish the credibility of the corporation and to persuade the public to take a more positive view of the corporation. The team will also come up with the steps that it will take to repair the image of the corporation. Successful crisis management depends largely on developing a planned, integrated solution...
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...paper is being submitted on April 18, 2014 for Ashley Cobb’s B293/MAN2062 Section 02 Business Ethics course. Memorandum To: Board of Directors of XYZ Corporation From: Amy Ashley, ABC Consulting Firm Date: 4/17/2014 ------------------------------------------------- Re: Go for Governance Confidential Now that we are moving forward without the former CEO it is important to establish policies that will aid in the regeneration of XYZ. Below you will discover my findings and suggestions as to how to progress in a positive manner. The first issue that must be addressed is the selection of a new CEO, in the process of choosing the successor XYZ should make sure that they are aware of roles of the board, and how they must work with the board in order to achieve success for the corporation. The Board must keep the fiduciary duties in mind in future actions. Acting responsibility on behalf of the shareholders of the company and focusing on the best interest of the company at all times. . The shareholders’ interests are the primary goal and the Board must take action to protect those interests. Shareholders should be continuously informed and active in the decisions that regard the future of the corporation. As well as monitoring the management activities to ensure that all actions are done in good faith and in the best interest of XYZ as a whole and not for any individuals benefit. In order to move into the future the Board of Directors should keep in mind the five most important...
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...IL 68572 April 18, 2015 John Doe, Chief Administrator XYZ Corporation 123 Somewhere St. Anywhere, USA 12345 Dear Mr. Doe: It was good to see you at the community fund raising event last Saturday afternoon. It is an honor to support this event for our community. In our meeting of February 16, you asked for guidance on the best possible approach in financing capital for your new corporation. There are two alternatives in financing, debt financing, which is borrowing from a lender and equity financing, which is selling of stocks to investors. It would be our recommendation as a start-up corporation to utilize both forms of financing to raise your capital while keeping debt financing to the minimum. In reaching this conclusion we considered the advantages and disadvantages, listed below, of debt financing versus equity financing. We reviewed the Internal Revenue Service’s (IRS) approach on this matter and in consideration of code section 385 which is used to determine if the financing is debt or equity. The IRS may re-characterize debt financing to equity financing under this code section based on the circumstances of the financing (Antebi & Krauthamer, 2014). Advantages of Debt Financing | Disadvantages of Debt Financing | Interest paid is a deductible expense | Reduced cash flow due to monthly payment | Shareholders do not recognize income | Shareholders may recognizes gain | Corporation maintains control of Company | Personal Guarantees | (Pope...
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...investors a clear view of a corporation's global activities. A consolidated financial statement typically combines a company's operating activities with data from its subsidiaries. A consolidated financial statement helps an investor, a regulator or a corporation's top management evaluates the true financial standing of the corporation. A consolidated financial statement also may indicate an entity's financial position or cash flows during a period. Meaning of 'Consolidated Financial Statements’: Let's assume Company XYZ is a holding company that owns four other companies: Company A, Company B, Company C, and Company D. Each of the four companies pays royalties and other fees to Company XYZ. At the end of the year, Company XYZ's income statement reflects a large amount of royalties and fees with very few expenses -- because they are recorded on the subsidiary income statements. An investor looking solely at Company XYZ's holding company financial statements could easily get a misleading view of the entity's performance. However, if Company XYZ consolidates its financial statements -- "adding" the income statements, balance sheets, and cash flow statements of XYZ and the four subsidiaries together -- the results give a more complete picture of the whole Company...
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...up and protect its network data. Your plan must be 1,250 to 1,500 words in length, and your recommendations must be based on the RAID system of data protection. Your plan must also address how the company should protect against natural disasters that might occur in its geographic location. Include any charts, graphs, or visual components that are helpful in illustrating your plan. Company A The IST Department of XYZ Computers is located on the first floor. Payroll and all human resources records are processed daily and bi-weekly for 10,000 employees. After payroll is run, data is backed up using tapes. No firewall is in place, and e-mail is on the same server as payroll. XYZ Computers is located in the southern part of the United States in an area that receives heavy rain. During the weekend, a major water pipe broke and flooded the first floor. The water caused extensive damage to the servers, which were also on the first floor. Create a disaster plan to prevent this sort of problem from happening in the future. Company B 123 Textiles Corporation is located in a high-crime area that also experiences occasional earthquakes. A new network was set up with the server by a window. All systems are backed up once a month on an exterior drive. One night, a thief entered through the window and stole the server. Create a disaster plan that would better protect the organization’s technological...
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...Forms of Business Lurene Flynn Law/531 October 24, 2011 Christine J. Benway, J.D. Instructor Forms of Business Determining the type of business to open is very important in order to know the business form that will be used. Knowing the business structure is important because it determines how the business income will be taxed. This paper will discuss the different forms of business, give examples of each form, and justify why the corresponding business form is preferred. Sole proprietorship according to Cheeseman (2010) is the form of business in which the owner is actually the business: the business is not a separate legal entity (Cheeseman, 2010, p. 530). “An individual starts the business in his or her own name and does not require any special legal organization beyond the normal requirements such as licenses or permits” (Georgia Trend, 2006/2007, p. 34). Beauticians are great examples of a sole proprietorship. Beauty shops are usually owned by one person, while having other people working in them.This type of business form is preferred by beauticians or a plumber because it is easy, no formalities, and most importantly no federal or state government approval is required. According to Cheeseman (2010) the owner has the right to make all management decisions concerning the business, including those involving hiring and firing employees (Cheeseman, 2010, p. 530). A sole proprietor owns all off the business therefore he or she receives...
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...Outside CPAs , XYZ Company FROM: DATE: August 19, 2013 SUBJECT: CPA Report CC: Jane Doe, Accounting Manager A CPA has many professional responsibilities. My personal responsibilities are to take ownership in certain aspects of the organization such as finance and record keeping. Moreover, I am responsible for reviewing and auditing the financial books to ensure accuracy and compliance. A review consists of analytical procedures and inquiries to ensure there is no need for material modifications of the financial statements. An audit has different procedures including; testing internal controls, assessing fraud risks, and testing samples of accounting records. In some cases, I may help develop new processes to streamline day to day activities. I also help oversee tax preparation for the organization, although tax is not my specialty. On certain occasions I am involved in the hiring process, to ensure we place the right candidate in the right position. Lastly, it is my duty to adhere to a strict code of ethics and remain professional at all times. In addition to the responsibilities listed above, there are certain situations that may arise that need further explanation. In a recent meeting, I was asked to provide the following detailed explanations. Methodology used to determine deferred taxes: Procedures for reporting accounting changes and error corrections: Rationale behind establishing the subsidiary as a corporation: A subsidiary corporation is a type of business...
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...Chapter 15 Entities Overview SOLUTIONS MANUAL Discussion Questions 1. [LO 1] What are the more common legal entities used for operating a business? How are these entities treated similarly and differently for state law purposes? Answer: Corporations, limited liability companies (LLCs), general and limited partnerships, and sole proprietorships. These entities differ in terms of the formalities that must be observed to create them, the legal rights and responsibilities conferred on them and their owners, and the tax rules that determine how they and their owners will be taxed. 2. [LO 1] How do business owners create legal entities? Is the process the same for all entities? If not, what are the differences? Answer: The process of creating legal entities differs by entity type. Business owners legally form corporations by filing articles of incorporation in the state of incorporation while business owners create limited liability companies by filing articles of organization in the state of organization. General partnerships may be formed either with or without written partnership agreements, and they typically can be formed without filing documents with the state. However, limited partnerships are usually organized by written agreement and must typically file a certificate of limited partnership to be recognized by the state. 3. [LO 1] What is an operating agreement for an LLC? Are operating agreements required for limited liability companies? If not...
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...Legal Forms of Business Paper University of Phoenix Business Law LAW/531 Legal Forms of Business Paper When deciding to start a business, new business owners must decide which business structure they will use to start their business; however, that choice is not always obvious. Therefore, business owners must first understand how each business structure works and choose a business form one that fits their business needs. Business owners have major business structures to choose from such as sole proprietorship, partnership, limited liability partnership, limited liability company, corporation, S corporation, and franchise. To assist new business owners in choosing the appropriate structure, business owners will need to develop scenarios in which each business structure is preferred. Business owners also need to justify why the business structure is preferred. Sole Proprietorship Sole proprietorship is the most common and the simplest business structure. In this type of business structure a single person engages in a business venture without the necessity of formal organization. An example of sole proprietorship would be a single person opening an on- line clothing boutique. The sole business owner files the proper statement for the necessary use of the business or trade name. Since the business owner will be operating under a trade name they will need to file a certificate of trade name with the Bexar county clerk’s office where the ...
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...Corp. XYZ, XZY 12345 From: Amit Gupta & Marc Rosenfeld Re: Federal tax consequences of cash distribution from LLC Jan 31, 2011 We appreciate the opportunity to advise you regarding this tax matter. To ensure a complete understanding between us, we use our judgment in resolving questions where the tax law is unclear or where conflicts may exist between the taxing authorities. Facts The following facts are based on your written correspondence to us, if these facts are incomplete or incorrect; please let us know as soon as possible. Helpful Paper Towels (HPT), a wholly owned subsidiary of ABC Corporation and Northwest Industries (NI) formed Northwest Helpful LLC (LLC) which was treated as a partnership for tax purposes. NI transferred its business assets valued at $412 million to the LLC in exchange for a 95% interest in the LLC, whereas HPT contributed all of its assets valued at $800 million for a 5% interest in the LLC. The newly formed LLC then borrowed $750 million from Bank of America (BOA) on the same day it received the contributions from NI and HPT and immediately transferred the loan proceeds to HPT as a special cash distribution.NI guaranteed payment of the BOA loan, and HPT agreed to indemnify NI for any principal payments NI might have to make under its guaranty. In turn, HPT loaned the cash distribution to its parent company ABC Corporation in return for a note. After the transaction, HPT’s only assets were its LLC interest, the ABC Corporation note and...
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...topic in preparation for writing an essay, you will probably have accumulated a wide range of facts, published research, and other information relevant to the topic. Many people simply throw these facts together in body paragraphs, without properly applying them to the topic or signalling to the reader the connections between them. Simply adding a few connecting words – known as “signposts” – make it much more readable: Incorporation offers several advantages to businesses and their owners. For one thing, ownership is easy to transfer. The business is able to maintain a continuous existence even when the original owners are no longer involved (Brown, 1999). In addition, the stockholders of a corporation are not held responsible for the business's debts (Henry, 2009). If the XYZ Corporation defaults on a $1 million loan, for instance, its investors will not be held responsible for paying that liability. Incorporation also enables a business to obtain professional managers with centralised authority and responsibility; therefore, the business can be run more efficiently (Schwartz, 2010). Finally, incorporation gives a business certain legal rights . For example, it can enter into contracts, own property, and borrow money (Brown, 1999). Transitions show the reader the “movement” between ideas/points. They show that the ideas follow a logical order and build on each other, creating “flow”. If a paragraph flows well from point to point, it should be obvious to the reader when you move...
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...role the selection of an entity plays in the business’ taxation procedure. The tax liability one is responsible for depends greatly upon the election of a particular entity whether it is a Limited Liability Partnership, Limited Partnership, Limited Liability Company, S corporation, C Corporation, or a Business Trust. Within each of the different organized entities federal law has provided each organization with separate and distinct procedures in accounting for its assets in relation to its tax liability (Drucker, 1989). Limited Liability Partnership A limited liability partnership more commonly known as a LLP engenders aspects of both partnerships and corporations, two entities that will later be explored in greater detail. One should elect to enter into a limited liability partnership if investors wish to partake in the management of the business. Just as in a partnership or limited liability company, the profits of a LLP are dispersed among the partners for tax purposes, ultimately avoiding the problem of “double taxation” which is often exhibited in corporations. Similar to that of the shareholders of a corporation all partners in a LLP have a form of limited liability, however contrary to corporations partners actually possess the authority to manage the business directly. In the state of Texas a partner is not individually liable for debts and obligations of the partnership incurred while the partnership is a registered limited liability partnership. The...
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...To: Mr. XYZ From: ABCD Date: 06.05.2015 Subject: Research on the right form of business entity Mr. XYZ, Conducting thorough research on the plausibility of choosing a specific form of legal business entity form for a certain specific business, several facts have been learned. I have been able to understand why it is always very much needed to know and verify the right form of legal structure to be applied to a business before actually setting up the business and carry on with its operation. As the business of my desire must have to be established in the state of Florida, the primary research has been thoroughly based on the legal requirements of setting up any form of business in the concerned state. The desired form of business is a bookstore. The basic task before setting up any business calls for determining the legal structure that will suit the business in an appropriate manner. Several options, in this regard, have been explored by me. This exploration has made it possible for me to ultimately choose the right kind of legal structure befitting the bookstore business. I have explored the different forms like sole proprietorship and partnership, and not the forms like a limited liability (LLC) and a corporation. I have not thought it right to go deep into the structural details of such legal forms of business because I have never thought of investing that much in my business. In the course of my research I did look for gaining more knowledge about sole proprietorship...
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...operated and how and when it ceases to be). Why are corporations used (good and bad)? To allow for investment, To allow capitalism to flourish, To permit the sharing of risk, To permit investors to shelter from risk, To permit investors to deny responsibility, To distribute responsibility, To misallocate resources, To allow efficient allocation of resources. Two theories: Contractualist theory, Stakeholder theory. Regulation tends to try to connect the two theories by acknowledging the importance of the corporation in encouraging economic growth and appropriate risk taking BUT also recognising that there should be some control over corporations given their importance to society (as a conduit or pipeline through which resources are channelled into goods and services). Where is this regulation?-Corporations Act 2001, Australian Securities and Investments Commission Act 2001, These are both federal or commonwealth (central government). Subordinate legislation also (regulations under these Acts plus ASX listing rules, statements and Guides, Accounting Standards). Finally, A lot of the important principles relating to corporations and their responsibilities have evolved via case law. The (Corporations) Act has been described as “Bloated” – why???, Moves have been made to simplify the Act, but every time this happens, something else comes in to make it bigger again! The Administrative and Enforcement bodies ASIC, Under ASIC Act, Corporations and Markets Advisory Committee, Takeovers Panel...
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...Laws and Governance examination in a separate envelope to your solutions to Section B. Q. 1. The Board of XYZ Ltd. is considering a major diversification of the Company’s activities into a new product/market area. The Board of Directors are aware of the risks of diversification away from the Company’s existing core business and are anxious to limit the resulting risks of such a move. Accordingly, they have decided that a new company, which will be a subsidiary of XYZ Ltd. Should be set up for the purpose of carrying on the new business. The Finance Director of XYZ has been asked by the Board to advise on the funding options for the subsidiary. You are have been asked by the Finance Director to assist in this task. Specifically, you are required to draft a memorandum dealing with the following issues: a) The different types of real non-possessory security interests that are recognised in Irish law. (5 marks) b) The likely terms that a bank will seek to incorporate into any debenture creating a charge over the subsidiary’s undertaking and assets. (5 marks) c) The types of charges that must be registered under Section 99 of the Companies Act 1963. (4 marks) d) The powers that a Receiver appointed out of Court on foot of a debenture might be expected to possess. (5 marks) e) The likelihood of a bank being willing to accept a letter of comfort from XYZ Ltd. in respect of the borrowings of its subsidiary. (5 marks) (1 mark for presentation) Total [25 marks] ...
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