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The debt ratio of the company was 2.11. The firm was highly leveraged which led to the high fixed costs associated with debt financing. The debt of the company was more than twice its total assets.
Providing governmental assistance to corporations such as General Motors is a way for the government to spur economic activity. Governmental assistance can ensure that companies that are facing financial trouble keep their doors open . Prior to the governmental assistance General Motors was near shutting down their operations. In the short run companies get a capital injection that can be used to cover operating expenses which includes both variable and fixed costs. The fixed costs of the company increase in the long run if the assistance that is given is in the form of debt financing. From the perspective of the government the assistance given protects jobs and government tax revenues. In the case of General Motors the long run consequence of the bailout was that the firm had to give up a lot of equity to the government in exchange for the governmental assistance.
General Motors has recovered well since its reorganization in 2008. The current price of GM common stocks is $34.48 (Yahoo, 2014). The organization has a global workforce composed of 1.9 million employees. The firm is a socially responsible organization. Its product portfolio of vehicles includes hybrid / electric cars. The company on November 18, 2010 completed the world’s largest initial public offering, emerging with a solid financial foundation that enabled GM to produce great vehicles for their customers and build a bright future for its employees, partners and shareholders (Gm, 2014). In fiscal year 2013 General Motors generated $155 billion in revenues and it had a net income of $3.8 billion. The net margin of GM in 2013 was 2.45%.
When a company employs directly 1.9 million people it is always worth saving such an organization.
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Due to economic integration international business these days is not just restricted to buying and selling between firms of two countries but also involves mobility of capital, establishment of trading centers and manufacturing facilities, and movement across borders of business managers and technicians.
This report deals with the present problem in the US army where the retention rate of US soldiers has been constantly decreasing. Recruitments and retention rates in the US army has suffered a setback and one of the attributed reason could be the inflexible lifestyle in the US army especially with respect to educational opportunities.
The Historical Extension of the Federal Government's Power over the States. The fourteenth amendment, to the United States Constitution, revered for containing the Bill of Rights and imposing limitations upon the state. For the majority of constitutional law theorists, the main function for the fourteenth amendment is to define the state limit beyond which state legislation may invade on individual rights (Hammerstrom, 2004).
It can also mean helping a falling entity to stop spreading it effects to all the sectors of the economy since this can have adverse effects. The bank bailout costs can be used to rescue the firm’s assets. Often, it is the government that funds the bank bailouts, through the loans advanced to the firms, so that the companies pay back the earlier debts, which they borrowed from other organizations (Cannadine 3).
The constitution sets down the limits and extent of powers while on the other hand it also distributes these powers (Big Tent Democrat, 2011). Introduction The commerce clause is entrenched in the United States Constitution under Article 1; Section 8 Clause 3 of the constitution, which states that the congress among several other powers conferred upon it by the constitution, will have the power to regulate commerce within foreign nations, and among other states and also regarding the Indian tribes.
U.S Government Bailouts
The economy survives on a number of sectors, which face different challenges; however, the government considers some industries too important to fail and therefore provides financial incentives to keep such companies operational.
ng economic growth over others; all the policies of state are focused on factors for economic growth (Lu, and Freeman, 2008) ..China’s single-minded approach, consistency of priority given to economic growth often refers to Chinese pragmatism but the logic behind their
Today, awareness has empowered people to take pragmatic collective decision. Their interests are logical and comprehensive when they repose their trust in governments to fulfill physiological aspect of their lives. For welfare states to prosper governments try to come up
According to the report some of the noticeable factors include parents and family friends, peer groups, government and other environmental factors, and personal tastes and preference. Even though the government may seem to be in an indirect contact with an individual, it contributes significantly in affecting personal career choices.