A barrier of entry into the industry is capital. To open a supermarket an investor needs millions of dollars of inventory as well as a large physical space for the store. The form of legal organization that is…
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The only risk that existed is associated with the value of the investment. Corporation can also issue commercial paper in the form of bonds to raise capital as well. Bonds are sold in lots of $1000 face value bonds that pay a predetermined coupon or interest rate.
All corporations that are publicly traded in the United States is obligated to comply with the Sarbanes Oxley Act of 2002. Sarbanes Oxley (SOX) was created in order to protect investors and create greater accountability in order to raise investor confidence in the reliability of the financial markets. A provision that affected the way accounting firm perform business with companies is the prohibition of accounting doing both the audits and other types of business contracts with the same firm. Now the accounting audits are performed by independent auditors. A company can become delisted it fails to comply with the Sarbanes Oxley violation. For example a company that is caught cooking up the numbers could face severe penalties from the Security and Exchange Commission (SEC).
Trademarks can add a lot of value to the corporation if they are properly marketed. The legal protection the trademark provides ensures that other firm cannot imitate their trademark names and other types of intellectual property. If another company or individual violates the trademark of a company the firm that is hurt can sue the person or corporation responsible for the trademark violation. Two companies that have been able to penetrate global marketplaces due to its trademark property are McDonald’s and Starbucks Café.
It takes on the average 16 years and $800 million dollars to develop a new drug. Due to the high cost of developing prescription drugs is the reason why so many drugs are so expensive. Patents provide social justice to business for their investment. A patent creates a temporary monopoly for the holder of the patent. Companies can charge whatever price they please during the protected period due to the fact
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In an internal audit article published by the Kansas State University, the discourse on internal controls has clearly indicated that there are four purposes of internal control systems, to wit: “(1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization” (Kansas State University par.
A list of ten benefits of project management is illustrated below: 1. Better efficiencies in developing services 2. Improved customer retention 3. Enhanced effectiveness in delivering services 4. Improved growth within your team 5. Greater competitive edge 6.
Successful companies such as Starbucks have strong CRS in place with initiative such as purchasing only fair trade coffee. Ethics plays an important role in the future success of a company. Back in the late 1990’s the apparel giant Nike Corporation got involved in a messy sweetshop scandal the image and reputation of the company.
One of the most important functions that the FASB serves is formulating the generally accepted accounting principles (GAAP). The accounting profession is self-regulated and accountants depend on the generally accepted accounting principles to guide their work.
An example of an unethical practice is changing depreciation methods without a justification and without including the change in the notes to the financial statements of the company for the purpose of altering the actual financial performance of a company.
Section 201 of the Sarbanes-Oxley lists the services outside the scope of practice of auditors. The client is supposed to assist the auditor during the entire auditing process. Nine activities that the auditor cannot perform in order for auditor independence to exist are: Bookkeeping services Design of financial information systems Appraisal or valuation services Actuarial services Internal auditing outsourcing services Human resources or management functions Investment broker or dealer Legal services Other services that the Board of Directors determine may cause a conflict of interest (Sox-online, 2006).
Project Technical Planning is a series of successful steps or a sequence of successful steps that leads a project towards a successful completion (Kerzner, 2006). As we talk about the problems and troubles with the project
How can risk be mitigated?
A process improvement opportunity within my organization is in the transportation department where I work. Right now there are two people who route the trucks and schedule the appointments for all trucks leaving Cargill
cedures, launching new products, revision of rules and regulations, change of management or other staff, new planning for more profitable business and so on. The responses given for the question, “What is enterprise management?” reveal about changes that occur in a business
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