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Legal Existence Of Proprietorship Is Extension Of...
SOLE PROPRIETORSHIP Definition business owned by one person legal existence of
proprietorship is extension of proprietor may have any number of employees employee differs from
indepedent contractor may do business under a tradename Formation obtain required state, county,
and local licenses obtain federal employer indentification number if engage employees or
independent contractors if engage employees: obtain workers compensation insurance file form UI–
1 with Illinois Department of Employment Security file form NUC–1 with the Illinois Department
of Revenue verify existence of similar tradenames register tradename in County where business
located investigate State of Federal trademark registratoins cannot register trademark until operation
begin consider copyright registration begin operations Advantages avoid state corporate income tax
ease of formation no double taxation of income or gain from sale of business assets deductions for
ordinary and necessary business expenses and deductions for losses taken by owner personally to
extent of other income (including spouse 's income if reported on joint return) and without any basis
limitation Disadvantages unlimited liability of owner, including liability for acts done by employees
in furtherance of proprietorship business no avoidance of Self–Employment tax certain fringe
benefits unavailable: deduction for health insurance: 45% – 80% from 1997 – 2006 no exclusion for
$50,000 life insurance no exclusion for employer–provided
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Octopus and Privacy: Business Ethics
Octopus and Privacy: Business Ethics
Table of Content Introduction 3 The Objective 3 Research Methods 3 Background of the Company 3
Background of the Issue 5 Identification of Issue 7 Analysis of Issues 8 Recommendation 10
Conclusion 11 Appendix 12 List of Reference 12
Introduction
Hong Kong has one of the most highly successful e–purse programs, the Octopus card. The Octopus
card, which began in the niche transportation industry and extended outward to retailers, has been
widely adopted by consumers and a diverse number of merchants. More than 95 percent of Hong
Kong's residents aged 15 – 65 carry the card.
The Objective
Our purpose is to develop some insights by investigating the management issue of the Octopus card
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According to the report from The Octopus Holdings Company, the executive management was
found the potential commercial of selling the private information early. The Octopus chief executive
officer mentioned that the company was investigating a plan with AIG and CIGNA, which is the
insurance company, and they got the satisfied result. For example, AIG, 35 thousands card holders
received the insurance planning which was six months free life insurance. Over 1500 of that card
holders were paid for upgrade their insurances. After they upgraded their insurance, the premium
charged to 1.6million dollars for one year. The Octopus Holdings Limited could have a quarter
profits in 3 years. Another example of CIGNA, the profit was better than AIG. Over 1300 card
holders were bought the CIGNA insurance, the premium was 7.5million dollars for one year, The
Octopus Holdings Limited could attain 1.5million dollars in one year. Finally, they chose CIGNA
for long term partnership of insurance.
In 2004, The Octopus Holdings Limited was cooperated with CPP, which is an insurance company,
for losing card promotion. The Octopus Limited was provided the private information of card
holders to CPP, such as telephone number, email address
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Pros and Cons of Corporate Health Care
In the end, though, the argument against the proliferation of so much corporate medical research is
not about vilifying corporations for the fact that they make profit–based decisions. The problem is
simply that when it comes down to it, these profit–based decisions have too much of an impact on
the medical field as a whole. While some corporate involvement is fine, and even beneficial,
considering the ability of a corporation to work internationally and pool resources in labs with
increasing amounts of research experience, the entire range of research only coming out of these
labs where profit is the main goal leaves the field sorely lacking in areas that society simply can't
ignore. Though revenue potential might be what makes this current climate hostile to corporations
researching neglected medicines, the neglect of those medicines makes this current climate hostile
towards the entire populace. The real solution lies in more publicly funded research, which would
leave us with the ability to not only stop leaning so heavily on companies that can pull the rug out
from under us at a moment's notice, but also the ability to research simply for the greater good and
the advancement of a field necessary to the wellbeing of people in any and all walks of life. Publicly
funded research on drugs which are beneficial to areas of medicine that have stagnated for too long
not only relieves the pressure on corporations but also gives us the information we really need to
continue to
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Branch Offices And The Branch Office Essay
Branch Offices have been set up under the direct control of Divisional Offices. Branch Offices are
the primary centers of LIC through which the insurance business is obtained. A major part of the
LIC employees and officers are working in Branch Offices. The problems of policyholders are
mostly solved by the Branch Offices. Branches are the first contacting place for the proposer‟s. The
Branch Manager is head of the Branch & he is responsible for effective functioning of the Branch
Office. There is provision for setting up a management committee at every branch office. At present,
2048 Branch Offices are functioning in the country. Usually the following departments are setup in a
branch office: 1. New Business Department 2. Policy holder Servicing Department 70 3. Account
Department 4. Office Service Department 5. Sales and Development Department 6. Claim
Department 7. Machine Department 2.3.5 Agents The total number of agents on Roll is 1172983 as
on 31st March, 2013 as against 1278234 as on 31st March, 2012. The number of active agents is
1121372 as on 31st March, 2013 as compared to 1214111 as on 31st March, 2012. In order to
motivate and recognize high performers amongst agents, a premium club called the „Corporate
Club‟ was formed w.e.f. the membership year 2004–05. The other 5 clubs formed to recognize
agents who perform consistently year after year viz, Chairman, Zonal Manager, Divisional Manager,
Branch Manager and Distinguished Agents have also
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Review Of Previous Empirical Literature
Review of previous empirical literature: A core element in the economic literature is the center on
expansion and the use of man–made, natural, and social capital. The fact that there are three
different types of capital that can contribute to economic growth has led to a difference between
weak and strong sustainability, as discussed by Pearce and Turner (1990), and Rennings and
Wiggering (1997). Weak sustainability describes a situation where it is assumed that the total capital
is maintained and that the three different elements of the capital stock can, to some extent, be used
to substitute each other in a sustainable solution. On the other hand, strong sustainability requires
each of the three types of capital to be maintained in its own right, at least at some minimum level.
An example of an application of the strong sustainability concept is Herman Daly's criteria, which
state that renewable resources must be harvested at (or below) some predetermined stock level, and
renewable substitutes must be residential to offset the use of exhaustible resources (Daly, 1990).
Arrow et al., 2004, in a joint authorship between leading economists and ecologists, present an
approach for evaluating alternative criteria for consumption, seen over time in a sustainable
development perspective. Inter–temporal consumption and utility are introduced here as
measurement points for sustainable development. One of the determinants of consumption and
utility is the productive base of
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Mcdonald's Fast Food Case Study
Almost everyone has eaten at a McDonald's location and roughly 1 out of every 10 people has
worked at this fast food chain at some point in their lives. I belong to both these groups and I have
also heard much of this restaurant from business school. The corporation has a few simple goals that
are versatile in different environments and cultures. "McDonald's main aims are to serve good food
in a friendly and fun environment, to be a socially responsible company, and to provide good returns
to its shareholders." (McDonald's). These are the principles that guide MCD both domestically and
globally. The first objective of serving good food in a friendly and fun environment is relative. I
used to work at a McDonald's franchise that was not owned by corporate. Our restaurant did not
have a play area like one would expect to see at McDonald's and many other chains. We still had
happy meals that came with cheap toys but that was about as fun as it got for our customers. It was a
somewhat fun environment for the employees. Often, my coworkers and I would show up so stoned
that we were proud just to be functional. Our managers would laugh at us and there were never
repercussions for any of our actions. At least one person often had inappropriate music playing loud
enough for customers to hear. One of our managers would show up drunk from time to time on her
off days. I do not agree that the food is good. McDonald's is considered to have some of the lowest
quality burgers
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U.s. Federal Tax Law
A Federal Tax Law comprises of statutory provisions, administrative support and court decisions in
certain cases. The first and foremost task of any Federal Tax Law is raising revenue for Federal and
various state governments to absorb the cost of government operations. The role of social,
economic, equity and political factors couldn't be ignored while discussing various tax consequences
during particular budget period. Nevertheless, the amount of revenue raised through this method
decides the amount of services that the government can afford to provide. The forum topics for this
week are explained in following broad heads:
Revenue generated through tax receipts ideally should exceed annual costs on various government
operations. Moreover, the economic considerations involving amendment of Internal Revenue
Codes for various depreciation deductions for purchase of business property and
research/development deductions credits1. The second consideration, referred to, as social
consideration give tax benefits to the employers encouraging health insurance and deduction for
charitable contributions by employees as well as private companies. The equity considerations
enable individuals or corporations to avoid the effect of double taxation on their taxable income.
This could be necessarily ensured by deducting state and local taxes from Gross Income. The credit
or deduction for certain foreign taxes and deductions for dividend received by corporations to avoid
triple taxation. The
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The Deregulation Of The Insurance Industry Essay
INTRODUCTION
Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured
covered in the policy. Essentially, a life insurance policy is a contract between the named insured
and the insurance company wherein the insurance company agrees to pay an agreed sum of money
to the insured 's beneficiary. With a large population and the untapped market area insurance
happens to be a very big opportunity in India. Today it stands as a business growing at the rate of
15–20% annually. Together with banking services, it adds about 7 percent to the country's GDP. In
spite of all this, the growth statistics of the penetration of the insurance in the country is very poor.
Nearly 80% of Indian population is without life and health insurance cover. This is an indicator that
growth potential for the insurance sector is immense in India. It was due to this immense growth that
the regulations were introduced in the insurance sector and in continuation "Malhotra Committee"
was constituted by the government in 1993 to examine the various aspects of the industry. The key
element of the reform process was participation of overseas insurance companies with 26% capital.
Creating a more competitive financial system suitable for the requirements of the economy was the
main idea behind this reform.
CLASSIFICATION OF INSURANCE
The insurance industry in India can broadly classified in two parts. They are.
1) Life insurance.
2) Non–life (general) insurance.
LIFE
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American National Insurance Co.
American National Insurance Co.
COMPANY OVERVIEW American National Insurance Co. is a major American insurance
corporation. The corporate headquarter is located in Galveston, Texas since founding in 1905 by
William Lewis Moody. American National Insurance Co. and its subsidiaries (collectively
"American National") operate in all 50 U.S. states, the District of Columbia, Puerto Rico, and
American Samoa. Subsidiaries consist of six life insurance companies, eight property and casualty
insurance companies, and numerous non–insurance subsidiaries all operating only domestically. The
company conducts its business through five segments. The following segments are: * Life * Annuity
* Health * Property and casualty * ... Show more content on Helpwriting.net ...
American National Insurance Co., as any other insurance company, faces with a risk of litigation
and regulatory investigations including the risk of class action lawsuits, which may result in
significant financial losses and harm its reputation. "In connection with their insurance operations,
plaintiffs' lawyers may bring lawsuits, including class actions, alleging, among other things, issues
relating to sales or underwriting practices, claims payments and procedures, product design,
disclosure, administration, additional premium charges for premiums paid on a periodic basis, denial
or delay of benefits, and breaches of fiduciary or other duties to customers."[2] Plaintiffs might
request substantial amounts to be paid including punitive and treble damages. These damages could
result in a material adverse effect on company's business, financial condition, results of operation
and reputation. For example, "American National was a defendant in a lawsuit related to the alleged
inducement of another company's insurance agents to become agents of American National. The
jury reached a verdict adverse to American National, in the total amount of approximately $63.4
million, of which approximately $60.0 million represented punitive damages; however, the court
subsequently reduced the punitive damages award, resulting in a total award of approximately $7.1
million against American National."[2] Company has been facing with other various types
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Case Study Of Bancassurance
BANCASSURANCE
INTRODUCTION
The world has moved from narrow banking to broad and need based banking. Customer Satisfaction
has become the key to modern day successful banking. The modern day customer looks at one step
solution for all his financial needs. Separation of banking and other financial roles has become
outmoded now. Post Gramm–Leach–Bliley (GLB) Act, 1999 scenario has indicated the increased
preference for banks to deal with other non–banking financial products. Financial liberalisation and
financial novelty have desegmented financial industry. Banks have now entered the untrodden path
of insurance through Bancassurance. Bancassurance means selling insurance product through banks.
Bancassurance is an amalgamation of two words, banks ... Show more content on Helpwriting.net ...
The IRDA opened up the market in August 2000 with the invitation for application for registrations
from insurance companies. Today there are about 28 non–life insurance companies 24 life insurance
companies and in the country. With opening up of the economy, the insurance companies perceive
the immensely potential Indian market and are running to establish multiple distribution channels
such as agency, brokers, bancassurance and direct marketing. Bancassurance is coming up as one of
the strongest distribution channels of insurance products.
Banks have become major distribution channels for insurance companies. The insurance companies
take the advantage of banks as distributors at a low cost. There are more than 80,000 banks out of
which 65% of the branches are located in rural and semi urban areas and the rest 35% in urban and
metropolitan areas. Apart from commercial banks, India also has a large network of rural
cooperative and urban cooperative banks which acts as an impetus for bancassurance.
In India banking and insurance sectors are regulated by two different apex bodies, Reserve Bank of
India for banks and Insurance Regulatory and Development Authority (IRDA) for insurance sector.
As Bancassurance is the amalgamation of the two sectors, it comes under
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Sony Corporation And Its Impact On The World
Sony Corporation was founded on the 7th of May 1946 in Tokyo, Japan as a joint stock company
under Japanese law. To start it, the founders incurred a cost of 190,000 yen. The co–founder of Sony
Corporation in May 1946 was Masaru Ibuka. The other co–founder who founded the Sony
Corporation in America iin160 was called Akio Morita. When established Sony Corporation was
named Tokyo Tsushin Kogyo Kabushiki Kaisha but later in January 1958 the name was changed to
Sony Kabushiki Kaisha which means Sony Corporation in English. Sony Corporation entered the
list of the Tokyo stock exchange in December 1958. (Cooper, 1995) Sony TR–72 which was a
transistor radio was released in December. In 1960 the TV8–301, the first direct television ever in
the world, was introduced. In June 1961, it distributed American Depositary Receipts ("ADRs") all
though the United States of America. N 1962 the smallest and lightest TV was introduced. In March
1968, Sony established CBS/ the Sony records inc. in Japan, which is currently known as Sony
Music Entertainment (Japan) Inc. ("SMEJ"). It was set up as a company whereby there is 50–50
joint venture between the Sony Corporation and CBS Inc. in USA. SMEJ became a Sony
corporation's wholly–owned subsidiary in January 1988. In November 1991, Sony music
entertainment Japan was listed on the 2nd section of TSE (Robert, 2014) In September of 1970, the
Sony Corporation was in the New York stock exchange. In august of 1979, Sony founded the Sony
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Annuity Insurance Products : Insurance Companies
Annuity Insurance Products
Insurance companies also sell annuities, a special type of insurance that 's primarily designed to
protect people during retirement. Each type of annuity has unique features that are designed to
address specific situations. The annuity works like a pension plan that 's based on your life
expectancy and initial investment. The non–premium portion of the annuity is not taxed, but the
interest portion is subject to tax.
Benefits of annuities include no annual limits to contributions, the ability to create annual income
that you won 't outlive and death benefits that can pass directly to your beneficiaries without going
through probate delays and expenses. You can ensure that your heirs receive a guaranteed death ...
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Lifetime Annuity
This insurance product guarantees a lifetime payout, which makes it an idea supplement to Social
Secuurity.You can even buy the product for two lifetimes –– yours and your spouse's.
Master Limited Partnerships
Master limited partnerships or MLPs generate solid tax advantages for investors who are willing to
accept slower growth but with less risk. Used in slowly growing industries like pipelines, the MLP
business structure consists of managing general partnership shares and limited partnerships that have
no say in operations. Cash distributions remain relatively stable over time, and yields usually fall in
the 6% to 7% range. Unlike corporations where income is taxed twice, partnership owners only pay
tax when they receive their distributions.
Any capital gains are deferred until you decide to sell your shares of the partnership, which makes
these partnerships sound tax–advantaged investments. MLPs can be used to pursue wide–ranging
projects that just aren 't feasible for investors if they face double taxation on limited growth options.
Receiving higher yields are your reward for investing in entities that are tax–advantaged.
MLPs trade like stocks. Partnership earnings can be offset by depreciation that you can deduct and
domestic energy tax breaks
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Principles of Banking
Principles Of Banking & Finance Chapter 2 : Financial Systems Economic function:
Channeling funds from units who have saved surplus funds to units who have a shortage of funds.
Lenders–Savers : Units who have saved can lend funds. Borrower–Spenders : Units with a shortage
of funds must borrow funds to finance their spending. Channelling of funds are important because, –
Lender–savers have excess of available funds but do not frequently have profitable investment
opportunities, while borrower–spenders have investment opportunities but lack of funds. –
Borrower–spenders may want to invest in excess of their current income or to adjust the
composition of their wealth. Direct Finance : Borrower–Spenders ... Show more content on
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Mid 1980s – Texas real estate and land prices crash, determined the default of many borrowers with
mortgage loans issued by S&Ls, thus many S&Ls failed at end of 1980s. 1989 – New
legislation, FIRREA is adopted. (Financial Institutions Reform, Recovery & Enforcement Act)
3. Credit Unions – Non–profit institutions mutually organised and owned by depositors. – Satisfy
the depository and lending needs of their members belonging to a particular group. – Deposits used
to provide loans to other members and earnings from these loans are used to pay higher rates to
member depositor. – Most numerous among depositary institutions (8535 in 2006 according to
Credit Union National Association) Contractual Savings Institutions – Acquire funds at periodic
intervals on a contractual basis. – Liquidity of assets is less important as they can predict with
reasonable accuracy the future payments due to their customers. – Invest their funds in long–term
securities. (Corporate Bonds, Stocks and Mortgages) 1. Insurance Companies – Protect individuals
and firms (aka. policy holders) from adverse events. – Receive premiums from policy holders and
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Essay On Collective African Americans
Collective African American spending power exceeds $1 trillion dollars annually. Because of this
economic reality, a wide variety of companies/corporations having ongoing marketing campaigns to
reach this important segment of the U.S. consumer market. It is hard to believe that not long ago;
black consumers were practically ignored in the American marketplace. (Griggs 94) African
Americans were not seen an attractive and profitable consumer market. There were distinct social,
economic, and political reasons for this situation. First, the majority of blacks lived in the rural
South away from major cities. Second, many of these individuals were sharecroppers with little
disposable income. Finally, the rules of Jim Crow racial segregation relegated rural southern blacks
to the margins of society, including being unable to vote. Because of blacks' marginality at the time
in economics and politics, white Americans, including white businesses, believed they could malign
African Americans. This helps to explain the use of derogatory advertisings using insulting black
images during this period. Some white companies as a part of their regular advertising featured
blacks with exaggerated physical characteristics in their ... Show more content on Helpwriting.net ...
These firms, historically, reinvested a large proportion of their premium income back into black
community real estate. These companies provided needed capital for the home mortgage market in
black urban communities. With the disappearance of these firms and the continuing reluctance of
major banks and other financial institutions to invest in black neighborhoods, African Americans
with more income than ever before nonetheless were more likely to get sub–prime bank loans.
These loans, in turn, helped create the 2008 economic collapse which wiped out a disproportionate
amount of black homeowner
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The Merger of Allianz Group and Dresdner Bank
1. Introduction In our days mergers and acquisitions are a predominant feature of the international
business system as companies attempt to exploit new market opportunities and to strengthen their
market positions. Each year sets a new record for the total value of mergers and acquisitions and
nearly every day new announcements are made in the business newspapers. In the literature one
finds a large number of explanations for the occurrence of mergers and acquisitions. Sometimes,
these explana–tions are also applicable to related forms of interindustrial links such as joint ventures
or strategic alliances. Therefore it is necessary to define the term merger and acquisition as it will be
used throughout this seminar paper.
1.1 ... Show more content on Helpwriting.net ...
Conglomerate and vertical mergers help to strengthen the market power by discouraging potential
entrants. The monopoly theory played a dominant role in the past, especially in the first great merger
wave in the U.S. between 1887 and 1904. Today most of the horizontal mergers are too small to
confer monopoly power, because larger acqui–sitions fall under intense antitrust scrutiny. In the
industrial strategy and organization literature mergers are often explained in terms of synergies
and/or efficiencies. The efficiency theory is based on the assumption that the combined firms are
more profitable than the companies operating separately because of the operational, managerial and
financial synergies. Operational synergies include economies of scale, economies of scope and
economies of experience. The valuation or information theory explains a merger from a financial
instead of a strategic perspective and assumes that the current market price of a company does not
reflect the true value. The company which buys an undervalued firm believes it can manage the
target company better than the current management. Corporate buying and selling activities are
traced back to the conditions of financial markets. Presently globalization is the key feature of the
new competitive landscape within which mergers are taking place. However, it is impor–tant to keep
in mind that globalization is a trend and not an already exis–ting condition. Globalization is not
spreading
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What are bank and non-bank financial institution, compare...
"Warning: Saving May Be Hazardous to your Wealth"
Financial institutions such as banks, insurance companies and pension funds are also known as
'Financial Intermediaries'. They dominate the financial scene all around the globe. It is virtually
impossible to spend or save or lend or invest money nowadays without getting involved with some
kind of financial intermediary in one way or another. Although all have similar functions, yet they
are different. They are as follow...
Banks versus Non–Banks – A Brief Comparison
A sharp distinction has been drawn between the commercial banks, on one hand, and all other
financial institutions on the other, such as life insurance companies, property and casualty insurance
companies, savings and loans ... Show more content on Helpwriting.net ...
Today, they are subject to the same requirements just like commercial banks, in terms of deposits.
Also, the line that separates such associations and commercial banks has become indistinct lately,
and hence, has been competitive.
Life Insurance Companies
Life insurance companies, such as Prudential or Manulife Insurance Companies, and even VIG,
have been a popular choice for people to invest their money. It has been a doubled benefits way of
investing or saving money, we are not only saving our money, but also have our lives insured. This
is especially for those who are affordable, usually Middle to Upper classes. It's beneficial because a
life insurance guarantees the payment of the agreed sum of money during a person's death, although
that person has to pay yearly premiums for the agreed life years within specific age requirements.
This is profitable because the person will get interests, which usually is high enough.
Pension and Retirement Funds
According to Kamerschen (1984), pension funds hold their assets in the form of corporate stocks,
although some other long–term claims, such as real estate, corporate bonds, government obligations,
and many others are held. Such funds are usually for those into retirement and pension age, also,
these retirement funds are normally chosen as a source of investment with the objective of secured
and guaranteed retirement
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Fi515 Chapter 1 Mini Case
MINI CASE
a. Why is corporate finance important to all managers?
Corporate finance is important to all managers because it provides managers the skills needed to
identify and select the corporate strategies and individual projects that add value to their firm and
forecast the funding requirements of their company and devise strategies for acquiring those funds.
b. Describe the organizational forms a company might have as it evolves from a start–up to a major
corporation. List the advantages and disadvantages of each form.
The organizational forms a company might have as it evolves from a start–up to a major corporation
are proprietorship, partnership, or corporation.
The advantages of a proprietorship are:
Easy and ... Show more content on Helpwriting.net ...
Failure to handle these situations properly can lead to huge product liability suits and even
bankruptcy.
e. What three aspects of cash flows affect the value of any investment?
The three aspects of cash flows the affect the value of any investment are the amount of expected
cash flows, the timing of the cash flow stream, and the risk of the cash flows.
f. What are free cash flows?
Free cash flows are the monies available for distribution to all investors after paying current
expenses, taxes, and making the investments necessary for growth.
g. What is the weighted average cost of capital?
The weighted average cost of capital is the rate that a company is expected to pay on average to all
its security holders to finance its assets.
h. How do free cash flows and the weighted average cost of capital interact to determine a firm's
value?
Free Cash Flow = Sales Revenues – Operating Costs and Taxes – Required Investments in
Operating Capital. Weighted Average Cost of Capital (WACC) is affected by market interest rates,
market risk aversion, cost of debt, cost of equity, firm's debt/equity mix, and firm's business risk.
Therefore, free cash flows and the weighted average cost of capital interact to determine a firm's
value by the following equation:
Value = FCF1 + FCF2 + ... + FCF00 (1 + WACC)1 (1 + WACC)2 (1 + WACC)00
i. Who are the providers (savers) and users (borrowers) of capital? How is capital
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Philippine Financial Institutions
FINANCIAL INSTITUTIONS
* Regarded as the suppliers of financial resources. * Enormous capital structure compared to other
institutions (Educational and Religious) * Funds that they supply to the different markets do not
originate totally from them but some come from the public source. * Their vast activities interlinked
with the activities of other business organizations. * They are part of different aspects of the use and
need of Financial Resources.
INSTITUTIONS IN THE PHILIPPINE FINANCIAL SYSTEM
(As classified by The Bangko Sentral ng Pilipinas)
I. Bank Financial Institutions II. Non–bank Financial Intermediaries III. Non–bank Thrift
Institutions
I. CLASSIFICATION OF BANK FINANCIAL INSTITUTIONS AND THEIR ... Show more
content on Helpwriting.net ...
* Most RB's have ATMs, Remittance services, Peso and Dollar Accounts, Checking accounts, Time
Deposits, Micro financing loans and OFW placement loan packages.
4. Quasi Banks a. Non–bank quasi bank Investment House P20 Million
b. Investment House not Non–bank quasi bank P20 Million
http://beginnersinvest.about.com/od/banking/a/investment–bank.htm II. NON–BANK FINANCIAL
INTERMEDIARIES AND THEIR MINIMUM CAPITALIZATION
(Privately owned Institutions)
1. Investment house P20 Million * Any enterprise which engages in the underwriting of securities of
other corporations * organized in the form of stock corporations 2. Financing Companies P0.5
Million http://www.chanrobles.com/republicacts/republicactno9474.html#.US8ZxqJHI–c 3.
Investment Companies no specification 4. Insurance Companies * A company that offers insurance
policies to the public * selling directly to an individual or through another source such as an
employee's benefit plan. * usually comprised of multiple insurance agents. * An insurance company
can specialize in one type of insurance, such as life insurance, health insurance, or auto insurance, or
offer multiple types of insurance.
a. Direct writing company P10 Million b. Professional Reinsurer P15 Million
Example:
Insular Life
Manulife China Bank Life Assurance Corporation
Philippine American Life and General Insurance
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Berkshire Hathaway Inc. : Overview
Berkshire Hathaway Inc., fused on June 16, 1998, is a holding company which is maintaining
subsidiaries occupied in various business activities around the world. The Company has conducted
insurance businesses on both a primary basis and a reinsurance basis, a freight rail transportation
business and a group of utility and energy generation and distribution businesses. Its insurance and
reinsurance business activities has been piloted through various domestic and foreign–based
insurance bodies. Its insurance businesses provide insurance and reinsurance of property and
casualty risks and also reinsure life, accident and health risks across the world. Its subdivisions will
include GEICO, General Re, Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Primary
Group, BNSF, Berkshire Hathaway Energy, McLane Company, Manufacturing, Service and
retailing, and Finance and financial products. Warren Buffett and Berkshire Hathaway Inc. have
announced the authorized equity holdings of Berkshire Hathaway. As shown in many
announcements, over half of Company's overall equity holdings are heavily focused on just four top
holdings, as follows: Wells Fargo & Co., International Business Machines Corp., Coca–Cola Co.
and American Express Co. Berkshire Hathaway Inc. stock portfolio has increased from $109.57B to
$127.41B this quarter. Warren Buffett 's largest three holdings are at 50% of the entire portfolio.
During 2015, Berkshire Hathaway 's long stock portfolio increased 16.27%
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Tax Planning With Life Insurance
Table of Contents
Tax Planning with Life Insurance 3
What is tax planning with life insurance? 3
What is the tax–deferred buildup of cash value? 3
What are the general tax rules for life insurance? 3
What about modified endowment contracts? 5
What about personal life insurance trusts? 5
Regarding business insurance, what are some of the planning vehicles? 6
How can tax planning with life insurance help you with charitable giving? 7
Disclosures 8
Tax Planning with Life Insurance
What is tax planning with life insurance?
Life insurance can help you achieve various goals. Tax planning with life insurance involves
minimizing the tax consequences of your life insurance decisions. Tax planning vehicles involving
life insurance will vary, ... Show more content on Helpwriting.net ...
Thus, the buildup (increase) of the cash value represents tax–deferred income.
What are the general tax rules for life insurance?
For federal income tax purposes, an insurance contract cannot be considered a life insurance
contract (and thus qualify for favorable tax treatment) unless it is treated as a life insurance contract
under applicable state law and meets either the cash value accumulation test or the cash value
corridor test.
The tax treatment of your life insurance policy will vary depending on the type of distribution (i.e., a
lifetime distribution, or death proceeds, or dividends). Generally speaking, lifetime distributions
(other than loans) from such cash value life insurance policies are treated as made on a first in/first
out (FIFO) basis for federal income tax purposes. In other words, money that you take out is treated
as your nontaxable basis or investment in the contract first. Only amounts that exceed your basis are
treated as taxable distributions.
Distributions
A lifetime distribution is any payment of the cash value of a life insurance policy during the lifetime
of the insured, as opposed to the payment of the proceeds following the death of the insured.
Generally, there are three major types of lifetime distributions: loans, partial surrenders, and full
surrenders.
 With a loan, the policy owner borrows money from the insurance company, using the cash value
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The Allianz Group Case Study
The Allianz Group is a financial services provider with worldwide presence. It offers a wide
range of insurance and asset management products and services for both private and
corporate consumers. It is present in more than 70 countries, with about 108,000 employees
serving more than 83 million customers. It is the market leader in insurance market in Europe
and is one of the largest asset managers in the world, with €1,170 billion assets under
management.
The company was established as a transport and accident insurer in Berlin in 1890. They
engaged in international move three years later with branches in Europe and the USA and
were listed in Berlin Stock Exchange in 1895. They resumed international expansion after
WW2. They ... Show more content on Helpwriting.net ...
IV. "Global management: enforcing and reinforcing a transnational
Sticking to the French example, one can say that the management practices implemented by
Allianz try to go beyond the classical HQ–subsidiaries tensions. This willingness (in words, if
not in deeds) to overcome such antagonisms is illustrated below:
Cross–border group mobility:
strategy"
The Allianz Worldwide Partners (AWP) project:
o Senior management: two current members of Allianz France's ExCo are
German but only one of them was "sent" by HQ (i.e., previously worked there).
Conversely, the head of Group Internal Audit is a Frenchman who did most of
its career in France since the AGF era.
o Middle–management: the assignment to Group HQ of well–educated
employees (typically from French "Grandes Ecoles") after 5 years at Allianz
France has become a normal practice. Assignees gain visibility and feel closer
to the Group's decisions.
o Rationale: the Group has set the development of B2B2C insurance (typically,
policies subscribed by companies for their employees) as a top priority. On the
medium term, all the Group's activities on this segment should become part of
the dedicated AWP
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Public Finance Institutions in India- a Brief Discussion
Public finance institutions According to sec 4A of companies cat 1956: (1) Each of the financial
institutions specified in this sub–section shall be regarded, for the purposes of this Act, as a public
financial institution, namely:– (i) the Industrial Credit and Investment Corporation of India Limited,
a company formed and registered under the Indian Companies Act, 1913 (7 of 1913);
(ii) the Industrial Finance Corporation of India, established under section 3 of the Industrial Finance
Corporation Act, 1948 (7 of 1948);
(iii) the Industrial Development Bank of India, established under section 3 of the Industrial
Development Bank of India Act, 1964 (18 of 1964);
(iv) the Life Insurance Corporation of India, established under ... Show more content on
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2005 ICICI acquired Investitsionno–Kreditny Bank (IKB), a Russia bank with about US$4mn in
assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI
renamed the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International
Financial Centre and in Hong Kong. 2006 ICICI Bank UK opened a branch in Antwerp, in Belgium.
ICICI opened representative offices in Bangkok, Jakarta, and Kuala Lumpur. 2007 ICICI
amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra State, and which had
158 branches in Maharashtra and another 31 in Karnataka State. Sangli Bank had been founded in
1916 and was particularly strong in rural areas. ICICI also received permission from the government
of Qatar to open a branch in Doha. ICICI Bank Eurasia opened a second branch, this time in St.
Petersburg. 2008 The US Federal Reserve permitted ICICI to convert its representative office in
New York into a branch. ICICI also established a branch in Frankfurt. *2.Industrial* Development
Bank of India The Industrial Development Bank of India Limited commonly known by its acronym
IDBI is one of India's leading public sector banks and 4th largest Bank in overall ratings. RBI
categorised IDBI as an "other public sector bank". It was established in 1964 by an Act of
Parliament to provide credit and other
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GEICO Executive Summary
EXECUTIVE SUMMARY
At the heart of the success stories of most businesses lies its marketing campaign. The marketing
program of a company encompasses many factors such as promotions, advertising, public relations,
sales etc. This project is an endeavor by our team to study the marketing mix and strategies of a
leading American auto–insurer GEICO in a highly competitive market with low product
differentiation elevating the need for a successful marketing campaign.
The project report explores the past and present of GEICO, its achievements and growth through the
years. It takes a close look at the four Ps (Product, Place, Price, Promotions) of its marketing mix
and how these have been integrated to create a high brand recognition and position ... Show more
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The company with a niche for humorous and creative ad campaigns has one of the highest brand
recognition across any sector in America.
CHAPTER 2: INDUSTRY ANALYSIS
GEICO operates in the insurance business which is regulated by the Federal Insurance Office in the
United States. The insurance industry in the United States is the largest in the world in terms of
insurance premiums, exceeding $1.2trillion. Despite this it is not in the top 10 countries of the world
in terms of the insurance premiums paid per capita of population. This indicates that there are still
unsaturated markets to be tapped which gives a huge scope of future growth.
The auto insurance industry provides products (insurance policies) which are more or less
homogeneous creating the need for differentiation which can be achieved by advertising your
company in a unique manner or identifying various target segments in the market and concentrating
your business on them. For the same reason, this industry has one of the highest advertising to sales
ratio.
2.1 ANALYSIS OF PORTER'S 5 FORCES 1. Supplier's Bargaining
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Difference Between Icici Bank N Axis
SERVICE SECTOR MANAGEMENT | ICICI BANK AND AXIS BANK |
WHAT IS A BANK?
A banker or bank is a financial institution whose primary activity is to act as a payment agent for
customers and to borrow and lend money. In other words, an institution where one can place and
borrow money and take care of financial affairs
ABOUT
The Banking sector in India has always been one of the most preferred avenues of employment. In
the current decade, this has emerged as a resurgent sector in the Indian economy. As per the
McKinsey report 'India Banking 2010', the banking sector index has grown at a compounded annual
rate of over 51 per cent since the year 2001, as compared to a 27 per cent growth in the market index
during the same period. It is ... Show more content on Helpwriting.net ...
The merger would enhance value for ICICI shareholders through the merged entity's access to low–
cost deposits, greater opportunities for earning fee–based income and the ability to participate in the
payments system and provide transaction–banking services. The merger would enhance value for
ICICI Bank shareholders through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee–based services, and access to the
vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and
ICICI Bank approved the merger of ICICI and two of its wholly–owned retail finance subsidiaries,
ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank.
The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High
Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and
banking operations, both wholesale and retail, have been integrated in a single entity.
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An Overview of the Canadian Financial-Services Sector:...
An Overview of the Canadian Financial–Services Sector: Banking Industry
What is a financial intermediary? A financial intermediary is an organization that raises money from
investors and provides financing for individuals, companies and other organizations. Intermediaries
are a stop on the road between savings and real investment. Mutual funds and pension funds are two
important classes of intermediaries. A financial institution usually suggests a more complicated
intermediary doing more than just pooling and investing savings. Banks and insurance companies
are good examples.
A bank is where you can borrow money only if you can prove you don¡¯t need it. To some extent,
this joke is more truth than fiction. While banking has a ... Show more content on Helpwriting.net ...
In past, Schedule I Banks ought to be widely held by a large number of shareholders, originally with
no investor holding more than 10% and foreign ownership was previously limited to 25%. However,
these rules have been changed according to a new legislative policy framework introduced in June
of 2000. Under the new rules, there are three sub–classes of banks, based on the size of their equity
capital: 1) large (greater than $5 billion); 2) medium ($1 to $5 billion); and 3) small (less than $1
billion). Based on present figures, the $5 billion cut–off point would establish the top six Schedule I
Banks as large banks, except the National Bank (although it would be classified as such until
deemed otherwise by the Minister of Finance). The large banks have to remain widely held under
new criteria that eliminate the 25% foreign ownership rule, and permit a single investor to own up to
20% of the voting shares of the bank, and up to 30% of non–voting shares, subject to a ¡°fit–and
proper¡± test designed to evaluate their character and suitability. Medium banks would be allowed to
have a single owner hold up to 65% of shareholdings and would be required to maintain a public
float of at least 35% of voting shares. Small banks would face no ownership restrictions other than
the ¡°fit and proper¡± test. Following the reform, the nationality is no longer a
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Fin 515 Week 1 Homework Minicase
Kimberly Pulda
Mini Case A. Corporate finance is important to all managers because it helps identify the goals of
the company. These goals are: a. Identifying b. Creating c. Delivering highly valued products and
services to customers
The goals require the three attributes which are first, successful companies have skilled people at all
levels inside the company. Second, successful companies have a strong relationship outside the
company. Third, successful companies have enough funding to execute their plans and support their
operations.
The skills provided are to identify and select the corporate strategies and individual projects that add
value to their firm and also to forecast the funding requirements of ... Show more content on
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G. Weighted average cost of capital is the average rate of return required by all of the company's
investors. H. They interact with intrinsic value which is the sum of all the future expected free cash
flows when converted into today's dollars. m. FCF has sales revenue to operating costs to required
investments in operating capital n. WACC has market interest rates and market risk aversion, firms
debt/equity mix and firm's business risk which all go to cost of debt and cost of equity which both
areas end up at the value. I. o. The providers and users of capital are x. households: net savers, xi.
non–financial corporations: net users xii. governments: U.S. governments are net borrowers, some
foreign governments are net savers xiii. financial corporations: slightly net borrows, but almost
breakeven p. Capital is transferred between savers and borrows by xiv. Direct transfer xv. Through
an investment banking house xvi. Through a financial intermediary J. The price that a borrower
must pay for debt capital is called interest.
The price of equity capital is called required return
The four most fundamental factors that affect the cost of money are 1. Production opportunities 2.
Time preferences for consumption 3. Risk 4. Expected inflation K. Some
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HR and the Competiton for Talent Essay
In today's competitive workforce, talent is not only incremental, but also scarce. War for talent, a
term coined by Steven Hankin of McKinsey & Company, refers to the competitive landscape of
talent management of skilled and valuable employees. Talent management is defined as "the
implementation of integrated strategies or systems designed to increase workplace productivity by
developing improved processes for attracting, developing, retaining and utilizing people with the
required skills and aptitude to meet current and future business needs" (Lockwood, 2006). This
paper talks about the challenges faced by organizations and how organizations use strategic HR to
overcome concerns regarding attraction, recruitment and retention of talented ... Show more content
on Helpwriting.net ...
Telecommuting programs are also aided with the arrangement of appropriate technology, which
makes working from home easier. As one of the large–scaled companies Deloitte and the Westpac
Group understand the challenges associated with employee satisfaction. Both of these companies
improved their IT and Information and Communication Technology structure respectively by
providing their staff with the appropriate technology to carry out tasks from the comfort of their
homes. Westpac allows applicable employees the option to work from home and telecommute, this
is mutually sustainable with the company philosophy that acts a vital contributor to attract lateral
hires (Deloitte, 2013). Not only did Deloitte and Westpac recognize that in order for their
telecommuting program to work they needed to provide the staff with the right tools to do the job
efficiently and compliantly, they were also able to connect to a wider range of their staff. Empirical
research conducted by Deloitte shows that to "Only 62% of employees without access to flexible IT
policies report feeling satisfied at work. Up to 83% of employees with access to flexible IT policies
(such as social media access) report feeling satisfied at work" (Deloitte, 2013). Telecommuting
plays a substantially large role in the strategic HR department, which includes employee
satisfaction. A categorical and strategic plan that leaves no room for
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Dead Peasant Insurance Policies
Ke Li 14147485 Econ 4315 Writing Assignment 1 02/05/17 Dead Peasant Insurance Policies For
many years, the organizations had purchased life insurance for their employees, the key reason is
that through some key personnel from the insurance company to maintain their own financial loss
on their lives when events occur (Martin, 2010). On the other hand, the insurance company by
emphasizing their tax advantages, to encourage corporations to purchase the corporate–owned life
insurance. The goal of corporate–owned life insurance is corporations need to take large loans in
order to pay for the insurance fee and make the maximize profits of tax. At the same time, the
corporations can get a large amount of income tax from their interest payment. However, in 1986,
the insurance organizations established new form which named Tax Reform ... Show more content
on Helpwriting.net ...
To answer this question, the important point is who is the largest beneficiary in these policies and
what actually make policy profitable, it is an insurance company, corporations or market? The
companies earn extra profits from the dead peasant insurance policies. For example, the company
encourages their employees to buy the insurance and many of employee were voluntary because if
they suffer some unforeseen events, they will get the compensation from the insurance company.
But when events occur, the employee had already demotion or dismissal. Thus, employees are not
larger beneficial owner, corporation is. However, there has one question that is the insurance
company how to keep their business, even if they found the beneficiary is a corporation under these
policies. Actually, the main driving force for company adapt to these policies is tax law, not free
market competition.(Smith, 2011)Therefore, the corporation wants to gain the extra benefits from
the dead peasant policies is the main reason why dead peasant insurance policies
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Berkshire Hathaway Essay
Berkshire Hathaway From Wikipedia, the free encyclopedia Jump to: navigation, search Berkshire
Hathaway Inc. Type Public (NYSE: BRKA, NYSE: BRKB) Founded 1839 (as Valley Falls
Company) Founder Warren Buffett Headquarters Omaha, Nebraska Area served USA Key people
Warren E. Buffett (Chairman) & (CEO) Charles T. Munger (Vice Chairman) Industry Property and
casualty insurance, Diversified investments Products Conglomerate focused on insurance Market
cap US$ 196 Billion (2008) Revenue ▲ US$ 118.245 Billion (2007) Operating income ▲ US$
20.161 Billion (2007) Net income ▲ US$ 13.213 Billion (2007) Total assets ▲ US$ 273.160
Billion (2007) Total equity ▲ US$ 120.733 Billion (2007) ... Show more content on Helpwriting.net
...
Buffett initially maintained Berkshire's core business of textiles, but by 1967, he was expanding into
the insurance industry and other investments. Berkshire first ventured into the insurance business
with the purchase of National Indemnity Company. In the late 1970s, Berkshire acquired an equity
stake in the Government Employees Insurance Company (GEICO), which forms the core of its
insurance operations today (and is a major source of capital for Berkshire Hathaway's other
investments). In 1985, the last textile operations (Hathaway's historic core) were shut down. [edit]
Berkshire facts Berkshire's Class A shares sold for $125,000 as of September 16, 2008, making them
the highest–priced shares on the New York Stock Exchange, in part because they have never had a
stock split. Shares closed over $100,000 for the first time October 23, 2006. Berkshire Class B
shares trade at a fraction (1/30) of the Class A prices. Despite its size, Berkshire is not included in
broad stock market indices such as the S&P 500. Berkshire's CEO, Warren Buffett, is respected for
his investment prowess and his deep understanding of a wide spectrum of businesses. His annual
chairman letters are read and quoted widely. Barron's Magazine named Berkshire the most respected
company in the world in 2007 based on a survey of American money managers.[2] As of 2005,
Buffett owned 38% of Berkshire Hathaway. Berkshire's Vice–Chairman
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Training And Managerial Accounting For Decision Making
Introduction Many of the lessons learned in FIN 301 (Corporate Finance) and ACCTG 211
(Financial and Managerial Accounting for Decision Making) are evident in everyday life as well as
within my internship at Farmers Insurance. This journal entry will focus on two areas where my
internship corresponds to the concepts learned in these courses. The first area is the financial
services Farmers offers its customers and the second is the financial situation of Farmers Insurance.
Financial Services Farmers Insurance offers financial services to its customers in the form of mutual
funds and variable annuities. Farmers' agents that choose to get a securities license are able to offer
their customers advice and participation in these two services. ... Show more content on
Helpwriting.net ...
These preferences can include, but are not limited to, aggressiveness vs. security, ethics, and amount
to be invested. Some mutual funds focus on more volatile stocks then others. This is important
because a participant's return on investment is directly related to the performance of the investments
made by the mutual fund manager. An individual can also select a mutual fund based on the types of
organizations the funds will be invested in.
Unlike mutual funds, variable annuities do not generally give the investor as much control over how
their contributions are invested. One may think this lack of control would deter many from choosing
annuities but there is a redeeming quality of annuities, which is also the second major difference
between these two investments. The insurance company offering the variable annuity will guarantee
the initial amount invested. This means that if the annuity does well the investor will see a higher
return on investment but if the annuity does poorly, the investor will receive no less then he or she
initially invested.
A third difference is generally the fees involved with annuities, such as the agent commission, are
generally higher than that of mutual funds (TIAA–CREF, 2014).
Financial Analysis The Farmers Group Inc. oversees Farmers Insurance policies and financial
services, which is a wholly owned subsidiary of Zurich Global Insurance (Zurich, 2014). While I
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Fasb Application Paper
FASB issues different types of exposure documentation to solicit input on its standards setting
activities, includes discussion papers, exposure drafts, preliminary views and comment section. One
of standards and rulings that being contemplated through pending exposure draft document of FASB
is the proposed accounting standard update on Statement of Cash Flows (Topic 230) specifically on
classification of certain cash receipts and cash payments which is a consensus of the FASB
Emerging Issues Task Force. The stakeholders has stated there are diversity in the statement of cash
flows on how certain cash receipts and cash payment are presented and categorized. This proposal
of accounting standards update is to provide solution on eight specific ... Show more content on
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Currently under GAAP, the eight cash flow issues have either no guidance or provide unclear
guidance for the Statement of Cash Flows (Topic 230) specifically on classification of certain cash
receipts and cash payments. Therefore, this amendment will provide clear guidance to reduce any
diversity in practice. The effective date and when to adopt these changes will be depended on the
stakeholders' feedbacks. Also, the Board invites entities and individuals to participate on any issues
or comments they may have on this proposed update and the comments are due on March 29,
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The Seven Deadly Sins of Mahatma Gandhi
The Seven Deadly Sins mentioned by Mahatma Gandhi are: * Wealth without work
Nowadays we can see the evidence of people love to gain money without even have to do some
work. Well, we might love to do that. I do want to if I could, haha. However, if we take a deep sight
of it, we can see that there will be only two probabilities of people having some wealth without
doing any efforts: (1) those people are heading towards laziness and poverty, (2) those people do
corruptions. No offense, but money, wealth, is limited, and at one point it will be run out if the
people did not do some work to add more money. Another possibility is to do some corruptions.
People who corrupt can just manipulate money to add their own budgets. * Pleasure ... Show more
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Life insurance used to be rather straightforward, known for offering security to loved ones in a
tough time. So when Irma Johnson learned that her husband, Daniel, who died of brain cancer, had
been insured for $1.5 million, it should have been at least a small comfort. But she did not receive
the money. His employer did. It's one of the strangest free–market perversions that Michael Moore
highlights in his latest film, "Capitalism: A Love Story." In the corporate practice dubbed "Dead
Peasants" life insurance, companies wager on employees' lives, expecting to make money when they
die. And it's pervasive, said Mike Myers, an attorney who has uncovered many of these cases and
helped angry relatives sue. "Life insurance is traditionally used to guard against the death of
breadwinners. This is an investment scheme," he said. Dozens of blue chip companies have these
policies, according to Myers. But only banks are forced to reveal them, and several have billions of
dollars worth of policies. "The driving force behind it is the tax deductions," he said. The life
insurance policies were designed to allow companies to insure a few crucial executives. Savvy
companies then realized they could also get a tax break by insuring many lower–level employees.
The financial scheme doesn't actually cost the employees anything, except, some say, their trust.
Betina Tillman felt shocked and deceived when a reporter from The Wall Street Journal told her that
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The Decision Of Salomon V. Salomon
The decision of Salomon v. Salomon which brought about the doctrine of separate legal personality
is one which has evolved over time. Over a century and still counting, the principle illustrated in
Salomon, courts have are still reluctant in placing limitations on corporate personality and rejecting
other approaches which pose as a greater challenge to the doctrine . From time immemorial, judicial
history, lawyers and judges have reiterated that the doctrine of corporation is an intangible legal
entity, without the body and soul. In Athanasian terms, the orthodox doctrine of corporation as a
legal person, separate and distinct from the personality of the members who compose it, has been
defined and propagated .
This doctrine has been seen as a "two– edged sword," reason being that at a general level while it
was seen as a good decision in that by establishing that corporations are separate legal entities,
Salomon 's case endowed the company with the entire requisite attributes with which to become the
powerhouse of capitalism. At a particular level, however, it was a bad decision. By extending the
benefits of incorporation to small private enterprises, Salomon 's case has promoted fraud and the
evasion of legal obligations.
This paper seeks to address the effects and consequences of the separate legal personality via
making references to English and Ghanaian courts which has equally developed a criterion for
piercing the corporate veil.
A body corporate is a legal person
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Empirical Literature Review On Corporate Governance
2.4 Empirical Literature Review 2.4.1 Corporate Governance and Firms Performance The argument
of Berle and Means (1932) on corporate governance formed the foundation for further studies by
various researchers on the trend of corporate governance. Their study revealed the possibility of
creating a separation of control between the mangers who run the large size corporations and the
owners who are the provider of capital. This observation of a departure and separation of ownership
and control gave rise to a situation where emphasis is now focusing on the behavioural aspect and
topical theory of the firm. Kajola (2009) examined corporate governance and firm performance in
Nigeria The result reveals that there is a significant relationship between Return on Equity (ROE)
and board size as well as chief executive status. The study further reveals a positive significant
association between Profit Margin (PM) and chief executive. Weisbach (1988), Heranlin and
Weisbach (1991) examine agency theory and corporate governance .They observed that there is a
positives relationship between firm performance and the proportion of outside directors sitting on
the board. However, in the works of Forberg (1989), Weisbach (1991), Bhagat and Black (2002) and
Sanda ... Show more content on Helpwriting.net ...
(2000) was able to conclude that Independence together with activity of the Audit Committee is
associated with a lower incidence of AAER For control variables, growth of company or the CEO as
Chair of the Board resulted in a greater incidence of fraud. Klein (2002b) report of studies carried
out on corporate governance mechanism and abnormal accrual in the books established negative
relationship between board/audit committee independence and abnormal accruals. No evidence
between having all independent audit committee and abnormal accruals. Changes from majority
independent boards and/or audit committees result in as significant increase in abnormal accruals.
Percentage of CEO holdings is not
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Finance Mini Case
a. Why is corporate finance important to all managers?
The number one goal of managers is to increase the wealth of owners or shareholders. By
understanding corporate finance, managers gain the skills they need to know what strategies or tools
would be best for adding value to the organization.
b. Describe the organizational forms a company might have as it evolves from a start–up to a major
corporation. List the advantages and disadvantages of each form.
Sole Proprietorship–Advantages:
1. Easily and Inexpensively Formed
2. Few government regulations
3. Not subject to corporate tax code
Disadvantages:
1. Difficult to obtain large amounts of capital
2. Unlimited personal liability for the proprietor
3. The life of ... Show more content on Helpwriting.net ...
j. What do we call the price that a borrower must pay for debt capital?
The Interest Rate
What is the price of equity capital?
Dividends plus capital gains
What are the four most fundamental factors that affect the cost of money, or the general level of
interest rates, in the economy?
1. Production Opportunities
2. Time preferences
3. Risk
4. Expected Inflation
k. What are some economic conditions (including international aspects) that affectthe cost of
money?
The cost of money can be influenced by federal policy, fiscal and foreign trade deficits and a
specific country's risk.
l. What are financial securities? Describe some financial instruments.
Financial securities are pieces of paper with contractual provisions that entitle their owners to
specific rights and claims on specific cash flows or values. These may include T–Bills, negotiable
CDs, Municipal Bonds, Corporate Bonds and preferred and common stocks.
m. List some financial institutions.
Credit Unions, pension funds, commercial banks, mutual savings, savings & loans, insurance
companies
n. What are some different types of markets?
Capital Markets including stock markets and bond markets, commodity markets, money markets,
futures markets, insurance markets, foreign
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Gibson Insurance Company
Overview
Gibson Insurance Company has tasked Rebecca Hampton, the controller, with reviewing the
company 's allocation of corporate support costs in order to better assign the cost attributed to
product lines and business units. This is important because it would help to provide better
information for pricing decisions, sales compensation, and focus on areas in cost improvement.
Gibson sells two categories of financial products: annuities and life insurance. They are both sold by
in–house sales agents. Gibson decided to start purchasing other corporations in order to quickly
grow the company's customer base and its assets under management (AUM).
GIC acquired Compton Insurance Services and Midwest Mutual Insurance Company, and ... Show
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Third, they can redivide the support services to individual business units. This will help eliminate
the simple allocation issue. Only the cost incurred in each department of the business entity will be
attributed to the operations of the business entity. Fourth, Gibson can separate the individual product
lines support. They can have have four separate departments for new and in–force insurance and
annuities. This will dial in the cost not only to individual product cost but what status these products
use the most resources. It can turn much of the indirect cost into direct costs. Lastly, Gibson can
choose to do nothing. It can continue to use current method of allocation and make educated guess
on what costs are incorrect and what prices are set correct. This option is not an ideal one because
Gibson is currently losing money. After choosing and implementing one of the above options,
Gibson can begin to work on underlying issues. They can use the new cost allocation analysis to see
if any area of business is in need of adjustment. It can then decide if price meets the cost demands of
division and product line.
Action Plan
We agree with Gibson's controller that the new way of allocating costs is the best plan of action for
Gibson. Under the old system, costs were broken up by separate legal entities and product lines.
Using the old
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Life Insurance Products Of Malaysia
Life insurance products in Malaysia
The life insurance industry in Malaysia can be divided to family takaful and conventional life
insurance. Both family takaful and conventional life insurance are similar in providing protection
against the loss of income that would result in the death of the insured. However, unlike the
conventional life insurance in which the insured transfer the risk to the insurer, takaful mutual risk is
shared among the participants. Another major difference between them is the ownership of the
companies. A conventional life insurance company is owned by shareholders whose objective is to
maximize profits while a takaful company is owned by the participants whose objective is to
minimize the cost incurred. The total ... Show more content on Helpwriting.net ...
The minimum paid–up share capital of an insurer is RM 100 million while the supervisory Capital
Adequacy Ratio (CAR) for an insurer must be higher than 130%. CAR can be obtained by dividing
the total capital available by the total capital required and insurers must set their own CAR to reflect
their own profile risks and have a CAR higher than the 130% required.
Taxation
Taxation is always one of the crucial factors in business. After being fixed at 25% for seven years,
the standard corporate income tax in Malaysia is reduced to 24% from the year of assessment 2016.
In comparison, the company tax rate in Australia is higher although it is scheduled to decrease to
25% for all companies in 2026–2027. Apart from that, although Goods and Service Tax (GST) at
6% is implemented from 1st April 2015 in Malaysia, all life insurance products exempt from GST.
Market penetration rate
According to the BNM, the market penetration rate which is measured in terms of the sum of the life
insurance policies and family takaful in force to the total population has risen from 38.7% in 2005 to
54.9% in 2015. However, it remains distant from the government's targeted level of 75% in the year
2020. Although the market penetration rate for family takaful products was only a quarter of the
market penetration rate in 2015, its market penetration rate has increased steadily from 9.2% in 2009
to 14.7% in 2015. In
... Get more on HelpWriting.net ...
Real
CHAPTER 1
ATTITUDINAL HAZARD (MORALE): Carelessness to a loss
CHANCE OF LOSS: Probability that an event will occur
DIRECT LOSS: Financial loss from physical damage, destruction, or theft
DIVERSIFIABLE RISK: Affects individual or small groups (can be reduced or eliminated)
ENTERPRISE RISK: All major risks faced by business firms
STRATEGIC RISK: Uncertainty regarding firm's financial goals
OPERATIONAL RISK: Firm's operation results
FINANCIAL RISK: Uncertainty of loss due to adverse changes
ENTERPRISE MANAGEMENT RISK: Single program all major risks faced by business firms
(PSSOF)
HAZARD: Condition that increases the chance of loss
HEDGING: transferring risk to a speculator
INCORPORATION: Business firm transfers risk to creditors ... Show more content on
Helpwriting.net ...
hard to obtain
UNDERWRITING CYCLE SOFT MARKET: Profitability is improving, underwriting standards are
loosened, and insurance is easier to obtain
RISK MANAGEMENT: Process of identifying loss exposures faced by an organization (Identify
exposure, measure analyze exposure, select technique, implement and monitor)
RISK MANAGEMENT POLICY STATEMENT: Outline firm's policy and objectives
RISK MANAGEMENT MANUAL: Train new employees and describe risk management program
CHAPTER 4
FINANCIAL RISK MANAGEMENT: Identification, analysis, and treatment of speculative
financial risks
CALL OPTION: Gives owner the rights to buy 100 shares of stock at given price
PUT OPTION: Gives owner the rights to sell 100 shares of stock at given price
INTEGRATED RISK MANAGEMENT PROGRAM: Risk treatment that combines coverage for
pure and speculate risks
CHIEF RISK OFFICER: Responsible for treatment of pure and speculative risks
DOUBLE TRIGGER OPTION: Provision that provides for payment only if 2 specific losses occur
CAPACITY: Relative level of surplus
COMBINED RATIO: Ratio paid losses and loss adjustment expenses plus underwriting expense
NET PRESENT VALUE: Sum of present values of future net cash flow – cost of project
INTERNAL RATE OF RETURN: Project is the average annual rate of return by investment
SURPLUS: Difference between an insurer's assets and liabilities
CLASH LOSS: Several lines of insurance experience large losses
CONSOLIDATION: Combining of businesses through
... Get more on HelpWriting.net ...
Changes Of Fasb Accounting Standards Essay
Changes in FASB Accounting Standards
In 1973 the Financial Accounting Standards Board (FASB) was established to set the financial
accounting standards in the United States of America for nongovernmental entities. These standards
are collectively called U.S. Generally accepted Accounting Principles, or U.S. GAAP. The Securities
and Exchange Commission (SEC) and the American Institute of Certified Public Accountants
acknowledge the authority of these standards (FASB, n.d). A "proven, independent due process" is
used to collect the viewpoints of the financial statements prepares and users for the constant
improvement of these standards. An Accounting Status Update(ASU) is not an authoritative source
however documents the amendments to communicate the changes in the FASB Codification for a
user to understand the reason and future of those changes (FASB, n.d).
Accounting Standards update No. 2016–17: Consolidation (Topic 810)
Accounting Standards update No. 2016–17, Oct 2016; Interests Held through Related Parties That
Are under Common Control, is an amendment to the Consolidations Analysis Update 2015–02. The
purpose of this amendment is to provide guidance for consolidation to an entity that is the single
decision maker of a variable interest entity (VIE). The Variable Interest entity(VIE) is a term
reported by FASB to define an entity in which the controlling interest is held by an investor and is
not based on most voting rights. The party that has ownership, contractual, or
... Get more on HelpWriting.net ...

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Legal Existence Of Proprietorship Is Extension Of...

  • 1. Legal Existence Of Proprietorship Is Extension Of... SOLE PROPRIETORSHIP Definition business owned by one person legal existence of proprietorship is extension of proprietor may have any number of employees employee differs from indepedent contractor may do business under a tradename Formation obtain required state, county, and local licenses obtain federal employer indentification number if engage employees or independent contractors if engage employees: obtain workers compensation insurance file form UI– 1 with Illinois Department of Employment Security file form NUC–1 with the Illinois Department of Revenue verify existence of similar tradenames register tradename in County where business located investigate State of Federal trademark registratoins cannot register trademark until operation begin consider copyright registration begin operations Advantages avoid state corporate income tax ease of formation no double taxation of income or gain from sale of business assets deductions for ordinary and necessary business expenses and deductions for losses taken by owner personally to extent of other income (including spouse 's income if reported on joint return) and without any basis limitation Disadvantages unlimited liability of owner, including liability for acts done by employees in furtherance of proprietorship business no avoidance of Self–Employment tax certain fringe benefits unavailable: deduction for health insurance: 45% – 80% from 1997 – 2006 no exclusion for $50,000 life insurance no exclusion for employer–provided ... Get more on HelpWriting.net ...
  • 2.
  • 3. Octopus and Privacy: Business Ethics Octopus and Privacy: Business Ethics Table of Content Introduction 3 The Objective 3 Research Methods 3 Background of the Company 3 Background of the Issue 5 Identification of Issue 7 Analysis of Issues 8 Recommendation 10 Conclusion 11 Appendix 12 List of Reference 12 Introduction Hong Kong has one of the most highly successful e–purse programs, the Octopus card. The Octopus card, which began in the niche transportation industry and extended outward to retailers, has been widely adopted by consumers and a diverse number of merchants. More than 95 percent of Hong Kong's residents aged 15 – 65 carry the card. The Objective Our purpose is to develop some insights by investigating the management issue of the Octopus card ... Show more content on Helpwriting.net ... According to the report from The Octopus Holdings Company, the executive management was found the potential commercial of selling the private information early. The Octopus chief executive officer mentioned that the company was investigating a plan with AIG and CIGNA, which is the insurance company, and they got the satisfied result. For example, AIG, 35 thousands card holders received the insurance planning which was six months free life insurance. Over 1500 of that card holders were paid for upgrade their insurances. After they upgraded their insurance, the premium charged to 1.6million dollars for one year. The Octopus Holdings Limited could have a quarter profits in 3 years. Another example of CIGNA, the profit was better than AIG. Over 1300 card holders were bought the CIGNA insurance, the premium was 7.5million dollars for one year, The Octopus Holdings Limited could attain 1.5million dollars in one year. Finally, they chose CIGNA for long term partnership of insurance. In 2004, The Octopus Holdings Limited was cooperated with CPP, which is an insurance company, for losing card promotion. The Octopus Limited was provided the private information of card holders to CPP, such as telephone number, email address ... Get more on HelpWriting.net ...
  • 4.
  • 5. Pros and Cons of Corporate Health Care In the end, though, the argument against the proliferation of so much corporate medical research is not about vilifying corporations for the fact that they make profit–based decisions. The problem is simply that when it comes down to it, these profit–based decisions have too much of an impact on the medical field as a whole. While some corporate involvement is fine, and even beneficial, considering the ability of a corporation to work internationally and pool resources in labs with increasing amounts of research experience, the entire range of research only coming out of these labs where profit is the main goal leaves the field sorely lacking in areas that society simply can't ignore. Though revenue potential might be what makes this current climate hostile to corporations researching neglected medicines, the neglect of those medicines makes this current climate hostile towards the entire populace. The real solution lies in more publicly funded research, which would leave us with the ability to not only stop leaning so heavily on companies that can pull the rug out from under us at a moment's notice, but also the ability to research simply for the greater good and the advancement of a field necessary to the wellbeing of people in any and all walks of life. Publicly funded research on drugs which are beneficial to areas of medicine that have stagnated for too long not only relieves the pressure on corporations but also gives us the information we really need to continue to ... Get more on HelpWriting.net ...
  • 6.
  • 7. Branch Offices And The Branch Office Essay Branch Offices have been set up under the direct control of Divisional Offices. Branch Offices are the primary centers of LIC through which the insurance business is obtained. A major part of the LIC employees and officers are working in Branch Offices. The problems of policyholders are mostly solved by the Branch Offices. Branches are the first contacting place for the proposer‟s. The Branch Manager is head of the Branch & he is responsible for effective functioning of the Branch Office. There is provision for setting up a management committee at every branch office. At present, 2048 Branch Offices are functioning in the country. Usually the following departments are setup in a branch office: 1. New Business Department 2. Policy holder Servicing Department 70 3. Account Department 4. Office Service Department 5. Sales and Development Department 6. Claim Department 7. Machine Department 2.3.5 Agents The total number of agents on Roll is 1172983 as on 31st March, 2013 as against 1278234 as on 31st March, 2012. The number of active agents is 1121372 as on 31st March, 2013 as compared to 1214111 as on 31st March, 2012. In order to motivate and recognize high performers amongst agents, a premium club called the „Corporate Club‟ was formed w.e.f. the membership year 2004–05. The other 5 clubs formed to recognize agents who perform consistently year after year viz, Chairman, Zonal Manager, Divisional Manager, Branch Manager and Distinguished Agents have also ... Get more on HelpWriting.net ...
  • 8.
  • 9. Review Of Previous Empirical Literature Review of previous empirical literature: A core element in the economic literature is the center on expansion and the use of man–made, natural, and social capital. The fact that there are three different types of capital that can contribute to economic growth has led to a difference between weak and strong sustainability, as discussed by Pearce and Turner (1990), and Rennings and Wiggering (1997). Weak sustainability describes a situation where it is assumed that the total capital is maintained and that the three different elements of the capital stock can, to some extent, be used to substitute each other in a sustainable solution. On the other hand, strong sustainability requires each of the three types of capital to be maintained in its own right, at least at some minimum level. An example of an application of the strong sustainability concept is Herman Daly's criteria, which state that renewable resources must be harvested at (or below) some predetermined stock level, and renewable substitutes must be residential to offset the use of exhaustible resources (Daly, 1990). Arrow et al., 2004, in a joint authorship between leading economists and ecologists, present an approach for evaluating alternative criteria for consumption, seen over time in a sustainable development perspective. Inter–temporal consumption and utility are introduced here as measurement points for sustainable development. One of the determinants of consumption and utility is the productive base of ... Get more on HelpWriting.net ...
  • 10.
  • 11. Mcdonald's Fast Food Case Study Almost everyone has eaten at a McDonald's location and roughly 1 out of every 10 people has worked at this fast food chain at some point in their lives. I belong to both these groups and I have also heard much of this restaurant from business school. The corporation has a few simple goals that are versatile in different environments and cultures. "McDonald's main aims are to serve good food in a friendly and fun environment, to be a socially responsible company, and to provide good returns to its shareholders." (McDonald's). These are the principles that guide MCD both domestically and globally. The first objective of serving good food in a friendly and fun environment is relative. I used to work at a McDonald's franchise that was not owned by corporate. Our restaurant did not have a play area like one would expect to see at McDonald's and many other chains. We still had happy meals that came with cheap toys but that was about as fun as it got for our customers. It was a somewhat fun environment for the employees. Often, my coworkers and I would show up so stoned that we were proud just to be functional. Our managers would laugh at us and there were never repercussions for any of our actions. At least one person often had inappropriate music playing loud enough for customers to hear. One of our managers would show up drunk from time to time on her off days. I do not agree that the food is good. McDonald's is considered to have some of the lowest quality burgers ... Get more on HelpWriting.net ...
  • 12.
  • 13. U.s. Federal Tax Law A Federal Tax Law comprises of statutory provisions, administrative support and court decisions in certain cases. The first and foremost task of any Federal Tax Law is raising revenue for Federal and various state governments to absorb the cost of government operations. The role of social, economic, equity and political factors couldn't be ignored while discussing various tax consequences during particular budget period. Nevertheless, the amount of revenue raised through this method decides the amount of services that the government can afford to provide. The forum topics for this week are explained in following broad heads: Revenue generated through tax receipts ideally should exceed annual costs on various government operations. Moreover, the economic considerations involving amendment of Internal Revenue Codes for various depreciation deductions for purchase of business property and research/development deductions credits1. The second consideration, referred to, as social consideration give tax benefits to the employers encouraging health insurance and deduction for charitable contributions by employees as well as private companies. The equity considerations enable individuals or corporations to avoid the effect of double taxation on their taxable income. This could be necessarily ensured by deducting state and local taxes from Gross Income. The credit or deduction for certain foreign taxes and deductions for dividend received by corporations to avoid triple taxation. The ... Get more on HelpWriting.net ...
  • 14.
  • 15. The Deregulation Of The Insurance Industry Essay INTRODUCTION Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed sum of money to the insured 's beneficiary. With a large population and the untapped market area insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15–20% annually. Together with banking services, it adds about 7 percent to the country's GDP. In spite of all this, the growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian population is without life and health insurance cover. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation "Malhotra Committee" was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform. CLASSIFICATION OF INSURANCE The insurance industry in India can broadly classified in two parts. They are. 1) Life insurance. 2) Non–life (general) insurance. LIFE ... Get more on HelpWriting.net ...
  • 16.
  • 17. American National Insurance Co. American National Insurance Co. COMPANY OVERVIEW American National Insurance Co. is a major American insurance corporation. The corporate headquarter is located in Galveston, Texas since founding in 1905 by William Lewis Moody. American National Insurance Co. and its subsidiaries (collectively "American National") operate in all 50 U.S. states, the District of Columbia, Puerto Rico, and American Samoa. Subsidiaries consist of six life insurance companies, eight property and casualty insurance companies, and numerous non–insurance subsidiaries all operating only domestically. The company conducts its business through five segments. The following segments are: * Life * Annuity * Health * Property and casualty * ... Show more content on Helpwriting.net ... American National Insurance Co., as any other insurance company, faces with a risk of litigation and regulatory investigations including the risk of class action lawsuits, which may result in significant financial losses and harm its reputation. "In connection with their insurance operations, plaintiffs' lawyers may bring lawsuits, including class actions, alleging, among other things, issues relating to sales or underwriting practices, claims payments and procedures, product design, disclosure, administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, and breaches of fiduciary or other duties to customers."[2] Plaintiffs might request substantial amounts to be paid including punitive and treble damages. These damages could result in a material adverse effect on company's business, financial condition, results of operation and reputation. For example, "American National was a defendant in a lawsuit related to the alleged inducement of another company's insurance agents to become agents of American National. The jury reached a verdict adverse to American National, in the total amount of approximately $63.4 million, of which approximately $60.0 million represented punitive damages; however, the court subsequently reduced the punitive damages award, resulting in a total award of approximately $7.1 million against American National."[2] Company has been facing with other various types ... Get more on HelpWriting.net ...
  • 18.
  • 19. Case Study Of Bancassurance BANCASSURANCE INTRODUCTION The world has moved from narrow banking to broad and need based banking. Customer Satisfaction has become the key to modern day successful banking. The modern day customer looks at one step solution for all his financial needs. Separation of banking and other financial roles has become outmoded now. Post Gramm–Leach–Bliley (GLB) Act, 1999 scenario has indicated the increased preference for banks to deal with other non–banking financial products. Financial liberalisation and financial novelty have desegmented financial industry. Banks have now entered the untrodden path of insurance through Bancassurance. Bancassurance means selling insurance product through banks. Bancassurance is an amalgamation of two words, banks ... Show more content on Helpwriting.net ... The IRDA opened up the market in August 2000 with the invitation for application for registrations from insurance companies. Today there are about 28 non–life insurance companies 24 life insurance companies and in the country. With opening up of the economy, the insurance companies perceive the immensely potential Indian market and are running to establish multiple distribution channels such as agency, brokers, bancassurance and direct marketing. Bancassurance is coming up as one of the strongest distribution channels of insurance products. Banks have become major distribution channels for insurance companies. The insurance companies take the advantage of banks as distributors at a low cost. There are more than 80,000 banks out of which 65% of the branches are located in rural and semi urban areas and the rest 35% in urban and metropolitan areas. Apart from commercial banks, India also has a large network of rural cooperative and urban cooperative banks which acts as an impetus for bancassurance. In India banking and insurance sectors are regulated by two different apex bodies, Reserve Bank of India for banks and Insurance Regulatory and Development Authority (IRDA) for insurance sector. As Bancassurance is the amalgamation of the two sectors, it comes under ... Get more on HelpWriting.net ...
  • 20.
  • 21. Sony Corporation And Its Impact On The World Sony Corporation was founded on the 7th of May 1946 in Tokyo, Japan as a joint stock company under Japanese law. To start it, the founders incurred a cost of 190,000 yen. The co–founder of Sony Corporation in May 1946 was Masaru Ibuka. The other co–founder who founded the Sony Corporation in America iin160 was called Akio Morita. When established Sony Corporation was named Tokyo Tsushin Kogyo Kabushiki Kaisha but later in January 1958 the name was changed to Sony Kabushiki Kaisha which means Sony Corporation in English. Sony Corporation entered the list of the Tokyo stock exchange in December 1958. (Cooper, 1995) Sony TR–72 which was a transistor radio was released in December. In 1960 the TV8–301, the first direct television ever in the world, was introduced. In June 1961, it distributed American Depositary Receipts ("ADRs") all though the United States of America. N 1962 the smallest and lightest TV was introduced. In March 1968, Sony established CBS/ the Sony records inc. in Japan, which is currently known as Sony Music Entertainment (Japan) Inc. ("SMEJ"). It was set up as a company whereby there is 50–50 joint venture between the Sony Corporation and CBS Inc. in USA. SMEJ became a Sony corporation's wholly–owned subsidiary in January 1988. In November 1991, Sony music entertainment Japan was listed on the 2nd section of TSE (Robert, 2014) In September of 1970, the Sony Corporation was in the New York stock exchange. In august of 1979, Sony founded the Sony ... Get more on HelpWriting.net ...
  • 22.
  • 23. Annuity Insurance Products : Insurance Companies Annuity Insurance Products Insurance companies also sell annuities, a special type of insurance that 's primarily designed to protect people during retirement. Each type of annuity has unique features that are designed to address specific situations. The annuity works like a pension plan that 's based on your life expectancy and initial investment. The non–premium portion of the annuity is not taxed, but the interest portion is subject to tax. Benefits of annuities include no annual limits to contributions, the ability to create annual income that you won 't outlive and death benefits that can pass directly to your beneficiaries without going through probate delays and expenses. You can ensure that your heirs receive a guaranteed death ... Show more content on Helpwriting.net ... Lifetime Annuity This insurance product guarantees a lifetime payout, which makes it an idea supplement to Social Secuurity.You can even buy the product for two lifetimes –– yours and your spouse's. Master Limited Partnerships Master limited partnerships or MLPs generate solid tax advantages for investors who are willing to accept slower growth but with less risk. Used in slowly growing industries like pipelines, the MLP business structure consists of managing general partnership shares and limited partnerships that have no say in operations. Cash distributions remain relatively stable over time, and yields usually fall in the 6% to 7% range. Unlike corporations where income is taxed twice, partnership owners only pay tax when they receive their distributions. Any capital gains are deferred until you decide to sell your shares of the partnership, which makes these partnerships sound tax–advantaged investments. MLPs can be used to pursue wide–ranging projects that just aren 't feasible for investors if they face double taxation on limited growth options. Receiving higher yields are your reward for investing in entities that are tax–advantaged. MLPs trade like stocks. Partnership earnings can be offset by depreciation that you can deduct and domestic energy tax breaks ... Get more on HelpWriting.net ...
  • 24.
  • 25. Principles of Banking Principles Of Banking & Finance Chapter 2 : Financial Systems Economic function: Channeling funds from units who have saved surplus funds to units who have a shortage of funds. Lenders–Savers : Units who have saved can lend funds. Borrower–Spenders : Units with a shortage of funds must borrow funds to finance their spending. Channelling of funds are important because, – Lender–savers have excess of available funds but do not frequently have profitable investment opportunities, while borrower–spenders have investment opportunities but lack of funds. – Borrower–spenders may want to invest in excess of their current income or to adjust the composition of their wealth. Direct Finance : Borrower–Spenders ... Show more content on Helpwriting.net ... Mid 1980s – Texas real estate and land prices crash, determined the default of many borrowers with mortgage loans issued by S&Ls, thus many S&Ls failed at end of 1980s. 1989 – New legislation, FIRREA is adopted. (Financial Institutions Reform, Recovery & Enforcement Act) 3. Credit Unions – Non–profit institutions mutually organised and owned by depositors. – Satisfy the depository and lending needs of their members belonging to a particular group. – Deposits used to provide loans to other members and earnings from these loans are used to pay higher rates to member depositor. – Most numerous among depositary institutions (8535 in 2006 according to Credit Union National Association) Contractual Savings Institutions – Acquire funds at periodic intervals on a contractual basis. – Liquidity of assets is less important as they can predict with reasonable accuracy the future payments due to their customers. – Invest their funds in long–term securities. (Corporate Bonds, Stocks and Mortgages) 1. Insurance Companies – Protect individuals and firms (aka. policy holders) from adverse events. – Receive premiums from policy holders and ... Get more on HelpWriting.net ...
  • 26.
  • 27. Essay On Collective African Americans Collective African American spending power exceeds $1 trillion dollars annually. Because of this economic reality, a wide variety of companies/corporations having ongoing marketing campaigns to reach this important segment of the U.S. consumer market. It is hard to believe that not long ago; black consumers were practically ignored in the American marketplace. (Griggs 94) African Americans were not seen an attractive and profitable consumer market. There were distinct social, economic, and political reasons for this situation. First, the majority of blacks lived in the rural South away from major cities. Second, many of these individuals were sharecroppers with little disposable income. Finally, the rules of Jim Crow racial segregation relegated rural southern blacks to the margins of society, including being unable to vote. Because of blacks' marginality at the time in economics and politics, white Americans, including white businesses, believed they could malign African Americans. This helps to explain the use of derogatory advertisings using insulting black images during this period. Some white companies as a part of their regular advertising featured blacks with exaggerated physical characteristics in their ... Show more content on Helpwriting.net ... These firms, historically, reinvested a large proportion of their premium income back into black community real estate. These companies provided needed capital for the home mortgage market in black urban communities. With the disappearance of these firms and the continuing reluctance of major banks and other financial institutions to invest in black neighborhoods, African Americans with more income than ever before nonetheless were more likely to get sub–prime bank loans. These loans, in turn, helped create the 2008 economic collapse which wiped out a disproportionate amount of black homeowner ... Get more on HelpWriting.net ...
  • 28.
  • 29. The Merger of Allianz Group and Dresdner Bank 1. Introduction In our days mergers and acquisitions are a predominant feature of the international business system as companies attempt to exploit new market opportunities and to strengthen their market positions. Each year sets a new record for the total value of mergers and acquisitions and nearly every day new announcements are made in the business newspapers. In the literature one finds a large number of explanations for the occurrence of mergers and acquisitions. Sometimes, these explana–tions are also applicable to related forms of interindustrial links such as joint ventures or strategic alliances. Therefore it is necessary to define the term merger and acquisition as it will be used throughout this seminar paper. 1.1 ... Show more content on Helpwriting.net ... Conglomerate and vertical mergers help to strengthen the market power by discouraging potential entrants. The monopoly theory played a dominant role in the past, especially in the first great merger wave in the U.S. between 1887 and 1904. Today most of the horizontal mergers are too small to confer monopoly power, because larger acqui–sitions fall under intense antitrust scrutiny. In the industrial strategy and organization literature mergers are often explained in terms of synergies and/or efficiencies. The efficiency theory is based on the assumption that the combined firms are more profitable than the companies operating separately because of the operational, managerial and financial synergies. Operational synergies include economies of scale, economies of scope and economies of experience. The valuation or information theory explains a merger from a financial instead of a strategic perspective and assumes that the current market price of a company does not reflect the true value. The company which buys an undervalued firm believes it can manage the target company better than the current management. Corporate buying and selling activities are traced back to the conditions of financial markets. Presently globalization is the key feature of the new competitive landscape within which mergers are taking place. However, it is impor–tant to keep in mind that globalization is a trend and not an already exis–ting condition. Globalization is not spreading ... Get more on HelpWriting.net ...
  • 30.
  • 31. What are bank and non-bank financial institution, compare... "Warning: Saving May Be Hazardous to your Wealth" Financial institutions such as banks, insurance companies and pension funds are also known as 'Financial Intermediaries'. They dominate the financial scene all around the globe. It is virtually impossible to spend or save or lend or invest money nowadays without getting involved with some kind of financial intermediary in one way or another. Although all have similar functions, yet they are different. They are as follow... Banks versus Non–Banks – A Brief Comparison A sharp distinction has been drawn between the commercial banks, on one hand, and all other financial institutions on the other, such as life insurance companies, property and casualty insurance companies, savings and loans ... Show more content on Helpwriting.net ... Today, they are subject to the same requirements just like commercial banks, in terms of deposits. Also, the line that separates such associations and commercial banks has become indistinct lately, and hence, has been competitive. Life Insurance Companies Life insurance companies, such as Prudential or Manulife Insurance Companies, and even VIG, have been a popular choice for people to invest their money. It has been a doubled benefits way of investing or saving money, we are not only saving our money, but also have our lives insured. This is especially for those who are affordable, usually Middle to Upper classes. It's beneficial because a life insurance guarantees the payment of the agreed sum of money during a person's death, although that person has to pay yearly premiums for the agreed life years within specific age requirements. This is profitable because the person will get interests, which usually is high enough. Pension and Retirement Funds According to Kamerschen (1984), pension funds hold their assets in the form of corporate stocks, although some other long–term claims, such as real estate, corporate bonds, government obligations, and many others are held. Such funds are usually for those into retirement and pension age, also, these retirement funds are normally chosen as a source of investment with the objective of secured and guaranteed retirement
  • 32. ... Get more on HelpWriting.net ...
  • 33.
  • 34. Fi515 Chapter 1 Mini Case MINI CASE a. Why is corporate finance important to all managers? Corporate finance is important to all managers because it provides managers the skills needed to identify and select the corporate strategies and individual projects that add value to their firm and forecast the funding requirements of their company and devise strategies for acquiring those funds. b. Describe the organizational forms a company might have as it evolves from a start–up to a major corporation. List the advantages and disadvantages of each form. The organizational forms a company might have as it evolves from a start–up to a major corporation are proprietorship, partnership, or corporation. The advantages of a proprietorship are: Easy and ... Show more content on Helpwriting.net ... Failure to handle these situations properly can lead to huge product liability suits and even bankruptcy. e. What three aspects of cash flows affect the value of any investment? The three aspects of cash flows the affect the value of any investment are the amount of expected cash flows, the timing of the cash flow stream, and the risk of the cash flows. f. What are free cash flows? Free cash flows are the monies available for distribution to all investors after paying current expenses, taxes, and making the investments necessary for growth. g. What is the weighted average cost of capital? The weighted average cost of capital is the rate that a company is expected to pay on average to all its security holders to finance its assets. h. How do free cash flows and the weighted average cost of capital interact to determine a firm's
  • 35. value? Free Cash Flow = Sales Revenues – Operating Costs and Taxes – Required Investments in Operating Capital. Weighted Average Cost of Capital (WACC) is affected by market interest rates, market risk aversion, cost of debt, cost of equity, firm's debt/equity mix, and firm's business risk. Therefore, free cash flows and the weighted average cost of capital interact to determine a firm's value by the following equation: Value = FCF1 + FCF2 + ... + FCF00 (1 + WACC)1 (1 + WACC)2 (1 + WACC)00 i. Who are the providers (savers) and users (borrowers) of capital? How is capital ... Get more on HelpWriting.net ...
  • 36.
  • 37. Philippine Financial Institutions FINANCIAL INSTITUTIONS * Regarded as the suppliers of financial resources. * Enormous capital structure compared to other institutions (Educational and Religious) * Funds that they supply to the different markets do not originate totally from them but some come from the public source. * Their vast activities interlinked with the activities of other business organizations. * They are part of different aspects of the use and need of Financial Resources. INSTITUTIONS IN THE PHILIPPINE FINANCIAL SYSTEM (As classified by The Bangko Sentral ng Pilipinas) I. Bank Financial Institutions II. Non–bank Financial Intermediaries III. Non–bank Thrift Institutions I. CLASSIFICATION OF BANK FINANCIAL INSTITUTIONS AND THEIR ... Show more content on Helpwriting.net ... * Most RB's have ATMs, Remittance services, Peso and Dollar Accounts, Checking accounts, Time Deposits, Micro financing loans and OFW placement loan packages. 4. Quasi Banks a. Non–bank quasi bank Investment House P20 Million b. Investment House not Non–bank quasi bank P20 Million http://beginnersinvest.about.com/od/banking/a/investment–bank.htm II. NON–BANK FINANCIAL INTERMEDIARIES AND THEIR MINIMUM CAPITALIZATION (Privately owned Institutions) 1. Investment house P20 Million * Any enterprise which engages in the underwriting of securities of other corporations * organized in the form of stock corporations 2. Financing Companies P0.5 Million http://www.chanrobles.com/republicacts/republicactno9474.html#.US8ZxqJHI–c 3. Investment Companies no specification 4. Insurance Companies * A company that offers insurance policies to the public * selling directly to an individual or through another source such as an employee's benefit plan. * usually comprised of multiple insurance agents. * An insurance company can specialize in one type of insurance, such as life insurance, health insurance, or auto insurance, or offer multiple types of insurance.
  • 38. a. Direct writing company P10 Million b. Professional Reinsurer P15 Million Example: Insular Life Manulife China Bank Life Assurance Corporation Philippine American Life and General Insurance ... Get more on HelpWriting.net ...
  • 39.
  • 40. Berkshire Hathaway Inc. : Overview Berkshire Hathaway Inc., fused on June 16, 1998, is a holding company which is maintaining subsidiaries occupied in various business activities around the world. The Company has conducted insurance businesses on both a primary basis and a reinsurance basis, a freight rail transportation business and a group of utility and energy generation and distribution businesses. Its insurance and reinsurance business activities has been piloted through various domestic and foreign–based insurance bodies. Its insurance businesses provide insurance and reinsurance of property and casualty risks and also reinsure life, accident and health risks across the world. Its subdivisions will include GEICO, General Re, Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Primary Group, BNSF, Berkshire Hathaway Energy, McLane Company, Manufacturing, Service and retailing, and Finance and financial products. Warren Buffett and Berkshire Hathaway Inc. have announced the authorized equity holdings of Berkshire Hathaway. As shown in many announcements, over half of Company's overall equity holdings are heavily focused on just four top holdings, as follows: Wells Fargo & Co., International Business Machines Corp., Coca–Cola Co. and American Express Co. Berkshire Hathaway Inc. stock portfolio has increased from $109.57B to $127.41B this quarter. Warren Buffett 's largest three holdings are at 50% of the entire portfolio. During 2015, Berkshire Hathaway 's long stock portfolio increased 16.27% ... Get more on HelpWriting.net ...
  • 41.
  • 42. Tax Planning With Life Insurance Table of Contents Tax Planning with Life Insurance 3 What is tax planning with life insurance? 3 What is the tax–deferred buildup of cash value? 3 What are the general tax rules for life insurance? 3 What about modified endowment contracts? 5 What about personal life insurance trusts? 5 Regarding business insurance, what are some of the planning vehicles? 6 How can tax planning with life insurance help you with charitable giving? 7 Disclosures 8 Tax Planning with Life Insurance What is tax planning with life insurance? Life insurance can help you achieve various goals. Tax planning with life insurance involves minimizing the tax consequences of your life insurance decisions. Tax planning vehicles involving life insurance will vary, ... Show more content on Helpwriting.net ... Thus, the buildup (increase) of the cash value represents tax–deferred income. What are the general tax rules for life insurance? For federal income tax purposes, an insurance contract cannot be considered a life insurance contract (and thus qualify for favorable tax treatment) unless it is treated as a life insurance contract under applicable state law and meets either the cash value accumulation test or the cash value corridor test. The tax treatment of your life insurance policy will vary depending on the type of distribution (i.e., a lifetime distribution, or death proceeds, or dividends). Generally speaking, lifetime distributions (other than loans) from such cash value life insurance policies are treated as made on a first in/first out (FIFO) basis for federal income tax purposes. In other words, money that you take out is treated as your nontaxable basis or investment in the contract first. Only amounts that exceed your basis are treated as taxable distributions. Distributions A lifetime distribution is any payment of the cash value of a life insurance policy during the lifetime of the insured, as opposed to the payment of the proceeds following the death of the insured. Generally, there are three major types of lifetime distributions: loans, partial surrenders, and full surrenders.  With a loan, the policy owner borrows money from the insurance company, using the cash value
  • 43. ... Get more on HelpWriting.net ...
  • 44.
  • 45. The Allianz Group Case Study The Allianz Group is a financial services provider with worldwide presence. It offers a wide range of insurance and asset management products and services for both private and corporate consumers. It is present in more than 70 countries, with about 108,000 employees serving more than 83 million customers. It is the market leader in insurance market in Europe and is one of the largest asset managers in the world, with €1,170 billion assets under management. The company was established as a transport and accident insurer in Berlin in 1890. They engaged in international move three years later with branches in Europe and the USA and were listed in Berlin Stock Exchange in 1895. They resumed international expansion after WW2. They ... Show more content on Helpwriting.net ... IV. "Global management: enforcing and reinforcing a transnational Sticking to the French example, one can say that the management practices implemented by Allianz try to go beyond the classical HQ–subsidiaries tensions. This willingness (in words, if not in deeds) to overcome such antagonisms is illustrated below: Cross–border group mobility: strategy" The Allianz Worldwide Partners (AWP) project: o Senior management: two current members of Allianz France's ExCo are
  • 46. German but only one of them was "sent" by HQ (i.e., previously worked there). Conversely, the head of Group Internal Audit is a Frenchman who did most of its career in France since the AGF era. o Middle–management: the assignment to Group HQ of well–educated employees (typically from French "Grandes Ecoles") after 5 years at Allianz France has become a normal practice. Assignees gain visibility and feel closer to the Group's decisions. o Rationale: the Group has set the development of B2B2C insurance (typically, policies subscribed by companies for their employees) as a top priority. On the medium term, all the Group's activities on this segment should become part of the dedicated AWP ... Get more on HelpWriting.net ...
  • 47.
  • 48. Public Finance Institutions in India- a Brief Discussion Public finance institutions According to sec 4A of companies cat 1956: (1) Each of the financial institutions specified in this sub–section shall be regarded, for the purposes of this Act, as a public financial institution, namely:– (i) the Industrial Credit and Investment Corporation of India Limited, a company formed and registered under the Indian Companies Act, 1913 (7 of 1913); (ii) the Industrial Finance Corporation of India, established under section 3 of the Industrial Finance Corporation Act, 1948 (7 of 1948); (iii) the Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964); (iv) the Life Insurance Corporation of India, established under ... Show more content on Helpwriting.net ... 2005 ICICI acquired Investitsionno–Kreditny Bank (IKB), a Russia bank with about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International Financial Centre and in Hong Kong. 2006 ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened representative offices in Bangkok, Jakarta, and Kuala Lumpur. 2007 ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra State, and which had 158 branches in Maharashtra and another 31 in Karnataka State. Sangli Bank had been founded in 1916 and was particularly strong in rural areas. ICICI also received permission from the government of Qatar to open a branch in Doha. ICICI Bank Eurasia opened a second branch, this time in St. Petersburg. 2008 The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch. ICICI also established a branch in Frankfurt. *2.Industrial* Development Bank of India The Industrial Development Bank of India Limited commonly known by its acronym IDBI is one of India's leading public sector banks and 4th largest Bank in overall ratings. RBI categorised IDBI as an "other public sector bank". It was established in 1964 by an Act of Parliament to provide credit and other ... Get more on HelpWriting.net ...
  • 49.
  • 50. GEICO Executive Summary EXECUTIVE SUMMARY At the heart of the success stories of most businesses lies its marketing campaign. The marketing program of a company encompasses many factors such as promotions, advertising, public relations, sales etc. This project is an endeavor by our team to study the marketing mix and strategies of a leading American auto–insurer GEICO in a highly competitive market with low product differentiation elevating the need for a successful marketing campaign. The project report explores the past and present of GEICO, its achievements and growth through the years. It takes a close look at the four Ps (Product, Place, Price, Promotions) of its marketing mix and how these have been integrated to create a high brand recognition and position ... Show more content on Helpwriting.net ... The company with a niche for humorous and creative ad campaigns has one of the highest brand recognition across any sector in America. CHAPTER 2: INDUSTRY ANALYSIS GEICO operates in the insurance business which is regulated by the Federal Insurance Office in the United States. The insurance industry in the United States is the largest in the world in terms of insurance premiums, exceeding $1.2trillion. Despite this it is not in the top 10 countries of the world in terms of the insurance premiums paid per capita of population. This indicates that there are still unsaturated markets to be tapped which gives a huge scope of future growth. The auto insurance industry provides products (insurance policies) which are more or less homogeneous creating the need for differentiation which can be achieved by advertising your company in a unique manner or identifying various target segments in the market and concentrating your business on them. For the same reason, this industry has one of the highest advertising to sales ratio. 2.1 ANALYSIS OF PORTER'S 5 FORCES 1. Supplier's Bargaining ... Get more on HelpWriting.net ...
  • 51.
  • 52. Difference Between Icici Bank N Axis SERVICE SECTOR MANAGEMENT | ICICI BANK AND AXIS BANK | WHAT IS A BANK? A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. In other words, an institution where one can place and borrow money and take care of financial affairs ABOUT The Banking sector in India has always been one of the most preferred avenues of employment. In the current decade, this has emerged as a resurgent sector in the Indian economy. As per the McKinsey report 'India Banking 2010', the banking sector index has grown at a compounded annual rate of over 51 per cent since the year 2001, as compared to a 27 per cent growth in the market index during the same period. It is ... Show more content on Helpwriting.net ... The merger would enhance value for ICICI shareholders through the merged entity's access to low– cost deposits, greater opportunities for earning fee–based income and the ability to participate in the payments system and provide transaction–banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee–based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly–owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ... Get more on HelpWriting.net ...
  • 53.
  • 54. An Overview of the Canadian Financial-Services Sector:... An Overview of the Canadian Financial–Services Sector: Banking Industry What is a financial intermediary? A financial intermediary is an organization that raises money from investors and provides financing for individuals, companies and other organizations. Intermediaries are a stop on the road between savings and real investment. Mutual funds and pension funds are two important classes of intermediaries. A financial institution usually suggests a more complicated intermediary doing more than just pooling and investing savings. Banks and insurance companies are good examples. A bank is where you can borrow money only if you can prove you don¡¯t need it. To some extent, this joke is more truth than fiction. While banking has a ... Show more content on Helpwriting.net ... In past, Schedule I Banks ought to be widely held by a large number of shareholders, originally with no investor holding more than 10% and foreign ownership was previously limited to 25%. However, these rules have been changed according to a new legislative policy framework introduced in June of 2000. Under the new rules, there are three sub–classes of banks, based on the size of their equity capital: 1) large (greater than $5 billion); 2) medium ($1 to $5 billion); and 3) small (less than $1 billion). Based on present figures, the $5 billion cut–off point would establish the top six Schedule I Banks as large banks, except the National Bank (although it would be classified as such until deemed otherwise by the Minister of Finance). The large banks have to remain widely held under new criteria that eliminate the 25% foreign ownership rule, and permit a single investor to own up to 20% of the voting shares of the bank, and up to 30% of non–voting shares, subject to a ¡°fit–and proper¡± test designed to evaluate their character and suitability. Medium banks would be allowed to have a single owner hold up to 65% of shareholdings and would be required to maintain a public float of at least 35% of voting shares. Small banks would face no ownership restrictions other than the ¡°fit and proper¡± test. Following the reform, the nationality is no longer a ... Get more on HelpWriting.net ...
  • 55.
  • 56. Fin 515 Week 1 Homework Minicase Kimberly Pulda Mini Case A. Corporate finance is important to all managers because it helps identify the goals of the company. These goals are: a. Identifying b. Creating c. Delivering highly valued products and services to customers The goals require the three attributes which are first, successful companies have skilled people at all levels inside the company. Second, successful companies have a strong relationship outside the company. Third, successful companies have enough funding to execute their plans and support their operations. The skills provided are to identify and select the corporate strategies and individual projects that add value to their firm and also to forecast the funding requirements of ... Show more content on Helpwriting.net ... G. Weighted average cost of capital is the average rate of return required by all of the company's investors. H. They interact with intrinsic value which is the sum of all the future expected free cash flows when converted into today's dollars. m. FCF has sales revenue to operating costs to required investments in operating capital n. WACC has market interest rates and market risk aversion, firms debt/equity mix and firm's business risk which all go to cost of debt and cost of equity which both areas end up at the value. I. o. The providers and users of capital are x. households: net savers, xi. non–financial corporations: net users xii. governments: U.S. governments are net borrowers, some foreign governments are net savers xiii. financial corporations: slightly net borrows, but almost breakeven p. Capital is transferred between savers and borrows by xiv. Direct transfer xv. Through an investment banking house xvi. Through a financial intermediary J. The price that a borrower must pay for debt capital is called interest. The price of equity capital is called required return The four most fundamental factors that affect the cost of money are 1. Production opportunities 2. Time preferences for consumption 3. Risk 4. Expected inflation K. Some ... Get more on HelpWriting.net ...
  • 57.
  • 58. HR and the Competiton for Talent Essay In today's competitive workforce, talent is not only incremental, but also scarce. War for talent, a term coined by Steven Hankin of McKinsey & Company, refers to the competitive landscape of talent management of skilled and valuable employees. Talent management is defined as "the implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining and utilizing people with the required skills and aptitude to meet current and future business needs" (Lockwood, 2006). This paper talks about the challenges faced by organizations and how organizations use strategic HR to overcome concerns regarding attraction, recruitment and retention of talented ... Show more content on Helpwriting.net ... Telecommuting programs are also aided with the arrangement of appropriate technology, which makes working from home easier. As one of the large–scaled companies Deloitte and the Westpac Group understand the challenges associated with employee satisfaction. Both of these companies improved their IT and Information and Communication Technology structure respectively by providing their staff with the appropriate technology to carry out tasks from the comfort of their homes. Westpac allows applicable employees the option to work from home and telecommute, this is mutually sustainable with the company philosophy that acts a vital contributor to attract lateral hires (Deloitte, 2013). Not only did Deloitte and Westpac recognize that in order for their telecommuting program to work they needed to provide the staff with the right tools to do the job efficiently and compliantly, they were also able to connect to a wider range of their staff. Empirical research conducted by Deloitte shows that to "Only 62% of employees without access to flexible IT policies report feeling satisfied at work. Up to 83% of employees with access to flexible IT policies (such as social media access) report feeling satisfied at work" (Deloitte, 2013). Telecommuting plays a substantially large role in the strategic HR department, which includes employee satisfaction. A categorical and strategic plan that leaves no room for ... Get more on HelpWriting.net ...
  • 59.
  • 60. Dead Peasant Insurance Policies Ke Li 14147485 Econ 4315 Writing Assignment 1 02/05/17 Dead Peasant Insurance Policies For many years, the organizations had purchased life insurance for their employees, the key reason is that through some key personnel from the insurance company to maintain their own financial loss on their lives when events occur (Martin, 2010). On the other hand, the insurance company by emphasizing their tax advantages, to encourage corporations to purchase the corporate–owned life insurance. The goal of corporate–owned life insurance is corporations need to take large loans in order to pay for the insurance fee and make the maximize profits of tax. At the same time, the corporations can get a large amount of income tax from their interest payment. However, in 1986, the insurance organizations established new form which named Tax Reform ... Show more content on Helpwriting.net ... To answer this question, the important point is who is the largest beneficiary in these policies and what actually make policy profitable, it is an insurance company, corporations or market? The companies earn extra profits from the dead peasant insurance policies. For example, the company encourages their employees to buy the insurance and many of employee were voluntary because if they suffer some unforeseen events, they will get the compensation from the insurance company. But when events occur, the employee had already demotion or dismissal. Thus, employees are not larger beneficial owner, corporation is. However, there has one question that is the insurance company how to keep their business, even if they found the beneficiary is a corporation under these policies. Actually, the main driving force for company adapt to these policies is tax law, not free market competition.(Smith, 2011)Therefore, the corporation wants to gain the extra benefits from the dead peasant policies is the main reason why dead peasant insurance policies ... Get more on HelpWriting.net ...
  • 61.
  • 62. Berkshire Hathaway Essay Berkshire Hathaway From Wikipedia, the free encyclopedia Jump to: navigation, search Berkshire Hathaway Inc. Type Public (NYSE: BRKA, NYSE: BRKB) Founded 1839 (as Valley Falls Company) Founder Warren Buffett Headquarters Omaha, Nebraska Area served USA Key people Warren E. Buffett (Chairman) & (CEO) Charles T. Munger (Vice Chairman) Industry Property and casualty insurance, Diversified investments Products Conglomerate focused on insurance Market cap US$ 196 Billion (2008) Revenue ▲ US$ 118.245 Billion (2007) Operating income ▲ US$ 20.161 Billion (2007) Net income ▲ US$ 13.213 Billion (2007) Total assets ▲ US$ 273.160 Billion (2007) Total equity ▲ US$ 120.733 Billion (2007) ... Show more content on Helpwriting.net ... Buffett initially maintained Berkshire's core business of textiles, but by 1967, he was expanding into the insurance industry and other investments. Berkshire first ventured into the insurance business with the purchase of National Indemnity Company. In the late 1970s, Berkshire acquired an equity stake in the Government Employees Insurance Company (GEICO), which forms the core of its insurance operations today (and is a major source of capital for Berkshire Hathaway's other investments). In 1985, the last textile operations (Hathaway's historic core) were shut down. [edit] Berkshire facts Berkshire's Class A shares sold for $125,000 as of September 16, 2008, making them the highest–priced shares on the New York Stock Exchange, in part because they have never had a stock split. Shares closed over $100,000 for the first time October 23, 2006. Berkshire Class B shares trade at a fraction (1/30) of the Class A prices. Despite its size, Berkshire is not included in broad stock market indices such as the S&P 500. Berkshire's CEO, Warren Buffett, is respected for his investment prowess and his deep understanding of a wide spectrum of businesses. His annual chairman letters are read and quoted widely. Barron's Magazine named Berkshire the most respected company in the world in 2007 based on a survey of American money managers.[2] As of 2005, Buffett owned 38% of Berkshire Hathaway. Berkshire's Vice–Chairman ... Get more on HelpWriting.net ...
  • 63.
  • 64. Training And Managerial Accounting For Decision Making Introduction Many of the lessons learned in FIN 301 (Corporate Finance) and ACCTG 211 (Financial and Managerial Accounting for Decision Making) are evident in everyday life as well as within my internship at Farmers Insurance. This journal entry will focus on two areas where my internship corresponds to the concepts learned in these courses. The first area is the financial services Farmers offers its customers and the second is the financial situation of Farmers Insurance. Financial Services Farmers Insurance offers financial services to its customers in the form of mutual funds and variable annuities. Farmers' agents that choose to get a securities license are able to offer their customers advice and participation in these two services. ... Show more content on Helpwriting.net ... These preferences can include, but are not limited to, aggressiveness vs. security, ethics, and amount to be invested. Some mutual funds focus on more volatile stocks then others. This is important because a participant's return on investment is directly related to the performance of the investments made by the mutual fund manager. An individual can also select a mutual fund based on the types of organizations the funds will be invested in. Unlike mutual funds, variable annuities do not generally give the investor as much control over how their contributions are invested. One may think this lack of control would deter many from choosing annuities but there is a redeeming quality of annuities, which is also the second major difference between these two investments. The insurance company offering the variable annuity will guarantee the initial amount invested. This means that if the annuity does well the investor will see a higher return on investment but if the annuity does poorly, the investor will receive no less then he or she initially invested. A third difference is generally the fees involved with annuities, such as the agent commission, are generally higher than that of mutual funds (TIAA–CREF, 2014). Financial Analysis The Farmers Group Inc. oversees Farmers Insurance policies and financial services, which is a wholly owned subsidiary of Zurich Global Insurance (Zurich, 2014). While I ... Get more on HelpWriting.net ...
  • 65.
  • 66. Fasb Application Paper FASB issues different types of exposure documentation to solicit input on its standards setting activities, includes discussion papers, exposure drafts, preliminary views and comment section. One of standards and rulings that being contemplated through pending exposure draft document of FASB is the proposed accounting standard update on Statement of Cash Flows (Topic 230) specifically on classification of certain cash receipts and cash payments which is a consensus of the FASB Emerging Issues Task Force. The stakeholders has stated there are diversity in the statement of cash flows on how certain cash receipts and cash payment are presented and categorized. This proposal of accounting standards update is to provide solution on eight specific ... Show more content on Helpwriting.net ... Currently under GAAP, the eight cash flow issues have either no guidance or provide unclear guidance for the Statement of Cash Flows (Topic 230) specifically on classification of certain cash receipts and cash payments. Therefore, this amendment will provide clear guidance to reduce any diversity in practice. The effective date and when to adopt these changes will be depended on the stakeholders' feedbacks. Also, the Board invites entities and individuals to participate on any issues or comments they may have on this proposed update and the comments are due on March 29, ... Get more on HelpWriting.net ...
  • 67.
  • 68. The Seven Deadly Sins of Mahatma Gandhi The Seven Deadly Sins mentioned by Mahatma Gandhi are: * Wealth without work Nowadays we can see the evidence of people love to gain money without even have to do some work. Well, we might love to do that. I do want to if I could, haha. However, if we take a deep sight of it, we can see that there will be only two probabilities of people having some wealth without doing any efforts: (1) those people are heading towards laziness and poverty, (2) those people do corruptions. No offense, but money, wealth, is limited, and at one point it will be run out if the people did not do some work to add more money. Another possibility is to do some corruptions. People who corrupt can just manipulate money to add their own budgets. * Pleasure ... Show more content on Helpwriting.net ... Life insurance used to be rather straightforward, known for offering security to loved ones in a tough time. So when Irma Johnson learned that her husband, Daniel, who died of brain cancer, had been insured for $1.5 million, it should have been at least a small comfort. But she did not receive the money. His employer did. It's one of the strangest free–market perversions that Michael Moore highlights in his latest film, "Capitalism: A Love Story." In the corporate practice dubbed "Dead Peasants" life insurance, companies wager on employees' lives, expecting to make money when they die. And it's pervasive, said Mike Myers, an attorney who has uncovered many of these cases and helped angry relatives sue. "Life insurance is traditionally used to guard against the death of breadwinners. This is an investment scheme," he said. Dozens of blue chip companies have these policies, according to Myers. But only banks are forced to reveal them, and several have billions of dollars worth of policies. "The driving force behind it is the tax deductions," he said. The life insurance policies were designed to allow companies to insure a few crucial executives. Savvy companies then realized they could also get a tax break by insuring many lower–level employees. The financial scheme doesn't actually cost the employees anything, except, some say, their trust. Betina Tillman felt shocked and deceived when a reporter from The Wall Street Journal told her that ... Get more on HelpWriting.net ...
  • 69.
  • 70. The Decision Of Salomon V. Salomon The decision of Salomon v. Salomon which brought about the doctrine of separate legal personality is one which has evolved over time. Over a century and still counting, the principle illustrated in Salomon, courts have are still reluctant in placing limitations on corporate personality and rejecting other approaches which pose as a greater challenge to the doctrine . From time immemorial, judicial history, lawyers and judges have reiterated that the doctrine of corporation is an intangible legal entity, without the body and soul. In Athanasian terms, the orthodox doctrine of corporation as a legal person, separate and distinct from the personality of the members who compose it, has been defined and propagated . This doctrine has been seen as a "two– edged sword," reason being that at a general level while it was seen as a good decision in that by establishing that corporations are separate legal entities, Salomon 's case endowed the company with the entire requisite attributes with which to become the powerhouse of capitalism. At a particular level, however, it was a bad decision. By extending the benefits of incorporation to small private enterprises, Salomon 's case has promoted fraud and the evasion of legal obligations. This paper seeks to address the effects and consequences of the separate legal personality via making references to English and Ghanaian courts which has equally developed a criterion for piercing the corporate veil. A body corporate is a legal person ... Get more on HelpWriting.net ...
  • 71.
  • 72. Empirical Literature Review On Corporate Governance 2.4 Empirical Literature Review 2.4.1 Corporate Governance and Firms Performance The argument of Berle and Means (1932) on corporate governance formed the foundation for further studies by various researchers on the trend of corporate governance. Their study revealed the possibility of creating a separation of control between the mangers who run the large size corporations and the owners who are the provider of capital. This observation of a departure and separation of ownership and control gave rise to a situation where emphasis is now focusing on the behavioural aspect and topical theory of the firm. Kajola (2009) examined corporate governance and firm performance in Nigeria The result reveals that there is a significant relationship between Return on Equity (ROE) and board size as well as chief executive status. The study further reveals a positive significant association between Profit Margin (PM) and chief executive. Weisbach (1988), Heranlin and Weisbach (1991) examine agency theory and corporate governance .They observed that there is a positives relationship between firm performance and the proportion of outside directors sitting on the board. However, in the works of Forberg (1989), Weisbach (1991), Bhagat and Black (2002) and Sanda ... Show more content on Helpwriting.net ... (2000) was able to conclude that Independence together with activity of the Audit Committee is associated with a lower incidence of AAER For control variables, growth of company or the CEO as Chair of the Board resulted in a greater incidence of fraud. Klein (2002b) report of studies carried out on corporate governance mechanism and abnormal accrual in the books established negative relationship between board/audit committee independence and abnormal accruals. No evidence between having all independent audit committee and abnormal accruals. Changes from majority independent boards and/or audit committees result in as significant increase in abnormal accruals. Percentage of CEO holdings is not ... Get more on HelpWriting.net ...
  • 73.
  • 74. Finance Mini Case a. Why is corporate finance important to all managers? The number one goal of managers is to increase the wealth of owners or shareholders. By understanding corporate finance, managers gain the skills they need to know what strategies or tools would be best for adding value to the organization. b. Describe the organizational forms a company might have as it evolves from a start–up to a major corporation. List the advantages and disadvantages of each form. Sole Proprietorship–Advantages: 1. Easily and Inexpensively Formed 2. Few government regulations 3. Not subject to corporate tax code Disadvantages: 1. Difficult to obtain large amounts of capital 2. Unlimited personal liability for the proprietor 3. The life of ... Show more content on Helpwriting.net ... j. What do we call the price that a borrower must pay for debt capital? The Interest Rate What is the price of equity capital? Dividends plus capital gains What are the four most fundamental factors that affect the cost of money, or the general level of interest rates, in the economy? 1. Production Opportunities 2. Time preferences 3. Risk 4. Expected Inflation k. What are some economic conditions (including international aspects) that affectthe cost of money?
  • 75. The cost of money can be influenced by federal policy, fiscal and foreign trade deficits and a specific country's risk. l. What are financial securities? Describe some financial instruments. Financial securities are pieces of paper with contractual provisions that entitle their owners to specific rights and claims on specific cash flows or values. These may include T–Bills, negotiable CDs, Municipal Bonds, Corporate Bonds and preferred and common stocks. m. List some financial institutions. Credit Unions, pension funds, commercial banks, mutual savings, savings & loans, insurance companies n. What are some different types of markets? Capital Markets including stock markets and bond markets, commodity markets, money markets, futures markets, insurance markets, foreign ... Get more on HelpWriting.net ...
  • 76.
  • 77. Gibson Insurance Company Overview Gibson Insurance Company has tasked Rebecca Hampton, the controller, with reviewing the company 's allocation of corporate support costs in order to better assign the cost attributed to product lines and business units. This is important because it would help to provide better information for pricing decisions, sales compensation, and focus on areas in cost improvement. Gibson sells two categories of financial products: annuities and life insurance. They are both sold by in–house sales agents. Gibson decided to start purchasing other corporations in order to quickly grow the company's customer base and its assets under management (AUM). GIC acquired Compton Insurance Services and Midwest Mutual Insurance Company, and ... Show more content on Helpwriting.net ... Third, they can redivide the support services to individual business units. This will help eliminate the simple allocation issue. Only the cost incurred in each department of the business entity will be attributed to the operations of the business entity. Fourth, Gibson can separate the individual product lines support. They can have have four separate departments for new and in–force insurance and annuities. This will dial in the cost not only to individual product cost but what status these products use the most resources. It can turn much of the indirect cost into direct costs. Lastly, Gibson can choose to do nothing. It can continue to use current method of allocation and make educated guess on what costs are incorrect and what prices are set correct. This option is not an ideal one because Gibson is currently losing money. After choosing and implementing one of the above options, Gibson can begin to work on underlying issues. They can use the new cost allocation analysis to see if any area of business is in need of adjustment. It can then decide if price meets the cost demands of division and product line. Action Plan We agree with Gibson's controller that the new way of allocating costs is the best plan of action for Gibson. Under the old system, costs were broken up by separate legal entities and product lines. Using the old ... Get more on HelpWriting.net ...
  • 78.
  • 79. Life Insurance Products Of Malaysia Life insurance products in Malaysia The life insurance industry in Malaysia can be divided to family takaful and conventional life insurance. Both family takaful and conventional life insurance are similar in providing protection against the loss of income that would result in the death of the insured. However, unlike the conventional life insurance in which the insured transfer the risk to the insurer, takaful mutual risk is shared among the participants. Another major difference between them is the ownership of the companies. A conventional life insurance company is owned by shareholders whose objective is to maximize profits while a takaful company is owned by the participants whose objective is to minimize the cost incurred. The total ... Show more content on Helpwriting.net ... The minimum paid–up share capital of an insurer is RM 100 million while the supervisory Capital Adequacy Ratio (CAR) for an insurer must be higher than 130%. CAR can be obtained by dividing the total capital available by the total capital required and insurers must set their own CAR to reflect their own profile risks and have a CAR higher than the 130% required. Taxation Taxation is always one of the crucial factors in business. After being fixed at 25% for seven years, the standard corporate income tax in Malaysia is reduced to 24% from the year of assessment 2016. In comparison, the company tax rate in Australia is higher although it is scheduled to decrease to 25% for all companies in 2026–2027. Apart from that, although Goods and Service Tax (GST) at 6% is implemented from 1st April 2015 in Malaysia, all life insurance products exempt from GST. Market penetration rate According to the BNM, the market penetration rate which is measured in terms of the sum of the life insurance policies and family takaful in force to the total population has risen from 38.7% in 2005 to 54.9% in 2015. However, it remains distant from the government's targeted level of 75% in the year 2020. Although the market penetration rate for family takaful products was only a quarter of the market penetration rate in 2015, its market penetration rate has increased steadily from 9.2% in 2009 to 14.7% in 2015. In ... Get more on HelpWriting.net ...
  • 80.
  • 81. Real CHAPTER 1 ATTITUDINAL HAZARD (MORALE): Carelessness to a loss CHANCE OF LOSS: Probability that an event will occur DIRECT LOSS: Financial loss from physical damage, destruction, or theft DIVERSIFIABLE RISK: Affects individual or small groups (can be reduced or eliminated) ENTERPRISE RISK: All major risks faced by business firms STRATEGIC RISK: Uncertainty regarding firm's financial goals OPERATIONAL RISK: Firm's operation results FINANCIAL RISK: Uncertainty of loss due to adverse changes ENTERPRISE MANAGEMENT RISK: Single program all major risks faced by business firms (PSSOF) HAZARD: Condition that increases the chance of loss HEDGING: transferring risk to a speculator INCORPORATION: Business firm transfers risk to creditors ... Show more content on Helpwriting.net ... hard to obtain UNDERWRITING CYCLE SOFT MARKET: Profitability is improving, underwriting standards are loosened, and insurance is easier to obtain RISK MANAGEMENT: Process of identifying loss exposures faced by an organization (Identify exposure, measure analyze exposure, select technique, implement and monitor) RISK MANAGEMENT POLICY STATEMENT: Outline firm's policy and objectives RISK MANAGEMENT MANUAL: Train new employees and describe risk management program CHAPTER 4 FINANCIAL RISK MANAGEMENT: Identification, analysis, and treatment of speculative financial risks CALL OPTION: Gives owner the rights to buy 100 shares of stock at given price PUT OPTION: Gives owner the rights to sell 100 shares of stock at given price INTEGRATED RISK MANAGEMENT PROGRAM: Risk treatment that combines coverage for pure and speculate risks CHIEF RISK OFFICER: Responsible for treatment of pure and speculative risks DOUBLE TRIGGER OPTION: Provision that provides for payment only if 2 specific losses occur CAPACITY: Relative level of surplus COMBINED RATIO: Ratio paid losses and loss adjustment expenses plus underwriting expense NET PRESENT VALUE: Sum of present values of future net cash flow – cost of project
  • 82. INTERNAL RATE OF RETURN: Project is the average annual rate of return by investment SURPLUS: Difference between an insurer's assets and liabilities CLASH LOSS: Several lines of insurance experience large losses CONSOLIDATION: Combining of businesses through ... Get more on HelpWriting.net ...
  • 83.
  • 84. Changes Of Fasb Accounting Standards Essay Changes in FASB Accounting Standards In 1973 the Financial Accounting Standards Board (FASB) was established to set the financial accounting standards in the United States of America for nongovernmental entities. These standards are collectively called U.S. Generally accepted Accounting Principles, or U.S. GAAP. The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants acknowledge the authority of these standards (FASB, n.d). A "proven, independent due process" is used to collect the viewpoints of the financial statements prepares and users for the constant improvement of these standards. An Accounting Status Update(ASU) is not an authoritative source however documents the amendments to communicate the changes in the FASB Codification for a user to understand the reason and future of those changes (FASB, n.d). Accounting Standards update No. 2016–17: Consolidation (Topic 810) Accounting Standards update No. 2016–17, Oct 2016; Interests Held through Related Parties That Are under Common Control, is an amendment to the Consolidations Analysis Update 2015–02. The purpose of this amendment is to provide guidance for consolidation to an entity that is the single decision maker of a variable interest entity (VIE). The Variable Interest entity(VIE) is a term reported by FASB to define an entity in which the controlling interest is held by an investor and is not based on most voting rights. The party that has ownership, contractual, or ... Get more on HelpWriting.net ...