Characteristics of Corporations Corporations represent an important type of organization. Their unique characteristics offer advantages and disadvantages. Advantages of Corporate Characteristics Separate legal entity: A corporation conducts its affairs with the same rights‚ duties‚ and responsibilities of a person. It takes actions through its agents‚ who are its officers and managers. Limited liability of stockholders: Stockholders are liable for neither corporate acts nor corporate debt
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Shield Financial Statement of the Problem(s) Doug Bloom took over the Des Moines‚ Iowa office as the new Sales Manager (Cron & DeCarlo‚ 2009). He was overwhelmed at the sales management training with all of the different manuals he received (Cron & DeCarlo‚ 2009). The sales manager training did not give the full understanding of it is meant to be a sales manager. The company introduced a new program for the sales representatives and he had some difficulty with the sales representatives. He did
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Case Study 3: Estimating the Cost of Capital 1. Currently Teletech Corporation (TC) uses a single hurdle rate for both their Telecommunications Services (TS) and Products and Services (P&S) divisions. This hurdle rate obtained by an estimate of TC Weighted Average Cost of Capital (WACC)‚ which is calculated at 9.3%. When analyzing critically at this point‚ TS is underperforming with a return on capital (ROC) of 9.1%‚ whereas‚ P&S segment is well over the required rate of return as it is gaining
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Target Corporation By: Michelle Management 361 (APA style) Abstract “Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value‚ continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less‚ brand promise.” Target Corporation is a quickly growing company who has over 1400 stores in the United States with plans of opening 600 new stores within the near future. This expansion requires great
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about the mortgage interest credit he took on his return. Now Mr. Smith wonders if he is also eligible for a mortgage interest credit. He checks with his tax preparer to find out what would make him eligible. Which of the following would qualify a taxpayer for a mortgage interest credit? a) b) c) d) 4. Owned a home Paid mortgage interest Received a mortgage credit certificate Files a Schedule A Which of the following is an invalid condition in which Mr. Smith’s mortgage credit certificate
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advertising campaign to make people aware of their need for financial planning‚ budgeting‚ and saving for retirement. Dan’s financial consulting business had blossomed over the past few years because of such slogans and because Dan strongly believed in and preached the benefits of financial freedom. “A debtor is a slave to the lender‚” he always said when asked whether it made sense to borrow at low rates of interest. “The only way to financial independence is to be debt-free‚” he advised. Marty and
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Marriott Corporation: The Cost of Capital Simrith Sidhu‚ Amy-Jane Miocevich‚ Jacques Rousset‚ Jing Tao Task One: Marriott uses the Weighted Average Cost of Capital (WACC) to measure the opportunity cost for investments. WACC is calculated using the 1987 financial data provided in the Marriot Corporation: The Cost of Capital (Abridged) case study and estimators. WACC = Cost of Equity x (Equity/Debt +Equity) + Cost of Debt x (Debt/(Debt + Equity)) x (1 – Tax Rate) This method is applied for
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on what special rights and restrictions are attached to the shares‚ and how the profits of the corporation are paid out to the shareholders‚ there is the possibility of double taxation: the corporation must pay taxes on its profits and the shareholder may be subject to taxation on the profits paid out. This can result in greater taxation than if a corporation was not used for the business. C corporations pay taxes on profits when corporate income is distributed to owners (shareholders) in the form
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B Corporations Benefit Corporations‚ also known as B corps‚ are a new way to do business in a socially responsible way. Curtis Lum’s article‚ “Legislation would allow for creation of ‘B corps’” published on March 18‚ 2011 in the Pacific Business News‚ talks about the ongoing legislative battle to legally recognize B corps in Hawai’i. An additional article from the PBN‚ published the same day by John Webster‚ “Social responsibility is beginning to take root‚” provides further background to Lum’s
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fiscal year of 2007 NutraCea allegedly overstated its sales revenue in its financial statements by reporting deceptive sales and applying inappropriate revenue recognition practices and concealing its factual operating results. The SEC charged
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