distinction between a public company and a private company are explained in the following manner: 1. Minimum number of members The minimum number of person required to form a public company is seven‚ whereas in a private company their number is only two. 2. Maximum number of members There is no limit on the maximum number of member of a public company‚ but a private company cannot have more than fifty members excluding past and present employees. 3. Commencement of Business A private company can commence
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Birch Paper Company Birch Paper company is a medium-sized‚ partly integrated paper company‚ producing white and kraft papers and paperboard. The company has four producing divisions and a timberland division. The responsibility structure of the Birch Paper Company and all of its divisions is a Profit or Investment Centre‚ which is stated in the case: For several years‚ each division had been judged independently on the basis of its profit and return on investment. Top management had been working
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S-S Technology Inc. Company Policy(HR Policy) Recruitment Policy Purpose To ensure that required staffs are appointed at required interval for S-S Technology. Responsibility Relevant department manager shall responsible to submit staff requisition form upon staff requirement. HR manager shall review and arrange for recruitment as per requested information. Procedure When staff requirement request from concerned department manager who shall complete the staff requisition form and submit
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BIRCH PAPER COMPANY Overview Birch Paper is a classic case that provides an excellent opportunity to present‚ analyze‚ and evaluate transfer pricing issues. In only two pages‚ the case presents a common business situation involving the relationship between three divisions and suggests several typical transfer pricing solutions: (1) at variable cost; (2) at full cost; (3) at full cost plus profit; (4) at market price; and (5) at a negotiated price. This setting facilitates the discussion of the
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Differential Factors Between Private Companies and Public Companies Generally speaking Financial Accounting Standard Board (FASB)’s primary purpose is to develop General Accepted Accounting Principles (GAAP). GAAP might not concern the whole areas of accounting criteria‚ FASB look up and adjust accounting standard to make sure standards have been updated to follow current situation. On July 31‚ 2012‚ FASB issued an Invitation to Comment‚ which reviewed key areas of the Private Company Decision-Making Framework
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“In Good Company” -Social Relationships Relationships are an important part of everyday life. They are important in the social aspect of friendship and in the working environment. "In Good Company" is a movie about relationships and the business world. Dan Foreman‚ a 51 year old man‚ is the Sales Director at Sports America magazine. He is a very good salesman who has built relationships with his customers. When Sports America has an unexpected take over by Globe Com‚ Dan and his co-workers find
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AA312 Case: Birch Paper Company 1. Calculating all three options based on costs Thompson DivisionCosts Linearboard and corrugating medium 168(70%*400)*60% 30% of out of pocket costs 120(30%*400) Total 288 West PapersCosts Total 430 Eire PapersCosts Outside linear(Southern div) 54(60%*90) Printing(Thompson div) 25 Own Supplies 312(432-5-36) Total 391 As shown in the calculations above‚ Northern should accept the bid from Thompson division as it has the lowest cost if all transfer prices
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Notes on Pricing Decisions In this note‚ we will discuss the pricing of a given product or a service. We will only discuss the pricing of an individual product/service and not the pricing across a set of products in a product line. Thus in the discussion that follows‚ we assume that the pricing decision of the product/service under consideration has no bearing on the profitability of other products/services in the portfolio of the firm. 1. Overview of the Pricing Decision: While making
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1. Introduction 1.1 Origin of the Report: Term Paper report is a practical part of academic studies. This is a reflection of academic knowledge through practical work experience. Thus this Term Paper report aims to reflect the professional view of real world working environment. The Department of Business Administration of National University offers four years BBA program majoring in different related fields. This BBA program is the building up of the theoretical knowledge about business administration
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Birch Paper Company Information given (All costs are for quantity of 1000) 1. If Northern accepts the bid from Thompson Thompson companies Out of Pocket costs for 1000 boxes = $400 70% of Thompson Out of Pocket costs = Selling price of Southern division (line and corrugating medium) Hence‚ selling price of Southern = 70% * 400 = $280 Hence‚ Out of Pocket costs for Southern = 60% 280 = $168 2. If Northern accepts the bid from West No out of pocket costs Thompson and Southern 3. If Northern accepts
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