Chapter 1 the equity method of accounting for investments Answers to Questions 1. The equity method should be applied if the ability to exercise significant influence over the operating and financial policies of the investee has been achieved by the investor. However‚ if actual control has been established‚ consolidating the financial information of the two companies will normally be the appropriate method for reporting the investment. 2. According to Paragraph 17 of APB Opinion 18‚ "Ability
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Fonderia Di Torino 1. Please assess the economic benefits of acquiring the Vulcan Mold-Maker machine. 1.What is the initial outlay? -The initial outlay is the Net Investment of $813‚296. 2. What are the benefits over time? - The benefits over time include higher quality products‚ lower scrap rates‚ which will save raw material costs. The company will employ twenty-five less workers which equates to lower costs in terms of managing‚ training‚ and insuring those employees. Lastly the foundry
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THE SAGA OF THE VENEZUELAN BOLIVAR FUERTE 1) Why must a country’s currency be devalued? What is failing in the economy? Devaluation is the action of a government or central bank authority to drop the spot foreign exchange value of a currency that is pegged to another currency or to gold. Countries occasionally devalue their own currencies as a result of persistent and sizable trade deficits. They intentionally devalue their currencies in an effort to make their exports more price-competitive
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to invest ? SOLUTION: a. Profit Margins [pic] [pic] N has the higher profit margin. b. Investment Turnover [pic] [pic] M has the higher investment turnover. c. Return on Investment [pic] [pic] Both firms have similar returns on investments. Based on this investment criterion‚ the investments are equally attractive. Problem 13-2 As the manager of LOSEN Division of Mc Carthy Corporation you
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Executive Summary This business case outlines how the e-Saman project will address current business concerns‚ the benefits of the project‚ and alternative of the project. The business case also discusses detailed project goals‚ project’s MOV and alternative options. 1 Problem or Opportunity Currently‚ when students are summoned by the auxiliary police‚ they need to come to auxiliary police headquarters to check the status and pay their summons. If students
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1. Analyze the rise in Big Business in the Gilded Age. Why was there a trend towards bigger businesses after the Civil War? How did the rise in Big Business affect business activities‚ including labor‚ and the economy? Why was the Big Business’s rise so significant to the development of the American economy? It allowed for the rich bureaucrats to become richer and more empowered. It created many jobs‚ and allowed for the mass production of many things that people viewed as necessary for everyday
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initiatives are all tools used to produce and develop impressive brand names. It isagainst this background that this discussion aims to address the rebranding of an organization’sname‚ which in this particular case is that of McDonald’s. It will commence by defining keyconcepts then an overview of the case study and proceed to give a detailed analysis of the entirematter. DEFINITION OF KEY CONCEPTS Employer branding‚ according to Armstrong (2004)‚ can be defined as the creation of a brandimage of the
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POSSIBLE ADVANTAGES OF A MULTINATIONAL CORPORATION A multinational corporation (MNC) is a corporation that is registered in more than one country or that has operations in more than one country. In other words‚ business enterprise with manufacturing‚ sales‚ or service subsidiaries in one or more foreign countries‚ also known as a transnational or international corporation. Multinational companies provide some advantages in itself. Now‚ I am going to explain the advantages of these
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Jones Distribution Case Finance Team -13 Executive Summary: The Company Jones Electrical Distribution was founded in 1997. The company distributes and wholesales electrical components. It is a sole proprietorship owned by Nelson Jones who is looking for a new banking relationship that will allow him to receive a larger loan to sustain his business. Even though the company has been turning in profits‚ the ineffective collection practice‚ not availing trade discounts on time and ineffective
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Multinational business relies on its imports and exports around the world. Factories may be set up in different areas of the world and have their business based on the import and export of raw materials‚ which is what is done by most of them. Developing countries can gain more from multinationals since they help increase labor and its opportunities‚ which then means that the average income of a person will increase allowing them to spend more and lead a better life-style‚ which helps the tax bases
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