to drop significantly. When a company has a favorable ratio‚ it indicates that company may have a good credit risk. A company that has other debt such as bank loans‚ the company is required to a maintain a debt-to-equity-ratio commonly known as a debt covenants (Wright‚ n.d.) An example of an off-balance sheet financing are operating leases. When a company has operating leases‚ the lessor will only keep the asset on the company’s balance sheet‚ whereas‚ the company leasing the asset is only responsible
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4: OCCUPIER’S LIABILITY Occupier’s liability forms part of the liability arising from the occupation of premises. It is therefore related to nuisance‚ Rylands v Fletcher‚ breach of statutory duty and basic negligence. Occupier’s liability covers liability for damage (usually personal injury) which occurs to entrants on to the premises of the defendant. In the Commonwealth Caribbean‚ Barbados and Jamaica have enacted statutes substantially similar to the English Occupiers Liability Act 1957. Barbados:
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1. Importance of Donoghue v Stevenson Case The case established 3 things The case established negligence as a wrongful act for which there was a legal liability. The notion of duty of care was formed which if infringed would result in damage. The neighbour principle was established by Lord Akins namely that your neighbour is anyone who may be affected by your acts or omissions. Main points of Case (The details of this were) Mrs Donoghue drank some ginger beer in which she found the remains
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neutral third party or panel of experts hears a dispute and imposes a resolution of the parties” (Miller & Jentz‚ 2008‚ p.50). However‚ both parties must sign and agree to the above statement for it to be acknowledged as a legal judgment. In the case of Thomas Baker and Osborne Development Corporation it gets a little bit more involved. For starters‚ Osborne Development purchased the home warranty program administered by Home Buyers Warranty and signed the agreement of arbitration with them.
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Limited Liability Partnership organization and to advise Mr. Tan on the business organization that is more likely to fit his needs for setting up a new consulting business. For this particular project‚ our group assumed that Mr. Tan used to be an accountant working for a big accounting firm and is now looking to set up a small accounting consultancy business. 1 Process Required to Setup Business Organization Below are the processes to setting up a partnership and a limited liability partnership
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Legal Issues in Management Final Case Study Christine Stout Southern Oregon University Business law – case study The case study of John and Stacey has so many complicated elements that apparently all the stakeholders involved apart from the two mentioned could sue or be sued against. This paper assumes that this is the scenario for this paper. The characters involved are John and Stacy‚ a restaurant owner‚ the owner of a townhouse‚ the owner of the mink on which John tripped and subsequently
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amount 10‚000 Depr. in excess of F/S amt (25‚000) Taxable income 140‚000 Johnson’s tax rate for 1994 is 40% In it’s 12/31/94 B/S‚ what should Johnson report as deferred income tax liability? C. 6‚000 2.As a result of differences b/t depr. for financial reporting purposes and tax purposes‚ the financial reporting basis for Noor Co’s sole depreciable asset‚
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Napster to infuse their advertisements on Napster’s web site. There was a law suit against Napster that is referred by A&M Records‚ Inc. vs Napster‚ Inc. Although this case is called A&M Records‚ Inc. vs Napster‚ Inc. it consisted of many record companies that are members of the Recording Industry Association of America (RIAA). The law suit was filed because it is a direct infringement of the record companies’ copyrights. The law suit was filed against Napster and not individual users because it was
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Cartwright 1. Why has Cartwright Lumber borrowed increasing amounts despite its consistent profitability? Cartwright lumber has had to borrow substantial amounts of money due to the fact that the firm is a growing company with sales rising quickly. In order for the company to sustain this growth rate‚ they will have to get additional external funding. Growth in sales nearly doubled from 2001 to 2003‚ with a percentage growth of 18% and 34% in 2002 & 2003 respectively. While sales are growing steadily
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1. Why does the company need funds? First‚ Butler Lumber Company in the spring of 1991 anticipated a further substantial increase in sales. It means there are more working capital associated with the company’s increasing sales volume. Second‚ although they have good profits‚ the company had experienced a shortage of cash. The company’s current borrowing from Suburan National Bank almost reaches the maximum loan that SN Bank would make. Meanwhile‚ the SN Bank now asks Butler Lumber to secure the
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