Acct 504 Case Study 2

ACCT504 †Accounting and Finance: Managerial Use and Analysis| Case Study 2| Evaluation of LJB Company’s Internal Controls| | [Type the creator name]| Due: Feburary 10, 2013| Table of Contents Paragraph Introduction1 Accounting regulations2 Establishing a Control Environment3 Segregation of duties4 Segregation of record keeping structure physical guardianship 5 Policies for unimportant cash6 Pre-numbered solicitations 7 Distribution of paychecks8 Hiring policies9 Independent inward check 10 Conclusion 11The after is an assessment of LJB Company’s interior controls, in view of the data gave by the President of the organization with an end goal to set up his organization for the prerequisites should have been a publically run organization. In the first place, I will set up the legitimate necessity required and the significance of inner controls for an association. At that point I will survey the current arrangements and build up better inward controls for every zone o f concern. When these arrangements have been established by the LJB Company, they ought to be prepared to continue with their arrangement to go public.There are many bookkeeping guidelines required by an open organization. All bookkeeping reports must follow the FASB and SEC rules. Be that as it may, the most up to date bookkeeping rules fall under the Saranes-Oxley demonstration of 2002. The Act orders change to improve budgetary divulgence from organizations and to diminish misrepresentation. It necessitates that senior administration must confirm the exactness of the announced budget report. Besides it necessitates that administration and inspectors keep up an arrangement of inward controls and report the strategies for these controls.If the organization doesn’t consent to the prerequisites, they could be dependent upon strong fines. Before setting up interior controls, it is fundamental that the organization builds up their control condition. The company’s the boar d should unmistakably plot its objectives, gauges and morals since they â€Å"set the stage† for the climate and trustworthiness for the whole association. With the control condition set up, the executives would then be able to actualize its inward controls. I will audit what control exercises the organization is doing well and what the organization should change.The following control exercises will be inspected; isolation of obligations, foundation of duty, satisfactory archives and records, physical command over resources and records and free keeps an eye on execution. Presently, the LJB Company has one individual who fills in as the Treasurer and Controller. His obligation incorporates buys and paying for the entirety of the provisions. This arrangement leaves the organization admired to misrepresentation and builds the odds of mistakes. The organization must build up an isolation of duties.Responsibilities ought to be discrete, so no worker ought to be in the situation to both make and hide mistakes or extortion in the ordinary course of their obligations. In this manner, I would suggest one individual ought to be responsible for buying the provisions and that all buys ought to be affirmed by a boss. Someone else ought to be responsible for paying for the provisions and checking that the buy is precise and endorsed. This ought to decrease the danger of undetected mistakes and breaking point the open door for false behavior.In expansion to the buying/paying obligations, the bookkeeping individual likewise gets the checks and finishes the month to month bank compromise. At the point when one individual is liable for the two exercises, the potential for blunders and inconsistencies is expanded. There ought to be an isolation of record keeping structure and physical authority. The bookkeeper ought not have guardianship of the checks and be liable for the month to month band compromise. There ought to be a strategy wherein the work is either isolated or inspected by a director. Next, I will survey the company’s strategy for negligible cash.The current framework permits each representative access to the money and they are possibly required to leave a note in the event that they expel any assets. This arrangement damages numerous legitimate inside control exercises. The organization needs to build up who is at last answerable for taking care of the negligible money. Just approved staff ought to approach the assets. Costs paid from the negligible money store must be made for the reason the reserve was approved and should be bolstered by a receipt. At the point when it isn't being used, the insignificant money enclose must be set a bolted safe or cabinet.An autonomous tally of the receipts and money available must be performed routinely by a bookkeeping official or director. The new arrangement of utilizing pre-numbered solicitations is a phenomenal method to safeguard that all records are represented. It will likewise help mist akes, for example, entering the record in more than once or missing passages completely. Any hole in the numerical grouping may show an issue and conceivably get blunders. I would likewise suggest the acquisition of permanent ink machine to print checks. This will safeguard that the ink can't be eradicated or washed away for deceitful use.Next we will survey the controls set up with respect to giving checks. The current methodology has the bookkeeper getting the checks and leaving them in his office for get. The registers are bolted with a safe in the event that he leaves for the end of the week. At the point when you pay workers, certain controls are expected to lessen the danger of misrepresentation or mistakes. At whatever point conceivable, the bookkeeper should hand the checks legitimately to the representative, and consistently lock up undistributed checks. Another arrangement is have your representatives set their checks to be consequently saved legitimately into their own ba nk account.The subsequent stage is to audit your employing strategies. I would suggest checking the strategy of having both the President and the bookkeeper meeting and settle on choices on employing a person. Be that as it may, I would likewise suggest executing the accompanying approaches. On the off chance that a worker handles money, the organization ought to have that representative clung to shield the organization from robbery. An intensive individual verification ought to be run on every worker. All accreditations ought to be confirmed by telephone or by getting a duplicate if pertinent. After the representative has been confirmed, make certain to broadly educate employees.This will be helpful when you expect workers to take travels and turn employee’s obligations. These practices should bring down the danger of worker burglary. To guarantee the dependability of the bookkeeping data, an employee’s obligations ought to be confirmed by other people who do didn't a ccomplish the work themselves. I would likewise suggest that the organization sets up a framework for a free inside check. The organization should review information arranged by a representative intermittently. This individual ought to be free of the exercises or branch of the individual being audited.All errors should be accounted for to the executives, so restorative move ought to be made. All in all, building up an arrangement of inward controls will make an arrangement of governing rules that will decrease misrepresentation, mistakes, increment adequacy and safeguard they are completely agreeable will all laws and guideline. Each inward control is the methods by which an organization’s assets are coordinated, observed and estimated. These suggestions will enable the organization to build up explicit arrangements and methods they should arrive at their objectives of turning into a publically exchanged organization. Assets

Israel-Palestinian Conflict free essay sample

This paper contends the Israel-Palestinian clash from the creators perspective. This paper endeavors to discover an answer for the Israel-Palestinian clash. It covers these regions: The Issue Foundation to the Tensions and the Present State of the Conflict: Defense for Continued Israeli Occupation Past US Role in the Israeli Palestine Conflict Potential Reasons for the American Administrations Current Inaction Saudi Peace Plan Ongoing UN Resolution A Proposal to Resolve the Problem As viciousness heightens in Palestine, the unmanageable issue turns out to be considerably increasingly obstinate. Extraordinary battling among Israelis and Palestinians, the most extreme inside the outskirts of the previous Palestine since Israels creation in 1948, are guaranteeing a day by day cost in twofold digits. Israeli Prime Minister Ariel Sharons progressively intense strategies are worsening the contention. A war of steady loss is going on that can possibly grow into a full scale provincial war.

Decision Making. Bachelors Degree

Have you at any point expected to have more than one home PC for you and your family? Do you have at least two PCs, however need to duplicate as well as offer documents or potentially programs between them, yet you don’t know how? Do the entirety of your PCs need Internet get to, however you don’t need to have a telephone line introduced for every one of them? Indeed, you can do the entirety of this. I know, since this is the thing that I did at my home. In the wake of doing research I found that there are a few preferences for having your own Home Computer Network. Following, are a few motivations to do this in your home. In the first place, by having an in-home PC arrange, and a record server, you can have a focal area for putting away the entirety of your data. In this way, on the off chance that you need more than one PC to get to certain data, for example, textual styles, money related records, games, and so forth., you can do this through the system. This additionally kills the requirement for replicating records to floppy diskettes, hand-conveying them to different PCs, and duplicating the documents each floppy in turn to every, individual PC. This would be a moderate procedure, contrasted with a quick system speed. Also, on the off chance that one PC on your system crashes, you can move to another PC and proceed with your work. Along these lines, in the event that you utilize your system and record server adequately, you can have a high level of dependability, security, and productivity. Second, an in-home PC system can permit you to have just a single Internet association while giving Internet access to all PCs on your system. This is significant on the off chance that you just have one telephone line. If you somehow happened to include an extra telephone line for every PC you needed to be associated with the Internet, well, let’s simply state this would be an expensive other option. By utilizing your document server on your system, as a PROXY server, you can simply utilize one telephone line to interface with the Internet. You should simply introduce a little PROXY program that says, â€Å"I am the Internet association for this system. Everyone point their Internet perusing at me!† It’s actually that straightforward. By doing this, it tricks different PCs on your system into feeling that the document server IS the Internet. Notwithstanding being associated through one telephone line, and one PC, your record server can have what is known as a â €Å"Firewall.† This takes out outside interlopers from attacking your system.

The Best Scholarships in Ohio

​As the cost of college continues to rise, it gets more and more difficult to pay for it. Students everywhere are worried that if they choose to pursue higher education, they'll wind up being saddled with loan debt for life. Fortunately, as the need is rising, there is also an increasing number of financial aid options available. Buckeyes are lucky, and in Ohio, there's a great number of scholarships and grants you can apply for. The Department of Higher Education funds many grants as well. Following is a list of 35 Ohio grants and scholarships, along with some details about how to apply. 1.Ohio War Orphans Scholarship This is one of the scholarships available through the Ohio Department of Higher Education, managed through the Ohio War Orphans Scholarship Board. The maximum award amount is given to students attending public institutions, while students attending private schools receive $5,667 a year. To qualify, you must be the child of a deceased or severely disabled Ohio armed forces veteran enrolled full-time in an undergraduate institution. You also need to be an Ohio resident attending an Ohio post-secondary institution, and under 25 years old. The deadline is July 1.You can learn more about the ​Ohio War Orphans Scholarship here. 2.GNODA Scholarship This scholarship is sponsored by the Greater Northwest Ohio Diabetes Association Scholarship. The scholarship is intended to help diabetics afford school. To be eligible for the award, you need to be diabetic. You can be either a current high school or college student. You have to live in the GNODA service area, which includes Hancock, Hardin, Putnam, Seneca, Wood, and Wyandot. It’s important to note that if you do not maintain at least a C GPA, you are required to reimburse them. The deadline is March 31.You can learn more about the ​GNODA Scholarship here. 3.The ACT Scholarship This scholarship is sponsored by The Ability Center of Greater Toledo. These awards are intended to provide local students with disabilities funds for college. In addition to having a documented disability, you need to live in Lucas, Wood, Fulton, Henry, Ottawa, Defiance or Williams County in Ohio. You also need to have at least a 3.0 GPA. The deadline for this application is March 31.You can learn more about​The ACT Scholarship here. 4.Thomas J. Seefred Trust Scholarship This scholarship was established and is supported with funding from the Thomas J. Seefred Trust. The scholarship is given to students pursuing a bachelor’s degree, between the ages of 18 and 25, who suffer from juvenile diabetes. Current high school students are not eligible. You need to be a full-time student at a post-secondary institution who is in good academic standing. The deadline is May 1.You can learn more about theThomas J. Seefred Trust Scholarship here. 5.Communications Factory Annual Scholarship This scholarship is sponsored by the Communications Factory, which is a small marketing and advertising creative firm. To be eligible, you need to be a high school senior from the northeast region of Ohio. As part of the application, you’ll need to produce a video offering a solution to an environmental problem in your community. The deadline is April 1.You can learn more about the ​Communications Factory Annual Scholarship here. 6.William D. Squires Scholarship This scholarship is sponsored by the William D. Squires Educational Foundation and was created for the sole purpose of providing financial support to Ohio high school seniors who need financial assistance. Applicants must be from Ohio but can be planning to attend a post-secondary program outside of Ohio. The deadline for this award is April 5.You can learn more about the ​William D. Squires Scholarship here. 7.Department President’s Scholarship This award is sponsored by the Ohio Department of the American Legion. The applicant for this award must either be an honorably discharged veteran or be the child of a veteran from one of the armed conflicts between WWI and Desert Storm. You also must be an Ohio resident, be sponsored by an American Legion Auxiliary Unit, and be entering your freshman year of college. The deadline is March 1.You can learn more about the ​Department President’s Scholarship here. 8.AOTF Scholarship This scholarship is sponsored by the American Occupational Therapy Foundation. The scholarship aims to support people entering the field of Occupational Therapy. To qualify for this one you need to be currently enrolled and have completed at least one year of coursework in Occupational Therapy. The AOTF offers three different scholarships for Ohio residents. You’ll also need to get a recommendation from your program director. The deadline is October 29.You can learn more about the ​AOTF Scholarship here. 9.Cyril W. Neff Memorial Scholarship This scholarship is sponsored by the Ohio Society of Professional Engineers. The scholarship is available to students applying at one of 16 select schools in Ohio. You must be an Ohio resident interested majoring in Engineering from Cuyahoga, Lorain, Lake, Geauga, Medina or Ashtabula County. You also need to be a graduating high school senior with at least a 3.0 GPA. The deadline is January 15.You can learn more about the ​Cyril W. NeffMemorial Scholarship here. 10.Jay Sartini Memorial Scholarship This scholarship is sponsored by the Ashtabula County Business Exchange, which is a collection of business owners in the area. The scholarship is designed to help local students pay for college, in the hopes that they will return and contribute to the community. The award is giving to graduating high school seniors from Ashtabula County. The deadline is April 27.You can learn more about the ​Jay Sartini Memorial Scholarship here. 11.William A. amp; Ann M. Brothers Scholarship This scholarship is sponsored by the American Welding Society and serves the purpose of encouraging and providing financial assistance to students who plan to pursue a career in welding. You qualify if you’re an undergraduate student who is enrolled full-time in a four-year program in welding or a welding-related field. Financial need is necessary. Preference is given to students from Ohio and students attending schools in Ohio. The deadline is February 15.You can learn more about the ​William A. amp; Ann M. Brothers Scholarship here. 12.Captain Nicholas J. Rozanski Memorial Scholarship This award is sponsored by the Nick Rozanski Memorial Foundation. To qualify for this award, you must be from Dublin and have played on the boys or girls soccer team. Additionally, you’ll need to have at least a 2.8 GPA. You can be planning to attend any accredited post-secondary institution, but you need to have a history of community service. The deadline is February 27.You can learn more about the ​Captain Nicholas J. Rozanski Memorial Scholarship here. 13.Lee E. Schauer Scholarship This scholarship is sponsored by the Sidney-Shelby County YMCA. It’s intended for students that don’t always qualify for other scholarships. To be eligible, you need to be a high school senior planning on college. You’ve got to have at least a 2.5 GPA, but GPA otherwise has no weight in the selection process. You should be active physically and in your community. You don’t have to be a member of the YMCA, but students who are will get priority. The deadline is April 4.You can learn more about the ​Lee E. Schauer Scholarship here. 14.Ohio College Opportunity Grant This is an Ohio Department of Higher Education grant, established for the purpose of providing grant money to Ohio residents who have the most financial need. To qualify you will obviously need to be an Ohio resident with great financial need, but also to be enrolled at an Ohio school in an associate’s program, a bachelor’s program, or a Nursing program. You’ll automatically be considered if you submit your FAFSA by October 1.You can learn more about the ​Ohio College Opportunity Grant here. 15.Brian Stoner Memorial Scholarship This scholarship is one of the many sponsored by the Fairfield County Foundation, which exists to serve local students. This scholarship is aimed at students who plan to pursue a career in the culinary arts and who are enrolled in a relevant program. The scholarship also aims to serve primarily people who are on the autism spectrum. Individuals who have been employed by Rule (3) are especially encouraged. The deadline is April 4.You can learn more about the ​Brian Stoner Memorial Scholarship here. 16.The Harold K. Douthit Regional Scholarship This scholarship is sponsored by the Ohio Newspaper Association. The award is intended to encourage young people to major in fields related to the newspaper industry, including journalism, advertising, marketing and communications. To qualify you must be currently enrolled in a program related to this industry.You must have graduated from a high school in Cuyahoga, Lorain, Huron, Erie, Wood, Geauga, Sandusky, Ottawa or Lucas County. You also need to be a junior or senior at an Ohio college with at least a 3.0 GPA. The deadline is March 31.You can learn more about the ​The Harold K. Douthit Regional Scholarship here. 17.The OPRA Foundation Academic Scholarship This scholarship is sponsored by the Ohio Parks and Recreation Association. It has three versions, depending on what your major is, but anyone can apply as long as their major is in some way relevant to parks and recreation. You must also be a resident of Ohio and be currently enrolled in a college or university in Ohio. You also need to have at least a 2.5 cumulative GPA and a 3.0 major GPA. The deadline is May 13.You can learn more about The OPRA Foundation Academic Scholarship here. 18.Ruth M. Aikey Memorial Scholarship This scholarship is sponsored by the Aikey Foundation. The award is limited to students from one of twenty-two different cities in Ohio. You have to be a full-time student attending Kent State University and majoring in either Early Childhood Education or Middle Childhood Education. Financial need will also need to be demonstrated. You also need to have at least a 3.0 GPA. The deadline is April 1.You can learn more about the ​Ruth M. Aikey Memorial Scholarship here. 19.The Anthony Muà ±oz Scholarship This scholarship is sponsored by the Anthony Muà ±oz Foundation. The scholarship is for local kids from the Ohio tri-state area. To be eligible for the award, you need to be a high school student from that area. You also need to be entering one of the eligible tri-state area schools. You need to have demonstrated financial need. You also have to have at least a 2.5 GPA, and you’ll have to have an interview. If you’re selected, you’ll need to attend the award ceremony too. The deadline is April 30.You can learn more about the ​The Anthony Muà ±oz Scholarship here. 20.PHN Health Professionals Scholarship This scholarship is sponsored by the Primary Health Network Charitable Foundation. To qualify for this award, you need to be pursuing a degree or certificate in a field related to either Administrative or Clinical Healthcare. You must have at least a 3.0 GPA as well. Importantly, you have to be from one of the cities that has one of the PHN facilities. The deadline is March 31.You can learn more about thePHN Health Professionals Scholarship here. 21.Herbert H.Antoinette V. Schlater Scholarship This is one of many scholarships sponsored by the Shelby County Community Foundation, which was established as a way to collect and distribute legacy gifts to people in the community. To qualify, one of your parents needs to have been employed by either Sidney Electric Co. or Area Energy Electric for at least two years. Preference is given to graduating high school seniors, but students of any age can apply. You need to have a cumulative GPA of at least 2.0 unless you’ve been out of school for two or more years. The deadline is March 15.You can learn more about the ​Herbert H. Antoinette V. Schlater Scholarship here. 22.Zinggia Ohio Art Scholarship This scholarship is sponsored by a duo of illustrators called Zinggia. To apply for this, you need to be a high school senior with at least a 3.0 GPA. You additionally need to be a resident of Ohio and to have a career interest in the arts. The award is for full-time study at a post-secondary institute which does not have to be in Ohio. You can be attending a two-year college, a four-year college, a technical school or an art school. The deadline is March 5.You can learn more about the ​Zinggia Ohio Art Scholarship here. 23.Ohio Safety Officers College Memorial Fund This is one of the grants sponsored by the Ohio Department of Higher Education. If your college is a public institution you’ll receive full funding, but if you’re going to a private school you’ll receive $9,020. The grant is open to the children and spouses of peace officers (firefighters, police, park rangers, etc.) who were killed in the line of duty anywhere in the United States. You must be an Ohio resident, however, and be enrolled full-time in a participating Ohio post-secondary institution. Contact your college if they’re participating to find out details on how and when to apply.You can learn more about the ​Ohio Safety Officers College Memorial Fund here. 24.Donald E. and M. Jane Kemp Scholarship This is another one of the scholarships sponsored by the Shelby County Community Foundation, which was established as a way to collect and distribute legacy gifts to people in the community. This scholarship is open to Sidney High School seniors residing in Shelby County. You need to have a high school GPA between 2.5 and 3.5 and be enrolled in an accredited college or university. Financial need and community service are significant factors in the decision. The deadline is March 15.You can learn more about the ​Donald E. and M. Jane Kemp Scholarship here. 25.The Land Grant Opportunity Scholarship This scholarship is sponsored by Ohio State University. This scholarship is given to at least one resident from each Ohio county. Applicants must demonstrate both academic merit and financial need to receive the award. To apply for this scholarship, just make sure to apply for admission to OSU by at least February 1 and file the FAFSA by at least February 15.You can learn more about the ​The Land Grant Opportunity Scholarship here. 26.Cincinnati Pathways This scholarship is offered through the University of Cincinnati. The scholarship is intended for students who have graduated from Cincinnati State Community College and received their associate degree within the last two years. You also must have had at least a 3.4 GPA. You’ll need to be admitted through Cincinnati Pathways and transfer directly from the associate program into your UC bachelor program. To apply, you need to submit your application for admission to UC early in your last semester of your associate program. The deadline if you plan to begin in the fall is July 1.You can learn more about the ​Cincinnati Pathways here. 27.Oscar Ritchie Memorial Scholarship This scholarship is sponsored by Kent State University. It’s available to incoming freshman. To qualify, you need to have at least a 3.25 cumulative GPA. Additionally, this scholarship is only given to applicants who are members of a traditionally underrepresented population in higher education. You’ll be automatically considered for this award if you make sure to submit your application for admission by January 15.You can learn more about the ​Oscar Ritchie Memorial Scholarship here. 28.Ohio Russ Impact Scholarship This scholarship is sponsored by Ohio University. Incoming freshman students applying to the Engineering and Technology school are eligible for this award. You need to have had at least a 3.0 cumulative high school GPA, as well as demonstrated financial need. To apply for this award, you just need to be admitted by June 1.You can learn more about the ​Ohio Russ Impact Scholarship here. 29.Elsie R. McClelland Davis Memorial Scholarship This scholarship is another one sponsored by the Fairfield County Foundation, which exists to serve local students. This scholarship is offered to students who have graduated from Amanda-Clearcreek High School in Ohio. To qualify you to need to demonstrate financial need. You also need to have gone to the Amanda-Clearcreek for at least three years. You have to be registered as a full-time student in an accredited post-secondary institution. The deadline is April 4.You can learn more about the ​Elsie R. McClelland Davis Memorial Scholarship here. 30.Ohio EPA Scholarship This scholarship is sponsored by the Ohio Academy of the Sciences. You are eligible whether you’re attending a two-year program or a four-year program, but there are different instructions depending on which is the case. For both, however, you need to be an Ohio resident attending an Ohio college. You will also need to demonstrate your commitment to a career in the environmental sciences or environmental engineering. Apply in the final year of your program in the upcoming Fall. The Deadline is April 15.You can learn more about the ​Ohio EPA Scholarship here. 31.Deputy Ethan Collins Scholarship This scholarship is another one sponsored by the Fairfield County Foundation, which exists to serve local students. To qualify, you must be a graduate of a high school in Fairfield County. Students must be in an accredited school or academy studying to either begin or continue their education for a career in Law Enforcement. You can be in school either full or part-time. The deadline is April 4.You can learn more about the ​Deputy Ethan Collins Scholarship here. 32.John C. Lincoln Memorial Scholarship This award is sponsored by the American Welding Society and has the express purpose of providing financial resources for people who plan to pursue a career in welding-related careers. To qualify you to need to be an undergraduate student in a four-year bachelor’s program. You also need to have at least a 2.5 GPA and demonstrate financial need. The deadline is February 15.You can learn more about the ​John C. Lincoln Memorial Scholarship here. 33.The Forever Buckeyes Program This program is sponsored by the Ohio Department of Higher Education. The program is part of the state budget, and so works with every public post-secondary institution in the state of Ohio. Typically students moving to Ohio for school have to wait 12 months before they qualify for in-state tuition, but through the Forever Buckeye Program out-of-state students will receive in-state tuition so long as they graduated from an Ohio, high school. Contact your school’s financial aid department to get into the program.You can learn more about ​The Forever Buckeyes Program here. 34.Dr. Edward and Anne Link Fund This is another one of the scholarships sponsored by the Shelby County Community Foundation, which was established as a way to collect and distribute legacy gifts to people in the community. Only Shelby County residents are qualified for this scholarship. You must have completed at least one year of post-secondary education before applying, and you need to have a cumulative GPA of at least 3.0. You also need to be pursuing a degree in the visual arts, performing arts or creative writing. The deadline is June 1.You can learn more about the ​Dr. Edward and Anne Link Fund here. 35.The Tenfold Initiative Scholarship This award is sponsored by LaineGabriel. This award is given to high school seniors from the region of Central Ohio. You must be enrolled or accepted at a college, university or art school with a declared major in a visual arts program. You can be enrolled either part-time or full-time. You’ll need to submit samples of your work. The deadline is June 20.You can learn more about ​The Tenfold Initiative Scholarship here. ​We've worked hard to include a variety of scholarship opportunities within our list. If you have any suggestions on additional scholarships, please feel free to leave them in the comments section.Related Articles The Best Scholarship Websites to Find Your Funding The Best Scholarships in Louisiana The Best Scholarships in Maryland The Best Scholarships in Michigan The Best Scholarships in North Carolina The Best Scholarships in South Carolina The Best Scholarships in Texas The Best Scholarships in Utah The Best Scholarships in Virginia

Using Class Material Newspapers Finance Essay - Free Essay Example

Sample details Pages: 13 Words: 3986 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Using class material, newspapers, academic articles and government/specialized reports, compare the US corporate governance system with the French system of corporate governance and explain the key differences and common points you identify. As we wish to compare the American and French model of Corporate Governance, we will do so by stating common points or differences following the 8 main points of Corporate Governance. They are the following: forms of organizations in the country, shareholders rights, stakeholders rights, management structure, the role of directors, employees, the government and finally, the corporate social responsibility. Don’t waste time! Our writers will create an original "Using Class Material Newspapers Finance Essay" essay for you Create order Form of Organizations: In France, there are a great number of private companies; most often owned by families since generations and generations; for example Hermà ¨s. These types of corporations (private) generally do not sell their stocks, which stay in the same family. However, shareholders in these companies have the same characteristics as in another type of organization. The most numerous form of business in the United States is the model of sole proprietorship (75%) (and partnership represent 8% of all businesses). They are mainly small enterprises and are the easiest ways to start a business in the United States. The other dominant model is the corporation one (20% of businesse). Although they are fewer in number, they represent an important share of the countrys aggregate business receipts (86.5% of business sales). Indeed, many of the largest businesses in the US are public companies; such examples include Microsoft or General Motors Company. These public companies ge nerally have numerous shareholders, who sell and buy shares on the stock market. Shareholders rights and roles: In France, companies shareholders have an important role. The Winter report (2002), aimed at modernizing and tightening corporate law as well as corporate governance through 10 priorities including a set of rules about shareholders rights. The law on new economic regulations of 2001, following existing guidance of best practice wanted to increase the rights of minority shareholders. (Charreaux, Wirtz, 2007). Another major point of this law was to ensure a transparency towards shareholders. In France we can state 3 main rights which are; the right to vote at general meetings, the right to dividends and finally, the right of balance-adjustment in case the company would go bankrupt. In North America, we can identify 6 shareholders main rights. They have the voting power on major issues like the election of directors or major changes for a company like a merger or an acq uisition. One of their rights is the ownership of a portion of the company; indeed, by buying stock, they own something which has value. They also have the right to transfer ownership by trading their stock on the market. They are entitled to the companys dividends (in the case profits are not reinvested in the firm to increase its value). Being a shareholder also means they are allowed to see books and records of the company. This is not a problem for public companies, which have the obligation to make their financial situation public but it can be more delicate for private ones. Shareholders also have the right to sue the company in case of a wrongful act (an example of this kind a lawsuit was in 2002 with the WorldCom scandal, when the company largely overstated its earnings, thus hiding the reality from shareholders). Stakeholders rights and roles: Stakeholders are generally investors in a company, whose actions can have an impact on the companys decisions. They generally meet at the board of directors where they have the right and responsibility to agree or not with a decision for the company or introduce a new one. They have the right to appoint anyone to senior management or get someone to leave the company if necessary. Apart from the board of directors, they can also get involved directly with the company by taking over departments and taking decisions directly. In the United States, their protection is generally ensured thanks to contracts and strict regulations. In France, and since the Winter report followed by new laws, everyone orbiting around the company has increased rights and security. An employee can become a stakeholder and participate in its management better than before. Management structure: France is one in a few countries letting companies have the choice between a one- and two-tier structure. Some companies have a one-tier structure, where the board of directors makes important business decisions concerning the company. Ot her companies have a two-tier structure. This structure means having two boards of directors, the first one (management board) supervises the company and gives general guidelines while de second one (supervisory board) oversees major decisions for the company. The second board is appointed half by shareholders and half by employees. This second board elects the management board. In the United States however, companies have a unitary board of directors with a combined chief executive officer (CEO) and chairman. The unitary board is usually composed of no less than 3 people and up to 24 people. They elect the single PDG, who will be both CEO and chairperson. Employees: Various corporate governance codes have been drawn up by the employers associations (MEDEF and AFEP) under the names of the Vià ©not 1 2 reports and the Bouton report (Charreaux, Wirtz, 2007). Employees in France benefit from a good protection thanks to the numerous unions. They put a lot of pressure on compa nies and the government to improve their situations. They enable employees to have a say and protection even if they are not part of the union. In the United States, the interests of workers are defined through contracts and regulations from the government. Unlike in France, employees do not have any voice in a companys corporate governance (OConnor, 2000). The only link they have to the company is through pension funds, which are important shareholders of companies in the U.S. Pension funds as investment in a corporation is a voice for employees. Roles of directors: The principal conclusions of Mace (1971) were that directors serve as a source of advice and counsel, serve as some sort of discipline, and act in crisis situations. They are also accountable for the strategy of the company. In the United States, just like in France, directors have to be loyal and act honestly, in the best interests of their company. Their mission is to maximize shareholders wealth. France has als o developed a complex system of cross-shareholding where the director of a company attends another companys board. Government: In the United States, the government only provides the regulatory framework, leaving the actors on the market fight it out; the winner take all criteria (Mendez, 2004). They have information control, asking companies to be more transparent to the public. They also have monopoly control with antitrust laws to prevent any excess of power or monopoly. France seems to have more protectionist policies and is also much more involved with national companies with interventionist policies. Corporate social responsibility: Around the world, we have witnessed a growing concern for corporate social responsibility. A study comparing CSR between US and EU (Maignan, Ralston, 2002) showed that one difference was that US businesses mentioned more often their involvement in CSR than French ones. Also, the study showed that US companies did this as an extension of their core values while French corporations did this for customers and national regulations. This brings us to an important difference; French public corporations have the obligation to be responsible (socially) and to publish a report annually. This was introduced in 2010 via the Grenelle Law II. The study (Maignan, Ralston, 2002) also showed that US corporations seem to commit to CSR to look good and add value, not to do something good. Conclusion: Overall, we can say that Corporate Governance is quite different in the United States and France. There are similarities in the players roles however they differ when it comes to employee protection and role with numerous unions in France unlike in America. Both governments have policies to protect all actors and have similarities in the management structure (depending on the French companies choice). To conclude, it is safe to say that both countries Corporate Governances have more or less the same values and goals. Essay 2: Effective corporate governance the chairman and CEO of an organization need to carry out their functions effectively. Please explain (a) what are the respective role and functions of the Chairman and the CEO and (b) what are the advantages and disadvantages of allowing one individual to act as both chairman of the board and chief executive officer of a quoted company. We will now focus on the actual governance of a corporation through two major roles: CEO and Chairman. We will do so and start by explaining the role and functions of both the chairman and the CEO. We can find a lot of literature on the actual role of a CEO. One author (Mintzberg, 1998) decided to run an intensive five weeks of observation in 5 American firms (middle- to large-sized). Unlike previous authors, he did more than just ask top executives to write diaries about their daily activities but spent a lot of time with these 5 CEOs and exchanged mails afterwards to make sure his report was accurate. From this r esearch, Mintzberg developed a framework composed of 10 basic roles of a top executive, which can be subdivided into 3 smaller groups: interpersonal roles, information-process activities and decision-making activities. The first CEOs interpersonal role is the role of Figurehead. Indeed, a CEO is a person put in charge of handling social, legal and ceremonial affairs. Usually, they must attend and lead formal dinners, welcome and take care of important business visitors, agree to and sign various contracts. Then, there is the Leader role as he needs to stay in touch with his subordinates to keep them trained and motivated but most importantly, he must fulfill the needs of the company through the actions of the subordinates. Finally, the Liaison role is more external to the company. Indeed, the chief executive must keep cordial relationships with his network of top executives and other important people. These networks are essential in business and consist of exchanges of informatio n and benefits. When it comes to the CEOs information-process, we can identify 3 main roles performed before processing the information. The first one is the role of Monitor, as the CEO sends and receives a lot of information, coming from various sources. The information he seeks is about the surroundings of the company, to better understand the milieu his company is evolving in. This information generally comes from outside the company thanks to his network (part of his Liaison role). This brings us to the Disseminator role, which is when the CEO shares the right and chosen information with subordinates and the Spokesman role, where the CEO shares the information with outsiders and keep them informed on how the company is doing or what she is doing. The last set of roles concerns decision-making activities. The first role is the one of Entrepreneur as he is the one who takes the responsibility of making changes to the company. The second role is the Disturbance handler where the CEO has to take actions if the company is facing a crisis or disturbance. The resource allocator role explains itself; the CEO is responsible for deciding who has what in the firm and so on. Finally, as a negotiator, the manager is often required during important or critical negotiations. Indeed, he is the one with the power but most importantly, he has all the information. What we can say is that the role and functions of a CEO are very complex and diversified. He must be everywhere at anytime and his actions are critical to a companys situation. We will continue our work by observing the role and functions of a chairman. In a company, the chairman is appointed by the board and his most important role is to make sure of the effectiveness of the board in setting up strategies. The chairman has various tasks; the first one is to lead the board. Moreover, he is responsible for the composition and development of the board. As the boards leader, he must give the right infor mation to the boards members and lead their meetings in an efficient way. He has the responsibility to plan them and involve all members in the work. Finally, he has the role of supporting the CEO. Outside of the board and outside of the company, the chairman also has the function of communicating the companys goals and policies to outsiders. Now that we have defined the role and functions of the CEO and chairman, we will discuss the combined position of CEO and Chairman in a company. Indeed, the role of chairman can be combined with that of a CEO, most often in smaller companies (Institute of Directors, 2010). More importantly, we will focus on the advantages and disadvantages of this concept in a quoted company. Brickley, Coles and Jarrell (1997) recently studied this situation and what it entailed for companies. They came up with several conclusions which will help us determine advantages and disadvantages of combining roles in a company. Even though it seems logical to hav e two different people doing two different roles, there are a few advantages having the two functions combined. Brickley, Coles and Jarrell (1997) argue that a company can save costs linked to separating the two roles. These are agency costs of making sure the chairman acts in the right way towards the company and board. Moreover, combining the roles can give the CEO a different perspective, maybe better, wider or newer thanks to the multiple roles and functions. Furthermore, When a CEO is also a chairman it permits him to have a global vision of the company strategy. Indeed, in a lot of cases, the chairman aims to have good results in the short term in order to impact directly the price of the stock of the company and its image, and to increase the dividends of the people of the board and of the investors. These results at short term are very important for the company but it is also really important to consider the strategy of the company in long term. Indeed, the strategi c choices for the company like buying assets or invest in Merger or acquisition for example are often made in order to optimize the result and benefits in long term and have often a bad influence on the price stock at short term and sometimes on the companys image. However it is crucial for the company to take decisions like that in order to ensure the durability of the companys activity. These decisions are taken by the CEO of the company. This example shows well that it is really important to take decision in favor of the well-being of the company in long term and in short term. Thats why having a CEO who is also a Chairman permits to equilibrate the strategic decision in favor of the investors and of the activity of the company. Moreover, it is really good for the company to have a CEO Chairman because he can understand the different axes in the measurability of the performance of the company and try to take good decisions to maximize the global result by trying to satisfy eve ryone. Also, in case of a meeting of the board the important shareholders will more be able to trust the CEO chairman if he explicates that the objectives of the company are not focused on the stock price but on the revenue of the company in long term, than if he was only the Chairman. Finally, the fact of having a Chairman who is also a CEO permit to keep a strong link between the company and the investors, what can be considered as better for the company. Many authors recommend that these roles should be separated. The Working Group stated that having 2 different people would increase accountability and ensure that the interests of the shareholders as a whole were given due weight (Ford, 1997). Moreover, the combination of the two roles could be a source of conflict because of the concentration of power. If we believe some of Corporate Governances basic principles, there would be conflicts of interests between the CEO position and the chairman position. Indeed, CEOs ha ve specific obligations towards the company and have to protect their own situation while the chairmans position has to participate actively in making a collective decision with the board (keeping the whole companys interest in mind). And the board might have to make the decision by assessing critically the CEOs performance, his choices, etc. The board needs to be able to speak freely in order to be efficient and transparent with one another. This would be difficult if the CEO was sitting at the same table during a meeting. If the chairman is the CEO, then he might not make the objective and right decision, if he wants to protect his own interests as the CEO. Moreover, there is a difference between both positions goals. Indeed, the chairman has quite short-term goals, which are linked to stock prices and shareholders while the CEO has longer-term goals, linked to the companys situation, strategy, future. The problem if both roles where held by only one person would be the difficu lty of making decisions with two different interests. Also, because only one person would have the roles of acting, reporting information and taking decisions, this would leave very little transparency towards the board or the company. Indeed, the CEOs actions could be invisible to the board and this could actually lead to bigger problems like corruption or other public scandals. Separating the two roles would enable the chairman to monitor the CEOs actions and thus protect stockholders interests. Even though there might be advantages to having only one CEO/chairman, it seems legitimate that the two roles should be separated as the chairman and CEO can both concentrate on different (but equally important) aspects of the company. Also, it seems that the demands from shareholders to split both roles are more and more numerous; big companies like Wells Fargo or News Corp. are faced with shareholders demanding that they appoint an independent director instead of their CEO in the r ole of chairman (Semadeni Krause, 2012) Essay 3: In the 1990s, the stock options plans for top managers were seen by many as a relevant instrument for aligning interests of shareholder and management, thus solving many corporate governance issues. Please explain and justify why we could now consider that this hope has failed. An employee stock plan occurs when a person from a company holds shares from this same corporation. Stock option plans started their exponential growth in the 1990s when new technologies firms launched these plans to attract but also retain potential or current employees. Before, stock options were only granted to CEOs and other directors from outside the company. Today, they have become a good way to compensate employees in various industries. Overall, managers believe that being a shareholder would increase loyalty and better performances however, the subject is now highly controversial and we can say this hope has not lived up to managers expectations. Let us start by defining these stock option pla ns (or SOPs). An SOP occurs when a firm releases a certain number of shares to its employees at a fixed price and this for a limited time frame. Usually, this price (or strike price) equals the market value of the given stock at the time. Employees have to wait for the maturity of this option (generally four years) to buy shares. If the stocks market value has increased during the four years, then employees are able to buy shares at an important discount. Once these employees own stocks, they can choose to keep them or sell them on the stock market. This brings us to our controversy on stock option plans, and how they do not live up to firms expectations as they enable employees to become shareholders. The first criticism one could easily make about stock option plans is about the loyalty of the employees. Indeed, it seems that once the new owners of options have waited for the maturity of their options, they tend to cash in their options immediately. There are a few reasons f or this; first, employees may wish to diversify the options they hold, which means they will sell their companys options to get shares from another (maybe faster-growing) company. Second, some employees might simply want or need the extra money and just retrieve their new gains. We could thus say that stock option plans do not always increase employee loyalty, or if it does, only until their stock options reach maturity. The second criticism involves the hope of stock option plans to increase employees performances. We can see why the management would think holding shares would encourage employees to work even better in order to increase the value of the firm on the market. However, experience has shown that these plans increase the risks taken by management. Stock option plans have a specificity that regular shareholding does not have. Indeed, stock option owners can decide whether or not to exercise their options to buy. This means that they only share the success part of ownin g shares, they are not affected if the market price decreases, unlike regular shareholders. Another criticism about stock option plans is that it can put the company at a certain risk. Indeed, it seems that if a large number of employees decided to exercise their options to buy at the same time (if the market price is favorable for example), then the companys structure would be at risk. When employees decide to exercise their options, the firm must, on the other hand, re-issue shares and if the number of new shares is too important, then the value of the remaining stocks is decreased. The most dangerous aspect is that once a company offers stock option plans, it cannot control the day when employees will decide to exercise their options, most importantly, it is highly likely to happen in the same period of time if the market is favorable for stock options. Finally, if we look at a concrete example of failures with stock option plans we can see they can lead to many problems. L et us look at the Enron scandal of 2001 for example. Enron was an American energy company based in Texas. Enrons stocks began to increase thanks to diversification of the company with electricity plants, paper plants or water plants, pipelines, and even broadband services around the world. At the same time, new executives used financial loopholes to hide the companys debts (billions of dollars). Employee or executive stock option plans were widely used in Enron (just like in the rest of the country) and they were making a lot of money, not knowing about the real financial crisis of the company. The real problem was that people within the company were obsessively thinking about short-term earnings, which is not a way to run a company. Moreover, there were problems with the management, who had sold hundreds of millions worth of stock just before the crisis. We can say that stock option plans have multiple risks, either linked to management or employees, and that the downfall may be fa st and brutal. We have witnessed a number of scandals similar to the Enron case like Tyco or WorldCom among others. Overall, it seems that as far as stock option plans are concerned, disadvantages tend to outweigh the advantages for companies. However, Gilles (1999) suggested various possible alternatives to these problems. Some of which include the use of premium-price options, which makes an option worth nothing unless the firm improves its performance by setting the exercise price higher than the market price when the option is released by the company. Another given solution is companies giving and setting guidelines to management, requiring them to keep a certain number of stock options to be eligible for future stock options Collier-Hillstrom (2012).

American Society Today - 1717 Words

The society of America today is total different for most Americans then what it was during the 1950s , 1960s , 1970s and on into the 80s. America today is one were black people have the vote and have the same rites as white men and women. Today the leader of the free world is Black some thing that many though would never happen in there generation. But there are still inequality in America today. Urban ghettos are still mostly full of uneducated black people. Black men in America are four times more likely to go to prison. Drop out rates for black students are higher then white and those going on to collage and university is lower then whites. This problem goose back centres. The problem is not because of today issue ( but they don’t help†¦show more content†¦All these things add together like lack of jobs , poor education and health care meant that these areas became ghettos. With these ghettos came crime. People couldn’t get jobs and they still need to pay the bills and put food on the table. Selling and using of drugs became a huge problem in these areas. Using and supplying of drugs became easer in the cite ghettos with the lack of police in the areas. And with the drugs came crime. The situation was not helped when people could buy a news paper just as easy as a gun. Death by drugs and crime in these areas were higher then any were else’s in America. In the 1970s 30 per cent of America crimes were reported by six cites in America that only had 12 per cent of the total population of America. And these cites had large black ghettos and populations. Much of the crime in America was drug related. This had a ripple effect on the ghettos law and order was not respect. People how became addicts began robbing to pay for there habits. To make matters worse drug gangs started street battles over selling areas of the cites. 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Conduct in Engineering Technology Management †MyAssignmenthelp.com

Question: Discuss about the Conduct in Engineering Technology Management. Answer: Introduction: This report emphasize upon code of conduct. In this report, code of conduct and its significance has been analyzed in concern of stakeholders. Further, it has also been analyzed that how a business get affect through its code of conduct. Code of conduct is a document which is vital for every business such as some unethical work could lead some companies into serious troubles with government authorities, serious trouble with consumers and some other organizations. It manages the governance and ethics of an organization. Code of conduct is quite crucial for an organization as it affects the operations and all the related parties of the company. Code of conduct enhances the value for the stakeholder. Donker, Poff and Zahir, (2008) have depicted in a study that if an organization manages the code of conduct in an ethical manner than it directly enhances the significance of the stakeholders of the company. It has been observed through the research of Githui, (2012) that through the code of conduct, it becomes easy for the stakeholders to choose the best company and invest into the company accordingly. It has also been found through the study over EBSCO that code of conduct enhance the value of the organization and with the increment in the value of the organization, the value of stakeholders also enhances. The code of conduct helps an organization to enhance its business functioning and through the increment in the functioning of the company, the share value of the company automatically enhances. Further, it has been analyzed that a business is required to mange the code of conduct as it enhances the goodwill of the company in the market and it also attracts the customers to invest into the organization and offer them a good return (Thomas and Cotter, 2007). Through conducting further study over the significance of code of conduct on stakeholders, it has been found that code of conduct sets a guideline for the company to manage its stakeholders and their worth and through implementing these guidelines; it becomes possible for the company to enhance the worth of their shareholders (Palpacuer, 2008). Code of conduct also helps the stakeholders to manage the investment and return through which it becomes easy for the shareholder to manage the invested amount. Further, it has also found that this helps the organization to maintain the fund for further investment. Code of conduct is a crucial study which depict that it is required for every company, individual, stakeholder, shareholder to manage the code of conduct to enhance their worth and mange all the related aspects. Thus through this study, it has been observed that it is easy for the stakeholders and organization to manage the code of conduct to enhance the worth of functioning and the investment of the shareholders. Conclusion: Through this study, it has been analyzed that code of conduct is quite important for an organization to maintain and enhance the ethics of the company. an individual must implement the code of conduct to manage the related aspect. References: Donker, H., Poff, D. and Zahir, S., 2008. Corporate values, codes of ethics, and firm performance: A look at the Canadian context. Journal of Business Ethics, 82(3), pp.527-537. Githui, D.M., 2012. Ethical issues in the construction industry in Kenya: A critical analysis of the professional conduct in engineering technology management. Palpacuer, F., 2008. Bringing the social context back in: governance and wealth distribution in global commodity chains. Economy and Society, 37(3), pp.393-419. Thomas, R.S. and Cotter, J.F., 2007. Shareholder proposals in the new millennium: Shareholder support, board response, and market reaction. Journal of Corporate Finance, 13(2), pp.368-391.