EXECUTIVE REPORT

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Karen W. Francisco

FIN 330, Section 7380
Dr. Jongdoo Lee
November 30, 2009

Table of Contents

COMPANY PROFILE: 3
    Nature of Business 3
    Mission Statement 4
Accounting/Financial Data Analysis 4
    Industry Trends 4
    Regulation 5
    Domestic/Global Competitions 6
Recommendation 6
    Diagnosis of Current Problems/Potential Remedies 6
    Future Prospects 7
References 9
Appendix A 10
    Income Statements 10
    Balance Sheets 11
    Statements of Cash Flow 12
    Financial Ratios 12
    Stock Quote & Summary Data 14
Appendix B 15
    Industry Average 15
    Competitors 16

memorandum

Date: NOVEMBER 30, 2009

FROM: DANIELA BASCIANO, MARIA BURGESS, KATRINKA DUCKWORTH, KAREN FRANCISCO, AVERY JONES

TO:       CHIEF FINANCIAL OFFICER
RE: recommendation TO purchase eBay’s stocks

PRIORITY: URGENT

COMPANY PROFILE:

      Nature of Business

eBay is the world’s largest online marketplace for the sale of goods and services with approximately 88 million registered users (eBay, 2009). This firm is a cutting edge provider that creates a supply chain for sellers and buyers to conduct business utilizing eBay as a sort of middleware.   Through its online platform, eBay is essentially a catalyst for individuals and businesses to market and procure practically anything.   It is a lucrative concept that has taken the e-commerce industry to a new level and guarantees a secure and stable environment for users around the globe.   Established in 1995, eBay’s first sale was for $14.83; however, monthly sales quickly reached to $10,000 (eBay, 2009).   By 1997, eBay’s gross sales were $95 million (eBay History, 2009).   eBay earns its profits through charging fees to individuals and businesses that use the eBay website to advertise their goods.   These fees range anywhere from 10 cents to $4.00 with additional fees applied to the actual sale of an item (eBay, 2009).

In 1998 eBay went public when it... [continues]

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