liability of the shareholders. However‚ under certain circumstances the corporate entity may be disregarded. This is also known as piercing the corporate veil and is the most frequent method for holding the shareholders liable for the acts of a corporation. Corporate officers‚ directors and controlling shareholders have a general fiduciary duty of loyalty and care which should govern all their corporate conduct. Unless they breach that duty by gross negligence or acts in bad faith‚ they usually will
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adopted a “word of mouth” marketing strategy by using outdoor billboards in populous areas and organizing outdoor events and contests. Even though the strength of social media has become evident in 2010 as 50% of the targeted age group (20-40) for this industry were online users‚ Decathlon had no clear strategy on how to utilize social media while maintaining its customer focus. Its first mistake was launching a store on Taobao making it difficult to target its specific customer groups in such an overcrowded
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What is the weighted average cost of capital (WACC) for Marriott Corporation? WACC = (1 - τ)rD(D/V) + rE(E/V) D = market value of debt E = market value of equity V = value of the firm = D + E rD = pretax cost of debt rE = after tax cost of debt τ = tax rate = 175.9/398.9 = 44% Cost of Equity Target debt ratio is 60%; actual is 41% [Exhibit 1] βs = 1.11 βu = βs / (1 + (1 – τ) D/E) = 1.11/(1 + (1 – .44) (.41)) = 0.80 Using the target debt ratio of 60%: βTs = βu (1 + (1 – τ) D/E)
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Generally‚ the video provided another side of the giant corporation in retail industry – Wal-Mart‚ which is not as good as may people used to think. The video has several interviews with former employees‚ small business owners‚ and footage of Wal-Mart executives to prove its point of view that Wal-Mart underpay its employees which is also the interesting point of the movie when the directors do not have to say much‚ they let the insiders say their ideas and thoughts in order to come up with the conclusion
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In 2003‚ a multimillion-dollar media effort was made around the new platform called “Unwired” which based on the core product Centrino‚ a unique integration of a new microprocessor‚ an extended battery‚ and wireless capabilities. Although the PC industry slowed in the mid-2000s‚ Intel continued to lead the market by seeking opportunities in new growth areas such as
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In this scenario Margret Weston‚ received a letter. In the letter she found out that Yossarian acquired 10% of the company’s stock. This aggressive move by Yossarian was motivated by the company management not doing their job to maximize shareholders wealth. Moreover‚ the managers were having issues with the hurdle rate‚ because it is just generally accepted‚ but not scientifically proven. On the other hand one TV Commentators opinion about Teletech Corp. is that “there is no way to have a hostile
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Franc Ouedraogo Case Assignment: CUTCO Corporation 1) Direct selling is defined as any kind of selling that is made outside a fixed business location. Therefore‚ most of the company that use direct selling are not well-known‚ are small‚ privately owned or do not have physical stores. Direct selling is essentially a push marketing strategy‚ and the firms that use it do very little traditional advertising. Most of the direct sales take place in a residence and on a one-to-one basis. 2)
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all of its products to either insiders or outsiders and if buying center can obtain all of its requirements from either outside or insiders. The market price then represents the opportunity costs to the seller of selling the product inside. In this case‚ Thompson division had been running over capacity and
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The Brewster-Seaview Landscaping Co. Part 1 During the summer of my freshman year in college‚ I worked for a small private landscaping company planting shrubs‚ seeding new lawns‚ cutting grass‚ and tending flower gardens. The company was located in my hometown of Seaview‚ N.J.‚ which is a rural community on the coast about 80 miles from Philadelphia. The company was owned and run by Joe Brewster‚ a 45-year-old man who had lived in Seaview all his life. He had started the company some years ago and
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the out-dated five year plan. The Wallace group needs to reformat their corporate strategy as well. The corporate strategy currently in place is one that is useless to the growth of the company. In order to maintain a foothold in any of the three industries‚ electronics‚ plastics‚ and chemicals‚ The Wallace Group must begin by re-designating presidents and vise-presidents of the individual entities using a hierarchy strategy. Currently‚ Mr. Wallace is president of all three entities. If change is going
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