not just important for the employees to follow‚ but for the entire company. In 2001‚ a failing company called Enron was involved in numerous unethical behaviors. For example‚ Enron’s Chief Financial Officer temporarily suspended their “code of ethics” not once‚ but twice in order to partake in personal financial gain. Enron’s actions eventually resulted in bankruptcy and assisted with the creation of a new set of guidelines for companies to follow. The so-called guidelines were called the Sarbanes-Oxley
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The black market‚ or the underground market‚ according to the definition of Johnson‚ is “a market in which certain goods or services are routinely traded in a manner contrary to the laws or regulations of the government in power” (paragraph 1). In layman’s terms‚ illegal products are usually sold or traded throughout this market. The beginning of the black market dates back all the way to the early 1920’s during the alcohol prohibition era. Since alcohol was banned from being sold and consumed‚ and
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Study Questions 14.1 What are financial markets? What function do they perform? How would an economy be worse off without them? Financial markets are institutions and procedures that facilitate transactions in all types of financial claims. Financial markets perform the function of allocating savings in the economy to the ultimate demander(s) of the savings. Without these financial markets‚ the total wealth of the economy would be lessened. Financial markets aid the rate of capital formation
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Ethics and Compliance Team B FIN/370 May 23rd‚ 2013 Brian Mom Ethics and Compliance Give me a “W”‚ give me an “A”‚ give me an “L”‚ give me a squiggly‚ give me an “M”‚ give me an “A”‚ give me and ‘R”‚ give me a “T”. What’s that spell? Wal-Mart. Whose Wal-Mart is it? It’s my Wal-Mart! Who’s number one? The customer! Always! ("Wal-Mart China"‚ n.d.). This is the motto and cheers that Wal-Mart lives by. Don’t be surprised if you hear the associates shouting this loudly and proudly
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Cannataro‚ Michelle Hayes‚ Camille King‚ Kristyna Princivalli‚ and Cynthia Zatarian FIN/370 October 24‚ 2011 Brad Simon Wal-Mart ’s Strategic Initiative It is difficult to clearly understand the goals of a company unless you look at the strategic planning involved. What is strategic planning? Strategic planning is simplifying the overall purpose and desired results of an organization‚ and showing how those results will be achieved. If the strategic plan is properly prepared and understood
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consumers assumed an unprecedented debt load. As part of the housing and credit booms‚ the amount of financial agreements called mortgage-backed securities (MBS)‚ which derive their value from mortgage payments and housing prices‚ greatly increased. Such financial innovation enabled institutions and investors around the world to invest in the U.S. housing market. As housing prices declined‚ major global financial institutions that had borrowed and invested heavily in subprime MBS reported significant losses
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finance. 2. Efficient Market is one where the market price is an unbiased estimate of the true value of the investment. The role of efficient market in finance is that it studies the response of prices when all necessary information is available in the market. 3. Primary Market is a newly issued security is first offered and all subsequent trading of this security occurs is done in the secondary market. The role of primary market in finance is a vital part of the capital markets and underlying strength
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Definition of financial terms Dino Scott FIN/370 April 6‚ 2011 Curtis Keith Definition of financial terms Finance concerns the management‚ maintenance‚ and creation of economic value or wealth (Keown‚ Martin‚ Petty‚ & Scott‚ Jr.‚ 2005‚ p. 4). Efficient market is the theory that market prices reflect the knowledge and expectations of all investors (Downes & Goodman‚ 2010). Primary market is the market for new issues of securities. A market is primary if the proceeds of sales go to the
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cut back on the availability of money. If the economy is in a depression‚ with unemployment rising‚ just the contrary must be the proper course. It sounds‚ therefore‚ as if the job of the central banker is an easy one. As we shall see‚ it is not. How does a central banker increase or decrease the supply of money? The key lies in the fact that we have a fractional reserve system in which banks can make loans or investments with "excess" reserves. Excess reserves are simply cash or deposits at the
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Week 5 Individual Assignment FIN 370 April 7‚ 2014 Problem: Firm A has $10‚000 in assets entirely financed with equity. Firm B also has $10‚000 in assets‚ but these assets are financed by $5‚000 in debt (with a 10 percent rate of interest) and $5‚000 in equity. Both firms sell 10‚000 units of output at $2.50 per unit. The variable costs of production are $1‚ and fixed production costs are $12‚000. (To ease the calculation‚ assume no income tax.) a) What is the operating income (EBIT) for
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