1. 1-1 CSR has created great impact on
There has been more awareness about climate change and
environmental issues over the last several years. Organizations need to take
notice of issues and problems that the public considers important as any
organization that is harming the environment is considered socially
irresponsible and risks its relationship with its stakeholders. Another factor
that has made CSR important is the use of the internet and easy access to
trading information. Any company seen as socially irresponsible will be exposed
to all the public and lose stakeholders.
1-2 the major difference between
Micro and Macroeconomic environmental factors is that, the former deals
primarily with the internal factors of an organization, like the ones you have
mentioned such as customers, suppliers, stakeholders and competitors. On the
contrary, macroeconomic environmental factors comprise of external factors
entailing those of legal, economic and political aspects. Microeconomics have a
direct effect on the operational business operations, while the organizational
working is affected indirectly by the macro-environment.
2-1 Brokerage firms play an
important role in price discovery because they connect buyers and sellers while
facilitating their transactions. The communications between these two
parties and the availability of each will largely determine the
supply and demand for a product or service. An excess of buyers will
increase demand and drive the price up while an excess of sellers will be
forced to lower their prices to make their offerings more attractive to buyers.
2-2 The Great Depression caused
historically unparalleled increases in unemployment and inflation. People who
grew up in this economic climate tend to make saving money a lifelong habit.
Growing up in southwest Kansas, I know several farmers who became
multi-millionaires due to this focus on conserving money.
How else are people’s financial choices influenced by the economic environment they grew up in? What behaviors resulting from these extreme situations continue to impact the economy? Please share your thoughts.
3-1 The ability of a company to
meet it's financial obligations is determined by financial leverage ratios.
Financial leverage becomes risky in a cyclical business as the sales and
profits are in a state of flux which increases the chances of bankruptcy.
3-2 Investors and banks probably use this information to most due to their
responsibility and the risk of giving the financial backing a company is
asking. Also, a small business that shows a good trend of ROA could potentially
gain investors and making their business more profitable.
7.4-1 Pro forma statements do provide
additional understanding the operations of a company. I believe that between
the SOX Act ensures the protection of the statements made in case any
information is inaccurate
8.4-2 I believe external auditing is
really important when it comes to organization or financial
entities. They provide insight on real information that exists in the
organization. They have to audit the company without bias and needs to
hold true to their findings. I believe by having an external auditor you can
have the organization hold up credibility and truth. They also help you
identify areas where you could be lacking or no longer in compliance.
Get Free Quote!
299 Experts Online