A country can attract foreign direct investment by devaluing the currency because foreign direct investment will benefit from the weakness of the currency of the host country. The depreciation of the national currency against the Malaysian Ringgit foreign investors will increase foreign direct investment inflows. The exchange rate is one of the most important factors that affect trade between the countries. If the exchange rate rises, banks are relatively more favorable to the exporter, the exporter will be aware to changes in exchange rates. Statutory corporate tax rate is used as a proxy for the effects of fiscal policy to all new investors, ignoring tax holidays, accelerated depreciation and other incentives that reduce the effects of the statutory rate.
Friedman went on to argue that for a business to take money from their profits to fund corporate social responsibility projects is equivalent to stealing money from shareholders and is therefore unethical. From a utilitarian perspective, the ‘greater good’ may be believed to be the greatest amount of profit, potentially leading to a ruthless attempt to maximise income. This could come in the form of using cheap labour to be able to create maximum profit for the shareholders – and, furthermore, could end up blatantly disregarding human rights. This is a major issue of utilitarianism – basing ethical decisions on goodness for the greatest number of people allows for a
MN3245K Accounting for Corporate Accountability Assignment 1 Student ID : 100797577 Fair Value Measurement Fair value measurement is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants on the measurement date. Another important criteria in fair value measurement is that all the measurement are market-based but not entity-based and, the measurement requires to take market conditions to account, especially the principal market and it is basically measured using the assumptions that would be used by market participants in order to price an asset or liability. However, under some circumstances, principal markets are not always available.
Results will be in the form of descriptive report, facts, tables and figures that will cover the cost savings for the stakeholders and the company because of ignoring the collusion between auditors and management. We will analyze the potential advantages when the collusion is ignored and try to access real cases of the organizations when they ignored the collusion. This topic also relates to the management fraud, where fraud can be any activity that might be intentional in a way that would result in the loss of one party over the gain of the other party, and in the case of management and auditors’ collusion, that means that there would be loss of the stakeholders and loss to the reputation of the company in the market. Research Limitation: Collecting the primary data might not be possible because of the access problems to the companies. Companies might not be interested in revealing the information on the topic and might feel reluctant to fill the questionnaires.
Contrarily to the defensive, in the attractive CVR the bidder tries to encourage shareholders of the target company to tender their shares. Therefore, Allianz, by using the CVR, was trying to keep a part of total AGF’s shares as free float without incurring in the cost of purchasing a massive amount of stocks. In this CVR, Allianz was combining two exotic put options: a down-and-in and a down-and-out puts. This combination would guarantee the target shareholder with a minimum payoff at the exercise date, and the bidder Allianz with the advantage of limiting its cash outlay at the time of the
This levy has raised ethical concerns commonly known as tax avoidance and tax evasion. Tax avoidance is the lawful attempt to minimise expenses by deducting taxes in order to decrease tax bills. Tax evasion is the illegitimate practice of not paying taxes by not disclosing certain income or reporting expenses that are not legally permitted. Tax planning is established in order to minimise unethical issues that arise from tax levies and to ensure efficient tax usage. Irrespective of where a country lies in terms of development, the enactment of the tax levy will affect it.
Fortunately, contractionary monetary policy is effective in preventing inflation. Tools of Fiscal Policy The first tool is taxation. That includes income, capital gains from investments, property, sales or just about anything else. Taxes provide the major revenue source that funds the government. The downside of taxes is that whatever or whoever is taxed has less income to spend on themselves.
As a result of Sarbanes-Oxley Act, upper management should now certify the truth of financial information. In addition, penalties for activity of fraudulent financial are much more critical (M Bazerman &Messick D,1996). In place with some standard rules and regulation, mostly corporations are less possible to commit any activity of fraudulent because from lawmakers more scrutiny. Also, to survive corporations have a better opportunity as a company with their investor when they are truthful with their lenders and investors upfront, than if they were to attempt to hide any activity of
Their expected results are aggressive tax avoidance practices are negatively associated with irresponsible CSR activities. In this case, various measures are used to reduce the self-selection bias such as discretionary book-tax difference (DD_BTit), permanent book-tax (DTAXit) and ratio of cash tax paid over pretax income less special items (CETRit). Dummy variable, HIGH_NEG_CSRit is included into the model instead of solely dependent variable of negative CSR to avoid difficulty to determine the relation between some irresponsible CSR activities with company that had limited involvement to irresponsible CSR
Liability is the weaknesses of the proprietorship .The business owner will be held directly responsible for any losses, debts, or violations coming from the business. For example, if an enterprise has to repay its debt, it will be satisfied from the owner's own personal fund. This is drastically different from corporations, wherein the members enjoy limited liability (i.e., they cannot be held liable for losses or violations). Another weakness of the proprietorship is taxes. Although the sole proprietorship enterprise has many tax advantages, the main drawback is that the owner must pay individual income tax.
Above all else, a trade framework is a financial framework to expand a country 's riches by government controls of the majority of the country 's business advantages. It was additionally critical in light of the fact that the country could deal with the economy, which included designating products and assets and deciding costs. The possibility of mercantilism drove laws in the states that would build up England as their lone exchanging accomplice, to permit England to offer the merchandise and balance out their economy. Mercantilist thought and laws made the provinces trust they required autonomy from England to appropriately exchange and thrive. The American settlements part in mercantilism was to do this very thing; right off the bat, the provinces gave tobacco; inevitably other important money products were sent back, for example, indigo.
Moreover, I believe that the government could work towards controlling the uncontrollable (Tax Policy Center, n.d.). Just because entitlement spending is said to be uncontrollable, it does not mean that this programs could not be reformed. For example, controlling and changing the eligibility criteria or the generosity of benefits being given could reform a