Managerial finance

Identifying Systemically Important Banks 1. Definition of systemic risk and the importance of monitoring it 1.1 Definition of systemic risk According to Oxford dictionary, systemic risk means a risk of a failure in a whole system, the collapse of certain big banks or financial institutions will cause a systemic risk to the financial system as a whole (Law, 2014). Systemic risk related to bank failure. In detail, it has three perspectives. First refer to a chain of events, like domino…

a. It can change rapidly. c. It is easy to regulate. b. It protects the less fortunate. d. It encourages growth. 6. What might be a hardship for citizens of a centrally planned economy making a transition to a market-based system? a. Farmers would have to grow the crops that the government instructed them to. b. Only poor quality goods would be available to consumers, because manufacturers focused on quantity, not quality. c. Workers would lose job security and guaranteed incomes. d.…

Chaper8 Silver service 1 what is silver service? -Style of catering where the food is delivered to the table on a platter held by the waiter and served to the customer’s plate using a folk and spoon . 2 Which side of the guest do you stand for silver service? -Left of the guest 3 what are the limitations of using the thread method of holding the service gear? -Each different items need to be served by different service gear required. 4 How do you pick up small items of food? -To remove…

who are wicked. Per Marguerite Roza, school finance is a wicked problem because it has various sources of funding. She goes on to say that because each funding source has varied stipulations and formulas for distribution of funds it makes the issue of school funding worse. Based on the information provided, states should do a better job of getting and giving school finance information. The consensus seems to be that there should be more school finance analytics, a more thorough breakdown of…

The advantages of Globalization of finance are the reduction of financial risk, improve the allocation of capitals, and reduce borrowing cost. Every business small or large has some form of a financial risk. The reduction of financial risk may require a business to plan for potential risk and existing risk. A company needs to plan ahead for future difficulties seen or unforeseen. Improving the allocation of capitals is one of the most important decisions associated with a company’s success and…

The American Institute of Certified Public Accountants (AICPA) is the world’s largest representation of certified public accountants (CPAs). Established in 1887, the AIPCA serves as an advocate for CPAs, CGMAs, and has a mission of powering the success of global business, CPAs, and CGMAs through the use of education, resources, and advocacy (AICPA, 2016). The AICPA supports FASB by providing technical support, standard setting, and guidelines to CPAs nationwide. Because accounting is complex in…

to commit a fraudulent act until they are caught. It is also a story that will forever be told and used as a learning guide for investors and others within the financial industry. The term “Ponzi scheme” is one that is often heard in the world of finance. It comes from the fraudulent act committed by Charles Ponzi in the early 20th century. ( Ferrell, 2009) Charles Ponzi is believed to have been the first to successfully pull off such a scandal. Some would say that while Charles Ponzi created…

Amazon http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual Who is the audience for each section of the report? The audience for Amazon’s report are people interested in investing, future shareholders, and people that are interested in learning about Amazon and their services. This is the intended audience because Amazon’s report has financial statements, a letter to shareholders, and information about the company and amazon’s services. There is also Amazon’s 10-K to show…

Creating and congruent with the investment process On the basis of Mauboussin and Callahan (2015), the investment process could be divided into two sections, including short term and long term process. It is unwise to merely utilise short term or long term process because the market mispricing is unavoidable, and both short term and long term investment processes are essential. Additionally, different situations require different kind of investment plans. For example, the ever-changing…

From the table above, we can see that ABC’s Z Score is on negative amount in 2007, we suspect that it’s the result of their acquisitions, which mainly funded using debt. If we compare it to their performance in 2006, they were considered in the safe zone (Z Score > 2.6), which means the company is believed to survive in the future. Volatility of the share is also increased in 2007, which represents there are more risk associated compared to the previous year, so there’s a high probability…