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Assume that the United States and Europe are both initially in an economic recession and that the United States begins to recover before Europe. What would you expect to happen to the trade? What would you expect to happen to the US dollar – EURO ($/Euro) exchange rate? Why?

As the US economy recovers from a recessionary situation before the European economy, the US dollar will appreciate vis-à-vis the EURO. But in this case, as the European economy is in recession, the US will still enjoy trade to European countries even with a costlier dollar as production will be...

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Review the full list of e-purchasing tools which you are aware of. Take the supply positioning model and indicate the quadrants within the model where the relationship sought by the purchasing organization would make it appropriate and inappropriate to use selected e-purchasing tools.

The complete list of e-Purchasing tools includes e-auctions, electronic health record system, electronic resource planning, catalogs complex goods and services, content and catalog management, e-marketplace, tender, RFQ, e-invoicing and payment, procurement card. Supply chain positioning model: The diagram above shows the relationship between the organization’s vision and missions is transforming...

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When recession hit both the British and international economies at the end of the 1970s, British Airways ran into heavy losses. How did the government respond? What were the distinctive capabilities of the restructured British Airways? How did it match markets to its distinctive capabilities? What are the sources of added value for the products of British Airways?

There have been several aspects that needed to be evaluated and corrected by the Government with regard to the relentless losses that were being incurred by British Airways over some time, and they were mainly in the areas of: Steep hike in fuel prices. Airlines operating in a highly controlled...

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Explain if EVA is really an improvement over ROI, ROE, or EPS.

Performance is the final result of an activity. The type of organizational unit and objectives to be achieved will ultimately decide what is measured. Primary measures of corporate performance include traditional measures like ROI< EPS and ROE and shareholders value like EVA and MVA with stakeholders’ measures. ROI (Return on...

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Explain why realized real rates of interest are sometimes negative, but expected real rates are always positive. Give a numerical example of a negative realized real rate.

The “realized real cost of borrowing” is also called the ex-post real interest rate. Looking forward in time for the length of the holding period, both r and E(i) are unobservable; only their (approximate) sum R is observable. Thus, E(r) = R – E(i), gives the expected real return over...

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If the Japanese yen were to change from 100 yen per dollar to 90 yen per dollar, would the US balance of payments be likely to “improve” (become more positive) or not? In answering, consider what effect the exchange rate change would have both on US exports and imports to and from Japan.

An exchange rate is simply the price of a unit of foreign currency in terms of the dollar; a peso costs 10 cents; a euro costs $1.30; a yen costs 1 cent. In this case, the US dollar becomes costlier vis-à-vis the Japanese yen. So, the export from the US...

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Within a couple of days of the stock market crash of October 19, 1987 [Black Monday] and “September 11,” money market yields dropped over one-half point. What caused this drop in money market interest rates? Give at least two possible explanations.

The money market is the day-to-day financing that keeps the wheels of finance and commerce spinning. Any trouble in the money market is immediately transmitted via the banks to the bond and stock markets and then quickly out to the “real” economy. Post 9/11, the stock markets crashed considerably. Keynesian...

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Identify some tools and techniques that are available to facilitate sound decision-making and focus on strategic planning as the essential process of determining and refining an organization’s objectives and determining how to allocate its resources.

Different organizations embrace varying tools in making choices alongside strategic planning. However, the decision-matrix, Pareto analysis, and SWOT analysis seem to portray substantial benefits for firms worldwide. These tools entail critical evaluation of the existing conditions to understand and identify various factors affecting the system of operation. The decision matrix...

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Define and describe decision making with special attention to forces and factors that limit or “constrain” business decisions.

The decision is the conclusion of concepts which entails choosing the best alternative from the available and taking the most appropriate course of action. Making decisions involves an integrated approach to problems, which enables the manager to move forward in business. Such conclusions are often binding and may affect the...

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Discuss three similarities and three differences between international versus transnational organizations.

International and transnational organizations have several similarities in terms of their operations. Both types of organizations operate in the international market arena and conduct their businesses in more than one country. From a business perspective, international and transnational organizations describe entities that engage in foreign trade. However, there are marked...

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List and define the three types of organization members found in multinational organizations. Discuss the contribution that each type can bring to creating the success of the organization.

Multinational corporations often have the following major organization members: host country nationals, expatriates, and third-party nationals. Each of these three groups has a distinct contribution to the success of the organization. Host country nationals represent the host country’s culture and contribute insights into the host-country nationals’ preferences. Expatriates manage the...

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What knowledge must a manager have to influence organization members of multinational corporations successfully? Would it be easy for a manager to acquire such knowledge? Why? How should the manager acquire the knowledge?

Managers of a global team must have solid management skills such as the ability to identify, troubleshoot, analyze critically, resolve technical and managerial issues, and execute plans, strategies, and projects. Furthermore, they must be knowledgeable about the diverse cultures of both the home country and the hosts in the foreign...

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Is the preparation of expatriates more important than their repatriation? Explain fully.

Preparing expatriates is more important than their repatriation because the cultural distance between the home and host countries impacts the ability to adapt and succeed on international assignments. Inadequate preparation is a leading cause of most expatriate failures. Proper preparations such as intercultural training enable expatriates to understand how to...

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A company often mentions the concept of ethics in its mission and on its website. Describe all of the steps and actions a company can take to ensure its ethics program is indeed working.

Through corporate ethics, a company can ensure that its program is effective. Employees are “more likely to contribute to firm performance because they inherently want to give their best for a company that cares about its people and its ethics.” Corporate ethics is a system of moral principles and norms...

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How would one begin to explain the recent creation of a debt relief mechanism by the Group of 20 in terms of the constructivist theoretical perspective?

The devastating effects of COVID-19 have overburdened the less developed and developing economies, making it challenging to cover their debts. The G-20 established a debt relief framework to help these countries deal with the pandemic. The actors agreed that an eight-month debt suspension period would be offered to states with...

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Dumping and anti-dumping dispute settlements are an important part of the WTO dispute settlement system (DSS). Suppose that you’re applying for a job at the WTO DSS regarding dumping and you have to answer the following questions to get the next round of interview. What is dumping? Under what condition dumping is to be condemned according to WTO rules? Describe an economic situation that a firm is found dumping but the firm is not to be condemned according to WTO rules. Clearly state the assumptions and use graphs to assist your argument.

Dumping is selling a product in a foreign country at a price lower than the price charged by the same firm in its home market or at a price below the costs of production.  According to WTO rules, dumping is to be condemned only if it causes or threatens material...

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Suppose Canada is a small importer of personal protective equipment (PPE). At the world free trade price, Canada’s domestic production of PPE is Q1. In autarky, Canada’s domestic production of PPE will be Q2. Suppose that the Canadian government is convinced that to prevent future crisis similar to COVID19, the domestic PPE production should be at Q3 and Q1; Q3 ;Q2. Propose three different policies by the Canadian government that have the potential to achieve the policy goal of having domestic PPE production at Q3. Rank the three policies by their impact on national welfare. Support your argument with graphs and detailed analysis.

There are three possible ways to achieve higher productivity in comparison with free trade equilibrium in a small importing economy. The methods include imposing import tariffs, import quotas, and voluntary export restrictions (VERs).   As for the ranking, it is preferable to use import tariffs, then import quota, and then VERs....

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In March 2019, Zambia, a small open economy, lifted its export ban on maize (corn). Now, Zambian farmers can export maize freely to the world market. This policy change has received mixed reaction within Zambia. Analyze this policy change with a graph. Who gains from this policy? Who loses?

As Zambia is a small exporting economy, the ban on exports would mean that the country’s prices are at a level similar to autarky. After the ban on exports was called off, the price of corn increased from autarky price (AP) to world price (WP). Such an increase benefited the...

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Suppose that the trade talks between China and US collapse and China ends up imposing prohibitive tariffs on maize produced in US. With China’s significant and increasing presence in Zambia, it won’t be surprising that China may start to import maize from Zambia. Assume that the Zambia’s exporting price increases because China stopped importing from the US and starts to import from Zambia. Analyze the impact of this hypothetical change on different groups of people in Zambia with a graph. Will Zambia’s national welfare increase or decrease due to this change?

Suppose the price increases in Zambia from world price (WP) to the new Zambia price (ZP), and the consumption of maize will decrease from Q1 to Q3. The consumers’ surplus will decrease by area a; thus, the change will not benefit the consumers. At the same time, the quantity of...

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In his article ‘Why is there poverty?’, Johnson outlines how individualism fails to explain poverty. He then explains why poverty must be seen as a social problem. In your own words, explain what Johnson’s main argument is here and what evidence he uses to support his argument. You should refer to his metaphor of the foot race in your answer.

Johnson argues that poverty does not exist on its own. According to Johnson, poverty is both the result of how the system is organized and a structural aspect of the system. In addition, poverty is caused by the paths of the least resistance that determine how individuals participate in the...

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What did you find most interesting about the Johnson reading ‘Why is there poverty?’

What was most interesting is how the capitalist system drives companies and managers into making a decision that negatively affects millions of people. For instance, managers replace people with machines and full-time employees with part-time workers to keep wages at their lowest. In addition, managers move jobs to regions or...

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Summarize how Canadian citizens’ perception of wealth inequality is different from both what they believe the ideal distribution of wealth should be and the actual distribution of wealth.

The Canadian citizen’s perception of wealth inequality is that 20% of the richest own ten times the wealth of the poor. However, the actual wealth distribution in Canada is evenly dispersed. According to Broadbent Institute, “60% of the middle class have a healthy income while 20% of the Canadians only...

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What norms were enforced and what labels were applied in the scenarios that McNally discusses? Who enforced these norms and labels? On whom? Why? What did you find most interesting about the McNally reading?

McNally discusses the capitalist system and how it has caused alienation. Capitalists result in workers’ produce being taken from them by those who own the means of production but do not labor. This ends up creating labels such as class and race. Capitalism creates an illusion of class where the...

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What issues should executives of a company such as Blue Apron consider before deciding to go public? In your opinion, was the company ready for an IPO? Why or why not?

Before any firm goes public, it should have a constant and liable income and a stable profit margin. When Blue Apron’s executives decided to publicize the company, the revenue seemed to be high, but in reality, there were losses, which was not suitable for the company. Prior to going public,...

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How else could Blue Apron have raised funds to continue to grow? Compare the risks of raising private funding to going public.

If the corporation needed additional operating capital for expansion, it could have short-term loans and long-term debt funding such as bond issuance. Additionally, the firm may have found support from Angel investors or Venture Capitalists. Taking short-term loans or commercial paper means the money is only attainable for a limited...

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How does Numeric’s investment process work? Understand especially the Pepsico example. What are the assumptions on which Numeric’s two models are based? What are the sources of value added? What are the weaknesses?

The investment process of Numeric involves various strategies that aim at improving the firm’s performance. One of the methods entails the portfolio managers making buy, sell, sell-short, and buy-to-cover decisions. The process was introduced by Numeric’s traders or through the use of electronic trading services. For instance, some of these...

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How useful is the exhibit of portfolios: Core Aggressive Portfolio, MidCap Aggressive Portfolio, Small Cap Growth Portfolio, MicroCap Portfolio, Value Aggressive Portfolio, Original Long & Short Portfolio, and Fair Value Long & Short Portfolio; in understanding the characteristics of the stocks included in the various funds of Numeric?

Every organization is encouraged to monitor various aspects that can determine its productivity. For instance, analyzing the firm’s stocks allows companies to learn about the sales trends and production levels. In this case, the exhibit is vital to the Numeric firm since it can be analyzed to determine the characteristics...

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What are the important elements of finance? Give an example.

Financial statements are built on ten key elements. They form the classes that exist in the financial statements. They are used in measuring the performance of an organization and reporting its financial position. The components include comprehensive income, loss, gain, expenditure, revenue, proprietors’ distribution, proprietor’s investment, equity, liability, and asset....

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Define the interest rate. How does it work? What is the impact of the interest rate on the borrower? And what are the factors that influence interest rates?

An interest rate, usually expressed as a percentage, is an amount charged to the borrower on the principal by the lender for the usage of the lender’s assets. The rates are usually computed annually, bringing the term annual percentage rate (APR). The assets could be large assets like a building,...

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Describe the relations between financial crises and the derivatives markets.

Derivative markets are believed to have been the cause of the last world financial crises. This is so because derivative markets come up with an inflated value of market capitalization which is very high compared to the same value when calculated by other means. Derivatives have also been criticized for...

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Define the essence of the derivative market.

Derivatives are contract agreements enforceable at a specified future date and whose value wholly depends on the value of the underlying asset. This means that a derivative cannot have an independent value from one of the underlying assets. The underlying asset may be bonds, stocks, cash, intellectual property, or receivables....

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Define the term arbitrage in business.

Arbitrage is the process of increasing income without having to increase the levels of risk involved in making the investment. It is a process of making a riskless gain. An arbitrage opportunity arises when a project is capable of giving returns that are more than or equal to the risk-free...

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Name the factors that have the biggest impact on future business cycles and explain why they are the most impactful. Will the factors you chose to contribute to more severe or less severe business cycles in the future?

A recession occurs when citizens are unable to buy all that the economy produces. This may be a result of the high prices of the commodities. Thus, prices of commodities may impact the way businesses are being run and the future results of businesses because they will affect business operations....

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In the relatively recent past some economists stated that the business cycle is dead; Do you think it is possible for the US economy to never have a business cycle again? Briefly explain what you would have proposed, as President of the United States, to end the 2007-2009 recessions.

The exploration of the causes of business cycles grew interested after an increase in the severity of economic depression caused concern in the late 19th and early 20th Centuries. Sunspots have been blamed to be the causes of recessions in that they affect the quantity and quality of the goods...

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Can you briefly explain what an efficient market is?

A market can be described as efficient when the prices of securities being traded in the market reflect all available information at a given time. The information reflected in the market must be relevant to the security in question meaning that all information that comes to the market will be...

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Why is the Weighted Average Cost of Capital so important?

The Weighted Average Cost of Capital (WACC) is important because it shows us the minimum after-tax return that our company must earn in order to maintain shareholder value. This average is the required return on our assets. Of course, it is based on the market’s perception of risk on those...

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How does harmonization differ from convergence?

Despite harmonization and convergence attaining comparability within reporting of financial accounting, the two concepts widely differ. Harmonization is the reduction of alternative practices of accounting in economies to have comparability of financial accounting. On the other hand, convergence is the definite process of creating a specific set of high-quality standards...

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What are the current and fixed assets and liabilities?

An asset is any item with economic value that a corporation or an individual owns and that the individual or the corporation could convert to cash. There are two categories of assets: current assets and fixed assets. Current assets are the items that a business owns, and their lives do...

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Why must a country’s currency be devalued? What is the failure in the economy?

Devaluation takes place when a state lowers the value of its currency compared to other currencies. A country’s currency can be devalued due to the prevailing rate of inflation. When maintaining the fixed exchange rate of a state becomes difficult, the country has to buy its home currency back using...

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Carefully discuss which party: households, mortgage brokers, retail (commercial) bankers, investment bankers, investors, insurance companies, the Federal Reserve, credit rating companies, you think got out of the crisis with the least amount of damage, and why? Which party is probably the most affected, and why? Use web-based articles and resources to help you determine and support your opinion.

Credit rating companies are least affected by financial crises because they do not engage in direct transactions with investors and homeowners. The role of credit rating companies is to assess investment risks in any of the CDO groups. However, investment banks are most affected by global financial crises since they...

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Identify and discuss any errors in the assumptions and behavior of each party: households, mortgage brokers, retail (commercial) bankers, investment bankers, investors, insurance companies, the Federal Reserve, credit rating companies.

Households are homeowners who borrow house loans in the form of mortgages. They pay a given percentage of the total cost as a down payment and later make monthly contributions from their incomes. Mortgage brokers are intermediaries that are contracted by financial institutions. They convince households to borrow house loans...

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Discuss the meaning of the main concepts related to mortgage securitization: MBS, CDO, and CDS. Explain their role in the lead-up to the global financial crisis.

In mortgage securitization, MBS stands for mortgage-backed security. When financial institutions provide mortgages to homeowners, they guarantee them against potential defaulters. MBS is a claim on loan repayments that secures lending institutions from defaulters. Firms create pools of loans with the help of federal agencies with guarantees of timely payments...

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Wahl Company’s 20X5 consolidated financial statements include two wholly-owned subsidiaries, Wahl Company of Australia (Wahl A) and Wahl Company of France (Wahl F). Functional currencies are the U.S. dollar for Wahl A and the European euro for Wahl F. What exchange rate is used to incorporate each subsidiary’s equipment cost, accumulated depreciation, and depreciation expense in Wahl’s consolidated financial statements?

When translating financial statements, it is vital to consider the relationship between the subsidiary and the parent company. All items in the books of the subsidiary are translated to the functional currency of the parent company based on the date they were recognized in the income statements. All assets (equipment)...

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Which of the following is a false statement regarding the adjusted current earnings adjustment to alternative minimum taxable income? 1. It is an increase of 75% of the excess of adjusted current earnings over alternative minimum taxable income. 2. It is a decrease by 75% of the excess of alternative minimum taxable income over adjusted current earnings. 3. It applies to personal holding companies. 4. The negative adjusted current earnings adjustment can be made without limitation.

The first three statements are true about the adjusted current earnings adjustments to alternative minimum table income. The false statement is D which states that negative adjusted current earnings adjustment can be made without limitations. According to 26 CFR Section 1.56(g)-1, the alternative minimum taxable income of any taxpayer can...

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Will global interest rates remain low in developed countries this year? Why or why not?

Global interest rates will remain low in developed countries this year. There are high chances that the global interest rates will remain low due to a savings superfluity. The logic behind this supposition is that developing nations such as China are saving more money than they require. Consequently, the surplus...

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How do tax considerations affect the cost of debt and the cost of equity?

Tax rates affect the cost of debt directly. When tax rates increase, it is possible to observe a decrease in the cost of debt. Thus, the after-tax cost of debt is usually lower than it was before. The tax deductibility influences this process directly. Moreover, while focusing on tax deductibility,...

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Imagine you are Harry Reasoner, and you are allowed to ask Peter Lynch one question about market risk, discount rates, or the weighted average cost of capital (WACC). What question would you ask? Why do you feel that is an important question?

I would ask about the weighted average cost of capital (WACC). This is the rate at which the free cash flows of an organization should be discounted. This rate ensures that the result is similar to equity cash flows which have been discounted at the required rate of return. The...

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Explain the importance of manufacturing overhead cost allocation and discuss any important considerations one should address in the allocation process.

Manufacturing overheads are the indirect cost of production. Examples of these costs are depreciation of plant and machinery, electricity bills, and purchase of factory equipment, among others. It is difficult to trace the production overheads to the units of output produced. However, it is important that they be allocated to...

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From 1930 to 1965, U.S. demand for medical care outpaced the 1 percent yearly growth in the physician population. What are the three main reasons for this growth in demand?

The demand for healthcare hinged on the increment in the emergence of chronic diseases that require a person to be under strict medical care. In the 1930s and 40s, there was an innovation towards the creation of antibiotics and upgrades in techniques on anti infections, hence leading to an increment...

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According to McMillon, what are Walmart’s strategic priorities?

Walmart CEO, Doug McMillon, states that Walmart’s strategies used over the years are to keep the prices low, advance in the management of the supply chain, and reduce operational costs by dealing directly with manufacturers. However, as time changes and more advanced technologies are used in the retail sector, Walmart...

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What qualities does Walmart look for in employees? Does McMillon think that society is providing an adequate number of people with these skills?

Walmart’s most essential skills they look for in their employees are customer service, respect, integrity, and excellence. McMillon recognizes the need to train and improve on skills, especially in these four sectors. Customer service is people management’s skills and how to deal with people in the retail sector respectfully. Excellence...

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In the context of global strategies, does Walmart generally prioritize standardizing for the lowest price or localizing their supply chains? Explain why.

Based on the global strategies, Walmart prioritizes lower pricing instead of localizing their supply chains, as they also deal directly with manufacturers to reduce the prices. Walmart has invested in an innovative, quality supply and management structure system that manages the quality and cost of supplies. Investment in growing their...

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What is McMillon’s vision for the Walmart experience in 10 years? What do you think should be changed or added to this list? Why?

McMillon’s Walmart’s vision for the next ten years includes incorporating Artificial Intelligence and innovative logistics capabilities into their business strategies as a way of consumer retention. The use of digital and physical products will provide a dynamic range of products that will give a competitive edge in the retail sector....

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How does Fishman define the Walmart effect?

In the book “The Wal-Mart Effect,” Fishman defines the Walmart effect as the positive, negative economic impact of businesses and retailers on the quality of their lives. This effect is extracted from a close study on the Walmart business, how retailers have impacted the communities’ shopping, and the minimized prices...

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What positive impacts does Walmart have on the U.S. economy and society?

The Walmart effect is based on the retail store’s impact once implemented in a particular area, positively or negatively affecting the community and the economy. Walmart has positively impacted the U.S community and economy by driving local businesses into capitalism. Walmart is highly affordable to most American families preventing poverty...

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What negative impacts does Walmart have on the U.S. economy and society?

Walmart pays its workers low wages, which inhibits the rate of growth in society. The difference in salaries between other retailing stores and Walmart is significant. Business competition has been on the rise as Walmart relies on minimal profit made from the sale of goods or services offered. The rapid...

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Does the treatment of suppliers described in the article amount to Walmart taking advantage of them, or is Walmart doing them a favor and making them better?

The Walmart suppliers highly support Walmart due to the marketing, product visibility, and sales acquired from consumers. The majority of suppliers’ profits are earned from Walmart’s expansion in the United States. This drives suppliers to identify different ways of making profits, for instance, developing substandard products for distribution. With the...

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Amazon has recently taken over the distinction as the world’s largest retailer from Walmart. While these two firms both operate as retailers, they use very different business models. Do you see Walmart’s business model as continuing to be relevant in the future? Why or why not?

Walmart’s business strategy accommodates changes in the future, guiding the company to remain relevant because they adapt to digital retails such as e-commerce. The detailed action plans focus on delivering value for consumers while gaining a competitive advantage in the future.

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Describe the advantages and disadvantages of a joint venture from the point of view of a multinational company; a local joint-venture partner; and the host country.

There are advantages and disadvantages of joint venture partnerships. However, we will highlight the benefits and challenges using three focal points, which include multinational organizations, joint businesses, and the host nation. To the multinational firm, a joint venture incorporates nearby wellsprings of capital, access to neighborhood financing, comprehension of the...

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What is political risk? Describe the different types of political risk that a multinational company may face in its operations at home and abroad. Give an example of each type.

A multinational partnership (MNP) has offices and different resources in no less than one nation other than its origin. Such organizations have workplaces and additionally processing plants in various nations and, as a rule, have a head office where they facilitate global administration. Large multinationals have spending plans that surpass...

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Describe how a multinational company can measure the political risks that it may face in a country that which it wants to invest.

Monetary globalization is comprehended as the mix of a nation’s fiscal framework with worldwide money-related markets and organizations. This combination regularly requires that legislatures change the local budgetary segment and the capitalist record. Multinational mergers happen when changed economies encounter an expansion in cross-country capital development, including a dynamic investment...

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Describe the strategies that a multinational company can use to hedge its exposure to political risks in a country that it wants to invest in.

Firstly, what organizations must do is completely comprehend protection as an intense approach to moderate political hazards. While at a full-scale level, political hazards and fiascoes are exceptionally hard to oversee, at the organization level, the political hazard can be guarded against for a premium. This comes at a significant...

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Distinguish between a joint venture, licensing, and foreign direct investment.

A joint investment is a circumstance where an organization will team up with another conglomerate to put resources into a venture and work together, sharing costs, incomes, and benefits of the investment. However, licensing is a circumstance where an organization approves another firm to utilize its innovation, image, or some...

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What factors should a multinational company consider when it wants to choose which of the sources of capital it should use? Explain why each of the factors should be considered.

An organization may require cash for various motives. It might require working cash flow to pay providers, wages, or bill reserves for a specific venture or exchange or an emergency. Most organizations raise funds through a mix of value and debt financing. Debt funding comprises raising cash by acquiring from...

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Describe the various sources that a multinational company can obtain capital from and the advantages and disadvantages of using each source.

Markets division is a showcasing term alluding to the collecting of planned purchasers into gatherings, or portions, that have regular needs and react comparatively to a promoting activity. Markets division empowers organizations to target diverse classifications of shoppers who see the full estimation of specific items and administrations uniquely in...

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What are the similarities and differences between licensing and foreign direct investment from the point of view of the licensor – a multinational company; the licensee – the company in the host country; the host country?

The likeness is that under both strategies, a multinational firm will acquire access to foreign aid and business sectors and the arrival of its exclusive items and innovation. However, the distinctions are that the hazard or requirement for money to put resources into a foreign nation is lower for authorizing...

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You are working for a trading company registered in the country of your nationality. You signed an international sales contract with a Russian supplier of equipment, where your company is the buyer. The equipment arrived at you in damaged condition and you have to take action to settle the case. Discuss your actions in case of the conflict described in the facts. What will be the stages of conflict settlement you will apply?

The buyer should contact the seller to replace or repair the damaged goods. According to Article 79 of CISG, the seller under international sale of goods is obligated to replace the goods when an accident damages them. For instance, when the goods are damaged in transit, the seller has not...

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The corporation has disposed of all of its assets except for a small sum of cash retained to pay state taxes to preserve its corporate charter. Would a corporation be required to file a federal income tax return and under which section?

An entity that has stopped operations and disposed of all assets apart from the cash left for payment of tax is required to file for the federal income tax return. According to Section 6012 of the Internal Revenue Code, all corporations that are subject to taxation under subtitle A should...

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Under Illinois Corporation’s plan of liquidation, the corporation distributes land to one of its shareholders, Springer. The land, which is used in Illinois trade or business, has a $20,000 adjusted basis and a $60,000 FMV on the distribution date. What are the tax consequences of this distribution to Illinois and Springer?

Section 1231 gives guidelines on the treatment of capital gains and losses for all Section 1231 assets. Section 1231 property is made up of all assets that are held in the business for more than one year. Besides, they should be real and depreciable. Examples of such assets are land,...

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