Corporate governance exercise

Facts Various conduct by Bernadette and Charles raise concerns of breaches of directors' duties on their part. The conduct in issue essentially include the information disseminated by Bernadette and Charles to prospective investors of Dextrous Investments Pty Ltd ("DIL"), the sale of shares in Indonesian electricity companies held by Acme Energy Limited ("Acme"), Bernadette's unilateral undertaking of issuing Acme's shares to DIL to cover DIL's loss in the sale, and the purchase and sale agreement prepared and signed by Bernadette and Charles. Roles As Bernadette is a director of Acme,1 she owes general law and statutory duties to Acme. Charles, on the other hand, is not a director under the statutory definition. Nevertheless, his position as the Deputy Chief Financial Officer ("DCFO") of Acme indicates that he, being part of Acme's senior management, has the capacity to affect Acme's financial standing, or participates in making decisions that affect the whole or a substantial part of the business of Acme. Accordingly, Charles is an officer of Acme and therefore he also owe duties to the company. 2 Issue One: Common law and Statutory duty of care, skill and diligence (S 180 (1)) Common law and statutory duty of care are equivalent,3 except where the statutory duty applies to both directors and other officers of the company.4 Under common law, there is no uniform standard

  • Word count: 2672
  • Level: AS and A Level
  • Subject: Business Studies
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For my work I am setting up a marine shop selling marine items ranging from clothes to electronics.

GCSE Business Studies Coursework Introduction For my work I am setting up a marine shop selling marine items ranging from clothes to electronics. I will be located at the bottom of the Southend highstreet near the Royals shopping complex. I have chosen this location because it is near the seafront and lots of people walk up and down here in the summer and in the winter and there is a lot of trade. The objectives of my business are to be the Essex leading supplier in marine trade and to make the maximum profit and to treat my staff well. The location is circled (above) Types of Ownership * Sole trader This is a business owned by one person, all of the profits are yours and you are also in complete control. You own the business, banks are reluctant to lend sole traders, and there is also unlimited liability, the business ceases when then owner dies. Theory work * Partnership A business owned by 2 to 20 people. Profits are shared between partners, partners share control but their may be arguments it is owned by partners. It is simple to set up but a deed of partnership is recommended. Banks are more likely to lend money as there are more people. It is also unlimited liability. Accounts do not need publishing and only inland revenue/ customs and excise need to know your details. Partners can leave or join. * Private Limited Company A company which can share

  • Word count: 894
  • Level: AS and A Level
  • Subject: Business Studies
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This portfolio is based on two contrasting businesses. The first would be a sole trader while the second would be a public limited company.

INTRODUCTION This portfolio is based on two contrasting businesses. The first would be a sole trader while the second would be a public limited company. I would be investigating the development of both these businesses. My means of research would be based on face-to-face interviews (i.e. primary research) and the use of the Internet, textbooks, etc (secondary research). TYPES OF OWNERSHIP The types of business ownerships are broadly divided into two sectors, which include private sector and public sectors, which include private sector and public sector. The private sector includes businesses that are owned by private owners. The public sector includes businesses that are owned by the government for example, post offices, local authorities such as police stations, ambulance, fire stations, central government office such as the Home Office and public cooperation businesses e.g. bank of England. Private sector businesses include the following; . Sole trader: This is when a business is owned by one person only, this person is likely to have unlimited liabilities e.g. mini cab drivers, newsagents, barber, etc. 2. Partnership: This consists of two more people who come together to form a business in which the main aim is to make profit. They are also likely to have unlimited liabilities e.g. accountants, dentists, solicitors, etc. 3. Private limited company: This ends in

  • Word count: 4276
  • Level: AS and A Level
  • Subject: Business Studies
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Business Studies Case Study: Johnson & Johnson Pharmaceutical Company

Johnson & Johnson Pharmaceutical Company Below are the rations which I used to evaluate my company: Probability Return on Capital Employed - 34% Gross Profit Margin - 70.91% Net Profit Margin - 23.8% Liquidity Current Ratio or Current Assets Ratio - 1.71 Acid Test - 1.4:1 Efficiency Debtor Days or Trade Debtor - 70 days Stock Turnover - 3.39 times The first factor which I evaluated was the return on capital employed regarding the profability of my company. After completing the formula, I was told that my company had 34%. This is a very good factor of my company because generally, the higher this number is, the better it means your company is doing in this aspect. The advantage of this ratio is that it related profit to the size of the business. The next factor which I evaluated was the gross profit margin of my selected company, which shows the gross profit made on sales turnover. For Johnson and Johnson in the year 2003, this was 70.91%. This is also a very encouraging factor of the company, because a higher profit margin is preferred. This is also the case with the Net Profit Margin, which is 23.8%. This shows that this company is in good control of their overheads. In most aspects, higher profit margins a much better than lower ones, and in almost all aspects, Johnson and Johnson

  • Word count: 661
  • Level: AS and A Level
  • Subject: Business Studies
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To investigate patterns in the diagonal differences in squares placed on a 10 x 10 grid. For example:

ò Student Media Services Limited Student Media Services Limited ò‚À K HÀÐBlBlÐÎ ÎÐBlB`ЂÚÚñ!B„!BñË Ë_âÿ Hñ!B„!B� nnnnnnnhEDDD@ñ¼_ççèèç çè è¼P¼P¼N¼5â Ë

  • Word count: 36
  • Level: AS and A Level
  • Subject: Business Studies
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The manager's responsibility and the role of stakeholders

The manager's responsibility and the role of stakeholders Most scholarship on corporate governance in the last two decades has focused on the relationships between shareholders and managers. Some people think :" A manager's responsibility should be to the shareholders alone", but in my opinion manager have the responsibility to all of the stakeholders, which a group with a direct interest in the way on organization is performing and action it takes, include the firm's employees, shareholders, customers, suppliers and local community. In a company managing for value, the company's goal is to deliver value to shareholders. This does not imply that the company is managed for value to harm or exclusion of the customers, the employees, or other important consists. Manger delivers maximum profits return to the shareholders while balancing the interests of the other important constituents, including customers and employees. Manager's responsibility as a business is to define and enhance the contribution make to that shared effort. Company must work with the other stakeholders in sustainable development. Stakeholders are a diverse group, some, such as shareholders and employees have a clearly defined relationship with company. There are people with a stake in the company itself. Others have a stake in the company's activities. Customers and suppliers are certainly affected by the

  • Word count: 1394
  • Level: AS and A Level
  • Subject: Business Studies
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The Peugeot's Company Charter contains all the types of objective model apart from the objectives of Result, which is understandable, because this charter talks a lot about principles, concepts and company's policy.

Question 1 The Peugeot's Company Charter contains all the types of objective model apart from the objectives of Result, which is understandable, because this charter talks a lot about principles, concepts and company's policy. This kind of elements, by definition, does not have to display precise figures; this charter seems to be made to help dealerships to understand the views of Peugeot, concerning their place in the P.S.A group, its aims, its staff, its customers and suppliers, its costs and its expectations for the future. * Objectives of Intent Let us start with the Objectives of Intent. The three points concerning "the participation as a part of the P.S.A group" seem to be clearly some of them, because first, they introduce no measurable aspects, and secondly, because they are all made by the same way, enouncing the way of thinking of P.S.A, in terms of partnership, their views of their future, in order to make their partners apply and share their values and policy. Concerning the first point, we can indeed notice that they only indicate the way they see their partnership in terms of production and consequently, there are no emphasized level of involvement concerning their support, that could be monitored. Concerning the two others points, the main information that is given, is that the firm has to help and support the group in order to increase the sales, the

  • Word count: 3896
  • Level: AS and A Level
  • Subject: Business Studies
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For task 3 I have been asked to identify for each organisation (Olympos Leisure Centre in Haywards Heath and Puma) their aims and objectives, explain how they are decided and also how can their aims and objectives link to the purpose of the organisations.

Aims and Objectives .0 Introduction For task 3 I have been asked to identify for each organisation (Olympos Leisure Centre in Haywards Heath and Puma) their aims and objectives, explain how they are decided and also how can their aims and objectives link to the purpose of the organisations. The aims and objectives will depend on the type of the business's ownership. Obviously a business funded by the government will have different targets to a private company owned by an individual. To succeed in the business world, the companies should have a specific track so they can achieve their intentions. In business we use aims and objectives to set up everything the company wants to achieve. An aim is usually just a general idea of what they expect to do in their business. When you set up an aim, you will need to be more specific on how, when and where you going to achieve. So you break down your aims in S.M.A.R.T objectives S - Specific M - Measurable A - Achievable R - Realistic T - Time Related For example, a company wants to improve their sales. So they set an aim of increasing their marketing activity, and then the objective will be to have a specific TV campaign by next month advertising their sales promotions. When a business is just about to set their aims and objectives they need to look to the past, present and future situation's of the company. Also to implant

  • Word count: 1907
  • Level: AS and A Level
  • Subject: Business Studies
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Introduction to J Sainsbury plc

Introduction to J Sainsbury plc J Sainsbury plc is a leading UK and US food retailer with interests in financial services and property. The group comprises Sainsbury's Supermarkets and Sainsbury's Bank in the UK and Shaw's Supermarkets in the US. Sainsbury's Supermarkets was established in 1869 by John James and Mary Ann Sainsbury and is Britain's longest-standing major food retailing chain. Sainsbury's Supermarkets employs over 145,000 people, including Savacentre. Of these, 60% are part-time and 40% full-time. 62% of employees are women. A large Sainsbury's Supermarket offers over 23,000 products, 40% of these are Sainsbury's own brand. In addition to a wide range of quality food and grocery products, many stores offer bread baked on the premises, delicatessen, meat and fish counters, pharmacies, coffee shops, restaurants and petrol stations. Sainsbury's Supermarkets serves over 11 million customers a week and as at June 2002 had 463 stores throughout the UK. Nearly 60% of our stores are in town-centre or edge-of-centre locations, many of these built on previously derelict sites. TASK 1 .1.1 A classification of the business according to its ownership, and an explanation of the benefits and constraints of this type of ownership. (E1) Sainsbury's Ownership Sainsbury's belongs in the private sector because its main aim is to make a profit. Without profit,

  • Word count: 20500
  • Level: AS and A Level
  • Subject: Business Studies
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The business I have chosen to study is Coca Cola.

The business I have chosen to study is Coca Cola. Founded in 1886, Coca Cola is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce more than 300 beverage brands. There corporate headquarters are located in Atlanta, with local operations in over 200 countries around the world. It was not until 1899 when the first bottled Coca Cola was produced was it the start of the world famous drink as we know it today. Coca Cola is a world All business exist to make/produce goods or services for the customer. All businesses also aim to make a profit at the end and even expand if sucessful. Businesses set objectives to point themselves in a certain direction. They can also evaluate later on and see how well they have met their objectives. A mission statement is an ultimate aim or something to set the standard (what we would expect) maybe even a promise in some cases. Coca Cola's mission statement and promise is that: The Coca Cole company exists to provide refreshment and benefit to everyone it touches. Coca Cola's Obecjectives and aims are: *To try and help bring more education to Africa by donating money into schools and charities. *To prove to the Indian government that their products are safe and not contaminated by using multiple barrier systems in all plants to prevent anything dangerous getting in

  • Word count: 2196
  • Level: AS and A Level
  • Subject: Business Studies
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