Answer:
Global economic crimes consist of a wide range of economic offenses and include different forms of financial crimes that are committed. Examples of global economic crimes are money laundering, tax evasion, improper use of tax havens, embezzlement and bribery etc.
Global economic fraud is a sub set of global economic crime and consists of those actions that are considered as an intentional act of deception for the purpose of making financial gains. A dishonest advantage is gained through acts of global economic fraud. Examples of global economic frauds are identity fraud, banking fraud, investment fraud, and fraud by abuse of position.
Companies should be concerned about global crimes and frauds as these acts of crime and fraud may put companies in a position of disadvantage in the long run. These acts will dilute some of the value creation activities that companies are pursuing and in the long run these acts will prove detrimental to the value creation objectives of companies. Further the acts of crime and fraud increase the risk scenario in which companies operate and hence the chances of losing money increase manifold.
Companies should address the issue of fraud and crime in a tangible manner and approach to tackle them on a heads on basis. To address the issues companies should firstly recognize fraud when they first see and encounter it. For this companies will require robust fraud risk assessment framework in place. When motivations are identified beforehand then better controls will be put in place by companies, thus significantly reducing the chances of fraud and crime.
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer: 13.26%
Explanation:
Year 0 Investment = $385,000
Incremental Cash flow every year = Cashflow if owned - Cashflow if leased
= 164,000 - 133,000
= $31,500
Incremental cashflow in Year 10 = Incremental Cashflow + Cashflow from sale of property
= 31,500 + 750,000
= $781,500
Using Excel and the IRR function, the rate is = 13.26%
Answer:
1. A is temporary
2. B is permanent
3. C is temporary
Explanation:
1. A is temporary because these Valentine's day card are sold seasonally. That is at a particular time of the year. It's inventory is not for a permanent basis or for a long period of time.
2. Acquiring a new forklift is a permanent inventory because the equipment will stay in the company for a long period of time, for as long as it continues to serve the purpose for which it was acquired. This makes it a life asset.
3. The Increase in account receivable do due to expansion in customer base is for a short term due to goods sold on credit therefore they are temporary.
Answer:
D) It invests heavily in advertising and brand building.
Explanation:
One of the greatest step to take in establishing a strong presence in the market place is putting in great efforts towards innovative advertising and ensuring one's brand is built strong, that way, there is established trust and consumers will stay faithful to your brand.
