The Roland Company needs to comply with the financial reporting standards of the Sarbanes-Oxley Act. One of the employees, Ken, believes that the costs outweigh the benefits. However, his boss feels the opposite, that the benefits outweigh the costs. Who is correct? A : Ken is correct, as the costs outweigh the benefits. B : Neither of them is correct, as determining the costs of the Act is possible, but determining the benefits is not fully possible. C : Neither of them is correct, as determining the benefits of the Act is possible, but determining the costs is not fully possible. D : Ken’s boss is correct, as the benefits outweigh the costs.
The correct answer is letter "B": Neither of them is correct, as determining the costs of the Act is possible, but determining the benefits is not fully possible.
The Sarbanes-Oxley (SOX) Act Of 2002 is a legislative response to several corporate scandals that sent shock waves through the world financial markets. The SOX attempts to strengthen corporate oversight and improve internal control. The main purpose of SOX is to protect shareholders from fraudulent representation in corporate financial statements.
In regards to the Roland Company case, the cost of implementing SOX will be a more strict accounting and financial book-keeping. This could provide the company with more accurate information that helps to make better corporate decisions but the benefits cannot be fully measured.
The question as to whether the costs or benefits of the Sarbanes-Oxley Act outweigh each other depends on the specific circumstances of the company and how one interprets these costs and benefits. Nevertheless, the Act is generally understood to enhance transparency, reduce fraud, and build investor confidence.
This is a subjective question as it pertains to the perception of costs and benefits under the Sarbanes-Oxley Act. One cannot definitively say if Ken or his boss is correct without having a complete picture of the Roland Company's financial situation and understanding of the Act's implications. However, the premise of the Sarbanes-Oxley Act is to increase transparency in financial reporting, reduce incidents of corporate fraud, and protect shareholders. While the act does impose significant administrative costs, many argue that its benefits in promoting investor confidence outweigh these costs. Thus, it could be argued that the views of Ken’s boss would align more with the overall objective of the Act.
Which of the following is a function of a human resources department? O planning for materials needs O setting strategic policies O administering compensation interpreting the legality of accounting practices
O administering compensation
The human resources department or the HR is the department responsible for employees' management in an organization. Employees are the human resources in the organization. The HR's main task is to attract, train, and retain the best employees for the company.
Other functions of the Human resources department include
Recruiting and placing the right person for the right position.
Managing the employee compensation scheme
Ensure compliance with labor laws
Training and building employee's capacity
Creating and maintaining a good employer-employee relationship.
Suppose Azerbaijan decides to increase its production of nails by 20. What is the opportunity cost of this decision
Answer: c. 5 bolts.
From the graph we see that the opportunity cost of making 80 nails is 20 bolts.
Opportunity cost of making 1 nail is;
80/80 : 20/80
1 : ¼
If 1 nail has an opportunity cost of ¼ bolts then making 20 extra nails would cost;
= 20 * ¼
= 5 bolts.
Trade-offs must be made among space, labor, and ____ with respect to warehousing design. Group of answer choices Construction materials Speed Mechanization Cost
When a ware house is being setup, the aim is to get an efficient one that can service demand in a timely manner.
In order to minimise cost and maximise efficiency there is need to space, labour, and mechanisation that will be used on the production process.
Various analysis like capacity analysis and equipment analysis are carried out to ensure fast and cheap operation of the warehouse.
Inefficient warehouse designs leads to delay in service delivery and extra cost to the business.
A small office building produces NOI of $8,995 per year. We intend to buy the property, if the price is right, and hold it for four years. At that time (EOY 4) we believe we can sell the property for $197,000. If we require an 8% ROA, what is the most we should pay now for this investment?A. The NPV is negative, so reject the investment. B. The NPV is positive, so invest. C. The NPV is greater than the NOI, so invest. D. The GPI is greater than the NOI, so invest. E. The NPV is greater than the OPX, so invest.
Option B is correct.
The NPV is positive, so invest.
Year Cash Flow
Suppose that Spain and Switzerland both produce beer and cheese. Spain's opportunity cost of producing a pound of cheese is 5 barrels of beer while Switzerland's opportunity cost of producing a pound of cheese is 10 barrels of beer. By comparing the opportunity cost of producing cheese in the two countries, you can tell that (Spain/Switzerland) has a comparative advantage in the production of cheese and (Spain/Switzerland) has a comparative advantage in the production of beer.
Suppose that Spain and Switzerland consider trading cheese and beer with each other. Spain can gain from specialization and trade as long as it receives more than (1, 1/10, 1/5, 5, 10) barrels of beer for each pound of cheese it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than(1, 1/10, 1/5, 5, 10) pound of cheese for each barrel of beer it exports to Spain.
Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of beer) would allow both Switzerland and Spain to gain from trade? Check all that apply.
A. 6 barrels of beer per pound of cheese
B. 1 barrel of beer per pound of cheese
C. 7 barrels of beer per pound of cheese
D. 4 barrels of beer per pound of cheese
Spain has a proportional advantage in the production of cheese since it has to provide up only 5 barrels of beer for making one pound of cheese, although, Switzerland has to provide up 10 barrels of beer which is higher. Switzerland has a proportional advantage in the construction of beer since it has to give up 1/10th pound of cheese, although, Spain has to provide up 1/5th pound of cheese which is higher.
The price must be higher than the opportunity cost of the retailer and less than the prospect cost of the consumer. The terms of trade should lie among the prospect cost of the buyer and seller to be favorable to both.
More than 5 barrels.
More than 1/10th pound of cheese.
A and C.
Spain has a comparative advantage in cheese production and Switzerland in beer production. Spain gains from trade when it receives more than 5 barrels of beer per pound of cheese it exports, and Switzerland when it gets more than 1/10 pound of cheese per barrel of beer. From this, option A (6 barrels per pound) and C (7 barrels per pound) are both beneficial trade prices for both countries.
When we compare the opportunity cost of producing cheese in Spain and Switzerland, we can see that Spain has a comparative advantage in the production of cheese, and Switzerland in the production of beer. This is because Spain can produce cheese at a lower opportunity cost than Switzerland.
Regarding trade, Spain will gain from specialization and trade as long as it receives more than 5 barrels of beer for each pound of cheese it exports to Switzerland. For Switzerland, it will gain from trade as long as it receives more than 1/10 pound of cheese for each barrel of beer it exports to Spain.
Considering the above, the prices of trade that would allow both countries to gain from trade would be A. 6 barrels of beer per pound of cheese and C. 7 barrels of beer per pound of cheese. These prices are above the opportunity cost of cheese in Spain and below the opportunity cost of cheese in Switzerland, satisfying the needs of both parties.
Learn more about Comparative Advantage and Trade here:
Marcos owns 1,500 shares of ABC stock which he purchased at $44 a share. The stock has been steadily decreasing in value and he wants to cut his losses now as he expects the stock price to decline further. Which type of order should Marcos place
Market sell order for 1,500 shares
The type of order that Marcos should place is Market sell order for 1,500 shares because he already owns 1,500 shares of the ABC stock in which the ABC stock shares was purchased at $44 per share.
Since the stock has been decreasing in value in which he wants to cut his losses now because the stock price may continue to decrease, the best thing for him to do is to use the Market sell order for the 1,500 shares in order to cut the losses that may arise and to avoid losing all the Total amount of the shares bought which is $66,000 ( 1,500 shares ×$44).