Biovail Case

One truck can definately carry $10 million worth of Wellbutrin XL tablet product. 2. How should the company recognize revenue based upon the two possible FOB contract structures mentioned in the case? Since Biovail’s stock is publically owned it needs to file its financial statements with the SEC. The SEC requires that it abide by GAAP. GAAP requires that revenue be recognized when it is earned or realized. Meaning that the company has done everything it is supposed to do; which would include shipment. So Biovail should recognize revenue once its products have reached the Distributor’s FOB. 3. How does the accident affect the stated revenues under different FOB contract structures? Explain your reasoning? If Biovail recognizes revenues when the product leaves Biovail’s FOB shipping point then it is recognizing revenue before it has been earned and realized. Thus abusing accounting accruals and overstating revenues and net income on financial statements, consequently giving stakeholders misleading information. On the other hand, if Biovail recognizes revenue when the product has reached the Distributor’s FOB destination it has recognized revenue when it has been earned and will accurately state revenues and net income on its financial statements. 4. Are you concerned about the company’s treatment of analysts who cover the stock? Would you want to be an analyst covering this company? Yes, it is of concern that Biovail would single out analysts who would downgrade stock recommendations. I would not want to be an analyst covering their stock because it would put me in an uncomfortable position. If there was evidence that Biovail had misleading financial statements my integrity would tell me to tell the truth and give an honest recommendation. However, I would be worried because I would not want an investigation tainting my innocent name and leading to separation from my employment.

News International - Phone Hacking Scandal Research Paper

News International - Phone Hacking Scandal - Research Paper Example The company is located in London city of the United Kingdom. It is the publisher of The Times, The Sun and The Sunday Times. The company has been regarded as being one of the world’s most successful in terms of share, growth, reader engagement, and circulation (â€Å"News International,† newsint.co.uk). Despite being among the world’s most successful news publishers, and the United Kingdom’s top news publisher, the company has faced a number of problems from time to time. The most recent and most serious one was the phone hacking scandal in July 2011that led to the closure of News of the World, which was one of the publications made by News International. News of the world, which was a British newspaper published by News International was accused of hacking into phones of celebrities and invading their voice mail accounts. According to Chisholm-Burns, Vaillancourt, and Shepherd, management is the skill of promoting people’s talents and providing the m with ways to enrich themselves and opportunities for growth in order to maximize productivity (23). Management is also concerned with distribution and employment of resources to perform tasks and attain objectives. During the first decades of the twentieth century, a number of achievements were made in the field of management. This was as a result of the development of the scientific management theory by Frederick Taylor, the administrative theory by Henry Fayol, and the theory of corporate social responsibility by Milton Friedman. The major representative of scientific management is Frederick Taylor. According to Bagad, scientific management is a concept within that stresses on the application of scientific methods in work in order to be able to study and evaluate workers (6). Scientific management takes a classical management approach. Scientific management has four basic elements which include determining the one best way to do each job, selecting the best persons for each job, training the best persons for each job in the one best way to do the job, and use of monetary incentives to encourage a proper days work for a proper day’s pay. The whole approach by Taylor was essentially based on scientifically learning and weighing the labor involved in doing each job, and then choosing the only best way to accomplish the complete number of processes. Frederick Taylor determined the principles explaining how work in a company could be done. Bagad points out that â€Å"according to Taylor, once these principles were defined, all the workers could be trained to do the work â€Å"the one best way†, rather than relying on their own various rules of thumb† (8). Taylor came up with a method called time and motion study and in his scientific management theory; he made it clear that there is quite a difference in carrying out tasks, recruiting and training workers, and establishing incentives systems. Therefore, workers have the responsibility of do ing work, while the management has the responsibility of planning for recruitment, training and developing incentive systems. The modern management theory was developed by Henry Fayol. He came up with six distinct industrial and business activities and their respective functions. These activities were technical, commercial, financial, security, accounting, and administrative or managerial

Economic Development Essay Example | Topics and Well Written Essays - 750 words - 1

Economic Development - Essay Example To what extend does the international environment positively or negatively magnify the situation? One remarkable indicator of inequality in North Africa is unemployment, which only enhances the tough condition of poverty, not to mention the inability of the government to supply the actual needs of its people. In this way, the government in North Africa needs to remarkably consider making some ways in order to make both ends meet for its people. Economically speaking, countries in North Africa struggle to at least feed a hungry stomach considering the inability of the government to provide sufficient water supply for farming, large quantity supply of fertilizer and substantial amount of investment for infrastructure to reduce transportation costs. The unemployed in North Africa contributed to a big discrepancy in the distribution of wealth. In this case, the industry could not sufficiently provide all the essential needs of the people. Although, there might be a good sign of improveme nt, the economy could not still sustain the balance flow of wealth because almost everybody seems to be wallowing in poverty. If there are many people having no jobs, poverty is remarkable because the wealth of the nation might just be limited at some certain level. On the other hand, the problem with food production due to global financial crisis substantially had made the situation even worse. In other words, among the most remarkable features of inequality especially in the case of North Africa, which consists of developing countries, are unemployment, lack of food production and even vulnerability to be at a disadvantage side as influenced by global economic trend. In other words, in North Africa, people’s source of income could be quite in a limit because there is less on agriculture but a bit higher on some industries. However, this source of income could still be unable to provide for many. The global financial crisis, for instance, brought food shortages in North Afri ca’s countries. In other words, agriculture can substantially help developing countries’ economy to survive. However, large private or government investment is necessary for agriculture, especially in sufficient water supply for farming. Furthermore, there is a need for coordination with international market for bringing in enough quantity supply of fertilizer, which is also necessary. Finally, investment by the government through infrastructure improvement is necessary to reduce transportation costs among farmers. In this way, farmers could save on costs associated with transportation and other relevant costs. In this case, there is a need for North Africa to keep in touch with the world especially in relevance to its financial condition. Global financial crisis is a significant component of international environment, but it is clear that it negatively affects the situation in North Africa especially at its poverty level and at the micro-level, its capacity for agricu lture. However, on the other hand, this marks a significant point in which North African governments should try to create ways and means in order to at least alleviate a substantially down situation for its economic and financial aspect in particular. The government, therefore, should ensure financial support from the international environment in order to at least reach a substantive ways in order to maximize its potential for food production. After all, agriculture could substantially boost a country’s economy especially of a developing one. It is at this point that the North African countries should seek support from the international environment, particularly investors which could not only promote high production output for agriculture but could also provide substantial employment. In other words, what