Accounting, write a memo about Sony company Essay

Accounting, write a memo about Sony company - Essay Example Interesting content from proxy statement: â€Å"In a case where the outside director is reelected as an outside director of the corporation and reassumes his/her office as an outside director of the corporation, this agreement should continue to be effective after reelection and re-assumption without any action or formality.† This implies that in reelection of outside directors no formality is followed but the contract with the corporation is automatically renewed. In such instances the directorship is suppose to be formally executed like other directors by the use of the signature and company stamp but here it is no done. Positive Aspect: The annual report is viable and reasonable in that they require further tests to be conducted. While the primary objective of the report was to look at the effectiveness of the project in ensuring costs saving and operational efficiency, the project also looked at other information in a cursory manner as well (Simplified Acquisition Procedures for Federal Purchases, 2004). The report also suggests that independent study must be conducted to ensure that the prices of items being offered via the simplified acquisition procedures are at least at par with their market equivalents. Concerning Aspect: The first and the most concerning issue is that of carrying cost. The organization may carry excessive amounts, however the organization will have to bear excessive carrying costs to ensure that the products are kept in usable conditions and that they are not damaged due to prolonged periods of storage. These costs are not insignificant and in case of sensitive equipment, the equipment maintenance costs are a major portion of the organization is operating overheads. Overall: the annual report and proxy statement enables one to understand and the strategy of the company. It also enables one to comprehend the strategic direction as it

Business Investors Essay Example | Topics and Well Written Essays - 500 words

Business Investors - Essay Example The aim is actually to create a balance of money in circulation i-e bringing money supply and demand in equilibrium to accomplish business growth and economic stability. Secondly, Fed changes the Reserve ratio which means the percentage of commercial bank deposit liabilities required as reserves. And third is the change of discount rate which is the interest rate the Fed charges on loans to banks and thrifts. (McConnell and Brue, 2002) Fed uses a â€Å"tight monetary policy† when an economy observes inflation (increasing trend in prices). Here I assume that it is a demand-pull inflation which means that Aggregate demand is excessive relative to the economy’s full employment level of real output. It is actually the spending that has resulted in inflation. Fed then reduces the money supply by open-market purchases, increase the reserves ration and the discount rates. Banks will in turn stop issuing new loans as old loans are paid back. Higher interest rate discourages investment, reduce aggregate demand and refrain this inflationary trend. A typical business cycle has four stages which include peak, recession, trough and economic recovery. A â€Å"Peak† is observed when the economy reaches a temporary maximum point. Here, the economy is at full employment level and the output is at or very closer to economy’s capacity. Then, the peak is followed by an economic decline called as â€Å"Recession†. The total output produced, trade, prices, employment and income generated by an economy contracts and it observes a negative growth. The next stage is known as â€Å"Trough† where output and employment reaches a â€Å"temporary minimum†. The Fed in order to cope with this situation introduces an â€Å"easy monetary policy† which aims to increase money supply by pumping more money in the economy, lower reserves ration and discount rates. Investment is encouraged because of reduction in interest rates, aggregate demand increases and