David Sokol worked at Berkshire Hathaway for legendary investor Warren Buffet, who is renowned not only for his investment skills but also for his ethics. Bankers suggested to both Sokol and the CEO of Lubrizol that the company might be a good buy for Brekshire. Sokol then found out that the CEO of Lubrizol planned to approach Berkshire about a possible acquisition. Sokol purchased $10 million worth of Lubrizol stock before recommending Lubrizol to Buffett. Sokol mentioned to Buffet "in passing" that he owned shares of Lubrizol.

Buffet did not ask any quesitons about the timing or amount of Sokol's purchases. Sokol made $3 million profit when Berkshire acquired Lubrizol.

Did Sokol violate insider trading laws? Did he behave ethically? What are Buffet's ethical obligations?

On September 1, 2020, Piper Corporation acquired Darcy Enterprises for a cash payment of $850,000. At the time of purchase, Darcy’s statement of financial position showed assets of $890,000, liabilities of $450,000, and owner’s equity of $440,000. The fair value of Darcy’s assets is estimated to be $1,150,000. Assume that Piper is a public company and the goodwill was allocated entirely to one cash-generating unit (CGU). Two years later, the CGU’s carrying amount is $3,450,000; its value in use is $3,380,000; the fair value less costs to sell is $2,980,000.

(a) Calculate the value of goodwill acquired at September 1, 2020 and if it is a debit or a credit

(b) If the cash payment was $600,000, how would your answer to (a) change and if it is a debit or a credit

(c) Determine if goodwill is impaired in 2022, and calculate the goodwill impairment loss

Many entrepreneurs have the desire to become successful CEOs, but not all will succeed. The period of transition during which a startup grows up and becomes a scalable business is arguably the most critical time in the life of an emerging firm. In his 2018 interview, Airbnb founder Bryan Chesky states that "(after growing your startup, you reach a point where) you realize that everything you do doesn’t matter because your company is too big and you need to run your business fairly differently”. Which ones of the "eight hurdles of transition" (Picken, 2017) Chesky had to face in order to become a successful CEO? Indicate at least 3 hurdles (for example: building financial capability OR developing an appropriate culture) and explain how he was able to overcome them.

Need a couple paragraph response

Assume that ACW Corporation has 2020 taxable income of $1,540,000 for purposes of computing the §179 expense. The company acquired the following assets during 2020 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5).

1. What is the maximum amount of §179 expense ACW may deduct for 2020?
2. What is the maximum total depreciation that ACW may deduct in 2020 on the assets it placed in service in 2020? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

The creators and marketers of the Lumosity “brain training” program have agreed to settle Federal Trade Commission charges alleging that they deceived consumers with unfounded claims that Lumosity games can help users perform better at work and in school, and reduce or delay cognitive impairment associated with age and other serious health conditions. As part of the settlement, Lumos Labs, the company behind Lumosity, will pay $2 million in redress and will notify subscribers of the FTC action and provide them with an easy way to cancel their auto-renewal to avoid future billing. “Lumosity preyed on consumers’ fears about age-related cognitive decline, suggesting their games could stave off memory loss, dementia, and even Alzheimer’s disease,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “But Lumosity simply did not have the science to back up its ads.” According to the FTC’s complaint, the Lumosity program consists of 40 games purportedly designed to target and train specific areas of the brain. The company advertised that training on these games for 10 to 15 minutes three or four times a week could help users achieve their “full potential in every aspect of life.” The company sold both online and mobile app subscriptions, with options ranging from monthly ($14.95) to lifetime ($299.95) memberships. Lumosity has been widely promoted though TV and radio advertisements on networks including CNN, Fox News, the History Channel, National Public Radio, Pandora, Sirius XM, and Spotify. The defendants also marketed through emails, blog posts, social media, and on their website, Lumosity.com, and used Google AdWords to drive traffic to their website, purchasing hundreds of keywords related to memory, cognition, dementia, and Alzheimer’s disease, according to the complaint. The FTC alleges that the defendants claimed training with Lumosity would 1) improve performance on everyday tasks, in school, at work, and in athletics; 2) delay age-related cognitive decline and protect against mild cognitive impairment, dementia, and Alzheimer’s disease; and 3) reduce cognitive impairment associated with health conditions, including stroke, traumatic brain injury, PTSD, ADHD, the side effects of chemotherapy, and Turner syndrome, and that scientific studies proved these benefits. The complaint also charges the defendants with failing to disclose that some consumer testimonials featured on the website had been solicited through contests that promised significant prizes, including a free iPad, a lifetime Lumosity subscription, and a round-trip to San Francisco. The proposed stipulated federal court order requires the company and the individual defendants, co-founder and former CEO Kunal Sarkar and co-founder and former Chief Scientific Officer Michael Scanlon, to have competent and reliable scientific evidence before making future claims about any benefits for real-world performance, age-related decline, or other health conditions. The order also imposes a $50 million judgment against Lumos Labs, which will be suspended due to its financial condition after the company pays $2 million to the Commission. The order requires the company to notify subscribers who signed up for an auto-renewal plan between January 1, 2009 and December 31, 2014 about the FTC action and to provide a means to cancel their subscription. The Commission vote authorizing the filing of the complaint and proposed stipulated order was 4-0, with Commissioner Julie Brill issuing a separate concurring statement. The FTC filed the complaint and proposed order in the U.S. District Court for the Northern District of California, San Francisco Division. The FTC is a member of the National Prevention Council, which provides coordination and leadership at the federal level regarding prevention, wellness, and health promotion practices. This case advances the National Prevention Council’s goal of increasing the number of Americans who are healthy at every stage of life. This case is part of the FTC’s ongoing efforts to protect consumers from misleading health advertising.

Question 1

Discuss THREE (3) research approaches for gathering primary data that should be used by Lumosity to better understand the targeted markets prior to offering their services. Provide examples to support your answers.

Question 2

Evaluate the ineffectiveness advertising message strategies of Lumosity and suggest any TWO (2) ways on how the company should improve on advertising appeals in message strategy for their services.

Question 3

Discuss FIVE (5) sustainability marketing principles that Lumosity can practice to solve their unethical marketing practices. Provide clear examples to support your answers.

The task:

You are working in a partnership position in a company and An existing Provider is looking for 10X growth with your company in 2020. you have scheduled a call with the provider's manager. Your CEO is also invited to this call.

1- Please write down a structure for the call and draft 3-5 potential solutions that you supposed to discuss with the partner.

2- prefer/prioritize these solutions in a way you expect to achieve the best result from the call. Justify your choices and your strategy.  

The task: You are working in a partnership position in a company and An existing Provider is looking for 10X growth with your company in 2020. you have scheduled a call with the provider's manager. Your CEO is also invited to this call. 1- Please write down a structure for the call and draft 3-5 potential solutions that you supposed to discuss with the partner. 2- prefer/prioritize these solutions in a way you expect to achieve the best result from the call. Justify your choices and your strategy.

North Shore Equipment (NSE), a U.S. company, consistently purchases steel from a supplier in Japan with the invoice price denominated in Japanese yens. During the past year, NSE experienced substantial losses from foreign currency exchanges due to fluctuations in the exchange rate of the U.S. dollar to the Japanese yen. Therefore, Hector Hodgdon, NSE's CEO, has asked you to examine whether derivative financial instruments (e.g., foreign currency forward contracts and foreign currency options) to hedge the company's exposure to foreign exchange risk should be used going forward.

Required

Write a memo to CEO Hodgdon discussing any advantages and/or disadvantages of using forward contracts and options as a hedge against foreign exchange risk. Please be sure to recommend which type of hedging instrument you believe NSE should use. Make sure to justify your recommendation. Please make sure to properly cite any resources you use to answer this question.

International Business

Chapter 12 - Management Focus: Ford’s Global Strategy

Summary

The Management Focus describes the changes in U.S. automaker Ford’s global strategy after former Boeing executive Alan Mulally was appointed CEO in 2006. At the time, Ford produced models targeted for specific regions of the world. Under Mulally’s leadership, Ford implemented its One Ford strategy that uses just a few car platforms to serve the entire world. Discussion of the closing can revolve around the following questions:  

QUESTION 1: How would you characterize the strategy for competing internationally that Ford was pursuing prior to the arrival of Alan Mullaly in 2006? What were the benefits of this strategy? What were the costs? Why was Ford pursuing this strategy?

QUESTION 2: What strategy is Mullaly trying to get Ford to pursue with his One Ford initiative? What are the benefits of this strategy? Can you see any drawbacks?

QUESTION 3: Does the One Ford initiative imply that Ford will now ignore national and regional differences in demand?

As you embark on your new career with “We Crunch the Numbers” you are confronted with a new problem, managing your own money. The firm has a 401(k) as well as money you want to invest outside your 401(k). You recently received a call from a former classmate who is a financial advisor. Your classmate guarantees to beat the S&P 500 for a fee of 1% of your total assets, annual. You took one financial class in your MBA and you are a strong believer in market efficiency. You also are aware that Vanguard has S&P 500 ETF that has an annual expense ratio of .03%. What is your decision?