Financial Reporting: Do Small Errors Need to be Reported?

Ben is a recent Santa Clara University graduate who has just started his first job in the finance department of a publicly traded Silicon Valley company. One of his main responsibilities is to create and distribute extensive Microsoft Excel reports that analyze costs and revenues for different divisions. Ben sends completed reports to his direct supervisor and the CFO. The CFO then uses the information to create the company's financial reports, in addition to the strategy and forecasting formulation.

While Ben considers himself to be detailed-oriented, the complicated nature of and the sheer volume of data sometimes overwhelm him, which is exacerbated by their strict deadlines. While Ben works hard to prepare the reports as accurately as possible, he often finds errors after he has submitted his final report. When the errors are critical, he revises the reports and resends them. However, some of the errors are minor, in Ben's estimation, and he doubts that the CFO will use or look at these figures. Ben is ambitious and wants to be promoted, but worries that if he frequently sends out revised reports he will appear unreliable and unqualified. At the same time, the potential consequences from inaccurate financial reports put the company, the CFO and CEO, and Ben himself at risk.

Think about... What actions should Ben take when he catches a mistake? Is he obligated to report every error, particularly since he works for a publicly traded company? Is there such a thing as a small error in this context?

For your post, put yourself in Ben's shoes... You have a family at home that you provide for. What would you do if you caught one of your own errors? Does the amount of the error matter? Are you willing to get fired? How important is trust? How much do you value integrity?

You can't say Laurin Hahn lacks drive. While still in high school, he founded what has since become the most popular dance club in Munich. Then, with no real engineering skills, he and a buddy set out to build a car powered by solar panels on its roof. Four years later they had a working prototype, so they formed a company to sell it. A few years on, when key investors declined to put in more money, the pair turned to crowdfunding. Within two months they'd raised €53 million ($62 million). "I guess I'm fairly ambitious, but the point of the car was to help the world," Hahn, now 26, says with a laugh.

Their company, Sono Motors—the name, Latin for "sound," is a riff on how quiet electric motors are—is developing a boxy, four-door hatchback covered in solar panels that are barely visible but can generate enough electricity to give the car more than 10 miles of range after a few hours in the sun. When it hits the market in about 18 months, the Sion, as it's called, will come in only one color: solar-cell black. The price, Hahn says, will be €25,500, making it competitive with Volkswagen AG's ID.3, an electric sedan that started selling in July for €35,000. The Sion can also be plugged in, but Hahn figures the solar panels will eliminate one of the primary concerns drivers have about e-vehicles: range anxiety. "You can run the car completely dry, leave it on the side of the road, and it'll recharge itself," he says—even on a cloudy day (though much more slowly). "The idea that I can't get stuck is extremely important."

The concept took root in Hahn's garage in 2012, when he and his friend Jona Christians bought and gutted an old Renault Twingo hatchback. The pair spent months affixing solar panels to the roof, doors, and hood. They ultimately pushed the car out into the sun to soak up some rays—and managed to drive just a few meters at a crawl. Hahn and Christians kept at it, with detours to local universities to hone their technical skills, though both eventually dropped out. Over time they made their Twingo street-legal, able to reach speeds and distances that might work for most commuters.

They brought in a third partner, Navina Pernsteiner, who was Hahn's roommate at the time, to handle marketing, and started a crowdfunding campaign that yielded €850,000. "Suddenly we were able to bring people on board," Hahn says. In 2018 they raised €5 million from venture capital firms, then started looking for about 10 times that to start production. But the talks fell through as investors suggested they abandon plans to make cars and instead license their technology.

Hahn and Christians didn't like that idea, so they again turned to crowdfunding, setting a goal of €50 million, which they soon exceeded as some 13,000 people each plunked down anywhere from €500 to the full purchase price to preorder a vehicle. (The company says those orders aren't binding and can be canceled for a full refund before deliveries start.) Today, Sono has about 100 employees—coders, engineers, designers, and a marketing team. National Electric Vehicle Sweden AB, the company that emerged from the bankruptcy of Saab, has signed on to manufacture the cars, which Hahn says is needed to ensure he can meet demand.

Skeptics say that even with the funding Sono has in hand, the company will have trouble turning its idea into a viable business. Matthias Schmidt, an electric-vehicle analyst in Berlin, says the car might prove useful for city dwellers who don't have off-street parking where they can charge a conventional EV. But as more charging stations spring up, he says, interest in the idea will likely wane. Markus Lienkamp, a professor of automotive technology at the Technical University of Munich, calls Sono "a nice marketing story and nothing more" and says he expects it to end up on the scrap heap, like a host of other e-vehicle startups that have struggled to compete with industry giants.

Hahn says he doesn't expect to have trouble selling cars even as charging infrastructure expands. And he says he's familiar with Lienkamp, but Sono's expertise can be seen in the "numerous" patent applications the company has filed. "We've invited Professor Lienkamp for a test drive," he says.

Hahn acknowledges that his funding, which poured in last fall and winter, came just in time to help weather the worst of the coronavirus lockdowns. Most staff members are working remotely, though a handful have been going to a workshop where prototypes are being built. The team still needs to better integrate the unit that controls the power flow from the solar cells and eliminate hiccups in the drive train, which comes from supplier Continental AG. "We didn't have to stop production," Hahn says. "We didn't need to go to the state for wage support. We're liquid."

THE BOTTOM LINE Priced at about $30,000, the boxy, four-door Sion will compete with VW's new ID.3 electric sedan, but it will be available in only one color: solar-cell black.

1. Given that Sono intends to compete with Volkswagen, explain why economies of scale might present a significant barrier to entry. What strategies might Sono pursue to overcome these challenges?

2. Discuss some of the similarities and differences between the types of pollution caused by vehicle emissions and mining operations. What are some of the political/economic challenges associated with reducing each of these? [Hint: Consider the scope of where these types of pollutions are produced vs. whom they affect.]

Who is a stakeholder and why are they, and their voices, important? Why should your instructors care about what you have to say? What difference can you, or any stakeholder make by conveying your thoughts to the company you’re a stakeholder in? Is there a better way to reach for a result or action from the company? If you own the company, why should you listen to feedback regarding improvement for the company you have poured you heart, soul, and monies into?

1. (a.) What is the underlying principle of valuation? (3)

(b). Why is it critical for us to learn the concept of (security) valuation? (3)

1. (a). What is a bond, who buys/sells them, and why? (2+2+2)

(b). What are the five characteristics of a typical bond? (5)

1. What cash flow(s) are expected by bondholders? Why is bond a “fixed income” security? (2+1)

In at least 100 words, describe an epidemic or public health crisis that you find interesting. Be sure to tell us where and when this epidemic or public health crisis took place, and who it affected. Comment on the responses of at least two of your peers (minimum 50 words each comment). You are welcome to post media or articles to along with your responses. (20 points)

a.

a. What does a contractionary monetary policy​ involves?

b. Who is responsible to implement monetary policies in the​ US?

c. When would the central bank of a country implement this type of​ policy? Explain.

d. Using a graph explain the impact of this contractionary policy on the economy specifically​ - real​ GDP, unemployment and rate of inflation.

You can draw the graph on a​ paper, label it as MONETARYPOLICY

MBA 5008 Quanatitative Analysis

Most business decisions involve elements of uncertainty and randomness. The notion of probability is used everywhere, both in business and in our daily lives. I reviewed the following video and need some help answering this question: https://www.youtube.com/watch?v=_sY3ZRxhBaM

A. Explain the concept of probability by applying a specific application example of probability in business? B. Discuss the economic implications of the video?

E-commerce Question

Study the scenario and complete the question(s) that follow:
Assume you and your university friends have a new start-up company called MealsOnWheels. The goal
of the start-up is to provide the services of a chef on demand. The business is located in Vorna Valley,
Midrand. In addition to mobile chef services, you also provide health and wellness services.
After careful deliberation, you have decided that your start-up needs a website to assist in increasing its
client base.
As part of your communication pathways, you have decided to incorporate a chat page that allows
clients to chat with a chef who will answer their questions. It is expected that the chef is assigned based
on their field of expertise. The aim of the chat page is to ensure that clients are served efficiently and
effectively.

Question
Design a registration page, login page, chat page and database based on the scenario above.
Successful authentication should result in a chat page dynamically designed based on the
requirements of the client. The client should be matched to the appropriate chef. Kindly apply
JavaScript validation where necessary.

Consider the following social welfare function:

SW=U_a(X^nc_a, X^c_a, X^c_~a, P_a)+U_b(X^nc_b, X^c_b, X^c_~b, P_b)+ U_d(X^nc_d, X^c_d, X^c_~d, P_d)+...

where: X=consumption bundle, P=pollution, nc=non-competitive consumption, c=competitive consumption, a, b, d = people, ~a, ~b, ~d = all other people besides a, b, d.

Let X^c_b be a new house overlooking a canyon. Let P be the reduction in scenic beauty experienced by the community. Finally, let X^c_~b be the status impact on folks who are not b arising from the new McMansion. Assume that the positive increment to individual utility for individual b of an increase in X^c_b equals $10,000 in consumer surplus; and that the negative status increment to other people is -$500. Assume also that a one unit increase in X^c_b produces one unit of “P”, which further causes a -$1000 unit impact on utility for everyone exposed. In a world of 5 people (including Mr. b), what are the private benefits to Mr. b of consuming one more unit of X^c_b? What are the external costs of a one unit increase in X^c_b? What will be the net increase in SW of a one unit increase in X^c_b?

Molly and Mark are wife and husband and earned salaries this year of $12,000 and $64,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Mark and Molly also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500. Mark and Molly have a 10-year-old son, Matt, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matt. Mark and Molly paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. What is Molly and Mark’s gross income? What is Molly and Mark’s adjusted gross income? What is the total amount of Molly and Mark’s deductions from AGI? What is Molly and Mark’s taxable income? What is Molly and Mark’s taxes payable or refund due for the year (use the tax rate schedules)? Complete the first two pages of Molly and Mark’s Form 1040 (download forms from the IRS website). 2018 TAX LAW