(a) What expelimental design would be the best to use in the following sit-
uation? Be specific. Explain the good features of your proposed design.
A taste panel will convene this afternoon to compare six different brands
of ice cream. The panel is comprised of 10 persons who are expert
tasters. The maximum number of different brands that an individual
taster will taste is 3.
(b) What would you do if three of the expert tasters failed to come this
afternoon because of illness, so that you could not run the design rec-
ommended in (a) above?

Characterize the changes that occur in peer relations during adolescence. How does this affect big social service issues such as gang behavior, teen pregnancy, and teens dropping out of school? Write about the role peer pressure played (or still plays) in your life. What were the results of your conformity? What might occur during identity formation that might lead an individual to continue to succumb to peer pressure later in life? What might have contributed to the development of individuals who are independent thinkers and nonconformists?

Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $250,000, of which $200,000 is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. (Use the tax rate schedule).

a. Using the single individual tax brackets and the corporate tax rate of 21 percent, find out how much current tax this strategy could save Moana (ignore any Social Security, Medicare, or self-employment tax issues).

1. You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 20 and make the contributions for 15 years. Your twin sister does the same starting at age 35 and makes the contributions for 30 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 65? Round your answers to the nearest dollar.
Amount on your account: $  
Amount on your sister's account: $  

Who has the larger amount at age 65?

Which of the following is the least accurate statement about screening for COVID-19

            A. RT-PCR testing is the most accurate diagnostic test for COVID-19 in terms of sensitivity and specificity

            B. The best test to use for COVID-19 depends on whether the goal is individual    diagnosis or screening for ability to transmit COVID-19

            C. Frequent repetition of antigen tests has the potential to detect those who are able to transmit COVID-19

            D. Antigen tests are the most accurate test for COVID-19 in terms of sensitivity and specificity

the accompanying data represent the miles per gallon of a random sample of cars with a​ three-cylinder, 1.0 liter engine. ​(a) compute the​ z-score corresponding to the individual who obtained 38.7 miles per gallon. interpret this result. ​(b) determine the quartiles. ​(c) compute and interpret the interquartile​ range, iqr. ​(d) determine the lower and upper fences. are there any​ outliers?39.939.9 42.442.4 34.634.6 36.336.3 38.138.1 38.938.9 40.540.5 42.842.8 34.734.7 37.537.5 38.338.3 39.439.4 41.441.4 43.643.6 35.235.2 37.637.6 38.538.5 39.739.7 41.641.6 49.049.0

Sugar rush company POLICY FORMATION TEMPLATE;

HR Policies communicate an organization’s culture, values, and philosophy. They cover what employees can expect from the organization, what the company expects from employees and what customers and the community can expect from the organization.

Policy Purpose

What is the overarching reach or purpose of the policy?

Scope:

Who does the policy apply to? Most, if not all, HR policies are applicable to all employees of the Company. You can distinguish between part-time and full-time providing your organization maintains these different statuses.

Policy Statement:

This is the main body of the policy where HR defines the actual policy and all of the provisions that make up the policy.

Responsibility:

This answers the question of who is responsible for the policy. Most often, the statement should identify that the HR Department is responsible for monitoring and enforcing the policy.

Definition:

This section would include any definitions of terms used throughout the policy that need to be. For example, if you say full-time employees, that would need to be defined.

Questions:

This section refers to whom employees turn to if they have questions pertaining to the policy. In most instances this would be the HR Department.

Reference:

This section would indicate if the policy makes reference to other policies held by the company. For example, if you referred to the Harassment Policy, you would reference (see Harassment Policy)

Effective Date:

Indicate the effective date of the policy.

Review Date:

When is the policy reviewed? This is customarily one year from the effective date.

Approval:

Most often the President of the Company approves said policy.

————— the end —————

Question: - make an Employee Referral Policy using the above sugar rush company template.  

Sugar rush company POLICY FORMATION TEMPLATE;

HR Policies communicate an organization’s culture, values, and philosophy. They cover what employees can expect from the organization, what the company expects from employees and what customers and the community can expect from the organization.

Policy Purpose

What is the overarching reach or purpose of the policy?

Scope:

Who does the policy apply to? Most, if not all, HR policies are applicable to all employees of the Company. You can distinguish between part-time and full-time providing your organization maintains these different statuses.

Policy Statement:

This is the main body of the policy where HR defines the actual policy and all of the provisions that make up the policy.

Responsibility:

This answers the question of who is responsible for the policy. Most often, the statement should identify that the HR Department is responsible for monitoring and enforcing the policy.

Definition:

This section would include any definitions of terms used throughout the policy that need to be. For example, if you say full-time employees, that would need to be defined.

Questions:

This section refers to whom employees turn to if they have questions pertaining to the policy. In most instances this would be the HR Department.

Reference:

This section would indicate if the policy makes reference to other policies held by the company. For example, if you referred to the Harassment Policy, you would reference (see Harassment Policy)

Effective Date:

Indicate the effective date of the policy.

Review Date:

When is the policy reviewed? This is customarily one year from the effective date.

Approval:

Most often the President of the Company approves said policy.

————— the end —————

Question: - Draft an Employee Referral Policy using the above sugar rush company template.  

4. Chemical Company created a new product called “Tire Shine” to clean the oil and tar from car tire rims. Chemical company sold 1,000 bottles of “Tire Shine” to Ferrari Corp. Ferrari received and used the “Tire Shine” without altering the product. “Tire Shine” however caused harm to Ferrari employees who used the product, even though they used the product as instructed. In random checks of the “Tire Shine” bottles received by Ferrari, it was discovered that the fumes from the bottles of “Tire Shine” were extremely toxic. If Ferrari can show that “Tire Shine” did not have adequate warning labels mentioning the dangerous conditions or instruction labels indicating how to properly use the product, what cause of action could Ferrari bring against The Chemical Company and why?4. Chemical Company created a new product called “Tire Shine” to clean the oil and tar from car tire rims. Chemical company sold 1,000 bottles of “Tire Shine” to Ferrari Corp. Ferrari received and used the “Tire Shine” without altering the product. “Tire Shine” however caused harm to Ferrari employees who used the product, even though they used the product as instructed. In random checks of the “Tire Shine” bottles received by Ferrari, it was discovered that the fumes from the bottles of “Tire Shine” were extremely toxic. If Ferrari can show that “Tire Shine” did not have adequate warning labels mentioning the dangerous conditions or instruction labels indicating how to properly use the product, what cause of action could Ferrari bring against The Chemical Company and why?

Discussion Questions

1. Using the common motives for cross-border deals discussed in this chapter, speculate as to the reasons Actavis acquired Forest Labs.

2. What alternatives to acquisition could Actavis have pursued? Speculate as to why a takeover was the preferred option?

3. Speculate as to how Actavis’s takeover of Forest Labs may have created shareholder value?

4. Do you believe firms should be allowed to engage in tax inversions?

5. Why is Actavis organized as a holding company in Ireland?

6. Speculate as to why investors for both firms responded so favorably when news of the deal was announced?

END OF CHAPTER CASE STUDY: IRELAND-BASED DRUG MAKER ACTAVIS BUYS U.S. PHARMACEUTICALS FIRM FOREST LABS

Case Study Objectives: To Illustrate • Alternative motives for cross-border acquisitions • How taxes impact cross-border deals and capital flows • How activist investors can impact corporate decisions.

Reflecting the escalating costs of developing blockbuster drugs (i.e., those with the potential to deliver more than $1 billion in annual revenue) and the loss of patent protection on many substantial revenue producing medications, the pharmaceutical industry has been undergoing a wave of consolidation for more than a decade. The takeover strategy in many instances appeared to be largely formulaic: acquire rivals, slash costs, and minimize taxes. While Valeant Pharmaceuticals and Endo Health Solutions have employed this strategy effectively, drug maker Actavis is perhaps the most successful, tripling its market value during the last 3 years. Actavis is a global, integrated specialty pharmaceutical company focused on developing, manufacturing, and distributing generic and branded products in more than 60 countries. Structured as a holding company, its global headquarters is located in Dublin, Ireland. The firm’s US administrative headquarters is in Parsippany, NJ. Actavis historically has focused on generic drugs, but in recent years it has expanded through acquisition into branded drugs. Actavis on February 18, 2014, announced that it had reached an agreement to buy Forest Laboratories for $25 billion in cash and stock to create a pharmaceuticals firm with substantial exposure to branded and generic drugs. Forest Labs is a fully integrated specialty pharmaceutical firm focused on the US market, with a portfolio of branded products. The combined revenues of the two specialty pharmaceutical companies are expected to be more than $15 billion in 2015. The new company announced that it would be increasing its annual budget for pharmaceutical research and development to more than $1 billion. Strategically, Forest Labs represented an opportunity for Actavis to diversify into branded drugs and for Forest Labs to penetrate foreign markets not currently survived. Forest Labs also has an impressive number of drugs in the pipeline. In 2012, US-based Watson Pharmaceuticals bought Actavis, then headquartered in Switzerland, for nearly $6 billion and adopted its name. In 2013, the firm bought Irish-based Warner Chilcott for about $5 billion expanding its presence in specialty pharmaceuticals and moved its headquarters to Ireland to take advantage of the country’s favorable corporate tax environment. The takeover of Forest Labs needed an assist from famed activist investor Carl Icahn. Icahn has a track record of investing in drug makers and profiting from their turnarounds or sales to larger companies. His previous investments included ImClone Systems which was sold to Eli Lilly & Co. in 2008 for $6.3 billion and in Genzyme Corp which was sold to Sanofi in 2011 for $19.4 billion. In 2012, Icahn investments that were later sold included Amylin Pharmaceuticals which was acquired by Bristol-Myers Squibb for $5.1 billion. Icahn, who owns 11% of Forest’s stock through his firm Icahn Enterprises, played a key role in making this deal happen by prodding Forest Labs to install a new CEO in 2013 who was more amenable to selling the firm. To avoid a third proxy fight in as many years, Forest added an Icahn representative to its board in 2013 increasing his influence on board decisions. Under the terms of the deal, Forest shareholders will receive $26.04 in cash and 0.3306 of a share of Actavis, equivalent to $89.48 per share. This represents a premium of 25% from Forest Lab’s closing price the prior day. Forest shareholders will own 35% of the combined firms. Forest Labs agreed to pay a termination fee of $875 million if it backs out of the agreement in favor of a competing takeover proposal or if the firm’s shareholders do not approve the deal. The acquisitive Actavis has completed seven deals since January 2013. Like those deals, the firm expects to realize substantial costs savings. However, in this case, the takeover of Forest Labs will be accretive to earnings immediately following closing. This is relatively unusual as cost savings in most deals in the first year are negated by a combination of severance expenses and other integration-related costs. Actavis announced that it expects to realize a combination of operating and tax savings of $1 billion annually to be realized beginning in the first full year of operation of the combined firms. Assuming a discount rate of 12%, the present value of these savings in perpetuity is $8.3 billion ($1 billion/0.12), well in excess of the $5 billion acquisition premium paid for Forest Labs. Not surprisingly, investors greeted news of the merger favorably. Shares of Forest rose 30% and those of Actavis were up 12%. The takeover of Warner Chilcott in 2012 allowed Actavis to complete a “tax inversion” in which it relocated its headquarters to Ireland to escape the higher American statutory corporate tax rate. A big advantage of a “tax inversion” besides the lower statutory tax rate is that acquisitions become more affordable. Cash held overseas because of the more favorable tax rates can be used to pay for a deal and the earnings from the acquired firm are also taxed at Actavis’s lower tax rate. Tax inversions are not viewed as tax evasion strategies by the US taxing authorities as long as they can be justified by good business reasons such as getting nearer to a firm’s customers or suppliers. Tax evasion is the avoidance of taxes through illegal means such as misrepresenting income on a tax return. The maximum corporate tax rate in Ireland is 12.5% compared to 35% in the United States. Forest Labs earnings which had been taxed at the higher US rate will be taxed at the lower Irish rate currently paid by Actavis. Annual tax savings are expected to amount to at least $100 million. This gave Actavis a huge advantage in bidding for Forest Labs over other potential suitors by enabling it to offer a larger premium. From a legal perspective, an inversion is simply the process by which a corporate entity, established in another country, “buys” an established American company. The transaction takes place when the overseas entity purchases either the shares or assets of a domestic corporation. The shareholders of the domestic company typically become shareholders of the new foreign parent company. In essence, the legal location of the company changes through a corporate inversion from the United States to another country. An inversion typically does not change the operational structure or location of a company. In most cases, an inversion simply means the addition of a small office in the company’s new foreign “home.” Therefore, a re-incorporation rarely, if ever, leads to the loss of American jobs. However, it does lead to a loss of tax revenue.