On December 31 last year, China alerted the WHO to several cases of unusual pneumonia in Wuhan, a city of 11 million people. The virus was unknown. Several of those infected worked at the city's Huanan Seafood Wholesale Market, which was shut down on January 1. As health experts worked to identify the virus amid growing alarm, today, more than 8.5 million coronavirus cases confirmed worldwide, with at least 450,000 deaths and 4 million recoveries. The disease was confirmed to have reached Turkey on 11 March 2020, after a man who had returned to Turkey from Europe, tested positive.

As many countries and world capitals have been put under strict lockdown, major industrial production chains have been brought to a halt. Governments around the world have urged employees to work from home where possible. The travel industry has been badly damaged, with airlines cutting flights and customers cancelling business trips and holidays. In the United States, the price of a barrel of petrol turned negative for the first time in history.Together, we observed that the health crisis gradually turned into an economic crisis.

After this short reminder at the top; write an essay discussing the economic impacts of the shock on Turkey’s economy. In your article, discuss the effects of this economic shock on Turkish economy using the concepts of GDP, growth, inflation, unemployment, money markets, interest rates, aggregate supply and aggregate demand. Use a narrative based on the economic theories we saw in the course. Connect your ideas to each other with a scientific background. Give policy suggestions to shorten the effect of this shock on Turkish economy. While giving the policies keep in mind and state the constraints that the Turkish economy currently facing. Articles that are not scientifically written or written on internet slogans may not bring you the points you want

Enron Corporation was an American energy, commodities, and Services Company based in Houston, Texas. It was founded in 1985, Kenneth Lay was the founder of the company, first founded in Omaha Nebraska and then it moved to Houston Texas .Before its bankruptcy on December 2, 2001, Enron employed approximately 20,000 staff and was one of the world's major electricity, natural gas, communications and pulp and paper companies, with claimed revenues of nearly $101 billion during 2000.

Enron’s line of business:

Enron was originally involved in transmitting and distributing electricity and natural gas throughout the United States. The company developed, built and operated power plants and pipeline. Enron owned large network of natural gas pipeline, which stretched ocean to ocean and border to border. Enron traded in more than 30 different products, including the following: Petrochemicals, Plastics, Power, Pulp and paper, Steel, Weather Risk Management, Oil and LNG transportation, Broadband, Principal Investments, Risk management for commodities, Shipping / freight, Water and wastewater. It was also an extensive futures trader, including sugar, coffee, grains, hogs, and other meat futures.

Review of Enron’s Rise and fall:

Throughout the late 1990s, Enron was considered one of the most innovative companies in the world. The company continued to build power plants and operate gas lines, but it became better known for its unique trading businesses. Besides buying and selling gas and electricity. it created whole new markets for such oddball "commodities" as broadcast time for advertisers, weather futures, and Internet bandwidth. Before it bankrupted in late 2001, its annual revenues rose from about $9 billion in 1995 to over $100 billion in 2000.

At the end of 2001 it was revealed that its reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud. The Enron scandal was the biggest bankruptcy in United States history which cost 4,000 employees their jobs. On December 2, 2001 Enron filed for bankruptcy. It was an event that will always be remembered as one of the most disastrous events in the financial world.

The reasons for collapse of Enron company:

There are some reasons that lead to the collapse of Enron:

•Cheating and manipulation by the board of directors to achieve their personal interests at the expense of the interest of the company.

•That the board of director has delegated the task of reviewing the company’s transactions to a sub-committee within the company. The committee has only conducted a quick review of these transactions. The board of directors has concealed very important information whose knowledge may have led to some appropriate action.

•The company’s management inflated the company’s profit to about $ 1 billion by raising the profit by 586 million and hiding debit of $ 2.6 billion in the year before the company’s collapse.

•The loss of the members of the audit committee is independent and neutral because of the enormous they charge from the administration and may reach up to $380000 per year per member.

With the fall of Enron, the financial auditor ARTHER ANDERSON fell for his role in this process, culminating in the company’s disposal of most of the city document. But Enron’s scandal has prompted the US government to amend a number of market laws, most notably issuing legislation allowing employee to sell their shares three years after they own them, and more importantly, the Sarbanes-Oxley act, which explicitly tightens penalties for such crimes. The CEO and CFO are fully responsible for any manipulation of the financial statement. In September 2008, Enron shareholders won the lawsuit against the company and received $7.2 billion damages, the biggest settlement in the history of fraud involving listed company.

Questions:

a.Explain how the dramatic collapse of Enron has severely shaken the U.S. Capital markets in

2001.                                                                                                                                                

b.Suggest the measures that could be taken to restore the credibility of the accounting profession and investor confidence in the financial reporting process.                

Question 2

Describe the Financial Reporting practices followed in Oman quoting some practical instances. Also highlight the principles that govern the financial practices in Oman and the Organizations that form regulatory frame work in Oman.                                              

United Recycling Inc. is one of the largest recyclers of glass and paper products in the United States. The company is looking into expanding into the cardboard recycling business. The company’s CFO has performed a detailed analysis of the proposed expansion.

The selling price of recycled cardboard can fluctuate dramatically, depending on the market conditions. By creating models that used different assumptions for the selling price of recycled cardboard but keeping all other inputs in the model the same, the CFO demonstrated the effect of fluctuations in the price of recycled cardboard.

1) Based on the information given, determine which of the statements is correct.

A. The company’s CFO performed a scenario analysis on the project’s financial model.

B. The company’s CFO was conducting a sensitivity analysis on the project’s financial model.

2) Evaluating risk is an important part of the capital budgeting process. Which of the following represents the project’s risk to the corporation as opposed to investors’ risks?

A. Corporate, or within-firm, risk

B. Stand-alone risk

C. Market, or beta, risk

3) The problem with using _______ when trying to adjust for projects that are more risky or less risky than a firm’s average project is that these adjustments are extremely subjective and difficult to justify.

A. market risk

B. a risk-adjusted cost of capital

C. corporate, or within-firm risk

D. stand-alone risk

The topic for this week is Inferential Statistics including the Chi-Square, Correlation and Regression as well as Time Series Analysis.  Correlation and Regression are used in basic modeling where we forecast the value of a dependent variable based on the value of an independent variable.   You may want to review the lecture entitled Correlation and Regression posted in this week’s discussion stream.  

Be sure to use the Excel charting to construct a Scatterplot of two of the variables shown in the attached dataset. Once you have the Scatterplot, add the Trendline, Regression Equation and R² following the directions discussed in the lecture.  It may be instructive to identify (country) the outlier data points displayed on the Scatterplot.  Discuss the meaning of the Regression Equation in terms of the independent and dependent variables.  Discuss the strength of the Correlation between the Variables and the proportion of Variation Explained by the Regression Equation.  Does your Linear Regression model help to understand the trend in the data? Pick any two variables and please include the chart

The United Arab Emirates (UAE) held a competition for the design of an embassy in Washington, D.C. Elena Sturdza—an architect not licensed in the District of Columbia—won. Sturdza and the UAE exchanged proposals, but the UAE stopped communicating with her. About two years later, Sturdza learned that the UAE had contracted with a District of Columbia architect named Angelos Demetriou to use his design. Sturdza filed a suit in a federal district court against the UAE, alleging breach of contract. The court issued a summary judgment in the UAE’s favor. Sturdza appealed to the U.S. Court of Appeals for the District of Columbia Circuit. This court asked the District of Columbia Court of Appeals “precisely how D.C. law applies” in this situation. The District of Columbia Court of Appeals’ answer: an architect cannot recover on a contract to perform architectural services in the District of Columbia if he or she lacks a District of Columbia license. For the safety of those who work in and visit buildings in the District of Columbia, and the safety of their neighbors, the architects who design them and oversee their construction should be qualified and licensed. The statute contains no exception.

Should there be an exception to the rule applied in this case for an architect who is licensed elsewhere in the United States and who intends to become licensed in the District of Columbia? How might such an exception have applied in this case?

A key dynamic within any Multi National Corporation (MNC) is management of cash and also foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics. Within the Caribbean and South American jurisdiction, the economic framework is tightly connected with the major Asian economies of China and Japan, as well as the United States and the United Kingdom. The Caribbean and South American economy respectively, have been a barometer of the global economic cycle. For the South American economy, many Multi-National Corporations have made significant investments in order to achieve a reduction in the production cost of goods and also diversification benefits. Despite the benefits that could possibly materialize, some South American countries have weak banking systems and also have not been resilient through Global market shocks and Financial Crisis. This weakness may be as a result of politics and the quality of prudential supervision. Given this context, respond to the following questions which require research with respect to the localized context and also within the current market dynamics.

“For a fixed exchange rate system to work successfully, the government that oversees its operations must be able to make tight budget and monetary policies prevail”. Agree or disagree and justify your position within the context of the Caribbean and South American Economy?

Organizational form: List some common forms of business organization, and discuss how access to capital differs across these forms of organization. If you had your own company, what form of business would you have and how would you access capital? Starting a business: What are some of the things that the founder of a company must do to launch a new business? Provide examples on what you would do and what type of business you would have.

Explain the following two answers in detail: -

A. In an article that appeared in The Australian Financial Review on 26 August 2011 ('Apple could easily flounder without its founder' by Mark Ritson), it was reported:

The news that Steve Jobs has resigned from Apple and will be replaced as CEO by Tim Cook made global headlines yesterday What has followed since has been a frenzied discussion of what the loss of Jobs will mean for new product development timelines, share price issues and corporate culture. Apple's share price fell 5 per cent on the news of the resignation as questions were raised about Apple's prospects without its creative guru at the helm. But the real question for Apple as it enters its post-Jobs period is how well the brand will survive without the founder.

Required: - The fact that the share prices fell following the departure of Steve Jobs is consistent with the view that Jobs was an 'asset' to the company. How do you think this 'asset' would have been disclosed in the financial statements of Apple?

B. What is a contingent asset?

When should a contingent asset be disclosed within the notes to the financial statements?

If something is initially disclosed as a contingent asset, when can it subsequently be recognised as an asset within the financial statements? Briefly explain.

Curt Flood was a National League center fielder who was an All-Star three times and won seven consecutive Gold Glove awards. At the end of the 1969 season, the St. Louis Cardinals traded Flood to the Philadelphia Phillies. Flood rejected the trade, and wrote in a letter to Baseball Commissioner Bowie Kuhn: After twelve years in the major leagues, I do not feel I am a piece of property to be bought and sold irrespective of my wishes. I believe that any system which produces that result violates my basic rights as a citizen and is inconsistent with the laws of the United States and of the several States. It is my desire to play baseball in 1970, and I am capable of playing. I have received a contract offer from the Philadelphia club, but I believe I have the right to consider offers from other clubs before making any decision. I, therefore, request that you make known to all Major League clubs my feelings in this matter, and advise them of my availability for the 1970 season. Flood’s contract, like all major league baseball contracts at the time, contained the following provision: “NOTICE. A club may assign to another club an existing contract with a player. The player, upon receipt of written notice of such assignment, is by his contract bound to serve the assignee.” The reserve clause, as it was known, also provided that even after his contract expired, a player could not play for another team unless the team that originally signed him agreed to unconditionally release him or the player sat out for a year. The Commissioner denied Flood’s request, and Flood sued in a case that went all the way to the United States Supreme Court, Flood v. Kuhn, 407 U.S. 258 (1972). There is a link to the full decision in your Resources for this chapter. Flood lost, and after he spent a year away from the sport, the Phillies traded him to the Washington Senators. Flood retired in 1971 with a lifetime batting average of .293 after playing only thirteen games with the Senators. Although Flood was unsuccessful in his legal battle, his actions led to the end of the reserve system and the beginning of free agency in 1975. Given what you know about assignments, analyze the portions of the reserve clause above and explain why such terms would or would not ordinarily be enforceable in a contract. Your response should be between 150 and 300 words.

Curt Flood was a National League center fielder who was an All-Star three times and won seven consecutive Gold Glove awards. At the end of the 1969 season, the St. Louis Cardinals traded Flood to the Philadelphia Phillies. Flood rejected the trade, and wrote in a letter to Baseball Commissioner Bowie Kuhn:

After twelve years in the major leagues, I do not feel I am a piece of property to be bought and sold irrespective of my wishes. I believe that any system which produces that result violates my basic rights as a citizen and is inconsistent with the laws of the United States and of the several States.

It is my desire to play baseball in 1970, and I am capable of playing. I have received a contract offer from the Philadelphia club, but I believe I have the right to consider offers from other clubs before making any decision. I, therefore, request that you make known to all Major League clubs my feelings in this matter, and advise them of my availability for the 1970 season.

Flood’s contract, like all major league baseball contracts at the time, contained the following provision: “NOTICE. A club may assign to another club an existing contract with a player. The player, upon receipt of written notice of such assignment, is by his contract bound to serve the assignee.”

The reserve clause, as it was known, also provided that even after his contract expired, a player could not play for another team unless the team that originally signed him agreed to unconditionally release him or the player sat out for a year.

The Commissioner denied Flood’s request, and Flood sued in a case that went all the way to the United States Supreme Court, Flood v. Kuhn, 407 U.S. 258 (1972). There is a link to the full decision in your Resources for this chapter. Flood lost, and after he spent a year away from the sport, the Phillies traded him to the Washington Senators. Flood retired in 1971 with a lifetime batting average of .293 after playing only thirteen games with the Senators.

Although Flood was unsuccessful in his legal battle, his actions led to the end of the reserve system and the beginning of free agency in 1975

analyze the portions of the reserve clause above and explain why such terms would or would not ordinarily be enforceable in a contract. Your response should be between 150 and 300 words.