Are US exporters subject to income tax in importing countries? How does taxation of a branch firms differ from that of a subsidiary? Provide examples.

1. Explain how sports teams can prevent another league from entering the market using product differentiation based on location in the US.

Is the US national debt cause for concern? I need some of the negative implications that come from the increasing national debt. Please explain.

What is meant by classifying a unit as an “investment center” vs. a “cost” or “profit” center? Discuss how each of the following tools, individually and/or collectively, can and should be used to evaluate managers of such “investment center” individual divisions of a large organization: ROI, EVA, and the Balanced Scorecard. (Hint: discuss how each works, what each helps ensure, what dysfunctional behaviors can result from its use, and how multiple approaches can help ensure behavior that aligns individual incentives with overall corporate strategy.)

What is meant by classifying a unit as an “investment center” vs. a “cost” or “profit” center? Discuss how each of the following tools, individually and/or collectively, can and should be used to evaluate managers of such “investment center” individual divisions of a large organization: ROI, EVA, and the Balanced Scorecard. (Hint: discuss how each works, what each helps ensure, what dysfunctional behaviors can result from its use, and how multiple approaches can help ensure behavior that aligns individual incentives with overall corporate strategy.)

Berger and Luckmann state that we are born into an 'objective social structure' and that we have only a limited ability to subjectively appropriate and interpret it for ourselves. Discuss how the categories of race, gender, and class predate any one individual, and how we are bound to identify ourselves in relation to them. To what extent can an individual redefine themselves in relation to these categories, and what are the possible social sanctions they may face for doing so? Your answer should be around 500 words and cite any pertinent sources from the course.

On January 1, 2017, Company One’s Board of Directors approved granting 5,000 stock options to a select group of senior employees. The requisite service period is five years with 20% of the options vesting each year from 2017 to 2021. The fair value of the option is as below:

1. Based on the description in question, determine the type of vesting condition (cliff vs. graded)
2. What is the total compensation expense needed to be recognized under US GAAP for each year from 2017 to 2021?
3. What is the total compensation expense needed to be recognized under IFRS for each year from 2017 to 2021 (round to one decimal point)?

You founded your own firm three years ago. You initially contributed $200,000 of your ownmoney and in return you received 2 million shares of stock . You also sold an additional 1 million shares of stock to angel investors. Now, you are considering a second round raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.

a.What is the price per share of this funding round?

b. What is the value of the whole firm afterthis investment (the post-money valuation)?

c. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own? What percentage of the firm will you own

after this investment?

d.How much money will you gain from founding this firm after this round of financing? Ignore time value of money when you answer this question.

1.

If both China and Nigeria set a tariff of 10% per unit of soybeans imported from the US, what would be your expectation owith respect to the domestic price of soybeans in China and Nigeria?

2.

Suppose after the imposition of tariff, Chinese and Nigerian soybean importers turn to Brazil to get their soybeans, thus increasing the elasticity of demand for US produced soybeans, what would happen to the domestic price of US soybeans in China and Nigeria?

3.

Given the tariffs in China only, what market inefficiencies (or deadweight losses) can be expected?

4.

Given the tariffs in both China and Nigeria, which of these countries has the potential to benefit from the imposition of the tariff and why?

5.

Suppose China and Nigeria would like to use quotas instead of tariffs, which of the following implementations would be of benefit to your company and why?

Virgin was founded in 1970 by Richard Branson and is classified as a holding company for multiple ventures under the Virgin Group. When it comes to innovation Virgin is one of the top companies in the world. What began as a mail order record company has evolved into one of the most diverse companies in existence. Virgin invests in and builds companies that revolve around delivering fantastic customer experience and change the scope of industries. They do everything from space tourism to air travel, make comic books and video games. The company now holds over 200 companies and operates in 29 countries. They’ve found that the most successful ideas they get are the ones that are marketing, sales, and customer focused, sit under the Virgin brand, have a well-defined and differentiated customer offer and oftentimes are delivered in partnership with experts in their field.
Virgin takes the ideas it gets and boils them down into several categories. Anything that doesn’t quite fit into an existing company gets sent to corporate development for review. They take the time to read and respond to every proposal. They do not disclose how rewards are awarded but there are substantial ones for good ideas that are implemented. Internally Virgin also sources business plans and ideas from employees. Once a flight attendant had an idea. It got presented to the CEO and before long she had a considerable role in starting up Virgin Brides (which beyond being a fantastic idea didn’t quite work out in the market place). It’s incredible that a flight attendant can have an idea that makes it that far in a company. Notice that Virgin has over 200 companies under it. If you stop for a second you’ll realize just how massive that number is. That is a lot of innovation for a company only 40 years old. Financially they do quite well so obviously something has been working out for them. Not a lot of firms innovate this much or support this much innovation but that’s kind of the key – they don’t just source great ideas, they act on them. Sourcing this many fantastic ideas isn’t easy – it’s a lot of hard work for the company and they have to devote time and resources to going through all of them never mind actually taking the time to respond. But it shows that they care and that they’re serious about this. All great innovations come from an idea. Some go so far as to say it’s the most important part of the process (Seth Godin would likely disagree and say that shipping is the most important). Some companies looking at Virgin’s requirements might find them surprisingly strict, others surprisingly loose. No matter how you view it the only thing that remains true at the end of the day is that Virgin’s strategy works – and it works well.

Required:

What five lessons can other businesses learn from Virgin?