Business, 26.09.2021 22:40 stgitskaysie9028
After building a profitable construction company together over several decades, Larry Stevenson
and Jim Shapiro recognized that their differences had become irreconcilable. Stevenson wanted to buy
out Shapiro, who was willing to sell for the right price. After months of haggling and legal maneuvering,
Stevenson made his final offer: $8.5 million for Shapiro’s shares in the company.
The company is worth about $20 million, Shapiro thought to himself. I own 49% of the shares.
Heck, I helped build this company. I’m not going to accept anything less than my fair share—$10 million.
I’d rather fight in court than accept $8.5 million. Shapiro rejected the offer, and each party prepared for
a trial.
Shapiro’s rationale for rejecting Stevenson’s offer seemed reasonable enough. Furthermore,
Shapiro’s lawyers assured him, a court ruling very likely would be in his favor.
a) What do you think about Shapiro’s decision? Is it right or wrong? Why?
b) If you were Shapiro in this case, what would you asscess your BATNA?
Answers: 3
Business, 22.06.2019 05:00, swelch2010
You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u. s. company and i don’t make decisions based on what’s good for the u. s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?
Answers: 2
Business, 22.06.2019 11:00, smartie80
Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period
Answers: 1
Business, 22.06.2019 15:20, lamashermosa23
On january 2, 2018, bering co. disposes of a machine costing $34,100 with accumulated depreciation of $18,369. prepare the entries to record the disposal under each of the following separate assumptions. exercise 8-24a part 2 2. the machine is traded in for a newer machine having a $50,600 cash price. a $16,238 trade-in allowance is received, and the balance is paid in cash. assume the asset exchange has commercial substance.
Answers: 2
After building a profitable construction company together over several decades, Larry Stevenson
an...
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