Write a memo on working for a corporation that is seeking to acquire for the first time a foreign operation as part of increasing their corporate footprint. You have been asked to prepare a memo to the Board of Directors justifying the reasons for the acquisition and providing an example of a U.S. firm that has seen positive results from a foreign acquisition.

Write a memo on working for a corporation that is seeking to acquire for the first time a foreign operation as part of increasing their corporate footprint. You have been asked to prepare a memo to the Board of Directors justifying the reasons for the acquisition and providing an example of a U.S. firm that has seen positive results from a foreign acquisition.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter24: Multistate Corporate Taxation

Section: Chapter Questions

Problem 1DQ

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You work for a corporation that is seeking to acquire for the first time a foreign operation as part of increasing their corporate footprint. You have been asked to prepare a memo to the Board of Directors justifying the reasons for the acquisition and providing an example of a U.S. firm that has seen positive results from a foreign acquisition.
Reasons that a company might choose to acquire a business in a foreign country include all of the following except: Take advantage of free trade agreements Purchase local customer loyalty Local management understands local ing-hiet equatitions
Which TWO of the following statements would be an advantage of adopting IFRS Standards? i) It would be easier for investors to compare the financial statements of companies with those of foreign competitors. ii) Cross-border listing would be facilitated. iii) Accountants and auditors would have more defence in case of litigation. iv) The IFRS Standards can be more easily tailored to reflect the industries of the territory adopting them.
Imagine you are a CPA and your foreign client with U.S. operations has requested information on tax advantages and disadvantages of establishing branch operations in the United States versus the use of an agent. Create a scenario with at least two specific examples demonstrating the major advantages and disadvantages of either establishing branch operations or using an agent to conduct business in the United States.
In recent years the move by accounting firms to offshore tax and consulting work has grown and expanded into audit work. What are the ethical concerns that might be raised about the practice of electronically transmitting audit information to offshore centers like those in India that provide accounting professionals to audit U.S. corporations’ financial statements?
ase Study Research: Your team has been hired to conduct academic research on a financial institution (banking) that operates within the Caribbean region or Europe. They have outlined critical areas within the organization that they would like you to examine. Instructions: Case Study Requirements Select a financial institution that operates within either region The team needs to describe and assess three banking services that the entity offers and also examine how its operations has managed within the dynamic global environment over the past three years. Once the review has been completed, your team has been mandated to provide at least five recommendations to improve operations and/or banking services for the period 2024-2026. The recommendations should include but is not limited to, a comprehensive review of the banking services currently offered and how to address any internal or external challenges that may have been identified, along with strengths, weaknesses…
Businesspeople need to understand international culture and corporate practices to successfully transfer their business activities to foreign countries. Compare and contrast US culture and corporate practices with India’s and identify challenges as a result for a US based company to operate its activities in India. Identify at least three risks associated with doing transactions by the US based company operating in India and what can be done to mitigate such risks. Note that operations are in India but majority of the products are sold in US. Include tangible examples for better clarity. Include currency exchange risk among those mentioned above, and explain ways to mitigate this risk. Explain in detail.
One of your clients has recently read about the goal of converging to International Accounting Standards and they are concerned about what impact it may have on their company. 1. Discuss some of the costs that a company might incur as part of its converging with International Accounting Standards. 2. Discuss why it might be important to your client to adopt International Accounting Standards even though they are currently only operating domestically throughout the central part of the United States.
Simulate your own franchising multinational corporation (MNC) in the hotel industry.Justify the form of your own MNC, based in the Caribbean, which trades with three countries outside of the North America region. Then examine issues related to foreign exchange management within the multinational corporation. Address the following: 1. The type of MNC, whether franchising, licensing, the exportation of a product sold through a distributor, etc. The rationale behind using this form of MNC should also be given. 3. The foreign exchange exposure of the company and how the company plans to manage this exposure.
By using Hofstede's cultural dimension index in Exercise 4 of Chapter 2 and Gray's accounting values in Chapter 2 to discuss implications for American internal auditors who have to audit subsidiaries of a U.S. parent in Sweden, Korea and Brazil.Discuss:(1) the impact of Hofstede's cultural dimensions on relevant accounting values (conservatism, secrecy and level of disclosure) of accountants in these three countries, and(2) what American parent company and their internal auditors should do to cope with the impact of these accounting values on financial reporting of these subsidiaries.
Please help with a discussion on question #2. The base country is Nevis and the countries trading to is Australia, Columbia and Germany. You are asked to simulate your own multinational corporation (MNC).You are required to justify the form of their own MNC, based in the Caribbean, which tradeswith three countries outside of the North America region. Students will then examine issues relatedto foreign exchange management within their multinational corporation.This group assignment should address the following:1. The type of MNC, whether franchising, licensing, the exportation of a product soldthrough a distributor, etc. The rationale behind using this form of MNC should also begiven.2. The main foreign currencies that will be used in the business.3. The foreign exchange exposure of the company and how the company plans to managethis exposure.4. Any current financial issues that affect the operating environment of the MNC and howthese issues affect the company’s foreign currency…
. _______ Foreign licensing is similar toa. starting from scratch.b. franchising.c. wholesaling.d. establishing a subsidiary in another country.e. establishing a sales office in a foreigncountry.