Importance of management

Importance of management

You are future international management accountants. Discuss the importance of management in current economic conditions: Is it an art or a science?

Discussion points:

·- some people think management is an inborn skill, others consider it is a set of techniques that can be taught

·- every manager should possess certain qualities which make him/her a really qualified professional. What are they?

·- Peter Drucker’s point of view on the tasks the work of a manager encompasses.

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Buying a new hotel

A medium-sized retail company wants to diversify its business and buy a hotel which has recently been offered for sale. You’ve been asked to consider the performance and the position of the target business along with its impact on the company performance.

Discussion points:

·- key indicators of the hotel’s financial position

·- risks associated with the hotel purchase

·- further steps to be taken by the retail company

Auditing

A large company with its own internal auditing department also pays a firm of accountants to carry out an annual external audit. A major shareholder has asked why both audits are necessary. You have been asked to discuss whether the costs of the present arrangement can be justified.

Discussion points:

·- the need for an internal auditing department

·- the link between internal and external auditing

·- who benefits from an internal audit

Takeover bid

A supermarket chain offers your company a takeover bid. You’ve been asked to consider the performance and the financial position of the potential buyer. Discuss whether your business should accept the bid or not.

Discussion points:

·- why (or why not) the company should accept (or reject) the bid

·- financial problems which might arise if the company accepts the offer

·- non-financial problems which usually are brought about in mergers and acquisitions

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Takeover Bid

A medium-sized company in the service sector is considering making a takeover bid for a rival company. You have been asked to consider the performance and position of the target company. Discuss the type of information you need to collect about the company and where this might be available.

Discussion points:

·- sources of financial information about the company

·- how the performance of the company can be measured

·- the reliability of information published in external reports

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Auditing

A large company with its own internal auditing department also pays a firm of accountants to carry out an annual external audit. A major shareholder has asked

why both audits are necessary. You have been asked to discuss whether the

costs of the present arrangement can be justified.

Discussion points:

- the need for an internal auditing department

-the link between internal and external auditing

-who benefits from an internal audit

Corporate responsibility and ethics

You work for a large company. While reviewing the company’s working papers you’ve recently discovered that the bank loan was approved based on the unaudited financial statements showing that the company was a profitable and financially stable business. However, the recent figures show that the company is struggling.

Discussion points:

- consider whether it is necessary to disclose the information on the company’s financial position to the interested parties

- discuss if it is ethical to inform the interested parties about the bank approval of the loan on the basis of the unaudited financial statements.

- will the corporate responsibility of both the company and the bank suffer if these facts are disclosed

Managing across cultures

You work for a multinational company. Consider the importance of cultural differences for people working across cultures.

Discussion points:

-why it is important for an international corporation to be aware of local cultures

- qualities that allow people of different cultures to work as one team (tolerance, patience, etc.)

- the characteristics that are considered typical of your country, arising from geography, climate, history, religion, the political, social and economic system, and so on.

Taxation

You work for the accounting department of a large business. The taxes you company pays is numerous and huge. You consider the tax system in our country.

Discussion points:

-express your point of view on Benjamin Franklin’s words: ‘In this world nothing can be certain, except death and taxes!’

- compare the system of tax rates in our country and in the USA. Can the American system be appropriate for our country?

- discuss arguments both in defence of and against taxation

Derivatives and hedging

You are an owner of a large corporation. You’d like to use hedging techniques to reduce the exposure to various risks.

Discussion points:

- what kind of financial instruments should you use and why

- do you agree that derivatives are potentially much more risky than other financial instruments. Explain why do you think so

- comment the assessment of derivatives, given by the American investor Warren Buffett in the headline “Financial Weapons of Mass Destruction Designed by Madmen”

Exchange rates

In a week you are going abroad on business trip. Determine the importance of exchanging currencies in your situation.

Discussion points:

- explain the existence of a system of floating exchange rates in most western countries

- how is the value of the money in your pocket determined

- has the value of your currency increased or decreased in the past few weeks or months Why? Explain the role of speculators

The Business Cycle

You are a government advisor. Can you broadcast how to escape recession in the economy of your country and explain it from the point of view of a business cycle.

Discussion points:

-explain the existence of periods of market economics: expansion and contraction

- the use of fiscal and monetary policy

- creation of a political business cycle and its influence

Hedge Funds and Structured Products

You have a lot of money to invest. Try to take the risk of joining hedge funds.

Discussion points:

- explain your point of view if they are private investment funds, often without hedging techniques

- take a long or short position by buying securities

- would you like to buy structured products from banks. Explain your point

Bonds

You’d like to invest in international fund, aims to achieve high and steady long-term earnings by investing in Eurobonds across the entire range of borrower ratings and maturities. Investments are made globally with no restrictions as to country, currency or sector. Sizeable short-terms price fluctuations are possible.

Discussion points:

- would you choose this fund Why? Why not

- what be the risks associated with it

- what does the yield of bonds depend on

Дата добавления: 2015-08-29