DISCUSSION

DISCUSSION

QUESTION 1

“Managing Contract Issues in Business at Home and Abroad” Please respond to the following:

  • Imagine you are a senior manager in a U.S. manufacturing firm who procures component parts and services from various states. Analyze three (3) clauses in a potential contract that might put your company at risk if not sufficiently scrutinized prior to signing a contract. Determine whether or not you can assume that the Uniform Commercial Code will apply to the contract. Provide a rationale for your response.
  • From the e-Activity, discuss the major issues addressed in the case you found. Explain the contract law that the court applied to the case and why. Then, determine at least one (1) action in drafting the contract that either company to the dispute could have taken to avoid litigation.

QUESTION 2

 

“Extraordinary Items and Ratio Analysis”  Please respond to the following:

  • Choose at least two (2) items or events that you would consider to be extraordinary to a company. Propose the manner in which you would disclose these items or events to investors. Justify your response.
  • Determine the two (2) financial ratios that you believe to be the most important indicators of financial health for a company. Predict two (2) positive or two (2) negative financial outcomes should the chosen ratios change dramatically from one year to another. Provide a rationale for your response.