Business Cycle The tendency toward instability within the context of overall growth is the business cycle. The cycle has 4 phases: Peak Recession Trough Recovery In addition to identifying the phases of the business cycle, one has to be able to assess the business cycle’s impact on an entity’s operations and its industry. Globalization Business […]
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The COSO Enterprise Risk Management (ERM) framework provides a basis for coordinating and integrating all of an organization’s risk management activities. Effective integration (1) improves decision making and (2) enhances performance ERM is based on the premise that every organization exists to provide value to its stakeholders. ERM is defined as “the culture, capabilities, […]
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Corporate governance is the combination of people, policies, procedures, and processes that help ensure that an entity effectively and efficiently directs its activities toward meeting the objectives of its stakeholders. Corporate Governance can be influenced by external (eg. SEC requirements) or internal (eg. corporate charters and bylaws) Stakeholders – are persons or other entities who […]
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You would agree that “Effective corporate governance relies heavily on effective systems of (1) Internal control and (2) Enterprise risk management.” The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has established a widely accepted framework for each system. The COSO framework consists primarily of: A definition of internal control Categories of objectives […]
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The Sarbanes-Oxley Act of 2002 (SOX) was spurred by past major accounting scandals that resulted in the loss of investor confidence. SOX, therefore, aims to protect investors by making corporate disclosures more accurate and reliable. Role of Audit Committee Thus, the role of the audit committee becomes essential in the effective execution of the SOX. One […]
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Business Model Whether it be to earn money or a charitable goal, we need to have a business model. A business model consists of the business objectives (eg. vision, mission, and high-level strategies) and how the business processes achieve these objectives. Two main approaches to understanding the business model are:a) Top-Down Approach – It begins […]
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In an age of Internet of Things and Big Data, Data Analytics is becoming increasingly important. Data Analytics involves qualitative and quantitative methodologies and procedures to retrieve data out of data sources and then inspect the data based on data type to facilitate decision making. Bigdata is only as valuable as the business outcomes […]
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FICA taxes are imposed on both employers and employees. FUTA taxes are imposed on employers only. FICA Employers and employees are each liable for FICA taxes. Under Sec. 3102(a), an employer is liable for collecting (withholding) the employees’ tax from wages. Employers who fail to collect these taxes are responsible for the employees’ tax, in […]
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Nonrefundable Tax Credits (1) Foreign Tax Credit (2) Child and Dependent Care Credit (3) Lifetime Learning Credit (4) Retirement Savings Contribution Credit (5) Child and Other Dependents Tax Credit (6) Credit for the Elderly or the Disabled (7) General Business Credit (8) Adoption Credit Refundable Tax Credits (1) Credit for Taxes Withheld (2) Earned Income […]
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Transfer of a partner’s interest does not Result in loss of rights (other than the right to transfer the interest) Excuse a partner’s performance of duties and obligations Make the recipient (e.g., a person or estate) a partner Dissociate or dissolve the partnership Partnership rights may be assigned without the dissolution of the partnership. The […]
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