what is the appropriate course of action for the firm's owner

What is a recommended course of action?

A Recommended Course of Action (RCOA) is that plan, but dives into the details, identifying who, what, when and how.    Developing an RCOA requires forethought and a true understanding of the organization.   The key steps to building a Recommended Course of Action include; Understand the Future State

What is a mandatory corporate action with options?

Mandatory (with several options) Mandatory corporate actions with options offer shareholders a choice between different options. Using the example of dividends again, with this type of action, the company offers dividends in the form of stock shares or cash dividends, with the former being the default option.

What are the three types of corporate actions?

The three basic types of corporate actions include: 1 Mandatory Mandatory corporate actions are enacted by a company’s board of directors. ... 2 Mandatory (with several options) Mandatory corporate actions with options offer shareholders a choice between different options. ... 3 Voluntary

What is a course of action (CoA)?

Course of Action (COA) In incident-level decision making, a Course of Action (COA) is an overall plan that describes the selected strategies and management actions intended to achieve Incident Objectives, comply with Incident Requirements, and are based on current and expected conditions. Ask, “How are we going to do this?”

How perfectly competitive firms make output decisions?

A perfectly competitive firm must accept the price for its output as determined by the product's market demand and supply. The maximum profit will occur at the quantity where the difference between total revenue and total cost is largest.

When a perfectly competitive firm makes a decision to shut down it is most likely that?

Answer and Explanation: 49. When a perfectly competitive firm decides to shut down, it is most likely that: C) price is below the firm's average variable cost.

Why does a firm in perfect competition produce the quantity at which marginal cost equals price?

Why does a firm in perfect competition produce the quantity at which marginal cost equals price? A firm's total profit is maximized by producing the level of output at which marginal revenue for the last unit produced equals its marginal cost, or MR = MC.

When new firms enter a perfectly competitive market?

A perfectly competitive firm is known as a price taker because the pressure of competing firms forces them to accept the prevailing equilibrium price in the market. If a firm in a perfectly competitive market raises the price of its product by so much as a penny, it will lose all of its sales to competitors.

When should a firm decide to close down?

For a multi-product firm, shutdown occurs when average marginal revenue drops below average variable costs. A firm might reach its shutdown point for reasons that range from standard diminishing marginal returns to declining market prices for its merchandise.

When should a firm shut down?

A shutdown point is typically a short-run position; however, in the long run, the firm should shut down and leave the industry if its product price is less than its average total cost. Therefore, there are two shutdown points for a firm – in the short run and the long run.

How do firms in perfect competition determine profitability?

Based on its total revenue and total cost curves, a perfectly competitive firm—like the raspberry farm—can calculate the quantity of output that will provide the highest level of profit. At any given quantity, total revenue minus total cost will equal profit.

When the perfectly competitive firm produces the quantity of output at which marginal revenue equals marginal cost it naturally?

21) when the perfectly competitive firm produces the quantity of output at which marginal revenue equals marginal cost, it naturally: c. earns a profit, since equating marginal revenue and marginal cost guarantees profit.

What is perfect competition What are its important features discuss how a perfectly competitive firm and industry arrive at equilibrium?

In economic theory, perfect competition occurs when all companies sell identical products, market share does not influence price, companies are able to enter or exit without barrier, buyers have perfect or full information, and companies cannot determine prices.

How do you create a perfect competition?

To make it more clear, a market which exhibits the following characteristics in its structure is said to show perfect competition:Large number of buyers and sellers.Homogenous product is produced by every firm.Free entry and exit of firms.Zero advertising cost.More items...

Why do firms enter a perfectly competitive market?

Firms are said to be in perfect competition when the following conditions occur: (1) many firms produce identical products; (2) many buyers are available to buy the product, and many sellers are available to sell the product; (3) sellers and buyers have all relevant information to make rational decisions about the ...

What are some examples of perfect competition?

3 Perfect Competition ExamplesAgriculture: In this market, products are very similar. Carrots, potatoes, and grain are all generic, with many farmers producing them. ... Foreign Exchange Markets: In this market, traders exchange currencies. ... Online shopping: We may not see the internet as a distinct market.

How to conduct a stakeholder analysis?

To conduct a simple stakeholder analysis, you can; Identify the key groups of people who will be affected by the RCOA. Identify who will impact the RCOA for the positive or negative. Identify what actions can be taken for each of these key groups. Identify a communication plan for each key group.

What is a RCOA?

Consideration of the organizational objectives, current state, level of resource and level of funding is required to develop the plan. A Recommended Course of Action (RCOA) is that plan, but dives into the details, identifying who, what, when and how. Developing an RCOA requires forethought and a true understanding of the organization.

What are the elements of a cause of action?

For example, elements for certain causes of action may include: Breach of contract. Identity of all parties to the contract.

What is the legal principle that prohibits one person from profiting, or being enriched, at the expense of another

Related Legal Terms and Issues. Unjust Enrichment – a legal principle that prohibits one person from profiting, or being enriched, at the expense of another person.

What should a defendant respond to in a complaint?

The defendant should respond to each cause of action or accusation in the complaint truthfully and politely. The answer should include any legal defenses or counterclaims the defendant wants the court to hear. It is important to contact the court to learn the specific format and information required on the front page of the answer, ...

What is cause in law?

A set of facts that, if true, entitle an individual or entity to be awarded a remedy by a court of law. Origin of Cause 1175-1225 Middle English < from Latin causa; reason, case.

What is cause of action?

In the legal system, a “cause of action” is a set of facts or legal theory that gives an individual or entity the right to seek a legal remedy against another. This applies to the filing of a civil lawsuit for such wrongs as property damages, personal injury, or monetary loss, as well as to criminal wrongs such as battery, theft, ...

What is the identity of all parties to a contract?

Identity of all parties to the contract. Identity of the breaching party. The defendant did something, or failed to do something, required by the contract. The defendant’s actions or inaction caused harm to the plaintiff.

What are the causes of action in a complaint?

Some of the most commonly cited causes of action include: Breach of contract. Fraud.

What should be included in an internal auditor's final engagement communication?

The observations in the final engagement communication should include. Pertinent factual statements concerning the control weaknesses uncovered during the course of the engagement .

Who approved the 4 loans?

Each of the 4 loans, however, was approved by the vice president . The matter was discussed with the vice president, who indicated it was a competitive loan situation to a new customer and in the best interests of the financial institution to expedite the loan and establish a firm relationship with a growing customer.

Which paragraph is the newest production equipment available?

Paragraph 1: The production department has the newest production equipment available because of a fire that required the replacement of all equipment. Paragraph 2: The members of the production department have become completely comfortable with the state-of-the-art technology over the past year and a half.

What is mandatory corporate action?

Mandatory corporate actions are enacted by a company’s board of directors. A mandatory action – such as the issuance of a cash dividend – affects all of the company’s shareholders. It is performed by the governing body of the company. Shareholders need to do nothing aside from collecting the cash dividend on their shares.

What is corporate action?

Summary: A corporate action is any action taken by a company – generally enacted by its board of directors – that has a material impact on the company and its shareholders. Corporate actions involve either changing a company’s name/brand, mergers, acquisitions, spinoffs, or issuing dividends. Corporate actions fall into one of three categories: (1) ...

What is voluntary action?

Voluntary corporate actions involve an activity in which shareholders opt to be participants. In order for the company to move forward with the corporate action, the shareholders must respond. A prime example of a voluntary action is a tender offer.

What is a spin off company?

Spin-Off A corporate spin-off is an operational strategy used by a company to create a new business subsidiary from its parent company. , stock splits, and mergers.

What are some examples of corporate actions?

Examples include (but are not limited to): Changing a company’s name or the design of the brand. Handling pertinent financial issues (such as the company needing to liquidate or file for bankruptcy.

What are the parties involved in corporate actions?

The concerned parties include: Preferred and/or common shareholders. Stakeholders. Stakeholder In business, a stakeholder is any individual, group, or party that has an interest in an organization and the outcomes of its actions. Common examples.

Do public companies have a board of directors?

Every public company is required to install a board of directors. – individuals closely tied to the company – who are elected to serve in various positions. The directors approve any corporate actions taken, most commonly through a vote. (In some cases, the company’s shareholders are given the opportunity to vote on some or all corporate actions ...