Corporate Finance
Economics Application
Goodwill obtained by companies by bidding lower than they can maximize profit from the contract has got implications to the buyer and the bidder. Normally, the criterion for selection has always been the lowest and the best bidder. This protects buyers from an obligation of hiring the lowest bidder no matter what. However, there are instances when the lowest bidders after landing a contract may fail to comply with the project deadline. They may also lack the resources to complete the contract that their have been awarded. This may prompt the companies to pump in more monies into this project. Goodwill obtained by bidding low normally result in lowball offers that is common in real estate market where offers are made that are less than fair market values or asking prices of commodities. However, low price bidding is a form of best value in traditional best value procurements where the government allows for trade off among non-cost factors like technical approach, management plan, and best performance (OECD, n.d.). The trade-offs allow the government to award contracts to the lowest price offeror (OECD, n.d.). It is used under circumstances when the government cannot realize any value from a proposal exceeding the government's minimum technical performance requirements for acquisition of commercial or non-complex services or supplies which are clearly defined and expected to be low risk (OECD, n.d.).
Part 2
Unlike Alka-Seltzer that relieves...
According to Shim and Siegel (1999), "The price-earning ratio equals market price of stock divided by earnings per share. It is used by potential investors in deciding whether to invest in the company. A high P/E ratio is desirable because it indicates that investors highly value a company's earning by applying to it a higher multiple" (p. 343). A company's P/E ratio is dependent on a number of factors, including
Accounting and Finance Henkel AG is a multinational company focusing its brand and technologies in three business areas that include Beauty Care, Laundry & Home Care and Adhesive Technologies. Established in 1976, the company holds its global market positions in both the consumer and industrial products with well-known brands that include Lactate, Persil, and Schwarzkopf. Henkel's headquarter is in Dusseldorf in German and the company has over 47,000 employees globally. Typically,
Government Subsidized Student Loans Have Economic Costs but Political Benefits Higher education has become increasingly important in the contemporary world scenario today where globalization has led to a higher need for a skilled labor force that is mobile and that is well-versed in the academic disciplines followed all over the world. In fact university education is starting to be seen as a hallmark for success, even though there are college drop
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Accounting 201 and Finance301: Accounting 201 Discussion Question: Discuss FASB and IASB. Comment on at least two specific aspects of the two standard setting boards and their role in setting accounting standards. Also, watch 2 provided YouTube videos and post comments. FASB and IASB The Financial Accounting Standards Board (FASB) was established in 1973 to set and improve accounting and reporting standards for private sector U.S. entities (Financial Accounting Standards Board, n.d.). Though the
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