1.A new and structured sourcing process was established by GFATM as part of its new proactive approach to procurement. This would involve the development ofsourcing plansfor goods and servicesfrom externalsuppliers.

2.Describe FIVE elementsthat GFATM should include in sourcing plans

3.The case study information statesthat the move towards using smallerlocalsuppliers would need to be managed carefully in orderto ensure the suppliers' financialstability. 4.Describe THREE sources of financial information aboutsuppliers which could be used to assesstheir financialstability.

5.Describe TWO liquidity ratiosthat GFATM might use to assess a supplier's financial stability.

6.: Explain the significance of liquidity ratiosto GFATM in assessing the financialstability of a supplier

7.One of GFATM's firstsourcing activities wasto carry out the world's first tenderforthe supply of mosquito nets. The organisation aimsto follow it up with anothersourcing exercise for medical supplies.

8.Outline FOUR electronic systemsthat GFATM could use to source itsrequirement from external suppliers

9.The case study information statesthat GFATM is an international organisation which supportslocal production in several countries.

10.Analyse FOUR legislative,regulatory or organisationalrequirementsthat GFATM will need to take into account when sourcing from internationalsuppliers

2.Husband and Wife owned 100% of Construction Company, a California corporation engaged in the development of commercial property. Construction Company had a 401(k) plan. Husband was a full time employee of Construction Company and had approximately $300,000 in his 401(k) plan as of December 31, 2003. Wife did not work and has never worked at Construction Company. Husband had a 50% community property interest in the shares of Construction Company and will reach age 70 during 2003.

He had no plans to retire, but would like to meet with Attorney to discuss retirement planning. Construction Company generally employed a minimum of fifty-five (55) workers. Ten (10) of the workers, including Husband, were properly characterized as employees of Construction Company for employment tax purposes at all times. The remaining forty-five (45) workers were construction workers. The IRS recently examined the 2001 Form 1120 U.S. Corporation Income Tax Return of Construction Company and determined that all of the construction workers, who were characterized as independent contractors for federal employment tax purposes, should have been characterized as employees. Construction Company was established in 1970 and had consistently characterized all of its construction workers as independent contractors since the inception of the business. Husband also asked Attorney to meet with him to discuss the Construction Company employment tax case.

He received a Notice of Proposed Adjustments from the IRS examining agent and would like to discuss strategy. Irrespective of the employment tax controversy, Wife wanted to establish a private foundation during 2003. The private foundation would provide support to qualified charitable organizations throughout the community where the family of Wife and Husband had lived for many years. Husband and Wife will have adjusted gross income of $2,000,000 at December 31, 2003. Husband and Wife intended to contribute cash of $500,000 or stock of Construction Company with a value of $500,000 to the newly established private foundation. Husband and Wife had a basis of $2,500 in the shares of stock that would be contributed to the foundation.

A. What advice should Attorney provide to Husband about his 401(k) plan?

B. Discuss the approach Attorney should take to the Construction Company employment tax case.

C. Which asset should be contributed to the private foundation? Discuss.s