Sasha and Emi are two friends who met when they worked together as chefs at a famous restaurant in New York, but both have now moved to Adelaide. They have decided to set up their own restaurant which will 'fuse' the best of the cuisines of Japan (where Emi was born) and Australia (where Sasha comes from. Each of them has come from New York with $100 000, which they want to invest in the new business.
(a)They decide that a company would be the best structure for their situation. Sasha and Emi would be the two directors.
They want to reflect their own names in the business so they call it Sashemi.
Advise them what registration steps they need to take to be able to trade as a company, and with this business name
(b)They decide to issue 10000 $10 shares to each of them, reflecting the capital they have equally contributed.
Emi's situation is quite straightforward. She is single with no family in Australia. She intends to simply own her shareholding in her own name.
Sasha, on the other hand, has a partner, who is a doctor, and two young children. Before her spell in New York, Sasha and her partner established a Family Trust, and Sasha wants her interest in the new company Sashemi Pty Ltd, to be held through the family trust.
Advise Sasha whether, and if so how, her interest in the restaurant company can be held through the family trust.
(c)It is one year after the company was incorporated, and business is going well. An important Japanese trade delegation visits Adelaide, and the restaurant hosts a banquet for them. Unfortunately the banquet, designed to showcase local produce, includes a mushroom which may have been poisonous, and was picked by Sasha in the local forest. The husband of one of the visiting delegation becomes seriously ill. He is in hospital for several weeks, which causes great expense and delay, including him missing key acting auditions back in Japan, and causes anxiety to his wife, not to mention embarrassment to the local government.
Emi is for furious with Sasha her careless mushroom-collecting. When the visitor starts proceedings against the restaurant for a six-figure sum, Emi says that as it is Sasha's fault, Sasha or her family trust should be liable to pay the damages.
If the proceedings are successful, where does the liability to pay the damages lie?
(d)It is three months after the mushroom affair, and it turns out the restaurant won the proceedings. (An expert witness showed that mushroom wasn't poisonous to humans, and that the visitor had an unknown allergy to all mushrooms).
However, the publicity of the trial has been really good for Sashemi's business. They have full bookings for the next three months.
Sasha and Emi now think that they need to open a more informal version of the restaurant, catering for breakfast and lunch in the city and helping with the increased demand.
They need more capital to fit out the new premises in the CBD. They would also like to bring more investors on board and have many friends and customers interested.
Advise them whether they need to convert to a different type of company in order to expand and take on more capital and thus shareholders.
Cross hedge ( Part 1 & 2) Part 1 (Warming up) It is the end of May 1997. A cottonseed meal producer in Georgia would have the information about the acreage committed to cotton, and his expected production of cottonseed meal is 1,000 tons. On May 28, 1997, cottonseed meal is trading at the price of $197 per ton in Atlanta. The producer expects cottonseed meal prices to be much lower by the end of October 1997. To protect himself against the falling price, the cottonseed meal crusher decides to cross hedge using soybean meal futures. The May 28 soybean meal futures closing price is $280.30 per ton (CBOT; 1 contract = 100 tons of soybean meal). (Caution: it is not soybeans futures.) The producer decides to place the cross hedge on May 28, 1997. To place the cross hedge, he needs to determine the number of soybean meal futures contracts necessary to offset 1,000 tons of cottonseed meal. The cottonseed meal producer knows the following information. The correlation between the price changes of cottonseed meal and soybeans meal (p) = 0.84. The standard deviation of the price change of cottonseed meal (Oas) = $7.2. The standard deviation of the price change of soybean meal (OAF) = $6.0. Question) Find out the optimal hedge ratio. Question) Compute the optimal number of futures contract. Question) Compute the measure of hedging effectiveness.Question 3 Some researchers who utilise Legitimacy Theory posit that organisations will attempt to operate within the terms of their 'social contract". What is a social contract? Question 4 In 2006 the Australian Government established an inquiry into corporate social responsibilities with the aim of deciding whether the Corporations Act should be amended so as to specifically include particular social and environmental responsibilities within the Act. At the completion of the inquiry it was decided that no specific regulations would be added to the legislation, and that instead, 'market forces' would be relied upon to encourage companies to do the 'right thing' (that is, the view was expressed that if companies did not look after the environment, or did not act in a socially responsible manner, then people would not want to consume the organisations' products, and people would not want to invest in the organisation, work for them, and so forth. Because companies were aware of such market forces they would do the 'right thing' even in the absence of legislation). You are required to explain the decision of the government that no specific regulation be introduced from the perspective of: 1. Public Interest Theory 2. Capture Theory 3. Economic Interest Group Theory of regulation.Question 25 (1 point) Listen Cole Contracting agreed to build an outbuilding for Diego in exchange for $100,000. The outbuilding was to be built during May and June and Diego was to pay by July 15. The construction was completed on schedule. Because they were were experiencing some financial difficulties, Cole Contracting had verbally assigned their contractual rights to Putong Lumber Supply in late May. Cole Contracting had provided a letter to Diego to let him know about the arrangement. Diego, unhappy about the quality of the construction, refused to pay and took Cole Contracting to court. Which of the following statements is true? ()a) This is an example of statutory assignment of rights. If Putong Lumber wants to enforce their rights they can sue Diego without involving Cole Contracting. () b) This is an example of equitable assignment of rights. If Putong Lumber wants to enforce their rights they'll have to sue both Diego and Cole Contracting. ()d) This is an example of equitable assignment of rights. If Putong Lumber wants to enforce their rights they can sue Diego without involving Cole Contracting. ()d) This is an example of statutory assignment of rights. If Putong Lumber wants to enforce their rights they'll have to sue both Diego and Cole Contracting. Question 26 (1 point) Listen An owner specified a certain roofing material for its project after being persuaded by its manufacturer that it was "the best material to use for this situation". A subcontractor on the project installed this roofing material carefully in accordance with the manufacturer's instructions. There was no roofing guarantee in the contract with the general contractor. The roof leaked two years after the work was done because of the inferior quality of the roofing material. Against whom should the owner claim? (a) the product salesman b) the product manufacturer O c) the subcontractor O d) the general contractorQuestion 35: {3 Points) Question 36: {3 Points} Question 37: {3 Polnts]: Question 33: {3 Points) Aiood delivery service promises customers to be compensated tor delayed delivery if the package cannot be delivered in under an hour. Delivery time for food packages is known to follow a normal distribution with a mean of 56.5 minutes and a standard deviation cl 5 minutes. It delivery is completed as promised on time. what is the probability that the delivery took more than the expected time? Consider yourself and your competitor submitting bids on the city oi Montreal contracts. Past data indicates your competitor has submitted bids 75% of the time. The chance that you win a contract will be 25% if the competitor bids on the contract However. your chance to win a contract will increase to 70% if the competitor does not bid on the contract. What is the probability that you will win the contract? : To manage perishable Items at the storages, local grocers decide on the number of items to keep in stock on weekly basis. Suppose that the weekly demand for the item ls normally distributed with a mean of 80 units and a standard deviation of 9 units. If the grocer wants to control the probability of stock out of the item to no more than 4% In a week, now many units of the Item should be kept In the storage? : Patrons at a local restaurant are broadly classied as 90% regular and 10% as new on yearly basis. Drink preferences indicate wine was ordered by 30% of the regular customers. and by 50% of the new customers. If wine is ordered, what is the probability that the person ordering is a regular customer
