Case Study on Chinaworks Ltd

1. Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt).

MTC initially needed to obtain substantial investment capital due to two main factors: a research-heavy industry, and the need to create most of the markets for its products. Although the founders' goal was to become a major manufacturing company, they did estimate that the company would need $50 million in capital before it would become self-sufficient. Their initial financing model was to first recruit a superior technical team, use that to attract additional equity investment and development funding from interested corporations, and then develop manufacturing capabilities. Commercial sales began 2.5 years after inception, and MTC is nearing the break-even point in 1990.

F) If Photolab Ltd become insolvent because of the loan provided to Photoproductions Ltd, what liability, if any, have the directors for the company’s debts? Who can bring the action and what remedies are available? (7+5=12 marks)

Robert Chuckrow Construction Company (Chuckrow) was employed as the general contractor to build a Kinney Shoe Store. Chuckrow employed Ralph Gough to perform the carpentry work on the store. The contract with Gough stipulated that he was to provide all labor, materials, tools, equipment, scaffolding, and other items necessary to complete the carpentry work. Gough’s employees erected 38 trusses at the job site. The next day, 32 of the trusses fell off the building. The reason for the trusses having fallen was unexplained, and evidence showed that it was not due to Chuckrow’s fault or a deficiency in the building plans. Chuckrow told Gough that he would pay him to reerect the trusses and continue work. When the job was complete, Chuckrow paid Gough the original contract price but refused to pay him for the additional cost of reerecting the trusses. Gough sued Chuckrow for this expense. Can Gough recover?

There are two chief participants in this case study, Paul Mackay and Jackie Patrick. Mackay, a sole proprietor of Lawsons (a general merchandising retail site in Riverdale, Ontario), has approached the Commercial Bank of Ontario in order to acquire an additional $194, 000 bank loan and a $26,000 line of Credit. Patrick, a first time loans officer, has been appointed to Mackay’s request. As such

As the financial consultants of Catawba Industrial Company our aim is to determine the best course of action to pursue with respect to the introduction of the new proposed light weight compressor. This course of action must remain within the production capacity restrictions the company faces.

Peter Nicholson wishes to convert the factory in the north east to production of the electric taxi. Using data in Appendix C, Table 1, calculate payback period and the average rate of return.

1. The main criteria FEL uses to assign managers to their projects include time constraints and expertise. Clearly, managers with heavy workloads will not do as well as those without significant current time constraints. Hence, the likelihood that the work will progress smoothly under such managers is greater than otherwise. Expertise is also an important requirement to ensure that a project runs smoothly. Hence, the combination of low time constraints with the highest level of expertise appears to be a good basis for successful projects. However, one potential danger of assigning an apparently random number of managers to teams who need to work closely together could create communication problems, especially if these managers have not worked together before, or indeed if severe personality clashes occur. Hence, it might be a good idea to conduct regular assessments of the progress of the work as well as how well managers function together, particularly in a remote location such as Abu Dhabi.

An issue of distinguishing a fixed and a floating charge has considerable significance particularly for the parties involved in commercial relationships. It follows from the fact that under English law a fixed charge has a priority over a floating charge that means the former will prevail over the latter even though the company has granted a floating charge to the creditor prior to the creation of a fixed security. Another reason is that under the provisions of Insolvency Act 1986 holders of a floating charge are placed in a less favourable position than the holders of a fixed charge particularly due to sec. 176 of the Act which prevents the distribution of a certain portion of the company’s net property to the holder of a floating charge

Generally speaking, the legal system didn¡¦t play a very active role in this case. First of all, the India government could do more on digging the truth of the gas leak out and set a more strict standard to regulate such dangerous

Hitachi, Ltd. follows the principle of Centralization as it is a Japanese firm and the Japanese are very peculiar about the chain of commands or the levels of management that is to be followed in an organization. But this is somehow changing because of the changing business dimensions all around the world. So, as to remain in the market, it is required to respond and react accordingly to the market and make some changes in the organization principles for easy global operations.

Alibaba currently operate mobile and online commercial center in the form of wholesale trade and retail trade, cloud computing and other information technology services, for example, Taobao, Tmall, Juhuasuan, Aliyun, Ant Financial Services Group, Cainiao Logistics, AliExpress, Alibaba.com, 1688.com and Alimama.

I start with your concerns about the arrestment of your company assets in the hands of a third party (bank accounts, tickets, outlets etc.) by the creditors which you fear they might arrest due to the debts that your club is unable to pay. Arrestment procedure set out in s 73A of the Debtors (Scotland) Act 1987 (the “1987 Act”) this section provides that an arrestment in execution must follow a decree in respect of the debts due to the creditor and a

The core problem for Allen Distribution Company is how to distinguish from the marginal accounts the difference between good creditors and bad creditors. Especially we show how the difference between creditors can be utilized in practice by the credit representatives. For this we provide clear guidelines. The option of extending the Morse Photo Company’s $ 1000 credit line is used as test case for these purposes.

On November 6, 2007, Alibaba.com debuted on the Hong Kong Stock Exchange, raising US$1.5 billion to become the world’s biggest Internet stock offering since Google’s initial public offering (IPO) in 2004. On the first trading day, frenzied purchases of the stock pushed prices up to by 193%, the fourth largest first day gain in Hong Kong’s stock exchange in three years. The closing price of US$5.09 per share gave Alibaba.com a value of about US$25.6 billion, making it the fifth-most-valuable Internet company and the largest in Asia outside Japan. Small and medium-sized enterprises (SME) have been a key driving force in the booming Chinese economy. In 2004, SMEs contributed 68.8 percent to the