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Coca Cola Case Study Analysis

Satisfactory Essays

Coca-Cola Company Case Study

GB 518 Financial Accounting Principles and Analysis

Kaplan University
SUMMARY

Accounting is an important aspect of business because it is the foundation that offers support to management for planning, and controlling activities as well as decisions. When an organization is doing business they need a way to keep score of operational financial activities. The purpose of my research paper is to discuss the details of my interview with an accountant at Coca-Cola Company, Atlanta headquarters. Mr. Joe Angus has worked with the company for twelve years and sat down with me for a 25 minutes interview in his office to eagerly share the accounting practices of the company, and the operating activities within the …show more content…

Griggs innovatively marketing techniques make Coca-Cola a national brand. By 1898 Coca-Cola no longer sold as medicine syrup but only as a beverage.
Advantages and Disadvantages Coca-Cola was registered in the United States in 1893 and further investment was put into it to expand its operation. To handle the enormous size of the business, the Coca-Cola Company has divided up into six operating units: Middle and Far East Groups, Europe, The Latin America Group, The North America, The Africa Group and The Minute Maid Company. The Head Quarters is located in the United States. As a public limited company Coca-Cola has several advantages. It allows for large number of stockholders while providing legal protection for stockholders against liabilities for corporate actions. The business is afforded lower tax rates and more tax deductions than other forms of business. They can also produce goods at lower unit cost. Due to their size they can benefit from economies of scale, such as bulk buying, cheaper borrowing. The disadvantage as a public limited company are the cost and paperwork required to establish and maintain a C-Corp is higher than other forms of business. In addition, there are additional filing requirements and an additional fiduciary responsibility and level of accountability to stockholders. Finally, there is double taxation burdens associated with C-Corps: corporate entity pays corp taxes and the income paid to employees is

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