Parmalat Scandal

* The control of the corporation is managed by an elected board of directors. The officers in the company normally have to be approved by the board of directors before they are offered a position to lead the company.

THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS ECON1202/2291 QUANTITATIVE MEHODS A FINAL EXAMINATION SESSION 2 2008

John, when starting a business one has several options in the type of business structure to use. The different types of business structures are the sole proprietorship structure, the partnership structure, the corporation structure, the S corporation structure, and the limited liability company structure. Each structure has advantages and disadvantages and possible tax consequences.

In the corporate form of ownership, the shareholders are the owners of the firm. The shareholders elect the directors of the corporation, who in turn appoint the firm’s management. This separation of ownership from control in the corporate form of organization is what causes agency problems to exist. Management may act in its own or someone else’s best interests, rather than those of the shareholders. If such events

* The roles and responsibilities of the board of directors in corporate governance and the way the board affects a company’s operation.

The Italian dairy food corporation Parmalat SpA was founded by Calisto Tanzi in 1961 and grew to a global company. It had about 140 production centers, 36,000 employees and 5,000 contracted dairy farms (https://en.wikipedia.org/wiki/Parmalat). The dairy food giant defaulted on debt in November 2002 and filed bankruptcy in December 2003. It sounds ridiculous because Parmalat’s subsidiary in Cayman Islands had a $4.9 billion cash balance in Bank of America account. However, this account was falsified. Meanwhile, Parmalat also hid losses of $10 billion and increasing assets as high as $19 billion. The auditors did not show enough professional skeptism and due care during the audit.

Shaun Lane donned the Warriors jersey for the first time at North Sydney Oval, and played an instrumental role in their 30-12 victory over the North Sydney Bears.

Advances in technology changed the dynamics of war during World War I. WWI was the first extensive war in which all nations felt the effects of war whether through a social, political, or economic impact. through One of the major impacts of trench warfare was that it made it difficult for the Allied and Central Powers to secure a victory. New technology such as the machine gun brought massive death and casualties. Armies in all nations started to need a larger population of soldiers to fight because of the amount of soldiers that were wounded or killed. These technological developments in war include trench warfare, chemical warfare, machine guns, and airplanes. These improvements in technology made war extremely dangerous. In regards to

In large corporations the success or failure of the company is the responsibility of the board of directors. According to Richard DeGeorge, “The members of the board are responsible to the shareholders for the selection of honest, effective managers, and especially for the selection for the CEO and of the president of the corporation.” (p. 202). The board members have a moral responsibility to ensure the corporation is run honestly, in respect to its major policies, and to ensure the interests of the shareholders are satisfied. The next responsibility within a corporation is the responsibility management has to its board of directors. DeGeorge writes, “It must inform the board of its actions, the decisions it makes or the decisions to be made, the financial condition of the firm, its successes and failures, and the like.” (p. 202). The management of the corporation is morally obligated to

There are three internal and one external governance mechanisms used for owners to govern managers to ensure they comply with their responsibility to satisfy stakeholders and shareholder’s needs. First, ownership concentration is stated as the number of large-block shareholders and the total percentage of the shares they own (Hitt, Ireland, Hoskisson, 2017, p. 317). Second, the board of directors which are elected by the shareholders. Their primary duty is to act in the owner’s best interest and to monitor and control the businesses top-level managers (Hitt, Ireland, Hoskisson, 2017, p. 319). Third, is the

Question 1. In what ways does the media misinterpret the nature of crime? Media misrepresents the nature of crime in various ways. The main misrepresentation is the provocation of violent crime, in turn misinterpreting the number of violent crimes to the general public. The majority of the population watch the news, read the newspaper, have access to social media such as Facebook and watch fictional crime programs on television, all being very powerful media outlets.

As with any kind of business formation, there will always be, to some extent, negative aspects associated with the creation. To this date there is no perfect form of business entity. When deciding on which entity is best suited for a business, there are many things to be considered. Prior to deciding on a business structure, some major points to be thought about are both the legal and tax ramifications associated with the entity chosen. Another criteria that should be considered are the costs connected with the entity type. These cost include the cost of formation as well as any continuing administrative cost that may be incurred. (“Choose Your Business,” 2011)

The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India.

Kristiyan Petrov – 11114067 Polina Panteleeva – 11114049 Stream 133 Group 1314 Department of Economics December 2012

Parmalat is an Italian based company, founded in 1961 by Calisto Tanzi. Their business model covered the new UHT (ultra-high temperature) production method of milk and dairy products. UHT milk was an upcoming technology from the Swedish firm Tetra Pak, making Parmalat an international player (Buchanan & Yang, 2005). Foreign acquisitions in the field of dairy products made Parmalat a multinational general food company (Ferrarini & Giudici, 2005). In the late 1980’s, Parmalat was Italy’s eighth largest food company and listed on the Italian Stock Exchange in Milan. During the nineties, the Parmalat Group followed a strategy to expand its reach through diverging into new markets like football and the tourism. Family started playing a more important role as Tanzi was placing relatives in important positions and boards of the holding. The Parma football club was acquired and Tanzi’s son Stefano became the club’s president while his daughter, Stefania, became the CEO of the tourism firm, Parmatour (Buchanan & Yang, 2005). By the end of 2002, the group was a world leader in the markets of milk, diary products and beverages and incorporated several well-known brands as Archway, Frica, Grisbi, Mother’s, Pomi and Welsh Farms. Parmalat's figures covered a consolidated turnover reached €7.6 billion in 2002, 36.000 employees and 146