A2 - Assignment 2 Muhammad Ali Saleem 209 419 730 Diane...

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  Assignment 2 Muhammad Ali Saleem  209 419 730
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  Diane Zorn ADMS 3660 STAKEHOLDER TABLE Primary Stakeholders Interests/Stakes Money Mart  - May face bankruptcy if they are ordered by the court to pay fines and compensation to the class members. - Their business models will also me discredited if their interest/fees structure is found to violate the Criminal Rate of interest. - If the verdict by the court on the counter-claims are in their favour, they will benefit from receiving outstanding loans and interest payments - With the increased media attention and surfacing of issues in the industry, Money Mart may be regulated by the government in the future. Class Members - If the court’s decision is not in their favour they are responsible for paying the legal fees incurred during the class action law suit.
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  - If the court finds Money Mart guilty of over charging, there is a possibility of them being compensated. Dollar Financial - If the court finds sufficient evidence of criminal rates of interest being charged by Money Mart, the same would apply to Dollar Financial (Both corporations have similar business models.) - A decrease in the profitability of Money Mart will effect the , as they hold most of Money Marts shares, control and manage their day to day operations etc. ( Royalty fees are also received from Money Mart, these would decrease, resulting in the loss of an income source.) Representative Plaintiffs (Margaret  Smith and Ronald Oriet. - They are in a position to be compensated if the courts decision is in their favour. - If the court decides in favour of Money Mart, they will be held responsible to pay the legal fees incurred during the process. General Money Mart Customers  (Excluding the Class members) (91%  of all the Money Mart customers.) - These customers stand to loose a very crucial financial service if Money Mart ceases to exist. Most of these customers are NOT serviced by banks because of their cash restrained, asset limited financial position. - They will have to find alternate ways to fund their needs. Short term Lending industry. - If it is proven that Money Marts fees are part of the effective interest rate calculation, this would mean that other organizations in the industry with similar practices will be held accountable for their present and past lending procedures. Secondary Stakeholders Interests/Stakes Government - With the increased concern over the business practices of the Short term lending industry, there is pressure on the government to regulate the industry. - If Money Mart ceases to exist, the government might have to provide (even if temporarily an alternative for those who are in dire need of the
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  services that were previously provided by Money Mart. -
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This note was uploaded on 04/09/2008 for the course STATS 2320 taught by Professor Asdf during the Spring '08 term at York University.

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A2 - Assignment 2 Muhammad Ali Saleem 209 419 730 Diane...

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