AMaheshwari_BUS540-LH_Module07_05-08-2011

AMaheshwari_BUS540-L - Module71 Module7 Module72 Abstract . .IdontthinkthatMrs.

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Module 7      1 Module 7
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Module 7      2 Abstract Response to the first question is my analysis on Mrs. Brown’s comment which is based  on theory of economic regulation. I don’t think that Mrs. Brown paid any wealth transfer  but rather was trying to lobbying to get a law changed in order to transfer wealth back to  herself. Response to the second questions shows my investigation and research on  Textile auditing related to restricting entry into European Retailing example. Response to  third question defines the Sarbanes Oxley Act of 2002, which was passed after the  scandal of Arther Anderson and collapse of WorldCom and Enron, its provisions. It also  discusses the cost benefit analysis of the SOX legislation. Response to the fourth  question discusses the impact of raising the federal minimum wage from the firms  perspective like it could increase in production cost, outsourcing options, substitute  capital for labor.                               .
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Module 7      3 Module 7 Deliverables Assignments:  Questions Question:   1. CASE STUDY: Avocado farmer, Mrs. Henny Brown is worried about  wealth transfer and unjust taxation. This is her comment, "When I bought this  land, it was zoned only for farming. But the longer I live here, the more I resent  the wealth transfer I'm paying to other landowners without such restrictions."  Make your analysis based on defining and enforcing property rights that she is  faced with and then give your solution to Ms. Brown. Response :   Government institutions play an important role in defining and enforcing  property rights through the courts and the state's police power. Because government  today is nearly ubiquitous, it is conventionally viewed as an inextricable part of any  system   defining   and   enforcing   property   rights.   Legal   institutions   which   define   and  enforce property rights lower transaction costs, thereby increasing both producer and  consumer surplus. It is important to realize that it is costly to enforce property rights and to resolve  the various market failures. To finance these beneficial functions, governments must  raise revenues, usually through taxes. In the process of performing these functions and 
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Module 7      4 raising the revenues to finance them, governments also can redistribute wealth, which  imposes costs on society. Government agencies, courts, and legislative processes must  be   financed   out   of   taxes   and   fees.   And   besides   the   direct   costs   of   operating  governments, there are potential indirect costs imposed on society associated with the 
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This note was uploaded on 12/08/2011 for the course MBA 520,510,59 taught by Professor Kate during the Spring '11 term at Asian Institute of Management.

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AMaheshwari_BUS540-L - Module71 Module7 Module72 Abstract . .IdontthinkthatMrs.

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