2010-08-02_215004_Budgeting - getting the law passed. This...

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Right now there are a number of factors that will affect the fuel cost for transporting goods. The government is still fighting to pass Cap N Trade which will regulate energy sources and impose new taxes. The same bill will attempt to restrict the profitability of the oil companies by a number of means. First, they will impose new regulations that will incur internal costs to enforce. They will impose high taxes and cap profits. This will all cause the price of fuel to go up in order for the oil companies to stay in business. There will new extremely high taxes added to the cost of a gallon of gasoline at the pump. The impending law has oil and gas companies capping off their wells until this hopefully blows over. Hence a reduction in local supply which could have an upward force on price as well. The BP oil spill will only add fuel to the fire in
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Unformatted text preview: getting the law passed. This will not only affect the cost of shipping goods out to distributors but also expect a rise in prices from suppliers as they will be facing the same issues The new health care bill will increase the cost of covering employees or will result in fines. All the above will very likely have a negative effect on the economy which means sales could suffer and with the new taxes and health care costs could cause an employer to have to contemplate letting some of the workforce go. This could result in unemployment insurance payments to kick in. If the economy falters and the stock market takes another hit, the value of the company stock could also take a hit. In times of apparent financial distress, a company may also face higher interest rates on money borrowed....
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This note was uploaded on 03/15/2012 for the course ACC 250 250 taught by Professor Connie during the Spring '11 term at University of Phoenix.

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