B the company is still in the process of fully

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Organizational Behavior: Science, The Real World, and You
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Chapter 7 / Exercise 4
Organizational Behavior: Science, The Real World, and You
Nelson/Quick
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b) The Company is still in the process of fully upgrading and integrating its operational and financial reporting systems and may experience difficulty in providing the Company’s management and investors with financial information, particularly for interim periods. Until recently, each of Vista Land’s business units had operated as an independent company, with its own management and financial teams as well as its own information and technology (IT) systems. With the integration of the operations, records and database, Vista Land may experience delays in generating period-end financial information, particularly in situations where manually recorded financial information is required to be reconciled with information generated by the consolidated system. There can be no assurance that these constraints will not materially hinder the timeliness of such information in the future or affect Vista Land’s ability to generate and management’s and investors’ ability to receive promptly information regarding Vista Land’s consolidated financial condition and results of operations. To mitigate this risk, Vista Land conducts regular meetings and requires briefing from key departments. Risks relating to natural catastrophes Natural or other catastrophes, including severe weather conditions, may materially disrupt the Company’s operations, affect its ability to complete projects and result in losses not covered by its insurance. The Philippines has experienced a number of major natural catastrophes over the years, including typhoons, droughts, volcanic eruptions and earthquakes. There can be no assurance that the occurrence of such natural catastrophes will not materially disrupt the Company’s operations. These factors, which are not within the Company’s control, could potentially have significant effects on the Company’s housing and land development projects, many of which are large, complex estates with infrastructure, such as buildings, roads and perimeter walls, which are susceptible to damage. Damage to these structures resulting from such natural catastrophes could also give rise to claims against the Company from third parties or from customers, for example for physical injuries or loss of property. As a result, the occurrence of natural or other catastrophes or severe weather conditions may adversely affect the Company’s business, financial condition and results of operations. Should an uninsured loss or a loss in excess of insured limits occur, the Company could lose all or a portion of the capital invested in a property, as well as the anticipated future turnover from such property, while remaining liable for any project construction costs or other financial obligations related to the property. Any material uninsured loss could adversely affect the Company’s business, financial condition and results of operations.
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Organizational Behavior: Science, The Real World, and You
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Chapter 7 / Exercise 4
Organizational Behavior: Science, The Real World, and You
Nelson/Quick
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