It sounds easy, just cut some divisions. But wait, not so simple.  Read about the conundrum GM has with its divisions.   Alfred Sloan’s ori9ginal idea was to offer consumers an upward ladder of higher priced cars as their purchasing power grew.  Now critics say GM has too many.  Yet as we will study in ACCT…

MBIA and ABK.N insure the principal payments of bonds. With so many bonds in apparent danger the stock prices of these two have dropped, 98% in the case of AMBAC. This in turn has further pressured bond prices as there may not be anyone to pay off in the event of their default. Meanwhile, Fannie…

DMN columnist Cheryl Hall has a great column on Barney Adams. Barney designed a special golf club for duffers. He was trying to sell it as a golf club. He finally realized he was not in the business of selling golf clubs. He was really selling better ball flight. Here is the link to the…

I urge students to subscribe to Business Week. Here is a sampling from the July 14-21 issue of why you should do that. I have stated that Chrysler is about where American Motors was in 1970. Cars needed to be re designed to be smaller and more efficient, American Motors did not have the money…

The interview between Maria Bartiromo and Jerry Levin caught my attention. Levin fathered the disaster that had Time Warner taking over AOL leading to the biggest write down in corporate history.  These days he is offering meditation sessions, really. What caught my attention was his comment that most mission statements do not address issues of…

In case you are wondering where you gasoline dollars are going,trip over to Dubai Marina. Or better yet just google. abhu dabhai developers.  Or consider the audacious Palm Island.  Here is a reality check. American ‘investment houses’ like CITI or Merrill Lynch have gone overseas to shore up their capital base after losing Big Time…

FEb 29, 2008 / In an unexpected move today GM CEO Rick Wagoner announced that the company is exiting the North American market. “We are profitable the world over and expanding market share except in our home country. We are embracing globalization, not running away from it. We see value for shareholders by seeking a…

Jerry Flint  is literally worried about whether there will be an American owned auto industry. Click to read this important article. I wrote a similar warning in my newspaper column at the end of February, I copied it into the next post. Think about this from a national security standpoint.  During WW II, America won…

Alert student Gordon Carlisle posted this article about the economy.  The analysts suggest the S & P now at 1260 could fall hundreds of points.  Here are a couple of numbers to keep that in perspective.  In 1974 when yours truly gave up on the stock market and went back to UT to study for…

The DeLoitte Report on DISD is at this hyperlink.  We will be devoting considerable time to studying these recommendations as an example of the lack of proper internal controls in the audit class this fall.  Apparently the adjusting entries brought the books into enough compliance to do so but this is an unusual case in…