Business law Essay Example | Topics and Well Written Essays - 1000 words - 11

Business law - Essay Example The two policy reforms considered in Australia include the proportionate liability and statutory capping schemes2. The various professional bodies governing auditing in Australia determine application of statutory capping. Nonetheless, statutory capping has various negative policy implications. One, it is a disadvantage to third parties who may be innocent victims of the auditors negligence. Two, it may induce the auditors to charge lower fees as they would expect to pay damages in case of a legal suit. Third, it allows for government interference in the auditing profession, which would hinder the independence of auditors. One. Tel Communication company reported losses of $290 million as a result, its share price collapsed and the directors were sued for negligence. ASIC sued Jodee Rich and Mark Silberman for failing to meet their duty of care causing the collapse of the company in May 2009. ASIC claimed that by failing to communicate true financial performance and financial position of the company, these directors did not exercise due care and diligence, which resulted to the cancellation of the proposed rights issue in 20013. The directors were found not guilty of negligence on accounts that the summary presented by ASIC about Mr. Rich’s evidence was considered as false. The judge also implemented the business judgment rule under the Corporations Act 2001, Section 180(2). Directors whose conduct breached section 180(1) were provided defense in the business judgment rule4. HIH Insurance was among the biggest insurance companies in Australia. However, in March 2001, the company lost a value of about $5.3 billion and, in turn, became insolvent. Some management member was sued for fraud after the Prime minister, John Howard, created the Royal Commission to investigate the collapse of the company. Rodney, the main defendant, had three unsecured loan

Management Questions Coursework Example | Topics and Well Written Essays - 1500 words

Management Questions - Coursework Example Some of the questions that may arise in identifying a market need include the possibility of consumers buying the product and the possibility of their demands being profitable. I would establish a market need through the use of consumer focus groups (Cameron & Freeman, 2001, p. 100). These groups have vital information about consumers including their needs and preferences. This information is vital for an entrepreneur to analyze the properties of the product and align them to the needs of the market. The same applies to Creative Minds as a business in the market for art products. Vital information for the business relate to the needs of children in the market for art services. The needs of the children may include information such as pricing, delivery and forms of arts. What is a new product development process and why is it necessary? The new product development process is a mechanism used by a business in identifying the appropriate features of a product. The process involves a number of stages that include idea generation, screening, concept analysis, development, testing and launching. The process is necessary for a business to determine the suitability of its product in the target market. It ensures that the product entails appropriate features that will make it attractive in the market hence become profitable for the business (Denison & Mishra, 2005, p. 188).