Assuming joint venture will be located in nigeria

Assignment Help Accounting Basics

Reference no: EM131020485

BACKGROUND

Store Norske Spitsbergen Kulkompani is a Norwegian based coal mining company. The headquarters for Store Norske Spitsbergen Kulkompani Corporation is located in Longyearbyen. Store Norske is 99.9% owned by the Norwegian state. Coal India Limited is an India based coal mining company. The headquarters for Coal India Limited is located in West Bengal. Coal India Limited is 90% owned by the Indian state. Store Norske and Coal India Limited are considering a business venture to increase the visibility of Store Norske in Nigeria and increase the scope of the Coal India Limited operations.

ISSUE:

The two companies are considering the following possible business ventures:

1) Store Norske is considering using Coal India Limited to assist them in their international business operations. What issues will Store Norske have to address with respect to any business transactions between Store Norske and Coal India Limited? Discuss.

2) Store Norske is considering purchasing a majority interest in Coal India Limited to make it easier to utilize Coal India Limited in their operations. What issues will Store Norske have to address with respect to this decision? Will this situation alleviate any of the issues addressed in 1) above? Discuss.

3) Store Norske is considering forming a joint venture company with Coal India Limited, jointly owned 50% each. What issues will the new company have to address in doing business assuming the joint venture will be located in the Nigeria? Discuss.

Reference no: EM131020485

Questions Cloud

What is the annual contribution to gdp : Susie takes care of Rachel's children and earns $30,000 a year that she reports on her income taxes. What is the annual contribution to GDP given this information

Is the demand for places in pace freshman class elastic : Assuming that the demand curve for places in the freshman class at Pace did not shift between 2005 and 2006, calculate the price elasticity of demand. Use the midpoint formula in your calculation. Is the demand for places in Pace's freshman class ..

Make a reasonable estimate of the possible loss : Seattle Chocolates has been sued for $100,000 in a contract dispute. It is not possible at this time, however, to make a reasonable estimate of the possible loss, if any, that the company may have sustained.

Use the midpoint formula to calculate the price elasticities : The following graph shows two possible increases in the quantity sold as a result of your price cut. Use the information in the graph to calculate the price elasticity between these two prices on each of the demand curves. Use the midpoint formula..

Assuming joint venture will be located in nigeria : Store Norske is considering forming a joint venture company with Coal India Limited, jointly owned 50% each. What issues will the new company have to address in doing business assuming the joint venture will be located in the Nigeria? Discuss.

What is the percentage price change of bonds : Bond J is a 7 percent coupon bond. Bond K is a 13 percent coupon bond. Both bonds have 20 years to maturity, make semiannual payments, and have a YTM of 10 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of ..

Calculate the price elasticity of demand for rye : Calculate the change in the quantity of rye demanded divided by the change in the price of rye, but this time measure the quantity of rye in millions of bushels. Compare your answer to the one you computed in (a).

What are the three biggest risks the firm faces : Explain how the business risks differ between traditional tax and audit services and management consulting services. In your opinion, what are the three biggest risks the firm faces if it diversifies into the new service line?

Present worth of the companys total income : A certain company's income has been declining steadily over the last three years. If income in year 1 was $100,000 and it declined by $10,000 per year; which of the following is closest to the present worth of the company's total income over the thre..

User Account

All Pages