未知题型 Designit is a small company providing design consultancy to a limited number of large clients. The business is mature and fairly stable year on year. It has 30 employees and is privately owned by its founder. Designit prepares an annual fixed budget. The company’s accounts department consists of one part-qualified accountant who has a heavy workload. He prepares the budget using spreadsheets. The company has a November year end.Designit pays each of its three sales managers an annual salary of $150,000, plus an individual bonus based on sales targets set at the beginning of the year. There are always two levels of bonus that can be earned, based on a lower and an upper level of fee income. For the year ended 30 November 2012, for example, each of the sales managers was given a lower target of securing $1·5m of fee income each, to be rewarded by an individual bonus equating to 20% of salary. If any of the managers secured a further $1·5m of fee income, their bonus would increase by 5% to the upper target of 25%. None of the managers achieved the upper target but all of them achieved the lower one.This is the same every year and Designit finds that often the managers secure work from several major clients early in the year and reach the $1·5m target well before the year has ended. They then make little effort to secure extra fees for the company, knowing that it would be almost impossible to hit the second target. This, together with a few other problems that have arisen, has made the company consider whether its current budgeting process could be improved and whether the bonus scheme should also be changed.Designit is now considering replacing the fixed budget with a monthly rolling budget, which Designit believes will make the budgeting process more relevant and timely and encourage managers to focus on the future rather than the past. It would also prevent the problem of targets being met too early on in the year by the sales managers because the targets would be set for monthly performance rather than annual performance. For example, a manager could be given a target of securing $200,000 fee income in the first month for a reward of 2% of salary. Then, depending on what is happening both within the business and in the economy as a whole, at the end of the first month, a different target fee income could be set for the second month.Required:(a) Explain what a monthly rolling budget is and how it would operate at Designit. (4 marks)(b) Discuss the problems that may be encountered if Designit decides to introduce monthly rolling budgets together with a new bonus scheme, such as the one outlined above. (6 marks)(c) Discuss the problems with the current bonus scheme and, assuming that the company decides against introducing rolling budgets, describe and justify an alternative, more effective bonus scheme that could be introduced. (6 marks)(d) Discuss the risk of using the company accountant’s own spreadsheets for budgeting. (4 marks)

未知题型 This question requires candidates to deal with the legal issues relating to derivative litigation under the Company Law of China.(a) Ms E was entitled to bring a lawsuit against Mr A. The legal basis for this conclusion is Articles 21, 150 and 152 of the Company Law. The controlling shareholders, actual controllers or directors of a company shall not, by taking advantage of their affiliate relationship, damage the interests of the company. Where any of the above-mentioned persons violates laws or articles of association of a company and causes damages to a company, such person shall be liable for the damages. If such a situation occurs, any shareholder may directly bring a lawsuit against the director, subject to the conditions as prescribed by the Company Law.(b) In accordance with Article 152 of the Company Law, the following conditions shall be satisfied:(i) Ms E requests the supervisory board in writing to bring a lawsuit against the director who causes the damage;(ii) the supervisory board, upon its receipt of Ms E’s request, fails to file a lawsuit within 30 days upon the receipt of such request;(iii) Ms E brings a lawsuit against the Mr A for the interests of the company, in her own name.(c) Assuming Ms E was granted a favourable judgement by the court, the beneficiary should be Tenda Co Ltd. Although Ms E brought the lawsuit in her own name, the legal action was for the interests of the company. Therefore, the result of such a legal action should be attributed to the company.

未知题型 Dalie Limited Liability Co (Dalie Co) applied to the people’s court for bankruptcy due to its poor business operations. On 30 April 2012, the people’s court rendered an order to accept the bankruptcy application and designated a bankruptcy administrator. At this moment, Dalie Co faced the following key financial matters:(i) Construction Company had brought a lawsuit against Dalie Co for its delay to pay the construction price due, but the case was still pending for trial;(ii) Dalie Co owed a loan totalling RMB 20 million yuan to Industry Bank, of which RMB 12 million yuan was secured by a guarantee agreement on the buildings of Dalie Co;(iii) Dalie Co had provided a guarantee to Merchant Bank for a loan of RMB 10 million yuan borrowed by Jiqing Company. The loan has matured but Jiqing Company failed to repay the principal and interest.Required:Answer the following questions in accordance with the Enterprise Bankruptcy Law of China, and give your reasons for your answers:(a) state how to deal with the pending disputes between Construction Company and Dalie Co; (3 marks)(b) state how to deal with the loan of RMB 20 million yuan owed to Industry Bank; (3 marks)(c) state whether Merchant Bank was entitled to declare the credit and join the bankruptcy procedure. (4 marks)