Partners and Partnerships Case Study

Melissa owns a 40% interest and Tom owns a 60% interest in MT Partnership. During the current year, the partnership earned ordinary income of $50,000 and capital gains of $20,000. During the current year, Melissa provided management services for the partnership and received a payment of $15,000. Melissa was guaranteed this payment regardless of the income of the partnership this year. Tom allowed the partnership to use a piece of land in return for a payment of $9,000. The partnership only needed the use of the land for this one year.

What are the tax implications when a partner enters into a transaction with the partnership? Is the partner treated as if he or she was independent from the partnership, or is his or her relationship to the partnership considered?

Will Melissa and Tom’s transactions be treated the same, or will they have different tax implications?
Apple Inc. Case Study

The case of the week is Apple. I have a feeling that many of you already own Apple products, such as an iPhone or iPad, so the company really needs no introduction.

And as you read the case, you will see the variety of products Apple has launched. And the reason for using Apple as the case is that Apple has actually gone through two generations. It began as a computer company, and as you read the case, you will find it transformed itself to a digital entertainment company, where it offers a variety of digital products. And that’s one aspect to consider in this case. And the other is, of course, its advantages.

How did Apple develop its superior performance in a rapidly changing technology environment? As you read the case, you’ll be able to come across various ideas that might explain how Apple has been able to obtain superior performance over a fairly long span of time, over at least the decade 2000 through 2010. The last question that you need to think about is, how sustainable is Apple’s advantage?

During 2016 we all know the leader, Steve Jobs, passed away and so the company’s now under new management. We need to ask several questions. What advantages has Apple had that led to its success? How sustainable are these advantages going forward, given that in any industry with high profitability, your competitors are watching you, trying to imitate you, trying to catch up with you, and obtain some of those same profits for themselves?

I hope you find the case useful and relevant case. and one that you have first-hand experience of. As you walk through the case link it to the concepts of technology strategy, vertical integration, and diversification.

How has Apple performed in the PC industry? What is your evaluation of its performance in the PC business?

Assess Apple’s iPod, iTunes, iPhone, iPad, iWatch, and ApplePay strategies and performance. How would you compare them to its Mac strategy?

How durable is Apple’s current success and industry position? What threats does it face? What would you recommend?
Enter your first and last name to begin.
Game
Students use software outside of Blackboard, incorporating gamification to meet course objectives.
Example 1
Example 2
Example 3
Twitter Online Case Discussion
Assuming present-day facts and situation, both with your company and Twitter, please answer the following questions.

  • How can Twitter better monetize its wide consumer awareness?
  • How can companies, from the industry that you are affiliated with, benefit from Twitter?
Discussion: Protecting Assets
Sam established a trust on January 1, 1999, and funded it with his entire investment (portfolio stock, bonds, misc. investments). Sam was the initial trustee. On his failure to serve, Security Bank, as trust custodian, is the successor trustee. The trust allows Sam to revoke the trust at any time during his life. Sam’s family wants his assets to be kept safe and be available for distribution on Sam’s death. Sam feels that his family is full of spendthrifts and questions their ability to manage the portfolio when Sam can't tend it.

On July 4, 2002, Sam was permanently disabled in a car accident and Security Bank became successor trustee. Security Bank ran the trust for the next 5 years until Sam’s death. At Sam’s death the trust became irrevocable and Sam’s attorney, Jane, became trustee. The trust provided that Jane administer the trust for the benefit of the family with an emphasis on education before consumption. Jane had the authority to distribute income and principal at her discretion.

Did Sam protect his assets from squander by his heirs? If so, in what way(s)? Were there any issues that Sam missed?
The Tobacco Wars: Smoking Guns and Cancerous Lungs

If a cigarette is a legal product and is not defective, then how can its manufacturer be legally liable for the cancer and other harm caused to smokers, especially those that were willing to smoke despite the known risk to their health? Should the CEOs of major tobacco companies from the 1950s to the early 1990s have been prosecuted for second degree murder for the many customers who lost their lives from lung cancer, since they knew of the danger but chose not to disclose it?
Group Assignment: Case Assessment

  • Read the Microsoft case study contained in your course pack.
  • After you are assigned a small group, you will work as a team to prepare a three- to four-page case assessment analyzing Bill Gates' three options and recommending the most appropriate option based on your analysis.
  • In addition to the case assessment, you will need to submit any and all explanatory exhibits that summarize your group's analysis. Any exhibit you include must be mentioned explicitly in the case brief, clearly delineating the exhibit's contribution to your argument.
  • Your group will need to designate one member in charge of submitting the case assessment on behalf of the group.
Group Assignment: Nike Write-up

Read the Nike, Inc.: Cost of Capital case. Present your findings in a report consisting of a maximum of three-page, double-spaced write-up plus exhibits of the case. Work with your group to complete this assignment. Consider the following issues in your write-up:

  1. What is WACC and why is it important to estimate a company’s cost of capital?
  2. Do you agree with Joanna Cohen’s WACC calculation? Why or why not?
  3. If you do not agree with Cohen’s analysis, calculate your own WACC for Nike and be ready to justify your assumptions.
  4. Calculate the costs of equity using CAPM and the dividend discount model. What are the advantages and disadvantages of each method?
  5. What should Kimi Ford recommend regarding an investment in Nike?
Group Assignment: Renewal Strategy

The renewal report considers the process from the point of view of an individual company. Each team of three or four students is to select a company it wants to review in depth. Companies should be public but not employ any member of the student team now or in the past. Your task is to describe the firm's difficulties in terms of the Phoenix Effect analysis framework and to create a renewal strategy. There are two components for this report:

  • Presentation. You are to post an executive summary of your report. This is to be done in the form of a Word document and a PowerPoint presentation. Your fellow students will be viewing this and determining a grade for your work. The summary may not exceed one written page and five slides.
  • Write-up. You are to submit a write-up of your findings to the instructor.
Current Events Blog

The students assigned this week will each post a link to a current estate and gift tax story in the news or a developing trend in the field, and elaborate his or her thoughts on the article. All students in the class are encouraged to comment on each of this week’s postings. The blog is open for comments throughout the week.
Instructions: You are going to take on the role of running a restaurant that offers three types of meals (A, B, and C). Each meal requires different ingredients (raw materials). The goal is to purchase the ingredients that are necessary to make meals so as to maximize the restaurant's profits.

You will be purchasing the necessary ingredients for your meals at auction. This week it is an English style auction. Go through the activity and see which materials you can win at auction so that you can cook your meals.
Servicescape Report

Visit a restaurant and observe the servicescape. You may want to take photos or create a video to help you explain the servicescape. Submit a report that discusses the following:

  • What is done well in this servicescape? Give examples.
  • What are the important issues in designing/maintaining this servicescape so that it will be a positive influence on customer expectations?
  • What part(s) of the servicescape could be improved or altered to positively influence the service experience? Use the video/photos to point out specific examples.
  • Do any of the following characteristics (color, lighting, shapes, sound, and smell) influence the customer’s experience? Explain.
How Other Countries Do It

Study the assigned article for this week.

Pick one developed, industrialized country (possibilities include Canada,  Japan, Australia, or New Zealand). Examine the health care initiatives implemented in your chosen region and research to find out about the operations and financing of its health care delivery system. Indicate which feature from that system, if any, might be used in the United States to improve our system and what features are commonly employed in the United States that might assist in the greater efficient functioning of the system in your chosen region of study.