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Introduction |
Concepts |
Exercises |
Resolution |
Case |
Discussion
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The news is that Congress is considering a change in tax policy. This announcement elicits a variety of reactions from the staff. Some think a change in taxes could be good and some are fearful that the government will ruin things for everybody. Whether Congress changes taxes or spending, there will be an impact on CanGo. If a tax cut or a spending increase were targeted at CanGo, everyone would be happy. Some big companies can successfully lobby Congress for this kind of preferential treatment. CanGo cannot. It is only just beginning to develop a relationship with government officials. For CanGo to get a tax cut, everyone must get a tax cut. Across the board tax cuts lead to increases in aggregate spending. Increases in spending can lead to inflation and unpredictable returns on investments. This would be bad for CanGo. Although CanGo cannot change federal policy, it can prepare itself for an uncertain future. As you watch the video, think about what advice you would give CanGo about how best to prepare for potential government action. Click on the video window now to view the Introductory Video.
© 2002 by Prentice-Hall, Inc.
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CanGo is preparing for the IPO. Everyone is wondering whether or not this is the best time for the IPO. One of the least predictable actors in the economy is the federal government. There is particular concern about what Congress may or may not do. Everyone holds their breath when the evening news leads with a story about Congress and the budget.