Case Study: Infinity Financial Services (Pvt.) Ltd. Scam Mujeeb Ullah Khan graduated from Peshawar University and after a few months of applying to dozens of organizations, he was finally selected as a management trainee officer (MTO) in FATA Bank Ltd. After the initial training, he was inducted into the credit department and due to his extrovert nature and social skills, he became friends with most of the senior bank staff. He quickly rose the ladder of progression and within 3 years became the Branch Manager of the Khyber Agency Branch. Mujeeb became popular in the area due to his accommodating nature and expeditious processing of loan applications. He also took care of his special clients by throwing parties and therefore, developed friendships with the rich and powerful. He became hubristic and began facilitating friends, disregarding the State Bank of Pakistan’s guidelines and procedures ensuring due diligence. Resultantly, many of his processed loans turned into bank defaults and the FATA Bank initiated an enquiry against him. The enquiry commission held Mujeeb Ullah Khan responsible for the unscrupulous transactions, recommended employment termination with confiscation of all benefits, and imposed a fine of rupees one million. Mujeeb Ullah Khan was discharged unceremoniously but he carried this inclination to use unlawful means to make money and live a luxurious life. He would boast in his circle of friends that he would become a billionaire and set up his own bank. His flamboyant lifestyle, seemingly lucrative bank career, penchant for designer suits, articulation and mannerism, impressed many around him. He convinced 6 of his friends to join hands and register a financial services company which would circulate cash investments and solicit high-end clients. They got together and registered Infinity Financial Services XYZ (Pvt.) Ltd. with SECP. They rented a whole floor in the upmarket Zargoon Plaza, engaged an interior designer and furnished a lavish office. They hired uniformed armed guards, English-speaking university graduates and a cook from Pearl Continental, Peshawar. Mujeeb purchased a new non-custom-paid, fully loaded Land Cruiser through his contacts in Khyber and the other directors had their own luxury vehicles. His outer circle of friends got extremely impressed with the optics of his business and kept on requesting Mujeeb to take their money as an investment. Resultantly, Infinity Financial Services XYZ (Pvt.) Ltd introduced 3 financial products: (A) Portfolio/Managed Accounts: where the client deposited their amount on the basis of 3 to 4 percent fix profit margin per month. (B) Trading Accounts: where the investment was made on profit and loss basis, with a loss of up to 10% per month. (C) Trading Accounts: where the investment was made on profit and loss basis, with a loss of up to 10% per month. Mujeeb Ullah developed a strategy with his company directors that each of them would, by hook or crook, collect 150 million rupees each by enticing investors to the 3 main financial products of the company. He also offered high commission rates to his company employees to get clients and investments. IFS began throwing a series of parties in a lavish rented house in the poshest area of Peshawar. The visuals of IFS enticed and entrapped many individuals and the money started pouring into the company. For the first two years, it seemed as if all the dreams of Mujeeb were materializing. Investors were getting their high percentage returns and IFS had opened up two more branches in Abbottabad and Mardan. Plans were being made to start IFS Bank. But then, suddenly, things began to change, when one of their largest clients pulled out his investment. A few jittery employees also advised their clients to pull out of the company and a run on the accounts ensued. Mujeeb Ullah Khan tried to control the situation by giving assurances. In a few months, the whole set-up collapsed, and all the IFS directors went into hiding. Many of the IFS affectees approached the National Accountability Bureau. A case was instituted and investigations initiated. The IFS directors were on the run, their families devastated, homeless and with many investors giving death threats. Mujeeb Ullah was finally arrested from Karachi and arrest warrants were issued for the IFS directors and the top employees of the company. What seemed like a fairy tale rise to success, crumbled to the abyss of oblivion and disaster?
Questionnaire 1. Identify the mistakes of Mujeeb Ullah Khan.?
2. Relate the concepts studied in the course (at least 4-5) to the doings of Mujeeb Ullah Khan. Establish conclusions based on the concepts.?
3. Being an ethical person, compare yourself to Mujeeb Ullah Khan and explain YOUR actions if you were in place of him?
4. Identify the wrongs in the three financial products of IFS XYZ limited. Being an ethical professional, re-formulate those financial products.?

Companies can take several measures to defend themselves against liquidity risk, including maintaining sufficient cash reserves, diversifying funding sources, establishing credit lines or backup funding options, closely monitoring cash flow, and implementing effective cash management strategies.

To defend against liquidity risk, companies can adopt various strategies to ensure they have sufficient funds to meet their short-term obligations. One key approach is to maintain an adequate level of cash reserves. By holding cash, companies have readily available funds to cover unexpected expenses or bridge temporary cash flow gaps.

Diversifying funding sources is another effective way to mitigate liquidity risk. Relying on a single source of funding increases vulnerability, as disruptions or constraints in that source could lead to liquidity challenges. Companies can explore different funding options, such as bank loans, lines of credit, issuing commercial paper, or seeking additional investors.

Establishing credit lines or backup funding options provides an extra layer of protection. Credit lines allow companies to access funds quickly when needed, providing a safety net during periods of liquidity stress. Backup funding options, such as standby credit facilities or access to emergency financing, can also be valuable safeguards.

Monitoring cash flow closely is crucial to identify potential liquidity issues in advance. Companies should regularly assess their cash inflows and outflows, anticipate potential cash flow gaps, and take proactive measures to address them. Effective cash management strategies, including optimizing working capital, implementing efficient payment and collection processes, and managing inventory levels, can further enhance liquidity position and reduce risk.

By implementing these measures, companies can better defend themselves against liquidity risk and ensure they have the necessary liquidity to meet their financial obligations in a timely manner.

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Therefore, the markup for firm XYZ is 0 or 0%. This indicates that the firm is not making any profit as it is just covering its costs.

A firm XYZ operates in a perfectly competitive market where the price is equal to $10. The firm's total cost function is given by TC(Q) = 18 + 2Q + 1/2Q^2. The amount of output produced by the firm can be calculated by finding the quantity at which the firm's marginal cost equals the market price. Marginal cost is given by the derivative of the total cost function with respect to quantity, MC(Q) = 2 + Q.

Setting marginal cost equal to the market price, we have:

MC(Q) = P

2 + Q = 10

Q = 8

Therefore, the firm will produce 8 units of output.

The markup for firm XYZ is given by the formula:

Markup = (Price - Marginal Cost) / Price

Substituting the given values, we get:

Markup = (10 - (2 + 8)) / 10

Markup = 0

Therefore, the markup for firm XYZ is 0 or 0%. This indicates that the firm is not making any profit as it is just covering its costs.

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Initial Public offerings (IPOs) are a way for organizations to elevate capital by using promoting shares of possession to the public.

Agencies usually cross public to elevate capital to fund future growth, repay money owed, or extend operations. with the aid of going public, agencies can access a bigger pool of traders, that may assist to boom liquidity and valuation of the agency.

For entrepreneurs, IPOs offer a way to monetize their work and praise early investors who've supported the company. IPOs can also boom visibility and credibility, which could help to draw proficient employees and partnerships.

Further to the economic benefits, IPOs can provide a experience of validation and accomplishment for the founders and employees who've labored difficult to construct the organization.

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Peter Drucker, the management guru, in his Practice of Management, introduced the key idea that workers should be treated as company assets and not liabilities.

Peter Drucker is the inventor and creator of modern management practices. He is famed for asserting that workers are corporate assets and should be treated as such.

Thus, the key idea that workers should be regarded as assets of the company was introduced by Peter Drucker.

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Before taking the exam to receive CPA certification, a person must complete at least 120 credit hours of postsecondary education.

The CPA certification means the certified public accountant certification which is a designation given to those who meet education and experience requirements and pass an exam.

Hence, the requirement to take the exam to receive CPA certification, a person must complete at least 120 credit hours of postsecondary education.

Therefore, the Option D is correct.

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A mission statement can help Donna with her new business by providing clarity and direction for her venture. It serves as a guiding statement that outlines the purpose, values, and goals of the business.

It helps Donna align her decisions, actions, and strategies with the overall mission, facilitating focus and consistency in her business operations. A mission statement is a concise statement that articulates the purpose and core values of a business. It outlines what the business aims to achieve and how it intends to operate. For Donna, having a mission statement for her new business can provide several benefits.

Firstly, it helps Donna define the purpose and direction of her business. It clarifies the reason for starting the business and what it aims to accomplish, providing a sense of focus and clarity.

Secondly, a mission statement helps Donna communicate her business's values and principles to stakeholders, including employees, customers, and investors. It sets the foundation for building a strong company culture and aligning everyone's efforts toward a common goal.

Lastly, a mission statement can serve as a guide for decision-making and strategy development. When faced with choices or challenges, Donna can refer to her mission statement to ensure that her actions align with the overall purpose and values of her business.

A mission statement plays a crucial role in helping Donna with her new business by providing clarity, guiding decision-making, and aligning stakeholders toward a common vision.

In conclusion, a mission statement can significantly benefit Donna in her new business. It provides clarity and direction, communicates values to stakeholders, and guides decision-making and strategy development. By establishing a mission statement, Donna can effectively define her business's purpose and goals, foster a strong company culture, and make informed decisions that align with her business's overall mission. This helps create a solid foundation for success and growth in her new venture.

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The down payment less the closing charges less the purchase price is the mortgage loan's principle.

When you enter into a mortgage with a lender, you give the lender the right to seize the property if they are unable to make the loan amount back plus the interest. You might be able to get a mortgage loan that will enable you buy a new house using the worth of the an existing home as security.

Mortgage loans assist people in financing the purchase of real estate by taking a small portion of the property's overall worth as payment. How Do Mortgages Work A mortgage is a loan used to pay for the upkeep of a home, piece of land, or other kinds of rental properties.

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Answer:

a: 810 (million)

b: 111-19(issued)+30(purchased)= 122 (million)

c: 810 (issued)-122 (treasury)=688 million

The average annual return from stock investments historically is a) 11.3%.


1. Historical data shows that stock investments have, on average, provided annual returns.
2. The average annual return from stock investments is typically calculated by considering the returns of various stocks over a specific period of time.
3. Among the given options, the answer with the closest value to the average annual return from stock investments is a) 11.3%.
4. Therefore, the main answer is a) 11.3%.

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When a public accounting firm prepares the financial statements of a company, the service is known as a Compilations or compilation.

Who is in charge of preparing financial accounts for public companies?

Directors create financial statements, and audit committees ensure the accuracy of financial data. Auditors examine the financial accounts as well as other sections of the annual report. Prepare Financial Records: Accountants create a wide range of financial records, such as tax returns, budget reports, and financial statements. They also prepare quarterly earnings reports and accounting records for organizations to track spending and profits.

An audit is the physical examination of an entity's assets as well as the study of its accounting records. A certified public accountant (CPA) can provide a judgment on the fairness of the entity's financial statements if conducted.

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Answer:

Company site

Explanation:

A company's website is a communication tool used to convey information to internal members and the public. The website contains updated information on various topics concerning the company.  There are sections for products and services, the top management, and careers with the company.

An individual seeking to work in a specific company should visit its website to look for opportunities.

C. Company site

That is the correct answer

The shareholders' equity section of Riverbed Corporation's statement of financial position as of December 31, 2023, is as follows:

Shareholders' Equity:

Retained Earnings: $128,000

Common Shares: $705,000

Preferred Shares: $57,000

Contributed Surplus: $205,000

Goodwill: $60,000

Accumulated Other Comprehensive Income (Loss): ($153,000)

Total Shareholders' Equity: $1,002,000

In the shareholders' equity section, Retained Earnings represents the accumulated profits or losses of the company that have not been distributed to shareholders as dividends. Common Shares and Preferred Shares indicate the amount of capital contributed by common and preferred shareholders, respectively. Contributed Surplus represents the excess amount received over the par value of shares issued. Goodwill represents the intangible value of an acquired business that exceeds the fair value of its identifiable assets.

Accumulated Other Comprehensive Income (Loss) includes gains or losses that are not recognized in the income statement but are reported directly in the equity section. The total shareholders' equity is the sum of these individual components, amounting to $1,002,000.

In summary, Riverbed Corporation's shareholders' equity section includes Retained Earnings, Common Shares, Preferred Shares, Contributed Surplus, Goodwill, and Accumulated Other Comprehensive Income (Loss), totaling $1,002,000. This section provides a snapshot of the company's net worth and the various sources of capital invested by shareholders. It reflects the company's financial health and its ability to generate profits and create value for its shareholders.

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Using customer turnover data, logistic regression may be used to build a model that predicts whether a certain customer or group of customers will stop using a service.

The process of organizing and carrying out the effective storage and movement of commodities from of the point of origin to the place of consumption is known as logistics. The objective of logistic is to fulfill client demands in a timely and economical manner.

The majority of failure points occur during logistical tasks, which makes logistics itself a highly difficult sector within the SCM domain, according to Sharma. For instance, on some days, you could be required to come up with a

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Answer:

when you divide

Explanation:

Answer:

$40,000

Explanation:

Based on the given information, the current liabilities will be 40,000.

Current liabilities are debts or obligations owed by a corporation to others that are due within one year or during the typical operating cycle of the business, whichever is longer.

To calculate the current liabilities, the formula used will be

Quick ratio = (cash + accounts receivable) / current liabilities

3.5 = Cash + accounts receivable/current liabilities

3.5 = $120,000 + $20,000 / current liabilities

current liabilities = $40,000

Therefore, the current liabilities in the given case are $40,000.

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A promissory note is a legal document that binds two parties together and is essentially an I.O.U. that states that one party, the borrower, promises to pay a specific sum of money to the other party, the lender, at a specific point in the future.

The party that promises to pay the promissory note is known as the "maker," and the party who will receive the money is known as the "payee."

Thus, option b. Maker is the correct answer to the given question. The maker is responsible for repaying the loan according to the terms and conditions outlined in the promissory note.

Furthermore, the maker can also be referred to as the borrower or the issuer, and the payee can also be referred to as the lender or the holder of the note.

It is important to keep in mind that the promissory note is a legally binding document, and if the maker defaults on the loan or fails to pay the amount due, the payee may take legal action to recover the funds owed.

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We can observe a relationship between the ticket price and the average attendance at the baseball games. As the ticket price decreases, the average attendance tends to increase, indicating an inverse relationship between price and attendance.

The question describes a scenario where a baseball team plays in a stadium with a capacity of 60,000 spectators. The average attendance at a ticket price of $8 is 27,000, but when the ticket price drops to $6, the average attendance increases to 30,000. Attendance is linearly related to the ticket price. To understand this relationship more precisely, we can use the concept of a linear equation. Let's assume that the average attendance (A) is a function of the ticket price (P), and we can represent this relationship as A = mP + b, where m represents the slope (change in attendance per unit change in price) and b represents the y-intercept (attendance when the price is zero). Given the information provided, we can determine the equation for this specific scenario. When the ticket price is $8, the average attendance is 27,000, and when the price drops to $6, the average attendance increases to 30,000. Using these data points, we can calculate the slope (m) and y-intercept (b) of the equation. Once we have the equation, we can use it to estimate the average attendance for any given ticket price. However, please note that the capacity of the stadium (60,000 spectators) may impose a maximum limit on the attendance, which should be considered when making predictions.

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Answer:

c

Explanation:

Sometimes news organizations have biases because they need to make money and get advertisers. Hence, option C is correct.

a group of people who work together in an organized way toward a common objective: the World Health Organization. The essay was about international aid organizations. more occurrences.

A structured grouping of people, such as a company, nonprofit, political party, or club, is known as an organization. These speciality schools are mostly run by nonprofit organizations. a report from the International Labor Organization.

The majority of firms today use one of three types of organizational structures: functional, departmental, or matrix. The advantages and disadvantages of each form must be considered by owners before deciding which to utilize for their business.

Thus, option C is correct.

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Answer:

d agriculture-producing industries

Most new jobs in the United States will be in manufacturing industries service producing industries.  The correct option is c.  

In the United States, manufacturing is an important economic sector. The United States is the world's third-biggest manufacturer (after the People's Republic of Chine and the European Union), with a record high real output of $2.00 trillion (adjusted for inflation in 2009 dollars) in Q1 2018, significantly above the $1.95 trillion peak before the Great Recession in 2007.The manufacturing industry in the United States employed 12.35 million people on December 2016 versus 12.56 million in December 2017, a 1.7% rise.

Manufacturing, while still a significant portion of the US economy, contributed less to GDP in Q1 2018 than the 'Finance, insurance, real estate, rental, other leasing' sector, the 'Government' sector, or the 'Professional and business services' sector.

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D) All of the options: Historical cost, current cost, and present value of cash flows are commonly used in preparing financial statements.

The correct answer is D) All of the options. When preparing financial statements, companies generally utilize various methods, including historical cost, current cost, and present value of cash flows. These methods are commonly used to ensure accurate and relevant reporting of a company's financial position, performance, and cash flow.

By using these methods collectively, companies can present a more comprehensive and accurate picture of their financial position and performance. Historical cost provides a reliable foundation, current cost adjusts for changing market conditions, and the present value of cash flows incorporates the time value of money.

It is important to note that the choice of method may vary depending on the specific circumstances and accounting standards applicable to the company.

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Answer:

1. It will cause them confusion throughout the tax calculating process.

2. Using a single account will make it difficult to keep payroll records.

3. Keep track of your personal expenses and earnings.

Explanation:

1. It is preferable to establish a separate account to separate the firm's actual income and expenses.

2. Payroll expenses are indistinguishable from personal expenses.

3. This allows you to cross-check bank and hand-made documents for income and expenses. Because cash transactions may not be recorded in the bank account, the entrepreneur should preserve receipts in order to compute revenue and expenses, which may result in erroneous financial statements.

If someone steals your credit card and charges $500 in total. The maximum number that must be paid in accordance with federal legislation is $50.

A bank will provide you with a credit card as a form of loan that has a revolving credit line that you can manage. You might use your debt capacity, which is a cap on the lending that underpins your credit card, for small or large purchases.

The use of a credit card has many advantages. The benefits of credit cards include improved financial stability, raised credit scores, balance transfers, quick loan approval, and quick access to money in an emergency.

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To buy a product, customers must first have the need for the product.

Customers cannot just simply buy anything or everything when it comes to products. People love shopping but money is a very useful and powerful resource and customers understand it well, so they don't want to spend it on useless things.

Firstly, there should be a need or a desire to buy a particular product. After that the customer decides his or her budget or the money he would like to spend on that product. If it crosses his or her budget, then the customer may not able to buy the product.

Lastly, there should be willingness to buy the product. Nowadays, we get impressed by big brands, malls and stores giving us immense discounts for even our daily needs. That is how knowingly or unknowingly, we tend to shop more.

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Answer:

Balloon loan

Explanation:

Balloon loan is a type of a relatively short term loan common in the commercial lending where only a portion of the principal amount , the interest is amortized over that period and the total outstanding amount , the principal is the final payment at the end of the loan period.

This makes the final payment to be significantly high compared to the other payments made over the entire loan period , hence the name balloon (inflated ) name given to it.

This process of moving personnel, equipment, and materials to meet operational requirements is known as:

This refers to the handling and administrative functions of making workers or personnel in an organization.

Hence, we can note that based on this essential process of moving personnel, equipment, and materiel in theater into forces capable of meeting operational requirements are collectively known as Joint reception, staging, onward movement and Integration

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Answer:D

Explanation:

i just took quize lol

Answer: No, because the father and the adult son did not sign the will in each other's presence

Explanation:

The testator's will should not be admitted to probate because the father and the adult son did not sign the will in each other's presence.

A will requires a writing such that the testator will sign in the joint presence of two attesting witnesses. It should also be noted that both witnesses understand the importance of that act of the testator and then sign in each other's presence.

The benefits of equity funding are it can be used to raise working capital.

Investors do not get paid if the business does not make a profit. Option 2 and option 3 are appropriate response.

What is equity funding?

The practice of raising money through the selling of shares is known as equity funding. Companies raise money to pay expenses in the short term or because they have a long-term objective and need money to invest in their expansion.

A firm effectively sells ownership in their business when it sells equity shares in exchange for money. There are two methods of equity funding: the private placement of stock with investors and public stock offerings.

Equity funding is used when companies, have a short-term need for cash. It is used to raise working capital. It carries no repayment obligation, investors are only paid when the business is profitable.

Hence option 2 and option 3 are correct response.

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