In this bid there will be two different discussions post. They are not related at all. So, they will be answer separately.
Discussion one Accounting;
Bonds Payable and Investments in Bonds
General Electric® Capital, a division of General Electric, uses long-term debt extensively. In early 2002, GE Capital issued $11 billion in long-term debt to investors and then within days filed legal documents to prepare for another $50 billion long-term debt issue. As a result of the $50 billion filing, the price of the initial $11 billion offering declined (due to higher risk of more debt).
Bill Gross, a manager of a bond investment fund, denounced a lack in candor related to GEs recent debt deal. He said, It was the most recent and most egregious example of how bondholders are mistreated. Gross argued that GE was not forthright when GE Capital recently issued $11 billion in bonds, one of the largest issues ever from a U.S. corporation. What bothered Gross is that 3 days after the issue, the company announced its intention to sell as much as $50 billion in additional debt, warrants, preferred stock, guarantees, letters of credit, and promissory notes at some future date (Alban, 2002).
In your opinion, did GE Capital act unethically by selling $11 billion of long-term debt without telling those investors that a few days later it would be filing documents to prepare for another $50 billion debt offering? Please explain your answer and discuss whether the action was illegal as well.
Alban, J. (2002, March 25). Gross shakes the bond market; GE calms it, a bit. Barrons. Retrieved from https://www.barrons.com/articles/SB101684242469177…
Discussion 2 Marketing:
Topic 1: Branding and Targeting
Chilean wines are now considered on a par with California wines in many cases. Do some research for this Discussion. Then respond in a minimum of 200 words to address these questions:
- What branding and target marketing concepts have Chilean wines borrowed from California wines?
- What have both the Chilean and California wines borrowed from French wines?
Topic 2: Targeting Business Customers
A soap company has been selling their soap to consumers with great success. However, recently they have become aware that their soap is also a tremendous grease-cutter and could be sold to industry.
- Which category of business customers could they target and why?