Risk-based equity requirements: how equity rules for the financial sector can be applied to the real economy

It is undisputed that rules are necessary to cope with the risks of failing financial institutions in the financial sector. These rules link the risk profile of a financial institution to the quanti-tative and qualitative properties of its capital. In the real economy the discussion proceeds from the opposite direction, putting the necessity of a minimal capital and its regulation into question. This essay shows however, that even for the real economy, rules are in place which require the board of a company to adjust the risk profile to the level and structure of the com-pany’s equity and vice versa. The relationship between risk-bearing ability and equity leads to a set of principles and rules on how to determine the correct amount of equity. The essay de-scribes these rules and their procedural enforcement based on company and accounting law rules

Technical and Business Analysis of Challenges and Opportunities Associated with Guitar String Products (Spring 2002) IPRO 306: Technical_and_Business_Analysis_of_Challenges_and_Opportunities_Associated_with_Guitar_String_Products_IPRO306_Spring2002_Final_Presentation

Gibson USA, Nashville, Tennessee, is a recognized leader in the design and manufacture of acoustic and electric guitars for the entertainment industry. Gibson has a rich and respected history that began with the design and manufacture of mandolins in 1894. Its innovations in guitars have generated tremendous market loyalty, and have helped to transform the music industry in partnership with generations of musicians. A great deal of interesting information about Gibson USA is available at http://www.gibson.com. Gibson USA is also a prominent manufacturer and marketer of aftermarket guitar strings and accessories through its dedicated facilities in Elgin, Illinois. At this time, the Gibson Strings & Accessories division of Gibson USA is interested in supporting an IIT IPRO team that would study the complex relationships between its products, manufacturing operations, marketing strategy and competitive position. Gibson Strings & Accessories, located in Elgin, Illinois, manufactures strings, amplifiers, pickups and other accessories. This IPRO project will concentrate on issues related to the acoustic and electric guitar strings manufactured under the Gibson or Epiphone brand names. This initial IPRO project for Gibson will give students great experience in working closely with its young and energetic management to review current operations and select an appropriate initial focus for the project. This may include developing test and measurement methods and equipment to analyze string performance across product lines and competitive offerings, observing manufacturing operations to identify factors that affect product performance, evaluating marketing and competitive issues that offer opportunities or challenges, and developing an understanding of the user purchase decision process associated with the aftermarket for guitar strings. Projects could also include fine-tuning an integrated Internet strategy for marketing guitar strings and accessories and supporting the dealer network.Sponsorship: Gibson Strings & Accessories, Gibson USAProject Plan for IPRO 306: Technical and Business Analysis of Challenges and Opportunities Associated with Guitar String Products for the Spring 2002 semeste