Posted: July 24th, 2016

What is capital?

In no less than 100 words each; respond to the following questions:
1)In today s rapid communication environment information is shooting across our screens, scrolling across the bottom and tops of our video screens and popping up on our screens. With so much information out there why would a company be concerned about information leaking out? What happens to a company s credit rating when incorrect information is put out for public consumption, information that influences an organizations perceived stability, sales or performance could negatively affect its credit rating. This in turn will negatively influence the interest rates that a company must pay for credit and interest rates it must pay investors to purchase their long term securities and leverage capital? In a multi million or multi billion dollar company an increase in one half percent could mean the difference in profitability and huge layoffs. Take a quick peek at what happened at AIG. Q: How could negative information leak out? Why would negative information leak out? thoughts?

2)Is the only way for negative information to leak out from employees of the company? In the South where it is still polite to hold the door open for people we are loosing this habit in the work environment because of tailgating . For those who don t use security checkpoints at work or ID badges where you have to swipe them to get in tailgating is the practice of one person swiping their ID badge and other people walking through the unlocked access door. You have probably seen this in the movies, but it is very real. In all Schering Plough and State Farm facilities ID badges were required to get into buildings and into some parking lots.

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