Performance Evaluation Measures

3. Under the FASB new lease accounting standard, what is the effect on the lessee?  Lessor?  And how will accounting methods change for the lessee?  Lessor?

4. Strategic issues for Johnson & Johnson…from the list below research your Johnson & johnson and write one or two paragraphs explaining how the  Johnson & Johnsonhandles all of the issues.

Performance Evaluation Measures

o   Financial Evaluation – how does your MNC regard its foreign operation

• Investment center
• Profit center
• Cost center

o   Non-Financial Evaluation – how are the unit and the managers evaluated

• Foreign operating unit evaluation
• Managers of the unit evaluation

Management Control Systems and National Cultures

o   What steps, if any, is your MNC taking to be sensitive to the national culture

5. Tell me why I should invest in Johnson & johnson ; you must provide at least one calculation (show calculation details) for a capital investment evaluation; i.e. ROI, NPV, IRR or the payback period.

6. Transfer pricing is more than just taxation.  There are many other implications.  List at least three.

7. In your own words, what is your understanding of the Sarbanes-Oxley Act of 2002 and what impact does the law have on your selected Johnson & Johnson.