Companies that deal in cash

[Tyler Durden]

This may be a silly question, but how is one supposed to ensure the accountability of a company that does most of its dealings in cash?

Take a publicly listed casino for example - what is to stop it from making billions in profit but only reporting half of that in the reports, therefore ripping off shareholders?

 

[ROE]

This may be a silly question, but how is one supposed to ensure the accountability of a company that does most of its dealings in cash?

Take a publicly listed casino for example - what is to stop it from making billions in profit but only reporting half of that in the reports, therefore ripping off shareholders?

that the risk of investing and capitalism ...you want to get a better return by investing in class assets that are in nature more risky than bank deposit....

and of course the people involve may face justice and jail time etc...

is it any difference from people renting your place and decided not to pay rent or trash your place ?

that why you don't put all your money into one stocks, you spread them out in 10-15 stocks and protect yourself from such an event and if one of those 15 stocks face such risk your capital still intact with a bit less profit for that year ....

People need to consider these risk before placing the cash in the market, if they cant take on these risk then bank deposit is a better place...

Stock is one of the top most risky asset to put your money into but risk can be mitigate but can never be eliminated...

 

[Tysonboss1]

This may be a silly question, but how is one supposed to ensure the accountability of a company that does most of its dealings in cash?

Take a publicly listed casino for example - what is to stop it from making billions in profit but only reporting half of that in the reports, therefore ripping off shareholders?

where are the billions of profit going to go?

I mean a cashier slipping a $50 into his pocket is one thing, But a CEO or director taking a billion dollars of cash home without any one noticing is a long shot.

Plenty of other ways (stock options, bonus payments etc) for them to rip of share holders. As ROE sugggested it is one of the risks, and care should always be taken to what sort remuneration is taken from directors, and whether if any milestones have to be achieved before such payments happen.

 

[medicowallet]

This may be a silly question, but how is one supposed to ensure the accountability of a company that does most of its dealings in cash?

Take a publicly listed casino for example - what is to stop it from making billions in profit but only reporting half of that in the reports, therefore ripping off shareholders?

Because it is difficult to do.

The ATO has averages for businesses. To take untaxable dividends , you have to be very systematic and not greedy eg 2-3% of turnover regularly without anyone catching you. This is possible as a business owner, but almost impossible in a corporation.

I am with Tyson on this one, why would you risk jail and your career when you coukld just vote to increase your bonus?


In the big scheme of things, most larger companies are run ethically in respect to this matter.

Small business is where most of the corruption is.

I particularly dislike "subcontractors", the tax rorts tat these people get away with are just crazy. But this is OT...

 

[joea]

Because it is difficult to do.

The ATO has averages for businesses. To take untaxable dividends , you have to be very systematic and not greedy eg 2-3% of turnover regularly without anyone catching you. This is possible as a business owner, but almost impossible in a corporation.

I am with Tyson on this one, why would you risk jail and your career when you coukld just vote to increase your bonus?


In the big scheme of things, most larger companies are run ethically in respect to this matter.

Small business is where most of the corruption is.

I particularly dislike "subcontractors", the tax rorts tat these people get away with are just crazy. But this is OT...

There are some businesses that can do it easily.
The video shop, hire people(equipment).
Anything that cycles without replacement is a win win.
The subbies do it by dealing in cash on weekends. i.e. repairs to walls etc.

But our tax system is too severe, so I do not blame them.
It generally goes to their kids education, and the odd two speed reel and rod.

The thing about people is they are very innovative. Its a challenge to dupe the ATO.
Its just about got to be a blood sport.

The bobcat operators in our area are just plain b****y greedy.
When oil went to $150 their price went from $60/hr to $100/hr. It has stayed their ever since. No problem these guys taking $1000 plus, funny money a week.

But life goes on.

Blue collar workers are the ones Gillard wants.

Cheers.