Pamela Myles
CTU Online
Phase 4 Discussion Board
October 29, 2014 When you are investing in a business the appraisal of investment falls into the category of planning long term investments like new equipment, new products and this will lead to new customers. Sometimes change is good for the better. This is also a method used for capital budgeting. In order to grow within a company all business associates must be in compliance with the (SEC) Security Exchange Commission whether you are a foreign country or a local company. These requirements are as follows: Documents that need to be filed:
The company’s description of the business
Information about the management of the company
Financial statements that are certified by a legal accountant After filing these items need to be registered:
Private and regular offerings limited to a certain number of individuals
Intrastate offerings
Securities of municipal, state, and federal governments (sec.gov) What are two primary compliance requirements, specifically those indicated by the SEC for an initial public offering (IPO) to which the firm must adhere? Part one of the compliance requirements are to explain the business operation which includes the financial flow, operations, any risk factors and all sources of management. Anything that has been audited must be included as well. This is similar to an employee handbook. All copies must be administered to any and every one involved (sec.gov). Part two of the compliance requirements are to explain that the company does not have to send a copy to any of the investors as long as the (SEC) receives their copies of the original contracts (sec.gov). Capital budgeting has a close relationship with the (NPV) net present value of cash flow internally and