Long Term Investment Decisions Assignment Example | Topics and Well Written Essays - 750 words

Long Term Investment Decisions - Assignment ExampleTherefore, this study aims at providing a sharp insight on why judicature regulations may or may not be needed in a market economy. Connectively, the study will put away possible complexities that Wal-Mart Company may experience when conspiring self amplification strategy rather than a merger. In above connection, the study will put frontwards the possible forces that may emerge when creating a convergence between stock holders interest and as well as their impact on profitability of Wal-Mart company. 1. excuse why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation. There be various reasons why government regulation may be needed in a market economy among the reasons include to protect consumers against exploitation by vendors via ensuring goods and services supplied meet health and quality standards (Rodine-Hardy, 2013). Govern ment regulation may be needed to ensure that all traffic have been licensed in order to eliminate illegal business from being carried out. In above connection, government regulations may be needed in order to promote scotch stability through application of fiscal and monetary policies (Rodine-Hardy, 2013). ... 2. Justify the rationale for the intervention of government in the market process in the U.S. The need for government intervention arose from the fact that there was an emergence of more powerful and bigger corporation in the United States, creating a need to for protecting small business against stiff and unfair competition (U.S. surgical incision of State). Additionally, during 1930s the united state experienced economic down turn that made its citizen to complain that capitalism had wandered (U.S. division of State). The citizens called for intervention from the united state government to remedy the situation. The united state government intervened by promoting economic growth, this further led to creation of employment opportunities (U.S. Department of State). Therefore, it can be scrutinized that government interventions is vital not only for individuals but also for the benefits of the entire market economy (U.S. Department of State). 3. Assume that the companys is considering a merger. The possible merger currently faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects. The additional complexities that Wal-Mart Company may experience through self- expansion (via capital projects) include Financial complexities, whereby, venture capital firm may fail to finance Wal-Mart expansion plan if they perceive some level of intolerable risk (Amann, Maznevski & Steger, 2007). Additionally, Wal-Mart Company may experience hiring complexities when identifying qualified staffs to fill new positions created a s a result of expansion (Amann,