Accounting, Edition 37

Determining Credit Spreads for Private Firms That Have No Credit Rating

By: Dra. Paula Morales, Dr. Francisco Guijarro and Dr. Janko Hernández

By nature, companies must pay—or be prepared to pay–a price for the goods and services they use in their activities, what ever their area of business. So clearly companies require financial resources in order to make those payments. As we all know, there are three main sources of funding: internal resources generated by the company’s operations, funds contributed by the company’s owners or partners, and funds raised through some form of debt.

Generally, companies take on debt according to the characteristics of the products or services offered, the commercial phase of the business, the type of market in which they operate, legal and tax restrictions, and other factors. According to the rating assigned to the company by a rating agency or credit institution, lenders decide what interest rate must be paid on the loans that will be extended to the company, or what yield at maturity a bond issued by that firm must offer.

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Edition 37, Human Resources

Empowerment Done Right: A Manager’s Field Guide

By: Sanjay T. Menon
Louisiana State University Shreveport

The word “empowerment” can mean different things to different people. It can mean the act of empowering, such as delegation or giving employees the authority to make decisions. It can mean the process of empowering, for example, reducing red tape and giving employees the needed resources to do their work as they think it needs to be done. It can also mean making employees feel empowered, for example, by providing opportunities for employees to contribute ideas and participate in decision making. It is therefore not surprising that different authors have different ideas and suggestions regarding empowerment.

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Edition 37, Human Resources

Living to Work or Working to Live: Balancing Life and Career–Desirable or Necessary?

By Alejandra Ortiz

Like many developed nations of the world, Mexico is beginning to experience a shortage of talent that runs from highly qualified and experienced professionals to specialists and technicians. According to the Talent Shortage Survey conducted in 35 countries by Manpower Inc., Mexico ranks among the nations most at risk of not being able to find the right people for available positions. This is not merely an alarmist scenario: studies about what today’s professionals want indicate that there is an area of opportunity in defying these trends by finding a harmonious balance between the life and the career of high potential professionals.
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