In early 1990s with a second wave of low-cost carriers (LCCs)
Asset 60
In early 1990s with a second wave of low-cost carriers (LCCs), which led to the second period of strong traffic growth from early 1993 through early 2000, Southwest Airlines arguably provided the blueprint for U.S. Between 2006 and 2009 a fuel crisis happened and a recession for business and the transportation industry. What is the impact today on LCCs in order to be competitive in this economy coming on the heels of this recession?
Low-cost carriers are now looking for ways on how to expand their business within the U.S. and globally. This is after the recession in the 2009 fuel crisis.
The financial statements show that for the last seven months, the airliners have been minting huge money until the global pandemic that has left most airlines grounded. After the business meltdown that happened in 2009, the low-cost carriers came out strong despite their rivals hit financially. Technically, their profits jumped from 58 billion dollars to 4 billion dollars by the close of 2019. For the LCCs to have a competitive advantage and thrive in haul times of recession, they are required to operate modern crafts that have fewer maintenance costs and low fuel consumption. They should consider reducing their airfares since most of its rivals have cut the transport cost for their customers. It will increase the number of sales per unit, which will enable low-cost carriers to thrive in a recession.
Asset 61
Communicate how the potential payer mix relates economically to changing demographics in your given community. What potential solutions would you suggest to your director that might overcome the demographic shift? Analyze economic theories that are germane to your provisions of services and identify one theory that might apply to this specific situation
Demographic shift refers to the changing of the age structure of the population due to a shift in living conditions. Additionally, the changes in these alignments are brought by the social effect. It can also be described as the shift in labor as a result of technology at a global view.
Over the decade, there has been a great change in the employment sector due to the high demand caused by demographic shifts. Thus, shifts can be solved through availing skills of work to everyone; it will facilitate the ready workforce even when the old retire; hence no gap will be created in the market forces. Support education initiative that will bring the world of education close, it will bring the meaning of teamwork which is essential in the job sector. Keynesian theory is applicable in this situation. This theory suggests that demand cannot be quenched through spending. The high demand in the labor market can only be solved by deficit spending in the community to improve the economy.
Asset 62
If auditing of financial statements is required for the protection of public investors, should not all PCAOB members be taken from the investment community that uses audited financial statements? Why or Why not? How does the decision in this case impact the validity of the Board and other provisions of the Sarbanes-Oxley Act?
Financial statements are an inscribed document in which its main objective is to show the performance of the company and other business activities. For accuracy and tax purposes, these financial statements are audited by the government to avoid alterations.
The primary purpose of the PCAOB body is to oversight auditors in public companies. It is meant to protect the interests of investors and help get accurate data for governmental purposes. The issue of whether the PCAOB should be involved in the investment community is underway. Though it is regarded as the overseer in the financial department, it cannot serve in all dimensions. Sarbanes-Oxley Act was legislated to protect the employees and shareholders from accounting errors. Furthermore, the PCAOB board remains valid on this occasion since its mandate is to oversee auditors and to make sure that there are no accounting errors or malicious activities in the financial sector that might affect the investors.