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Starbucks And The Sarbanes Oxley Act (SOX)

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The Discussion of Management & section of Analysis is the SEC staff of observations’ plan. The Sarbanes Oxley Act (SOX) authorized the SEC to review entity every three years at least. Therefore, it enunciated the company’s summary and provide a notice to investors. This is aimed on the risks and challenges that could influence either the results of operations or the company’s cash flow situation. Concerning the results, the company’s management team requires by the SEC to disclose suspicious, changes to previous statements, trends and examined the causes of these alterations (Heller, 2014).
However, this Starbucks passage satisfied with the SEC’s anticipations, compare the 2014 details with the year before. Finally, Starbucks discussed the risks and challenges affiliated to their entity and also require the financial standing of the company was not affected by these 2014 risks and challenges.
In Starbucks’ 10-K report, Investors should see the difference of 6% growth in sales, increase of EPS and consolidated operating income for 2014. Stores upgraded to 555 new stores and the other details products made sales growth in 2015. However, after this increased Starbucks went back in 2014 to $1.6 billion to shareholders in both dividend and stock buy backs (Starbucks Corporation, 2014). …show more content…

The conflict arises when Starbucks began an accord in 1998 with Kraft to sell Starbucks in the grocery stores named K-Cups. When Starbucks in 2010, made up a proposal to Kraft of $750 million to complete the deal. Because of complication of K-Cups and vending to grocery stores, Kraft denied the deal. Therefore, Starbucks wanted to reject the deal and got authority of the coffee business or coffee packaged. Starbucks was prospering off goods brought in to the grocery stores that couldn’t be coffee packaged because that wasn’t in the deal of Starbucks with

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