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Accounting Best Practices, Fifth Edition by Steven M. Bragg Englewood, Colorado

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18–8. Finance Policies for Best Practices (Chapter 11)

  • The company shall periodically conduct an odd-lot purchase program at a premium of no more than ___% to buy out small investment holdings. This policy minimizes the number of small investors, who require an excessive cost to maintain in proportion to their stockholdings. The stated maximum amount of the premium offered to buy back these shares sets a cap on the price offered by the treasurer, with no further intervention required by the Board of Directors.

    Impacted best practices:

    • Eliminate small investors

  • Employees are eligible to participate in the corporate 401(k) plan as of their hiring date as full-time employees or on their return from a leave of absence. This policy helps to retain employees, while also reducing employee-related paperwork subsequent to the initial hiring process.

    Impacted best practices:

    • Grant employees immediate 401(k) eligibility

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