The Total Shareholder Return (TSR) is used to compare the stock performance of different companies. A firm must, however, not use the TSR alone to judge the shareholder value it creates over a period of time as the TSR looks at short-term performance only and does not necessarily incorporate long-term value-added.
This creates a risk to sales department that may result to loss of revenue due to misclassification of clients; bad debtors may be classified good thus raising the dad debts percentage within the firm. The firm should identify ways of prescreening new clients, either by examining their previous bank statements, statements of financial position and consulting their business partners to establish their credit rating.
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This state of affairs creates a changing environment and a fresh prospect for internal audit to display its value. In the ever- hanging environment, numerous companies are finding it difficult to identify and manage the complex risk exposures, of which will assist Apollo Shoes. Our firm will offer services aimed at revolutionising the function of internal audit. Our company offers a combination of consulting services tackling the vital issues challenging internal auditors, such as risk assessments, technology, training, organizational and process- reengineering, reviews on quality assurance, as well as benchmarking.
Regulation and supervision in the financial sector is one of the most studied and evaluated elements. In the past years, the world has witnessed several issues and problems related to lax regulation and supervision in the financial arena.
The primary task of any enterprise is to maximize the wealth of its shareholders. So taking the right decision at right time is one of the key roles of any company. It is required for the profitability and sustainability of the company.
The final part of this essay evaluates the importance of the balance sheet and income statement to my career as an investment adviser and my future career of banker. The essay will utilize some secondary sources which will be referred to. This will be aided by critical analysis an explanations of components and importance of financial statements to relevant stakeholders identified above.
Ways in which couples can seek to reduce taxation liabilities on investments and savings.
The need for financial security and independence are a predominant concern for most citizens globally. In its very definition the ability to earn and willfully spend one’s income is at the core of maturity as defined by social norms.
Financial innovation has been blamed for leading firms and individuals towards high risk investments and in numerous cases, firms and individuals have suffered significant losses due to the unforeseen consequences of such investments. The paper discusses the advantages and disadvantages of the financial innovation.
The author states that there has been an intense debate on whether it would be wise for international taxation to be changed to allow for the holding company to pay the group’s consolidated tax. The proponents of this argument state that it would be much more convenient and efficient for consolidated tax returns as applicable to multinational companies.
ULH&P’s basic bond is entirely owned by The Cincinnati Gas & Electric Company (CG&E), an Ohio Corporation that was launched in 1837 and is entirely owned by Cinergy Corp., a Delaware Corporation initiated in 1993. This paper is going to take into account the hypothetical renewable project needed for energy company chosen in week one of the subject.
International Financial Reporting Standards (IFRS) sets out accounting standards and procedures for reporting financial information of a company to the outside world. It is very much necessary that these financial reports that become available to the stakeholders of a company help them considerably in their decision-making process.
Whatever the kind of growth strategy an organization follows, the organization needs to evaluate whether that potential growth opportunity would be financially and strategically viable to the organization or not. For those evaluations, generally investment appraisal techniques are mainly utilized by the organizations to carry out financial viability of any particular growth opportunity or project (Baker et al, 2011).
The author states that Enron's accountants were intimidated by their CEOs to introduce fraudulent practices in accounting. Probably, the accountants were not much focused on potential consequences of their fraudulent actions. Very often CEOs and stakeholders introduced fraud to create a visible success of the company.
Corporate governance is therefore an essential component of public and private enterprises today (Mulili and Wong 2011). This paper focuses on two theories of corporate governance that have been subject of debate by many analysts on how they approach the issue of governance.
The exponential growth of the Chinese economy in the recent past has made the region an attractive investment destination (Ahlstrom, Bruton, & Yeh, 2006). Although the era of double digit economic growth has ended in China, the rate of economic growth for the region is still high.
117). The pressure to meet short-term targets has made managers opt for value reductions in long-term investments in order to achieve the short-term goals. This may seem okay in the short term but it destroys the shareholders’ value in the long term. The escalating global competition has forced companies to focus their efforts on creating shareholder value in order to remain relevant.
Scope 2 emissions are in most cases a type of indirect emission. The scope deals with activities that produce electricity, cooling, heating or steam that a facility consumes, but are not part of the facility.
Some of the reasons include adverse market conditions and poor managerial structures. As such, it becomes important to consider the most appropriate strategies that can help the companies to withstand the pressures of the markets and other challenges. This study applied qualitative strategies to explore the financial management processes and strategies with regard to risk.
Mergers and acquisitions Name Institution Date of submission ABSTRACT Mergers and acquisitions occur in business companies all over the world. In mergers, two different companies come together to form a single company known as a parent company. In acquisitions, one big company acquires a smaller company so that the two companies transact business under a single owned company.
Conclusions 4. Recommendations Abstract With the turn of the 21st century, the global business environment has undergone tremendous changes, which brought about many positive and negative consequences. Globalization and related pressures significantly boosted global market competition, and that in turn led to technological advancements and business innovations.
For the general understanding of the business in any economy, Capital is a very important determining factor of the business, because the initial investment for the view of earning profit, the initial capital, is too high and the risk is associated with it.
Retailing is often regarded as one of the few economic success stories of the Britain. Urban retailing had undergoes a radical transformation during the second half of the nineteenth century, in which a number of basic elements of modern retail industry became decisively established.
The growth in the total sales for Whole Foods increased from 1% in 2009 to 13.6% in 2011. This is unlike the case in Kroger Co which recorded fluctuations in its total sales growth with the lowest being 0.8% and the highest being 7.6% (Kregor Co A3). The high sales in Whole Foods may be attributed to its wider variety of products and its large store footages.
The author is sure that the most important concept is the internet. In early years of internet, banks normally used the internet for internal purposes such as publishing of corporate data and offerings. At this time, internet was mainly used in banking as a tool of information dissemination to customers and the general public.
It in corporate other forms of medium such as TV and other programming sources. Dow Jones enhances the lives of millions internationally as well as enlightens the decisions of company executives and experts working in organizations sales and trading; wealth management; online trading; retail, commercial and investment financial institutions; risk management and laws compliance; public associations and corporate incorporation; information organization and research; insolvency and debt; private impartiality and business enterprise capital; and other industries.
Each of these elements controls the auditing profession in the UK in a certain way. This paper explains how Legislation, Common Law, and Regulatory and Professional elements control the auditing profession in the UK. It also assesses the adequacy of the auditing profession in the UK, with illustrations of recent corporate collapses.
Procter and Gamble has been an ideal example of the business houses that have followed the theory of competitive advantage and enjoyed the benefits of sustainable business growth and profitability through the strategies of innovation, differentiation, operational efficiency and cost leadership.
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The financial analysis covers the bank’s common size income statement and balance sheet. In addition, financial performance evaluation ratios on the bank’s liquidity, solvency, and return on investment and capital structure have been used to draw conclusions about the bank’s financial health and performance.
The author states that service quality is an essential factor to be taken into consideration while making any investment decision. The quality of the invested capital resources has a direct effect on the quality of the products or services of the organization. The least extensive investment resources would be yielding the lowest quality of products.
Private Equity Funds.
Private Equity is the source of capital that is raised outside the public equity market in order to make investment in any asset or organization (Yong, 2012). The funds raised from the private equity market are generally sourced from those investors who are known as ‘limited partners’ which are then assigned to the respective investments with the help of the fund managers (also called ‘general partners’).
The company prepares its financial statements in accordance with the international financial reporting standards. The accounts are usually prepared on a historical basis except for the recording of building and land which is usually recorded on its fair value.
It is known to everyone that organizations are responsible for creating various social problems such as, pollution or resource depletion, which has a negative impact on society and environment (Moir, 2001). The increasing attention or concern of public in this sphere has resulted in mandating the performance of corporate social responsibility activities of organizations.
This was the case prior to Global Financial Crisis (GFC). Since 2007, there has been a significant rise in the spread between major banks’ housing loan rates and RBA’s cash rate. This has been attributed to the rise in funding costs for banks. Due to GFC, all major banks have inclined towards using long term debt and deposits as their main source of funding because they are considered to be more safe and stable funding source for banks.
Simply put, inflation refers to the rise in the prices of goods and services in a given economy for a given period of time. When such a thing happens, it therefore means that each unit of currency in that particular economy buys fewer goods than what it could have purchased initially before the inflation.
The two countries that are focused on in the author’s arguments are India and China. According to the article 200 million people from these two countries were helped out of poverty due to the impact of globalization during the 1990s. India and China are the two most populous countries in the world with a combined population of 2.5 billion which accounts for approximately 36% of the world’s population (Exner, 2011).
Largely, it is the employer who would commit him or her self to either choosing to pay the employee a defined benefit pension or not. Once selected, the employer pays the employee upon pension, a fixed amount of money every month for as long as the pensioner is alive (Cox, Jonathan and Stephan, 2011, p.
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The author of the paper states that one of the core reasons for concentrating on shareholder wealth is that the businesses that are failed to do so may be taken over by other companies. In addition, it becomes convenient for an organization to draw additional funds from the shareholders if it supports shareholder wealth maximization.
The tasks relating to management of an organisation have become more complex comparing to traditional organisational concept. Many critics have defined this modern period as ‘Post-Modern’, because there have been significant changes in the human activities and their thought processes.
One such exception in the above discussion is that of Ebay who through its constant research and responsiveness to changing market patterns has carved a niche for itself. Primarily, Ebay has leveraged IT as its major competitive tool and implemented such information systems, components and practices that still give nightmares to its rivals (Chen 2005).
The aim is to determine what principal’s understand about the role of a coach and how they perceive their role as leader in association with the notion of instructional coaching, and to determine their perceptions of the instructional coach. Research shows that there is a lack of any thorough research as to the effectiveness of instructional coaching in relation to improved student outcomes but from the perspectives of principals within the limited research available, it seems the multi-roles employed by coaches are valued and respected and considered as a necessary resource for improving and supporting enhancement of teachers’ teaching practices.
Successful supply chain management requires cross functional integration and marketing plays a critical role (Lambert and Cooper, 2000). Procurement is extension of supply chain management allows the smooth functioning of departments engaged in the management process.
The present study would try to analyze the role of customer service towards generation of customer loyalty primarily in service based organizations. The study would include an analysis of the existing literature towards the topic that would help in uncovering the role of customer service in fostering customer loyalty and would also help in identifying the elements of factors that helps in fostering customer loyalty in service based organizations.
As such, our Emporium division suffered extensive damage; twelve of the twenty-two stores were closed for varying periods of time, with the Oakland store hardest hit. In total, uninsured damage was $27.5 million ($16.5 million after tax benefits). We have two options to choose from in presenting losses incurred from earthquake on the income statement.
The concept of credit risk can be simply described as an investor’s risk of loss due to a borrower’s failure to make payments as promised. Such an event of loss is termed as default. According to the Basle Committee, the international banking supervisory body, inadequate credit risk management continues to be the most threatening issue in the modern banking industry.
Accounting Theory: Firms Disclosure of Information Contents Accounting Theory: Firms Disclosure of Information 1 Contents 2 Introduction 3 Accounting Theories and Assumptions 3 Uses of Accounting Information 6 Conclusion 8 Reference 9 Introduction For sustaining in a market a firm need invest from the investors which they can get by winning the confidence of the investors.
009 Assets ? ? ? Long term Assets Fixtures and Fittings & equipment 275000 Motor Vehicles 26000 Total Fixed Assets 301,000 Current Assets Stock 67600 Bank 33000 Trade Debtors 31000 Total Current Assets 131600 Total Assets 432600 Liabilities and Owner’s Equity Owners’ Equity Capital 1360000 Net Loss (840900) Total owner’s Equity 519100 Current Liabilities Trade Creditors 45500 Drawings (132000) Total Current Liabilities (86500) Total Liabilities and Owner’s Equity 432600 Format (Black, 2009) Task 2: Break-even point= fixed costs = ?
On the other hand, the second part entails the comparison of financial performance of two companies, namely, Electronic Arts Inc and Activision Blizzard Inc on the basis of annual reports and financial ratios. Body Paragraphs Task 1 The four sources of short term finance available to any business comprise of Trade Credit, Bank Credit, Customers’ Advances and Loans Account Receivables.
There is always a high employee turnover rate among skilled laundry supervisors. Development Dimensions International Inc has done a survey on employee turnover rates in the Hospital. 215 HR professionals and 862 employees in Hospital have answered the questionnaire and more than 80 percent of them are from Multinational Corporations.
The practices of investment in key assets and policies by the individuals residing in the UK herein would be studied based on different theories that tend to understand the motives of working in the person making people invest. There are around nine different motives that govern an individual’s attitude to invest in different sectors.