Finance & Accounting Essays

Business and Strategic Analysis: It includes analysis of a clear statement of the company’s activities, an analysis of the economy, the industry, and the company’s place in the industry, the company’s competitive and corporate strategy, and the implications of all of these for its future profitability.

Corporate Social Responsibility (CSR) refers to companies are require by law and regulations to take responsibility for their actions that have degrading effects on society and specifically on environment. CSR imply to the efforts made by corporations to protect environment such as constructing an eco-friendly setting in the production process and initiating some positive social welfare for people, employees and stakeholders (Maignan, et al., 1999).

Finance may be acquired through different methods depending on its availability and the ease of repaying it. Financing means the provision of financial materials that a business requires. There are two major categories of financing that normally exist in most businesses (Jim, 2011). These categories are short-term and long-term financing methods.

Lastly, the firm will decide which method of financing the organization will use to acquire the necessary assets to meet with production demands. Consequently an organization can use the available information in order to create the projected income statements and balance sheets as well as estimating the earnings per share, dividends per shares, as well as forecasting key financial ratios and measures in order to determine the viability of the new project.

The fitness center will be situated north of the University of Manchester. There are other fitness centers like Manchester Aquatics center, Manchester Central Personal Training, Jodie O’Neil fitness Coaching, Ardwick Sports Hall, and Momentum Leisure Club. But the fitness center will possess some unique features which will distinguish itself from its competitors.

Investors have a variety of stocks to choose from in terms of getting value for their money when it comes to returns on their investments. The choice has to be made under careful consideration of the performances of the intended stocks for a period of time and this may include the observation of performances of the active and index tracker funds.

The name of the chosen high street outlet is Topshop which sells fashion apparels in the high street outlets in London. This sector is one of the major economic sectors in the country, with retail sales reaching upto 221 billion pounds and employing round 3 million people with total 3, 00,000 shops in UK alone.

From the analysis, CVS Company’s current ratio for both 2011 and 2010 are above one. This means that the company was able to pay its short-term liabilities without any default. Current ratios below one reflect the poor financial health of a company. Therefore, the analysis indicates that the company’s financial health for both years was good.

The organization in need of finance should also evaluate the kind of relationship they are likely to engage with the potential funder and most importantly, the costs associated with the financing requirements. The cost of fund sources is an important consideration for an organization when in need of raising additional funds.

The provision principally attempts towards ensuring that auditors are provided with better independence in their auditing operations as well as towards assuring that investors are offered better confidence in the financial reports published following the auditing process. The rotation of auditors has also been argued to facilitate business organizations in developing better transparency in their financial reports.

Abstract Presently much focus has been put on the strategic systems of measurement with the balanced scorecard being regarded and the best and the one that is highly rated. This approach that has its origin in the United States has not been received well in France whereby another system called tabuleau de bord has been in use for more than fifty years.

Tesco plc is a constituent of FTSE 100, a global grocery and merchandise retailer. Tesco being the second largest retailer by profit after Wal-Mart and third largest by revenues following Wal-Mart and Carrefour have stores worldwide in 14 countries like Asia, North America and Europe.

The use of the Internet definitely facilitates electronic communication between and among customers, suppliers and financial service providers. And at the same time, the Internet brings new avenues of channels of distribution, creating novel business models that do not allow the traditional means to be of any relevance in future (Walters, 2008).

In the process of developing a new business, financial planning is the most crucial area that indicates future viability and attractiveness. The Track Table must focus on developing a financial statement to attract several investors and sources of loans (Pinson, p.4). In this process, the sales estimation for the first two years has been forecasted.

In order to determine the set price, the European Union determined their currency against that of major world currencies like the US dollar. A fixed exchange rate is a rate whose currency amount is determined in advance.

The internal audit function seeks determine to express an opinion on whether an entity’s financial statements show a true and fair view of the companies operations. Inclusive in showing a fair view is the need to ensure that it has been prepared in accordance with accepted accounting standards.

However, it was argued that not all of the firms that have adopted the said strategies have experienced the intended performance. It is because of this that recent accounting literature has suggested the importance of accounting systems.

The author provides examples of company’s financial reports with the constructive information that should offer a fair, faithful presentation and should give a ‘true and fair view” of the financial position of business so that the stakeholders can take informed decision on such financial information.

The measure being used to estimate volatility is ‘beta’ whose reliability in examining historical volatility rates have been assessed and zeroed down upon in the literature review. The methodology aims at examining the degree of volatility in the market returns of the petrochemical industry.

Barings Bank has faced several market risks including concentration of power in a single hand, monitoring of the daily activities, funding allocation, hedging of the position of the bank in the market and checking of the closing position and trading limits.

The paper gives an idea about the two different confectionary companies operating in different parts of the world. Lindt and Sprungli are being stationed in Switzerland, Zetar plc in the UK. The paper analyses the company’s background to give an understanding of the operation of both the companies involved, the overview gives an idea of the strategies that the company follows along with the major markets in which it operates.

The officers may be reluctant to invest in the high-risk projects because this might put their job security in question. For this reason, there is a conflict of interest which leads to the principal-agent problem. A review of the principal-agent problem is useful in terms of creating an organizational structure which synergizes principal’s interest with the agent’s interest.

1. From the given data, it can be seen that Project ‘p’ has a higher NPV as compared to Project ‘q’. Hence, if NPV is chosen as the criterion, Project ‘p’ must be preferred. However, it is also seen that Project ‘q’ has a higher IRR. Thus, form IRR point of view ‘q’ is the preferred project.

As the capital expenditure is marked in negative, the NPV is computed by adding the Capital Expenditure to the summation of the PVs of the ten cash flows. The deduction of the capital expenditure value from the summation of the above mentioned PVs gives us the project’s NPV which is equal to 57.

The authors Thorbecke (Resident Scholar at The Jerome Levy Economics Institute of Bard College in 1995) and Coppock (Professor, Department of Economics, Hillsdale College in 1995) conducted the study with the aim of verifying what percentage of the stock market variation can be explained by macroeconomic factors and monetary policy. 

In just one generation the private equity industry has grew to become a dynamo for growth, innovation and enterprise (Kolade. W, 2008). Britain is a world leader in this sector with one of the largest private equity markets globally, second only to the US.

This research study examines how two of the largest commodity traders in the world, Vitol and Glencore International, conduct their commodity trading activities through the commodity exchanges in the United Kingdom and in its OTC market.

By definition, a budget hotel targets to the lower end of the spectrum and differentiates itself through cost leadership. While on the other hand, a luxury hotel as the name denotes targets to the upper segment of the market offering endearing features.

Every company whether public or private runs on the funds provided by their stakeholders. Therefore they are not only responsible but also accountable for their stakeholders’ interest.

Every organization irrespective of whatever business they undertake has to take some sort of risk. Risk can be classified into two categories systematic and unsystematic. Systematic risks are those which cannot be controlled by the organization alone like a change in interest rate, inflation, recession etc.

Moreover they are fragmented and meet only when legally required to do so. These principals of the company have created an agency in the shape of management to carry out day- to- day affairs in order to meet strategic objectives of the company. This relationship of principal and agent has its own repercussions that create agency problems.

Beta is used to measure risk. A stocks beta indicates the sensitivity of the stock’s returns to the market returns (Madura 2006, p. 304). Madura (2006, p. 304) states that investors who have a diversified portfolio use beta to determine how well their portfolio reflects movements in the market.

Boatright (1999) divides organized finance under three broad categories in life – financial markets, financial services companies and non-financial organizations. Ethical dilemmas in finance surely impact us the most and hence the choice of this topic. An interesting aspect of this dilemma is to understand what is considered ethical and what is not.

The most important aspect of investment hovers around finding a suitable economy, the most appropriate industry type, and a specific company to invest in. After completing this, in order to make the right decision, valuation models must be used to come up with a correct recommendation of buying, selling, or holding the shares of the chosen companies.

In 2008 the world faced a financial meltdown. Globally the world faced major financial crisis and recession. The economic recession was a result of the US mortgage crisis. The subprime crisis of US caused ripple effect across the globe as a result most of the countries felt a financial crunch.

The rise and fall of organizations is dependent on the business practices adopted by them in a particular business environment. It is often assumed that the prime responsibility of any organization is to promote fair and honest business practices along with being transparent and honest to stakeholders in the short as well as in the long run.

Jeff needs to be very careful to use the money in such a way that he may fulfill his plans after retirement. Obviously he would like to use his money to earn some profit on it. The financial institutions are there to help such people.

Depending on the attributes of the technological concept in use they are divided into either sustainable or disruptive forms. Those technological concepts which help in the development of existing business processes and thereby augments the quality of products or services are mainly sustainable in nature

Either banking system deals with assets and borrowers from a location other than the institutional head quarter of the bank. More phenomenally, the difference is identified between the fund raising and distribution stream of both of them while they deal with foreign deposits and borrowings.

Engro Corporation is one of the leading organizations in Pakistan- a developing country, involved in diversified range of businesses. Its primary business is that of fertilizer manufacturing however, over the period of time, it has diversified itself into other sectors such as Food, Energy, and Power Generation etc. (Reuters 2011).

Mortgaged Backed Securities: Literature Review Introduction Securitisation is an accepted technique developed to “finance collection of assets which by their very nature are non-tradable and therefore non-liquid” (Vink & Thibeault, 2008, p. 3). In this way, repayment depends only on the amount of the collateral of the issue and not on the entire financial assets of the parent company or sponsor (Vink & Thibeault, 2008).

One of the obligatory things for the auditor to execute the analytical procedures for risk assessment through out the audit practices to evaluate all the financial records whether they are reliable and satisfy the auditor. There are number of non-audit practices where analytical procedures are being used commonly.

The present paper attempts to assess the extent to which monetary policies are influenced by fluctuations in stock market index values. Many papers have found that the extent to which monetary policymakers react to stock market changes are often driven by other factors such as the rate of inflation and output gap.

The measuring framework must take into consideration the factors of effectiveness and efficiency (measured through cost effectiveness and achieving the desired procurement results), confidence of the civil society (which is reflected in the system accountability and transparency factors), and the policy acquiescence and stability factors.

It is always expected that the capital structures vary considerably across industries. And the optimal capital structure is also different for different industries. Many researchers and practitioners have come up a number theorise and some of them are explained in the following sections.

The simultaneous use of empirical evidence can increase the credibility of the choices made. Current paper tries to identify the motivational theories available to a management accountant who has to set a budget.

The development of critical business decisions is a complex and demanding activity. The use of appropriately customized management tools and practices can reduce the relevant risks. In any case, the current status of the organization needs to be taken into consideration – referring especially to the potential of the firm.

There is growing concern about the excessive managerial remuneration which was highlighted because of recent financial recession. There is much anxiety about making the remuneration packages highly controlled and avoid unnecessary risk or encourage corporate insatiability.

Introduction A merger is a business process by means of which, two or additional number of companies can pool their business assets and form a single organization. In general the stocks of the parent companies’ are given up and instead the stock of the new company is issued.

A comparison will then be made to ascertain the reasons for variations in any of results obtained as the price of crude oil varies. Analysis of liquidity, solvency, asset anagement and leveraging results will form part of this process.The research will provide undisputable evidence to support the proposed hypothesis.