As the paper highlights, some examples of fixed costs are insurance, rent, and depreciation and fixed utility charges. Even if the firm is not operating, it will have to bear these costs. For your company, the fixed costs are: insurance, rent of premises, utility charges and salaries of those personnel who are on fixed wages.
The author states that taxes are the most important source of revenue for the government and it is through this source that the Government raises most of its revenue for subsequent expenditure. Taxes are generally raised either through direct taxation or indirect taxation on the businesses and households.
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The return generated by the company on the capital employed in the business highlights the amount of wealth that the company is able to create for its investors. A high ROCE makes the business attractive. The investors are usually lured by the earnings that the company is able to generate for its shareholders.
Another angle of this issue is that though a lot has been talked about in-house auditing, the ground realities all over the world, and even in developed countries like the United States, call for retaining strong external auditing systems for the sake of the well being of the environment as well as the people.
The major reason behind that agreement was to commence the reconstruction and rehabilitation of nations that were adversely affected by global war and to avoid consistent devaluation of currencies. An international monetary system was developed and implemented through the creation of financial institutions named International Monetary Fund (IMF) and World Bank.
The size of the projects is another factor to consider which could largely affect the IRR computation resulting in a wrong decision (Rosen, 1195, p. 244). Along with size disparity, we also need to consider time disparity and unequal lives because these ranking problems would also affect the results of the three appraisal techniques (Rosen, 1195, p. 244).
Despite being an endurable and successful management concept, it is misunderstood frequently. The project tries to evaluate the performance of the system. Firstly, it describes the system in details as developed by Kaplan and Norton. Then it presents how the system has evolved and been accepted in organisations widely.
The economy of the United States and the other countries in which they do business are recovering from the recession and so income is expected to be increasing or constant as shown in the charts above. Both companies have seen the rise and fall in their net income, a result of which was the severing of ties with former employees
Zumiez is a leading specialty retailer of action sports related apparel, footwear, equipment, and accessories. Our stores cater to young men and women between ages 12-24, focusing on skateboarding, surfing, snowboarding, motocross, and BMX. As of August 28, 2010, we operated 396stores, which are primarily located in shopping malls
In the paper, analysis of the various aspects of Activity Based Costing will be done, and how it is used effectively by managers in order to create the maximum value for the company. A number of examples will also be looked into when it did not prove to be very effective for the organizations.
This paper will begin with the statement that to analyze the company’s performance, we will be using ratio analysis – both time period analysis as well as the comparative analysis with respect to number one retail player in the UK market. The advantage of using ratio analysis is that absolute numbers do not give an exact picture of how well a company is performing.
In the US GAAP, the companies that are controlled through the rights of voters are classified as subsidiaries but this does not include the potential voting rights while the IFRS focuses on the conception of the authority to control, where the control is referred as the ability of the parent to govern the operating strategies of an entity
The author states that a currency crisis is a catastrophe that takes place when a tentative attack on the exchange value of currency leads to the devaluation or unexpected depreciation in a country’s currency value. A currency crisis can also lead to a balance-of-payments crisis or a huge exchange rate depreciation.
Political risk is greatly tied with the mining industry and is a major concern for all those investors who are interested in such projects (Ribi, 2009). There is high risk towards achieving reliability of the system due to the development of advanced technology, escalating costs of equipment, and complexity related to modern systems of mining.
Chief Executive’s Review also indicates that the firm earned most of its revenue from the regulated customers however the firm focused more on its strategy of acquisition. Most of the growth in 2008 was achieved through a combination of working with the regulated customers as well as by acquiring different businesses across the globe.
The ethnocentric approach will lead to the situation when most of the company’s managers in Malaysia and Hong Kong are Australian. On one hand, this will help the organization to establish effective communication channels with the subsidiaries and organize the company’s operations abroad. Australian managers are sure to maintain and develop corporate culture standards.
This essay discusses that the major competitor that is used to benchmark the results is the global giant’s affiliate company in the UK, Pizza Hut UK. The strength of the global brand of Pizza Hut provides a reason to make it a suitable competitor for Domino’s Pizza. The Pizza Hut UK’s strength as a competitor can be used as an alternative.
However, some policies currently practiced by the company should be changed in order to improve the cash flow. First, the company must require the deposit for the services that the company has offered. With regards to the brewery sale, the deposit of 20% would elevate the cash flow of the business.
The author states that as an outcome of the financial crisis, the face value of the currency falls drastically lowering down the purchasing ability of an economy. The risk management ability of different financial institutions falters massively creating a situation of confusion and dilemma within the economic system.
This project may be an unmitigated disaster or an unqualified success, depending upon the way the top management looks at it. Initially, it may be encumbered with tremendous cost burdens which might impinge upon their other productive projects also. But it is possible that it may yield handsome earnings in later years
Another part of this was that in addition to banks lending based on trends in the housing market, the banking industry was largely unregulated, leading to easy credit conditions and predatory lending practices. This fuelled debt and the ability of government policy initiatives were unable to avoid the resulting economic crisis.
The author states that a closed-end fund needs to register with the Securities and Exchange Commission (SEC). They are managed by either as the board of trustees (if formed as trust) or board of directors (if formed as a corporation). The board hires a fund manager to work as per the objective of the fund and in the best interest of the investors.
Having knowledge about Islamic finance is quite necessary from the perspective of financial stability. The fact has been established by the recent economic downturn. While the conventional banking system was in a severe trembled situation, Islamic banking has left its mark with the stable operational activities.
The source represents the rich person’s cash and other assets that are placed into the business entity (Schiller 25). The rich individual may be a creditor. The creditor loans money to the business in exchange for interest payments. The individual may also be an investor. The investor is part owner of the company.
Capital markets don’t include short term money markets where money is lent and borrowed in the short run through the interaction of the banks, financial houses, and individual money lenders. Functional efficiency of the capital market is determined by a number of factors including the government’s regulatory mechanisms.
Various ratios pertaining to the company are calculated and the financial position of the company is explained in brief based on the calculated ratios. The liquidity ratio gives information regarding the ability of the company to pay off their current liabilities through the current liquid assets or to pay off the liabilities.
In the case of British Airways, the return on equity their percentage of return to equity holder is on a declining trend. The return on equity in the year 2009 was in the negative zone at 19% and the losses further increase in the year 2010 which makes the return on equity to further negative zone by 1% i.e. 20% in total.
The author concludes in order to fight inflation and manage their macro policies, the developing countries always try to handle their nominal exchange rate. If policies are successful, relative prices adjust to changes in the nominal exchange rate, by implying that in these countries real exchange rates should be stationary or they should relapse to their means
From this paper, it is clear that the market value of assets falls more than liabilities and this affects the net interest margins and cash flows. A deterioration of the bank balance sheet through a contraction in capital can impact upon the role of the bank as a financial intermediary and render it incapable of performing its role.
Bonds and stocks can both be exposed to changes in real exchange rates and the subsequent risk factor has a dichotomous outcome for the two investment vehicles. Bonds have an assured constant return over its lifetime till the time of maturity. Thus they experience only a limited impact by way of interest rate changes.
Examining the core causes of the crisis, how it developed and the key players such as rating agencies and subprime lenders, the paper suggest that elements of Islamic finance have prevented many of the negative repercussions that have swept through the Western financial industry. The core characteristics of Islamic finance are examined.
This paper will begin with the statement that the capital structuring for the firms has gained significant importance in deciding the appropriate structure that will provide a maximum advantage with minimum cost to the firms. There has always been a debate over the equity and debt financing for capital structure and it still continues.
The author states that the Commercial Bank of Dubai has successfully made its position in the banking industry by effective performance. It is rated among top ten banks of United Arab Emirates (UAE) with respect to market capitalization, lucrativeness, and proficiency. In the year 2009, the net profit of the bank was almost 803 million AED.
According to the paper, the line graph and column graph above shows the change in UK airline passengers in 2012 from the month of January to June. There is a steady growth in the number of passengers every year although the increase is not rapid. January shows a lower number in the passenger movement.
This research tells that as the cost of equity increases significantly, using the marginal cost and the tax benefit of borrowing of 75 million dollars may have less than the required effects. The tax benefit of borrowing is termed as the reduction in the cost of capital but the net effect of additional borrowing show the significant increase in the weighted average cost of capital.
The author states that the role of financial services is not only essential for the companies but it is also important for economic growth and development. They are the largest in the world in terms of earnings comprising of a vast range of businesses. But the financial institutions are also not free from criticism.
Aristotle lived in Ancient Greece between 384 and 322. Aristotle was the teacher of Alexander the Great who is the Greek Emperor who expanded the Greek Empire onto the three known continents of his era. This paper examines the ideologies of Aristotle and how it relates to politics in the world today.
Tesco Plc is one of the top multinational retailers which provide general merchandise and grocery items across several countries. It was instituted in 1919 in the United Kingdom and has acquired the second position in terms of revenue globally. The company has commenced its business as a grocery retailer.
Even after nations acquired independence, globalization continued to generate trade between investors and foreign countries, whereby the less developed countries were supported by the developed nations to acquire materials and equipment to utilize the available natural resources for economic development.
The sales assistants were deployed to learn the needs of the customers in terms of financial services. The basic product of WaMu was a home mortgage. Killinger’s strategy was to purchase home loan operations and banks that enabled Washington Mutual to be rated among the nation’s top banks that serviced mortgages (Washington Mutual Inc.).
The market size, competitions, innovation, ethical concern etc have increased significantly in business. The modern business organisations have expanded their areas of responsibilities. The increasing concern for social and environmental sustainability leads to develop a strong corporate sustainability.
The research paper intends to assess the importance of external auditors and internal auditors in listed companies. In addition, the research paper will identify the functions of internal and external audits. The work of internal and external audit has a great chemical reaction in facilitating financial control. The case has not always been that.
Net present value technique is one of the project appraisal techniques that are used by project managers or investors to determine whether the project is profitable. It indicates the value that a project or investment add to the firm. Net present value reflects the future value of money as compared to the present.
The role of e-commerce to the development of business activities and, furthermore, to the increase of a company’s financial performance has been doubted in the literature. The reason for such an assumption is that according to Garbi ‘e-commerce environment seems to complicate the measurement of firm performance.
Extensive primary and third-party research indicate that, given the seasonal nature of this geographic area, Repairocon’s projected base of residential customers will be complemented by an influx of freeway customers. Repairocon’s proximity to the highway location and billboard marketing campaign will attract commuters.
An analysis of the major players in the US aviation industry- Boeing Company (BA) and Lockheed Martin Corporation (LMT) highlights the financial strengths and weaknesses of the two companies. The financial statements for the years 2009, 2008 and 2007 have been analyzed to give an idea about the financial performance of the companies.
The Central Bank of England is a centre of world finance, a sign of public credibility and stability. The attention of the scientists, economists and researchers to the Bank is reflected in books, journal articles, researches, economical analyses etc. This paper is based on consideration of the main works on Bank’s roles and responsibilities.
One of the major factors that would have affected the performance of these companies is the global financial slowdown. With the unemployment rates rising in 2009 and wages going down, people had less money to spend. This had an adverse effect on the supermarket chains in the way of consumers looking for cheaper products.
This research begins with the statement that financial engineering involves the “design, development and implementation of innovative financial instruments and processes and the formulation of creative solutions to problems in finance”. In that sense, the main objective of financial engineering lies in the mechanism that leads to lowering of transaction costs and achieving better returns.
Companies use the Internet, not only to improve efficiency and effectiveness but also to stay ahead of technological changes introduced in the business world. The unprecedented growth of the Internet has surprised both technology and enterprises in the year 2005. The volume of business done through the Internet was the US $ 8.5 Trillion in 2005.