The management of Fianancial Resources and Decisions - Free Essay Example

Sample details Pages: 7 Words: 1985 Downloads: 9 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? Sources of Finance Js and Co. must be very aware of the importance to use the appropriate sources of financing meeting the needs of your company. Sources of finance to business There are different sources of finance,namely : Short term finance- Trade credit Commercial banks -overdraft Fixed deposits for a period of 1 year or less Advances received from customers Various short-term provisions Operating lease. Medium term finance- Debentures/bonds Public deposits/fixed deposits for duration of three years Commercial banks Short term loans lt;5yrs Financial institutions Lease financing / hire purchase financing External commercial borrowings Long term finance Share capital or equity share Preference shares Retained earnings Debt Loan loan secured/loan convenants Debenture/loan note-Fixed interest, tradable Convertibles value shares debt can be converted into a discount to the market value of the debt. Venture capital Very high returns expected Very significant amounts Very high growth potential Venture capital Venture capital Leases- Finance lease Asset securitisat ion Don’t waste time! Our writers will create an original "The management of Fianancial Resources and Decisions" essay for you Create order Implication of sources Failure to use appropriate source of finance may lead to a firm being over-reliant on short term finance or on long-term debt. There are two main reasons for raising funds namely: Purchase of fixed assets, or the buying out of another firm The need for more working capital: for debtors, stocks or cash, i.e. an increase in current assets. From the information in the scenario the short term finance of 50 million is almost finalized and would be available when needed. Therefore there will be the need to finance the 75% by long term source of finance. A matching policy involves the using the long term finance to fund permanent current assets and non current assets There are implications with the different source of finance. Loans -Adv. Amount repayable at intervals is fixed from the beginning of the agreement Amount not repayable on bank demand. Safeguards on asset in case you default from payment -Disadv Normal interest rate apply as per agreement. Special fees would be added in case borrower breaks Loan Covenant ( Limitations on Financial Position ) . Legal costs, commitment fees and Insurance Term of loans would not exceed the usefulness of the asset. Securities- A financial instrument ( Shares or loan stocks) which a company may issue and which can be traded. Loan stocks Debenture written acknowledgment of a debt incurred by your company Fixed rate of interest with option to convert into ordinary shares Equities- The least risky form of finance, the investor has the highest return for highest risk. The return at the discretion of the directors who can declare payment for dividend or hold back as retained earnings for further investment and development. Shareholders maximization wealth may be ignored to further development of the business. Choosing appropriate source of finance As your company is a medium size with two partners you are limited to various source of finance because the structure of the business. You may consider to Inject more capital from both of you as partners, since the business is looking promising and expanding at a fast rate. Introduce new partners which will boost the capital of the business but there is drawbacks as well: Dilution of ownership Profits to be share among more partners Some of the source of finance need you to be registered by the stock exchange thereby adhereing to some rulle and regulations. Stock exchanges are mediums where investors can purchase equity (shares) in a company and participate in the fortunes (or failures) of the company. The need for financing your investment expand business. Benefits In addition to attracting a larger base of potential investors, companies can increase your business image and notoriety and attract better employees Disadvantages There is the extra cost of r eporting to SEC. and the risk of disclosure of information. Competitors can anlayse the F.S. and conclude your trend of doing business. Partners might not want their worth to be disclosed. https://www.morevalue.com/i-reader/ftp/Ch15.PDF Finance as a resource Assess and compare the costs of source of finance Please refer to worksheet for cost of finance Importance of Financial planning Helps monitoring the cash flow and the spending pattern Helps to built a strong capital Enable smooth management of income. It helps in secure decision making for the company As it considers all the income and expenditure, help for the right investment The savings through planning helps in difficult times. Helps to understand the current financial position Effective decision making through planning safeguard your business from assets being a burden in the future Investment with high liquidity. Information needs for decision makers Within the business organization there are two types of users of information. Internal users -Those who have direct bearing with the organization. Managers and owners. To make business deicisions To facilitate financial analysis Formulate contractual terms between your company and other organization. Cuurent debt equity ratio vital in raising finance Financial statements of other companies provides the appropriate guidelines foro channeling resources. The Employees. Use for collective bargaining agreements. Discussing promotion, rankings and salary hike. External users any stakeholders or general public outside the organization. Institutional Investors Assess the financial strength of your company. A long-term lender will always want to know the gearing ratio of a company while the short-term lender will want to know about the liquidity ratio of the business Financial Institutions. Raising finance, like in your situation to raise a loan you would need tp produce the F.S. so that the bank can verify the liquidity and debt level in your company.. Government Investigation of tax payment and validity of profit declared. Genereral Mass and Media General public, students. Impact of finance on Financial Statements Ordinary shares and preference shares Increases the value of equity capital in the balance sheet. If the issued shares market price is greater than the nominal value of the share then share premiumis also increased in the balance sheet. The number of shares issued is alsodisplayed in the balance sheet and for preference shares the rate ofdividend is also shown. The dividends paid to the shareholders are recorded in the appropriation account after tax is deducted from net profit. Debentures Debt capital The value of debenturesalong with the rate of interest and the repayment date is presented in theequity and liabilities section of the balance sheet. The interest paid on debentures is reduced from profits before tax is charged. Bank overdraft This appears in the balance sheet as a current liability since it is ashort-term debt and has to be paid back within a year. The interestcharges and bank overdraft fee if charged are deducted from the profitand los s account before tax is charged. Loan Loans are long-term debts and therefore come under long-termliabilities in a balance sheet. The loan when displayed on a balance sheetwill usually contain information about the repayment date and theinterest charged on the loan. The interest is charged in the profit and loss account. Policies and procedures 1. The going concern concept: an assumption that the business will continue to trade into the foreseeable future. 2. The consistency concept: that the same principles for constructing accounts will be maintained from one set of accounts to the next. 3. The concept of prudence: that in valuing a transaction, a conservative approach will be used, i.e. not to value at highest possible estimate. 4. The accruals concept: that revenues and costs are recorded when they occur rather than when the cash is received or paid. 5. The materiality concept: that financial transactions should be shown separately if by lumping them tog ether with other transactions the user of the accounts might be misled. The financial statement shoud be reliable, understandable,comparable and relevant. Any events after balance sheet date should in the notes and if any mistake or error is found before issuing the F.S. ,it should be hold back and do the necessary correction. Disclosing any facts that can impair the interpretation of F.S. stressing the fact that the F.S. is reliable and show a fair view of the state of the company at the stated date. Financial decisions Plz refer to worksheet in the appendix Analysis of budget and decision making Calculating unit cost and making pricing decision Viability if investment appraisal techniques. Financial performance Purpose of financial statements Financial statements are formal presentations of the flow of money into, through and out of a business Each statement is part of the framework for financial statements. This framework is called the Generally Accepted Accounting Practices, or GAAP. Each area of a financial statement has a purpose and provides specific information about a companys financial stability. The balance sheets purpose is to show the assets of the company. Balance sheets are based on a fix point called a reporting period Income statements show the revenue earned during a reporting period.  Included in this report are the expenses and cost of creating the revenue. Once the expenses and costs are removed from the total revenue, the bottom line of the report reveals whether or not the company lost money or made money Cash flow statements track the inflow and outflow of cash. They reveal whether or not cash was generated by the business. The data for a cash flow statement comes from an income statemen t and the balance sheet. The cash flow statement reveals net decreases or increases of cash for the reporting period. Retained earnings are broken down and explained in the statement of retained earnings. This statement reveals what the company keeps and does not distribute to the owners and how that amount changes over the reporting period. Losses are called accumulated losses, retained losses or accumulated deficit. f.s. they can be used for loan applications, fund-raising or to place a value on a business. But they are typically used for making business decisions that will affect operations. The numbers and calculations in the financial statements are also used to calculate ratios and make further analysis. Common figures derived are operating margins, debt-to-equity ratio, P/E, working capital and inventory turnover. Read more: The Purpose of Financial Statements | eHow.com https://www.ehow.com/about_5047231_purpose-financial-statements.html#ixzz0zECnVqzY Formats of different financial statements ffor different typr of business Sole traders Prepare accounts for their own use to know how much profit/loss for the year. Partnerships -Prepare accounts to get to the profit to be distributed among partners. There is no legal obligation to produce any accounts, but sometimes it does help if they are applying for a loan /mortgage. Public and Private company Legally binded to be registered by the companies house and to follow the required rules,policies and procedures. Therefore they are legally binded to prepare a set of accounts for each accounting year, showing the following- Income Statement for the period ending†¦Ã¢â‚¬ ¦. Statement of movement in Equity for the period ending†¦Ã¢â‚¬ ¦ Balance sheet as at †¦Ã¢â‚¬ ¦. Cash flow statement showing operational, investing and Dividend transactions. Bear in mind management can change depreciation policy and showing less profit. The change of policy cannot bechange very often and should be explain before it does. Accounts should be prepare according to ssaps and proper accounting conditions. Company can vary the mixture source o finance like your company bu they have different area with particular risk and demnd. The format of the FS is being standardize like international papers for acca. To improve the reliability and effectiveness the ssap are to be followed and adopted accordingly. With the International accounting formats need to be standardize. Analysis of Financial Statements using ratios and comparisons, both internal and external Conclusion and Recommendations Sources of finance is available from variety of sources but each source has its own cost and benefits. It is important to choose an appropriate and cheap source of finance for the smooth operation of the firm. There are important factors to consider when choosing a source of finance

Ancient Greek and Roman Names Information

When you think of ancient names, do you think of Romans with multiple names like Gaius Julius Caesar, but of Greeks with single names like Plato, Aristotle, or Pericles? There is a good reason for that. It is thought that most Indo-Europeans had single names, with no idea of an inheritable family name. The Romans were exceptional. Ancient Greek Names In literature, ancient Greeks are usually identified by only one name -- whether male (e.g., Socrates) or female (e.g., Thais). In Athens, it became mandatory in 403/2 B.C. to use the demotic (the name of their deme [See Cleisthenes and the 10 Tribes]) in addition to the regular name on official records. It was also common to use an adjective to show place of origin when abroad. In English, we see this in such names as Solon of Athens or Aspasia of Miletus. Roman Republic During the Republic, literary references to upper-class men would include the praenomen and either the cognomen or the nomen (gentilicum) (or both -- making the tria nomina). The cognomen, like the nomen was usually hereditary. This meant there could be two family names to inherit. The statesman M. Tullius Cicero is now referred to by his cognomen Cicero. Ciceros nomen was Tullius. His praenomen was Marcus, which would be abbreviated M. The choice, while not officially limited, tended to be among only 17 different praenomina. Ciceros brother was Qunitus Tullius Cicero or Q. Tullius Cicero; their cousin, Lucius Tullius Cicero. Salway argues the three name or tria nomina of the Romans is not necessarily the typical Roman name  but is typical of the best-documented class in one of the best documented periods of Roman history (Republic to early Empire). Much earlier, Romulus was known by a single name and there was a period of two names. Roman Empire By the first century B.C. women and the lower classes began to have cognomina (pl. cognomen). These were not inherited names, but personal ones, which began to take the place of the praenomina (pl. praenomen). These might come from ​a  part of the womans fathers or mothers name. By the 3rd century A.D., the praenomen was abandoned. The basic name became the nomen cognomen. Alexander Severus wifes name was Gnaea Seia Herennia Sallustia Barbia Orbiana. (See J.P.V.D. Balsdon, Roman Women: Their History and Habits; 1962.) Additional Names There were two other categories of names that might be used, especially on funerary inscriptions (see accompanying illustrations of an epitaph and a monument to Titus), following the praenomen and nomen. These were the names of filiation and of a  tribe. Filiation Names A man might be known by his father and even his grandfathers names. These would follow the nomen and be abbreviated. The name of M. Tullius Cicero could be written as M. Tullius M. f. Cicero showing that his father was also named Marcus. The f stands for filius (son). A freedman would use an l for libertus (freedman) instead of an f. Tribal Names After the filiation name, the tribal name could be included. The tribe or tribus was the voting district. This tribal name would be abbreviated by its first the letters. The full name of Cicero, from the tribe of Cornelia, would, therefore, be M. Tullius M. f. Cor. Cicero. References Whats in a Name? A Survey of Roman Onomastic Practice from c. 700 B.C. to A.D. 700, by Benet Salway; The Journal of Roman Studies, (1994), pp. 124-145.Names and Identities: Onomastics and Prosopography, by Olli Salomies, Epigraphic Evidence, edited by John Bodel.

Public Issues and Personal Problems Free Essays

PUBLIC ISSUES AND PERSONAL PROBLEMS Most of the time, we don’t think of problems we go through as social issues, but when we compare ourselves to others we can see that many of the everyday problems of average people occur on a larger basis in our country. Some are easier to spot such as unemployment, even though it affects each person laid off once the rates get to a certain point it is obvious that the rates are due to economical factors not the characteristics of each individual (Mills 1). I have found that a problem that is becoming more evident in our daily life is a growing use of dangerous supplements in teenage athletes. We will write a custom essay sample on Public Issues and Personal Problems or any similar topic only for you Order Now When I was thirteen I started in my first school sport. I became a runner. I fell in love with the sport. As I grew older it was something that dominated my life on and off the mat. I often found myself in class wishing I were running. Naturally as I became older I also became more a competitive athlete, as did the rest of my friends that ran or played any high school sport for that matter. Talk of being a competitor at state championships or who was favored at the next match often filled the hallways. Generally this competition appeared a good thing to me. I was a better athlete because of that competition. Being a runner I often heard people talk about â€Å"why would you do that to your body? † referring to dropping weight. At first the idea seemed absurd. The conversations with others about what supplements I was taking or not taking took place almost every day. As I spent more time conversing with wrestlers from other school I found the phenomenon was far from isolated to my school or even my state. Pills such as Xenadrine, DHEA, and Androstat where almost a necessary thing. To keep up with the bell curve of students taking the same things everyone â€Å"had to do it. Instead of sticking with these already dangerous or at the very least unhealthy pills people often felt pushed to try even bigger and better things. Over time the use of very unhealthy supplements to drop or gain weight or to gain any kind of edge became almost common. Sadly many of these pills, drinks, and even injections where available to anyone at most â€Å"health food stores. † The long term use of these can have a devastating effect on teens. I have seen the best wrestlers walk off the mat and into the locker room to puke. Thankfully I have never known anyone personally to suffer any long-term effects but I ave often seen on the news and read in the paper about athletes that have. I recently saw on the news that a pitching prospect for the Oriels, Steve Belcher, died from taking Xenadrine RFA-1. It is true that this was not the only factor, but it was defiantly a major contributor. I am familiar with this particular drug as I probably went through two hundred dollars worth in high school. The major ingredient is Ephedrine. Ephedrine is the principal extract from Ma Huang. Ephedrine is a â€Å"beta-adrenergic agonist,† which means it increases heart rate, blood pressure, and thermal energy by burning fat for energy. My experience with this is it is very effective but unless a person is already in good health (which is unlikely if they are taking a fat burning formula) this can be a very dangerous chemical. Such as in the case of Steve Belcher. The company that makes Xenadrine recently released a new formula of the supplement with out Ephedrine in my opinion because this is because Ephedrine is being evaluated by the USDA and may become illegal over the counter. As I made it though high school and I no longer take part in the rush for the hot new supplements to make me perform better I have found that I haven’t even thought about it in a long time. At the time I didn’t even give it a second thought but now I see that supplements that are meant for short term use by grown adults or that are just plain not healthy to use for anyone are finding their way to the hands of athletes more often. The need to gain an edge and be the best drives them to do whatever it takes for them to win. I find myself relegated to telling my little brother of the dangers and hoping that these supplements will be pulled from the shelf before more harm is done. Bibliography: Works Cited Mills, C. Wright â€Å"The Promise† Mapping the Social Landscape, Ed Susan J. Ferguson McGraw Hill, 2002. 1-6. How to cite Public Issues and Personal Problems, Essay examples

Slaves Dream free essay sample

The Slavs Dream is an incredible, deep poem about the dream of a slave. The writing components used to create a tone of injustice was presented in a creative way. They produced a deeper meaning to the simple sentences said throughout the poem. It makes the reader grasp for a deeper understanding. The author is understood through his writing style by using diction, imagery, and personification to get across his tone to the reader. Wide through the landscape of his dreams the lordly Niger flowed (Lines 7-8) This line is an example of the diction that he uses. The way the sentence is worded brings any questions to mind. Why is the Niger lordly? Why is the N in Niger capitalized? Just to ask a few. When the poet was writing he used lordly to contrast what the reader already knows about slavery. Common knowledge of slavery is that all slaves were treated badly and inhumane. We will write a custom essay sample on Slaves Dream or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Lordly, though usually intended to mean something worthy, is used in context to get across to the reader the way the slave viewed himself in his dream. He considered himself to be worthy and noble.He is admirable of himself in his dream and so he walks around his imaginative Africa as though he is of royalty; his way f escaping from reality and all of its pain. He saw once more his dark-eyed queen among her children stand; they clasped his neck, they kissed his cheeks, they held him by the hand! (Lines 13-16) The writer uses imagery in this statement. The way he describes the childrens affection for the father after they see him, is just so vibrant. You can tell by the affection that they show, it as though they do not see their father often and spend quality time with him.This statement also helps acknowledge the facts of slavery and how most blacks were separated from their families. The man dreams of this affection because it is something that he desires but does not posses. He is showing what basic affection he is lacking due to his rank on the social ladder. The forests, with their myriad tongues, shouted of liberty. (Lines 37-38) The writer uses personification to bring the forest to life. He wants the reader to see that they did rally for freedom, in a variety of ways, but they were still denied this luxury. These writing style components gave the poem more of a creative and inquisitive outlook.The way the writer wrote about every aspect f the dream, he gave deeper meaning to wanting something that you cant have. The authors tone is injustice throughout the poem. Injustice is shown when the dream is everything that the black man desires but lacks due to his powerless state. His rights were taken away from him due to the inequality and unfairness going on during that time period. The tone shows the authors annoyed attitude toward slavery.