Prepare a report, in a format suitable for the directors of Smart Carpet Ltd, and recommend whether they should go ahead with the replacement decision.
An explanation distinguishing the requirements for long-term and short-term financing Short-term Financing: According to Dealflow, short-term finance is a type of debt that entails financial commitments that must be actualized annually or biannually at most.
Businesses Finance for managers essay required to have: As posited by Dealflow, long-term financing cuts across business investments that usually involve protracted re-imbursement periods, usually above two years. Purchases of tangible assets by a company may require long-term financing.
Due to the risk involved in long-term financing, businesses are usually required to: Lengthy period of time is involved Negotiation is easy 2.
Higher risk Minimum burden on the borrowing company 3. The framework is well designed due to the technicalities associated with long-term finance Servicing short-term loans is less demanding with short-term finance 4.
They are usually secured, so they are resistant to short-term challenges Lesser difficulty in monitoring short-term loans 5. Adequate information is usually required from long-term borrowers Short-term financing requires a brief duration 6. Protracted negotiation periods Lesser risk Table 3.
Examination of cash flow management techniques: According to business news daily, Cash flow management is a term used to describe the practice of balancing income to expenses.
It is usually difficult for small businesses to remain atop cash flow management; therefore, they have to adopt the following techniques to manage their cash flows effectively.
Business ownership structures and analysis of corporate governance In the course of setting up a business, the form of business entity has to be considered before the business is established.
The type of business structure you select, determines the income tax return form that will be issued to the company.
Business structures are classified into: This is the simplest form of business structure, which usually involves one-man operation. Legally, the business and the owner are fused together; which simply means that, the owner could suffer loss of personal assets if the company runs into solvency challenges.
For the sole proprietorship, the owner is meant to make quadruple equal payments annually; April 15, June, September and January. Taxes for a sole proprietor are taxed once every month. The major advantage is the fact that the owner has absolute control over the business. The Act defines as where two or more people carry on business with a common view of profit.
The legal requirement is the Deed of partnership; which is a document that constitutes the business and provides rules and regulations that guides the company.
The business is operated in such a way that all partners are involved in the management of the business, except otherwise agreed upon.
In terms of decision making, a simple majority is all that it takes for partners to arrive at a decision. Financially, the Act makes provision for equality among members. This means that, capital is contributed equally among the partners, profits and losses are shared equally also.
The following are contained in the Deed of partnership: The amount of capital to be provided by each partner ii.
The formula for sharing profit and losses iii. The number of votes each partner is entitled to; which is usually based on the proportion of capital contributed from the time the business is established iv. Code of regulations regarding the absorption of a new entrant v. Two or more people can form or incorporate a private limited liability company.Accounting and Finance for Managers Essay.
Financial Statements play a significant role in the decision-making process of several stakeholders in a company’s operations - Accounting and Finance for Managers Essay introduction.
Existing and potential stakeholders have been found to be typically unsatisfied over the level of detail offered in GAAP financial statements (Sinnett & Graziano Finance managers are likely to draw attention on other disciplines also, like accounting and budgeting.
In order to enable financial managers to perform above functions satisfactorily, he must have good knowledge of accounting, economics, mathematics, statistics, . Accounting & Finance for Managers Purpose of the Assessment The purpose of this assignment is to test communication skills together with the ability to analyse, to interpret and to report.
Finance and Accounting for Managers Essay: Introduction The main role of a financial and/ or accounting manager is to give sound advice and support to colleagues and clients in the process of making sound decisions in their business. Finance for Strategic Managers This Term Paper Finance for Strategic Managers and other 64,+ term papers, college essay examples and free essays are available now on timberdesignmag.com Autor: Habiba Anam • October 23, • Term Paper • 6, Words (28 Pages) • Views.
Managers specializing in international finance develop financial and accounting systems for the banking transactions of multinational organizations. • Cash manager- monitors and control the flow of cash receipts and disbursements to meet the business and investment needs of the firm.