Managerial Finance Essays (Examples)

Finance

Managing exchange rate risk can be a daunting task for many international firms attempting to expand overseas, acquire new companies, or simply manage its cash flows. Globalization has created a dynamic environment in which competition can arise to disrupt entire industries. Aspects such as technology, pharmaceuticals, banking, and automobiles have all experienced rapid change as a result of globalization and the competitive forces that underline it. As a result, companies, particularly smaller firms, have a higher propensity to experience volatile earnings overtime. Aspects that impact one sector of the globe can have a residual impact on other areas of the individual firm or industry. Managing exchange rates is therefore a viable option for firms to reduce volatility in earnings while subsequently managing its cash flows from operations. Below, is a 5 step program which could be implemented by a firm attempting to manage its exchange rate risk after an…

References

1. Jorion, Philippe (2009). Financial Risk Manager Handbook (5 ed.). John Wiley and Sons. p. 287. ISBN 978-0-470-47961-2.

2. Bartram, Sohnke M. (2006). "The Use of Options in Corporate Risk Management." Managerial Finance 32 (2): 160 -- 181

Finance

Any Asset Pricing Theory forms the basic foundation of finance theory, in that it deals with the value of any asset under unknown or uncertain circumstances. The relationship between an asset and its price is the mainstay of the asset pricing theory: the lower the price, the poorer the expected performance. The Arbitrage Pricing Theory derives from this theory. The basic idea in the APT theory is that any sort of risk in asset returns must not affect the pricing of the asset in any way; it must depend on the covariance of assets with the risk factors. (Bayesian Approach of the Arbitrage Pricing Theory) The APT originated from Stephen oss, 1976-1978. oss had used a statistical procedure for assets returns, with the belief that there are in existence no arbitrage probabilities. The APT must of necessity involve a lot of risk taking processes, (Definition of Arbitrage Pricing Theory.)…

References

An Introduction to Investment Theory" Retrieved at  http://viking.som.yale.edu/will/finman540/classnotes/class6.html . Accessed on 29 July, 2004

Bayesian Approach of the Arbitrage Pricing Theory" Retrieved at  http://64.233.167.104/search?q=cache:Sa6l536IAccessed  on 29 July, 2004

Capital Asset Pricing Model" Retrieved at  http://www.investorwords.com/698/Capital_Asset_Pricing_Model.html . Accessed on 29 July, 2004

Definition of Arbitrage Pricing Theory" Retrieved at  http://economics.about.com/cs/economicsglossary/g/apt.htm?terms=economic+theoryAccessed  on 29 July, 2004

Price: The customer will be able to choose from a wide variety of prices, starting with $15 and ending with $2,000. The average retail price is of $100.00 a bottle of specialty wine, with an average fixed cost per bottle of $50. The $50 difference allows me to reduce the retail price if I find this is necessary to attract customers. I could also implement various pricing strategies, such as the penetration one in the beginning and the variable one after the penetration.

Break-Even Analysis: It sees that I would start making profits after I sell 8 bottles of wine. This would not however be true if I sell 8 bottles of the cheapest wines. The implemented price and the incurred costs once again allow me to joggle.

Industry Features: This may be one of the most important aspects of the new business, mostly given the recent talks and figures…

References

Thomas, C.R., Maurice, C., 2008, Managerial Economics, 9th Edition, McGraw-Hill/Irwin, the McGraw-Hill Companies

2008, Financial Calculators - Breakeven Analysis,  http://www.dinkytown.net/java/BreakEven.htmllast  accessed on November 24, 2008

2008, Investopedia,  http://www.investopedia.com last accessed on November 24, 2008

On top of this, it's important to remember that FDI inflows to the LDCs are highly concentrated geographically: four petroleum-producing LDCs - Angola, Chad, Equatorial Guinea and Sudan - received more than half (56%) of the total FDI inflows going to all 50 LDCs in 2000-05 (United Nations Conference on Trade and Development, 2007).

LDCs are riskier investments than emerging countries. Emerging countries show signs of advancement in their financial structures - banks, stock markets, regulatory bodies, and have reached a certain level of maturity in terms of depth, breadth and liquidity in its financial structure and economy as a whole (What is the distinction between less developed and emerging markets?). Less developed countries, on the other hand, have not yet reached this stage of financial and economic development.

ibliography

OECD. http://www.oecd.org/dataoecd/62/43/38818788.pdf

OCO Global. http://www.earthtimes.org/articles/show/global-foreign-direct-investment-grows-to-almost-1-trillion-in,301274.shtml

Foreign direct investments in 2007. EconomyWatch. http://www.economywatch.com/foreign-direct-investment/2007.html

United Nations Conference on Trade and Development. http://www.unctad.org/Templates/webflyer.asp?docid=8624&intItemID=4431&lang=1…

Bibliography

OECD.  http://www.oecd.org/dataoecd/62/43/38818788.pdf 

OCO Global.  http://www.earthtimes.org/articles/show/global-foreign-direct-investment-grows-to-almost-1-trillion-in,301274.shtml 

Foreign direct investments in 2007. EconomyWatch.  http://www.economywatch.com/foreign-direct-investment/2007.html 

United Nations Conference on Trade and Development.  http://www.unctad.org/Templates/webflyer.asp?docid=8624&intItemID=4431&lang=1

Managerial Prerogative Has Gone Too Far?

Whenever an organization is founded and the objectives for its existence have been established, the founders and management of said organization are expected to ensure the continuity, viability, and resilience of the enterprise. This is done via the allocation of needed resources (i.e. capital, human, financial, etc.) and formulation of strategies in order to achieved set and target organizational goals. Once operational, there are other duties, responsibilities, accountabilities, rights and privileges management can and must exercise to achieve continued operational success and efficiency. One of these management principles or concepts is known as managerial prerogative, which "includes the right to organize operations and methods of working, issue detailed instructions on the circumstances in which work is performed, and take in matters relating to working hours in so far as these are not rigidly regulated by collective agreement (Eurofound, 2009)." Often, managerial prerogative is institutionalized…

Bibliography:

Bado, J. & Logue, J. (1991). Hard hats and hard decisions: The evolving role in employee-owned firms. Employee Ownership Law and Finance, 4: 1-19. Retrieved May 13, 2011 from http://dept.kent.edu/oeoc/OEOCLibrary/Preprints/BadoLogueHardHatsAndHardDecisions1991.pdf

Ellis, A. (2008). The strain between managerial prerogative and contractual principles in English labour law. Retrieved May 13, 2011 from  http://www.workplacebullying.co.uk/manperog.html 

European Foundation for the Improvement of Living and Working Conditions (Eurofound). (2009, August 14). Limits to the employer's managerial prerogative. Retrieved May 13, 2011 from  http://www.eurofound.europa.eu/emire/FINLAND/ANCHOR-DIREKTIOVALLANRAJATGR-Auml-NSERNAF-Ouml-RDIREKTIONSR-Auml-TT-FI.htm 

Greenfield, K. (2008). Reclaiming corporate law in a new gilded age. Harvard Law & Policy Review. Retrieved May 13, 2011 from  http://www.hlpronline.com/Greenfield_HLPR.pdf

Finance/Management Accounting

The topic of finance and managerial accounting inclusively, are broad and incorporate a critical skill set in the modern day business student. Finance involves corporate and investment finance and managerial accounting is complimentary as it involves cost accounting and essentially stresses cost management. Together, these topics provide a comprehensive financial analysis skill set yielding capability in solving the day's most critical business financial quandaries. The literature review will seek to narrow down the literature and funnel the topic into the main financial analysis area.

According to Musvoto, (2011), "Studies in accounting measurement indicate the absence of empirical relational structures that should form the basis for accounting measurement. This suggests the lack of objectivity of accounting information. Landmarks in the development of finance theory indicate the use of accounting measurement information as a basis for their development. This indicates that subjective accounting information is incorporated in finance theory. Landmarks…

References

Allen, D. (1992). Financial management: The leading edge of management accountancy. Strategic Finance, 73(12), 53. Retrieved from  http://search.proquest.com/docview/229748882?accountid=13044 

Black, T., & Gallagher, L. (1999). Are physical capacity constraints relevant?: Applying finance-economics theory to a management accounting misconception. Australian Journal of Management, 24(2), 143. Retrieved from  http://search.proquest.com/docview/200627217?accountid=13044 

Brewer, P.C. (2008). Redefining management accounting. Strategic Finance, 89(9), 26. Retrieved from  http://search.proquest.com/docview/229763529?accountid=13044 

Coakley, J.R., & Brown, C.E. (2000). Artificial neural networks in accounting and finance: Modeling issues. Intelligent Systems in Accounting, Finance and Management, 9(2), 119. Retrieved from  http://search.proquest.com/docview/214368060?accountid=13044

" (Moseley,
1)
From a project management standpoint, delegating these funds is a
significant concern. The recent history of government financial
mismanagement, has caused the public some rightful wariness as these
massive bailout plans come to fruition. The Obama Administration must
devise a strategy which ensures that these bailout funds are designed to
protect American homes, stimulate job creation and help to improve the
infrastructural stability of the nation. The administration has the
unenviable task of prioritizing the countless areas of civil life in which
the U.S. is currently struggling with debt and the erosion of resource.
This requires a management approach that is informed by crisis planning and
intervention theories.
Another way to successfully plan the delegation of funds and resources
as yielded by the bailout is through information systems management.
Modern IT Systems such as the Enterprise Resource Planning (ERP) system
allow users to enter in a complex…

Works Cited:

Barton, P. (2001). Enterprise resource planning: Factors affecting
success and failure. University of Missouri - St. Louis. Online at
 http://www.umsl.edu/~sauter/analysis/488f01papers/barton.htm#Introduction .

Brewer, P. (2009). Root Causes of the Financial Crisis. WiseBread.
Online at  http://www.wisebread.com/root-cause-of-the-financial-crisis 

Managerial Accounting

Strategic Management in Large Multinational Corporations

Strategic

References

Bahel, J. (2010). "IT Departments Can Be Profit Centers." The National Law Journal. 4 May 2010. Retrieved 12 June 2011 from  http://www.law.com/jsp/lawtechnologynews/PubArticleLTN.jsp?id=1202457604490&slreturn=1&hbxlogin=1 .

Kaplan, R. (2006). "The Demise of Cost and Profit Centers." 07-30. Retrieved 12 June 2011 from  http://docs.google.com/viewer?a=v&q=cache:urZNESBdX_wJ:www.hbs.edu/research/pdf/07-030.pdf+cost+center+profit+center&hl=en&gl=us&pid=bl&srcid=ADGEESiH4jXNTLZFAWYz3Mhg9ZiUngFDGhN67WG3nVag2lsUBympBGXHxj_zkTJJLxcCQmQ3C2x3h8G6geB2yK5wZozGeItCBO9bUjQ-EmUYpaJCnQr_q-QTqMvRjb27342hLqU2sPdK&sig=AHIEtbRCnKhuOaTjlOCIqSJvk1lc89O2Ow 

Portz, K. & Lere, J. (2010) "Cost Center Practices in Germany and the United States: Impact of Country." Differences on Managerial Accounting Practices. 25 (1).

Leonard, S. (2006). "Turning your CRA program from a cost center into a profit center." Community Banker. Retrieved 1 February 2006 from  http://business.highbeam.com/61548/article-1G1-142874095/turning-your-cra-program-cost-center-into-profit-center

Managerial Assessments of the Applications of egression

Management

The commentary of the article begins with the subject of the research in the article: Organizational Politics within Academic Departments. This subject is valid of research as it is a factor of which many students are unaware, yet are apart of and by which they are affected. Uninformed views or stereotypes of academia may not include the order of politics evident among faculty and staff within each department, yet they exist. Therefore the first piece of criticism is to validate the subject matter of the study. Furthermore, the authors argue for the importance of their study as there is little research in the area, for reasons that some of which are obvious and self evident.

The specific behavioral focus for the article is conflict. The authors wish to understand the nature of conflict within organizations and the impact conflict has upon perceptions.…

References:

Darr, W.A., & Johns, G. (2003) Political climates: Theoretical processes and multi-level antecedents. In Proceedings of the Annual Conference of the Administrative Sciences Association of Canada, Organizational Behavior Division, 24(3)., 36 -- 50. Halifax, Nova Scotia. Retrieved from http://luxor.acadiau.ca/library/ASAC/v24/Proceedings/OrganizationalBehaviour.pdf. 2012 April 14.

Garson, G.D. (n.d.). Regression statnotes: Topics in multivariate analysis. Retrieved from  http://www2.chass.ncsu.edu/garson/pa765/regress.htm . 2012 April 10.

Finance

Financial Analysis of Morrison's PLC

Morrison's, the UK supermarket may be assessed as a potential investment. The firm may be considered by looking at the way that the share price is performing, comparing it to its past performance as well as benchmarking the performance against the industry

The share price will reflect the market expectations, so as well as looking a past performance it is also necessary to look to the potential future; this is often achieved by looking at the financial ratios of the firm considering the performance both vertically and horizontally.

Morrison's appears to have had a relativity mixed year; the share price stands at 277.60, closing price on the 24th August, 2012 (FT, 2012). The share price has been volatile, increasing and decreasing, over the last 52 weeks the high has been 340.00 and the low has been 261.00 (Yahoo Finance, 2012). Over the year the…

References

Baye Michael, (2007), Managerial Economics and Business Strategy, McGraw-Hill/Irwin

Elliott B, Elliott J, (2011), Financial Accounting and Reporting, London, Prentice Hall.

Financial Times, (FT), (2012), WM Morrison Supermarket PLC, retrieved 25th August 2012 from  http://markets.ft.com/Research/Markets/Tearsheets/Summary?s=MRW:LSE 

Financial Times, (FT), (2012), Tesco PLC, retrieved 25th August 2012 from  http://markets.ft.com/Research/Markets/Tearsheets/Financials?s=TSCO:LSE

Managerial Acctg

The weighted average cost of capital is as follows:

In a net present value analysis, the cost of capital is often used as the discount rate. A net present value analysis seeks to reflect the value today of cash flows in the future. In order to do that, the future cash flows must be discounted back to present day dollars. There are a number of different ways to obtain the discount rate. The company might utilize a hurdle rate that they choose given their own reasons. Another approach is to use the rate associated with the financing that the firm wants to use -- for example if it intends to issue a bond it might use that bond rate as the hurdle rate. However, the weighted average cost of capital (ACC) is one of the most common.

The ACC is often adjusted to suit the risk profile of…

Works Cited:

Investopedia. (2012). Weighted average cost of capital. Investopedia. Retrieved November 16, 2012 from  

Finance

Investments and the Irrelevance Proposition

The expected rate of return on an investment is calculated by taking the expected return and dividing it by the amount invested. If there is a return of $6 on an investment of $100 the rate of return is 6%.

When a customer states they are unhappy with this return, and it is suggested that they borrow $90 to help pay for the investment, which has an interest rate of 4%, the broker is suggesting that the investor goes from an unleveraged position where there is no borrowing, to a highly leveraged position, where there is a high level of borrowing.

Looking at the effect this will have on the investment the first consideration is to look at the investment itself; if the investor borrows $90 and invests $10 of their own, there is still a total investment of $100, and the return for…

References

Baye Michael, (2007), Managerial Economics and Business Strategy, McGraw-Hill/Irwin

Miller, M. H, (1991), Financial Innovations and Market Volatility, Cambridge, Massachusetts: Blackwell Publishers

It is inexcusable that no action was taken during the five years to contain overtime.

The excessive overtime may be directly linked to the morale issue and this will need intervention in order to understand the core of issues.

Sales revenue is in fact in decline and this is resulting in a declining gross margin percentage from 40% in 2003 to 31% in 2007. This is not sustainable arrangement as this means that the profitability of the company is in danger having lost 9% over five years; with excessive overtime, the net profit of the company will be adversely affected.

The average number of staff has increased without a commensurate increase in sales or gross margin. There is no justification for the higher staff numbers.

Question 3

Refer Question 1 workings for formula amounts below.

Labour rate and Labour Efficiency Variances for 2007:

Variances from Standards

Direct labour variances:

a.…

Finance

Starbucks is engaged in the quick service food industry, primarily focused on coffee and related snacks. The company has come under strong competitive and economic pressures recently, and this has impacted its performance. However, Starbucks has turned around its financial performance in the past year, which has restored investor confidence in the company.

Starbucks is both liquid and solvent. In the past year or so, they have improved their liquidity and solvency ratios. They added long-term debt to their balance sheet in 2007 but have not increased this debt since. The company's margins have slowly eroded over the past five years, mainly due to a decline in customer side pricing power as the result of competition from low price providers. Starbucks has also seen its efficiency erode, likely due to expanding into less-saturated markets around the world in search of growth. Overall, however, the company's financial performance has been…

Works Cited:

Allison, M. (2010). Starbucks tests new names for stores. Seattle Times. Retrieved October 24, 2010 from  http://seattletimes.nwsource.com/html/localnews/2009479123_starbucks16.html 

Groom, N. (2007). Starbucks shares hit 18-month low -- time to buy? Reuters. Retrieved October 24, 2010 from  http://www.reuters.com/article/idUSN1541189820070515 

MSN Moneycentral: SBUX. (2010). Retrieved October 24, 2010 from  http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=SBUX 

Starbucks 2005 Annual Report. Retrieved October 24, 2010 from http://library.corporate-ir.net/library/99/995/99518/items/178286/Annual_Report_2005_part2.pdf

Managerial Hubris: Case Study of Farrow Bank

Instances of leaders and managers portraying overconfidence as far as their managerial behavior is concerned are not rare. This excessive overconfidence is referred to as managerial hubris (Brown, 2006). The individual overwhelmingly believes they cannot wrong. In most part, this behavior emanates from a sustained period of success, which makes the individual unrealistically perceive themselves as somewhat prone to error. Hubristic behavior can be costly to an organization, sometimes even leading to downfall (Hollow, 2014). This was particularly true for Farrow Bank, a booming bank in the early 20th century. The bank collapsed in 1920, with managerial hubris on the part of its founder and CEO, Thomas Farrow, being the major contributing factor. Focusing on the failure, this case study explores the implications of managerial hubris on organizational success. The case study particularly pays attention to four issues: how corporate culture, leadership, power,…

References

Brown, R. (2006). CEO overconfidence, CEO dominance and corporate acquisitions. Retrieved 20 October 2016 from:  https://research.mbs.ac.uk/accounting - finance/Portals/0/docs/2007/Raynabrownmanchester.pdf

Hollow, M. (2014). The 1920 Farrow's bank failure: a case of managerial hubris? Journal of Management History, 20(2), 164-178.

It sheds light on why the financial results deviated from expectations and what remedies can be included in the next strategic plan in order to ensure that the company improves performance in the next period.

There are differences among budgeting techniques in different companies and it may well be that some generalizations can be made between the budgeting techniques in different countries. In the Netherlands, for example, budgets are often a compilation of departmental budgets set by lower-level managers (De ith & Dijkman, 2008). Yet within that country, there is considerable divergence among public companies. The same is true for companies in other major estern nations as well -- a wide range of techniques is used in any given sample of companies.

It should be noted that in the U.S., there is a move towards post-budgeting techniques, such as Beyond Budgeting, Activity-Based Costing or the Balanced Scorecard (Becker et al.,…

Works Cited:

Becker, S., Messner, M. & Schaffer, U. (2010). The evolution of a management accounting idea: The case of beyond budgeting. WHU Otto Beisheim Graduate School of Management.

De With, E. & Dijkman, A. (2008). Budgeting practices of listed companies in the Netherlands. Management Accounting Quarterly. Retrieved November 3, 2011 from  http://findarticles.com/p/articles/mi_m0OOL/is_1_10/ai_n31369438/?tag=r%20bxcra.2.a.33

This has an effect on: the kind strategy they are using to achieve their objectives, the attitude among employees / managers and how quickly a firm can adapt to changes inside the marketplace. ("usiness Success in Today's World," 2009)

Alternatives that can be used in Organizational Planning

One possible alternative that could be used to help provide businesses with better reporting is for them to begin using International Financial Reporting Standards. This is when the largest economies in the world, agreed to work together to create universal budgeting procedures that everyone can use by 2014. The basic idea behind this approach is to improve transparency and accountability, by having all of the various firms following widely accepted accounting practices. Once this occurs, is when there will be a shift in the way organizations are planning for a host of events. As a result, this kind of approach should be considered…

Bibliography

Business Success in Today's World. (2009). Accountant Next Door. Retrieved from:  http://www.accountantnextdoor.com/business-success-in-today%E2%80%99s-world-%E2%80%93-8-key-factors/ 

What's Ahead for International Accounting Standards. (2009). Loman. Retrieved from:  http://www.lorman.com/newsletters/article.php?cd=18198:1390:1:2:11&article_id=1390&newsletter_id=296&category_id=6

Managerial Position

Managers and Their oles: An Essay

Management is an art of coordinating the main activities of any organization, enterprise, company (Merriam-Webster). It is considered as one of the most demanding vocations of the existing era. In the olden times, there was not much competition since the population was very less and there were abundant resources. Hence, people used to work honestly and hard. The main reason behind their honesty and efforts was that in that time period, there were not many options and if one got fired from their place of employment, chances of getting another job real were next to nothing and a responsible individual wouldn't do anything like that to risk his or her livelihood and the survival of one's family. So the supervisors or managers didn't work hard to plan and streamline the workforce. Times have changed and the competition has grown increasingly stronger; today,…

References

Capital Budgeting Definition | Investopedia. (n.d.). Investopedia -- " Educating the world about finance. Retrieved July 30, 2012, from  http://www.investopedia.com /terms/c/capitalbudgeting.asp

Chief Financial Officer (CFO) Definition | Investopedia. (n.d.). Investopedia -- " Educating the world about finance. Retrieved July 30, 2012, from

Managerial Accountant

ACC403 Module 4 Threaded Discussion Managerial Accounting 21st Century The purpose management accounting organization support competitive decision making collecting, processing, communicating information helps management plan, control, evaluate business processes company strategy.

The importance of management accounting within an organization:

Changes and evolution of the managerial accountant's role

The distinctive feature of managerial accountancy is that members of the profession work for one specific company on a consistent basis, versus being employed by a variety of clients. "The role of the management accountant is to perform a series of tasks to ensure their company's financial security, handling essentially all financial matters and thus helping to drive the business's overall management and strategy" (ole of the managerial accountant, 2012, Business Careers). Depending on the seniority of the accountant, these duties may include budgeting, tax advice and policy, managing assets within benefits packages and other forms of strategic planning (ole of…

References

Accounting. (2012).Wet Feet. Retrieved:

http://www.wetfeet.com/careers-industries/industries/accounting

Cooper, Phillip & Dart, Eleanor. (2009). Changes in the managerial accountant's role: Drivers and diversity. The University of Bath School of Business. Working Paper. Retrieved:

http://teambath.bath.ac.uk/management/research/pdf/2009-06.pdf

Finance Director in a eputable Organization

A couple of weeks ago, I came across a poster in a gift shop that read: "you cannot run away from your destiny!" I couldn't agree more. Deep down, I have this great conviction that I was destined to be a Finance Director in a reputable organization.

I developed a liking for things monetary at a very early age. When I was only 6 years old, I used to have a small jar of coins that I hid under my bed. This was my 'savings account' and every coin I got (mostly solicited handouts from family members) went into the jar. Every day, before going to bed, I would pour out the contents of the jar on my bed and take stock of the number of coins I had. Looking back, I guess I was slowly honing (albeit subconsciously) the prerequisite cash management skills…

References

Fitch, T. (2009). Career Opportunities in Banking, Finance, and Insurance (2nd ed.). New York, NY: Infobase Publishing.

Griffin, R.W. (2010). Management (10th ed.). Mason, OH: Cengage Learning.

U.S. Department of Labor and the U.S. Bureau of Labor Statistics (2010). Occupational Outlook Handbook 2010-2011. Washington, DC: U.S. Government Printing Office.

Introduction
In the business actuality of the present day, where knowledge management together with intangible assets are fundamental sources of competitive advantage, the individual action and behavior of employees ranging from first-line personnel to management can facilitate the success or downfall of an organization’s reputation. This has a substantial effect on share value, the capability to attract and sustain consumers, investors, personnel, or clients, and the risk of violating compliance (Jamshidinavid and Kamari, 2012). Addressing business ethics and responsibility issues within a business entity begins the compliance of the pertinent legislations and codes of practice. As a provider of business needs with scarce resources, there is the need to have the capability to make a distinction between the appropriate and inappropriate way of taking expense into account when making decisions regarding practices and processes of clients. In the contemporary business setting, the role that is played by accountants is significant.…

Margin is quite simple and states that a certain value of the production volume exists for which costs are accounted for, but profit is null. This critical production volume is calculated by applying the following formulae:

The Variable Cost per Unit is calculated as Total Variable Cost per Current Volume. Therefore, aggregate revenue (Quantity (Volume) x Price per Unit (P)) shall be equal to the Variable Cost per Unit x Quantity + Fixed Costs + Profit

Q x P=VCU x Q + FC + Profit

x (P -- VCU) = FC + Profit and Q = (FC + Profit) / (P -- VCU)

The critical point is reached when the Contribution Margin is equal to the Fixed Costs and Profit is zero, since the Contribution Margin the sum of the Fixed Costs and Profit.

The first point I think that needs to be maid is that the Contribution Margin is…

References:

1. Breakeven Analysis -- Basics. On the Internet at http://www.for-a-better-business.com/4_business_advice/business_financials_accounting/business_financials_accounting_txt/breakeaven_analysis.txt

2. Dean, Joel "Cost Structure of Enterprises and Break-Even Charts"

Columbia University, The American Economic Review, Vol. 38, No. 2, Papers and Proceedings of the Sixtieth Annual Meeting of the American Economic Association (May, 1948), 153-164

3. Mergent Online: Company Analysis Oracle Corp. (NMS: ORCL) Income Statement

Dick and Mac McDonald opened their first restaurant in 1940 in San ernadino, California. These men were among the first to introduce the concept of "fast food," and made dining fun for children. McDonald's went on to enjoy over 60 years of growth, which has only tapered in the last year due to a failure to expand successfully into places such as olivia. Despite these recent setbacks, it is notable that only the third world could thwart McDonald's is a testament to its brand name and its revenue model. There are currently over 28 thousand McDonald's Restaurants in over 120 countries. McDonald's global sales in 2000 were over 40 billion, and the company could boast 16 billion customers that year.

McDonald's success didn't occur in an incremental, measured fashion. The company only really took off in 1954 when a mixer salesman, Ray Kroc, discovered the operation and found a way…

Bibliography:

Lesson 5: The Wealth Tax of 1935 and the Victory Tax of 1942. Internal Revenue Service. 2002.  http://www.irs.gov/app/understandingTaxes/jsp/whys/lp/IWT2L5lp.jsp 

PROCEDURES FOR FILING PARTNERSHIP RETURNS (FORM 1065) BY PARTNERSHIPS REQUIRED TO FILE ELECTRONICALLY AND WHO ARE ENTITLED TO RELIEF. 2002.  http://www.irs.gov/efile/article/0,id=98293,00.html 

John F. Love. McDonalds; Behind the Arches. Bantam Books, 1995.

The Route to Fast Food Franchising. The Times 100 Case Studies. 2002. http://www.thetimes100.co.uk/document.asp?HeaderID=40&SectionID=274

Internet-based applications, commerce, financing and accounting have exposed static IT acquisitions and the operating environments involved require fresh and revised processes and procedures to tackle and solve the vigorous reflux and rush of capacity, function, service, and support conditions. With the continuing increase of data center costs, workloads and more demanding service delivery requirements, IT organizations are looking for more and more innovative procurement and asset management approaches. One such approach to that provides dynamic capacity capability with practical and prearranged budget accountability is the Just in Time (JIT) system. This system alternative helps balance service delivery consistencies, improves dexterity and provides an elastic financial management. The gating factor for most such capabilities is the varied, though rapidly improving server and storage vendor offerings.

The main idea behind the principle of Just in time (JIT) is to exclude the roots of manufacturing waste by getting just the right quantity of…

References:

1. Benesko, Gary G, Inter-Corporate Business Engineering -- Streamlining the Business Cycle From End to End, Cary/North Carolina: Research Triangle, 1997.

2. Garret, John and Waters, Donald, Preserving Digital Information. Report of the Task Force on Archiving of Digital Information, Washington, D.C.: 1996

3. Keeney, Jennifer, Just-in-Time Financing, Fortune Small Business, Friday, February 8, 2002.

4. Knight, Charles Passages of a Working Life London: 1864, II, 66-67.

Finance: Variance Analysis

Describe how variance analysis can be applied to flexible and static budgets

A variance is the difference between an actual amount and a budgeted amount. Budget variances are used by management in their control and planning decisions, particularly in the case of management by exception, which entails identifying areas that are not performing according to plan, and dedicating more attention to the same. Variance analysis has to do with the calculation of variances, and identification of the possible causes of the same. It essentially involves comparing and monitoring actual vs. planned costs, with the aim of identifying trends, threats, and opportunities - and adjusting strategies, goals and objectives if need be (Steffan, 2008). Towards this end, variance analysis helps managers evaluate business performance by assessing the level of effectiveness -- the degree to which targets have been met; and the level of efficiency -- the input cost…

References

Jackson, S., Sawyers, R. & Jenkins, G. (2008). Managerial Accounting: A Focus on Ethical Decision-Making (5th ed.). Mason, OH: Cengage Learning.

Steffan, B. (2008). Essential Management Accounting: How to Maximize Profit and Boost Financial Performance. London: Kogan Page Ltd.

Distribution in Finance

A company has an obligation to maintain financial stability through engagement to its staff, clientele and the shareholders. It ensures this by laying down vital, strategic, financial plans. Cash distribution is a methodology in which a company can achieve this. It is often referred to as the distributions from a company presented to a limited partner investor from monetary resources and in the form of money. The limited partners have a percentage of shareholding in the company; hence, the latter maximizes the opportunities set in place in investing, capital structure and working capital policies. Companies distribute finances to their partners through several procedures that this context looks into; dividends and stock repurchases (Ehrhardt and Brigham, 2008, pg 515).

Overview of Cash Distribution

Cash available for distribution to its investors is derived from operations being carried out in the company (Brigham and Ehrhardt, 2010, pg 560). Decision-making in…

References

Asquith, P and Mullins, D.W. (2006). Signaling with Dividends, Stock Repurchases, and Equity Issues. Financial Management. Vol 15, Issue 3. Pg 27-44.

Brigham, E. F and Daves, P.R. (2009). Intermediate Financial Management. New York: Cengage Learning.

Brigham, E. F and Ehrhardt, M.C. (2010). Financial Management Theory and Practice. New York: Cengage Learning.

Brigham, E. F and Houston, J.F. (2009). Fundamentals of Financial Management. New York: Cengage Learning.

Flexible Budgeting at Procter and Gamble

Managerial accounting class. Examine the budgeting process at a company. (use a us fortune 500 company) identify strengths and weaknesses of the company's Budgeting process.

Flexible Budgeting at Procter and Gamble

Budgeting process at Procter and Gamble

Procter and gamble uses a tailored budgeting process that is flexible to the ever changing realities in the business world. The budgeting process is preferred to using an outdated standard budgeting process that is stringent to the needs of the observable dynamism in the world of business. The budgeting process involves flexible roll out of forecasts that are adoptive to time dependent events in the market (Blocher, Stout, Cokins, & Chen, 2008).

ealistic long-term goals are used to achieve sustainable growth. Depending on the overall contribution of a business, different targets are made on the full budget portfolio. esearch and development and innovations in the plans and…

References

Axson, D.A.J. (2010). Best Practices in Planning and Performance Management: Radically Rethinking Management for a Volatile World. United States: Wiley.

Blocher, Stout, Cokins, & Chen. (2008). Cost Management. New York: McGraw-Hill Companies.

Ivo Welch. (2000). Views of Financial Economists on the Equity Premium and on Professional Controversies. The Journal of Business, 73(4), 501-537.

John G. Matsusaka. (2001). Corporate Diversification, Value Maximization, and Organizational Capabilities. The Journal of Business, 74(3), 409-431.

593)

Pike and Neale (2006, p.454) peg the impact to the return shareholders require on their investments (ke) -- if ke is lower than the expected return on the new investment, the dividend cut has a positive impact on organizational value; if ke is higher than the OI on the new investment project, the impact is that of decreasing the firm's value; finally, if the two ratios are similar, the impact is neutral.

g) Pros and Cons of Mitilin Bros Takeover

Arguments in favor:

Diversification of activities and incomes, which translates into lower levels of risk

Access to a wider customer market

Benefits derived from the extensive expertise of the managerial team at Mitilin Bros

Increases in income and the gaining of a stronger competitive position

From a theoretical standpoint, the acquisition of Mitilin would be beneficial due to its ability to "ensure management accountability, offer easy growth opportunities, create…

References:

Calamos, N., 2003, Convertible Arbitrage: Insights and Techniques for Successful Hedging, John Wiley and Sons, ISBN 0471423610

Damodaran, a., 2002, Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 2nd Edition, John Wiley and Sons, ISBN 0471414905

Evatt, B., Adopt an Optimal Capital Structure to Improve Shareholder Value, Burleigh Evatt, Retrieved from http://www.burleighevatt.co.nz/Document.aspx?Doc...pdf on September 9, 2009

Fabozzi, F.J., Peterson, P.P., 2003, Financial Management and Analysis, 2nd Edition, John Wiley and Sons, ISBN 0471234842

Breakeven point is a managerial accounting term that relates to the point at which the fixed costs are covered (no author, 2013). The breakeven point can be expressed as a dollar value of revenue, or it can be expressed as a number of units (in a simple one-unit firm). There is a breakeven point for services as well as for goods. For a health care institution, the breakeven point should be expressed in dollar value of revenue. The text uses the per unit method, but no health care institution only performs one kind of service. Such an approach is more appropriate for determining the pricing of an individual service, but only then when the demand for that service is known, which is often not the case in health care. The text defines the breakeven point as an understanding of the relationship between cost, volume and profit.

Calculating the breakeven point…

References:

Cleverley, W., Song, P. & Cleverely, J. (2011). Essentials of Health Care Finance. Sudbury, MA: Jones & Bartlett Learning

No author. (2013). Break-even point. AccountingCoach.com. Retrieved September 30, 2013 from  http://www.accountingcoach.com/online-accounting-course/01Xpg01.html

Department of Finance is the lead agency supporting the Government's key economic and financial policy outcomes through the provision of advice and coordination of resource allocation for Government programs. It also provides financial services to the Government and the community, covering asset and liability management, collection of state taxes and insurance and superannuating administration. The organization is made up of a diverse group dedicated people with a wide range of skills, including accounting, finance, economics, business service, insurance, superannuating and management.

The Finance Department is comprised of three divisions:

Finance Administration Division

This division is responsible for the overall direction and policy implementation. It is also responsible for coordination of the Finance Department, which includes:

a) Budgeting and Accounting

Finance is responsible for the preparation, implementation and monitoring of the City's Operating, Utility and Capital budgets. The focus is to administer these processes to meet the needs of the community,…

References

Yesilhark, M. (2000). What are the roles and responsibilities of a finance department?

Retrieved February 12, 2005, from Hausarbeiten.de

Web site:  http://www.hausarbeiten.de/faecher/vorschau/8283.html 

Department Functions. (2002). Retrieved February 12, 2005, from City of Kirkland

This contribution to fixed costs is the same for every customer. Thus, the breakeven point is 250,000 / 500 = 500 customers.

In another example, if the price is 200 and the variable costs are 110, and the fixed costs are 100,000, then the breakeven point is 1112 customers. The breakeven point is always rounded up because to have less than that the company would not yet have broken even. By rounding up, the company has officially passed the breakeven point.

4. The relative value scales are 150, 300, 568.75, 264 and 160 for a total of 1442.75

The relative value scales indicate how much effort goes into each type of acuity. The cost per RVU is relative to the total nursing costs, so it is a weighted-average:

$36,389 for Acuity Level 1

$72,777 for Acuity Level 2

$137,974 for Acuity Level 3

$64,044 for Acuity Level 4

$38,814 for…

Accounting and Finance

Comparison of Selected Financial Performance Data for WalMart and Target

WalMart and Target compete in very similar markets, competing in the supermarket segment of the retail industry, with some diversified interests. To assess the performance of these two firms, their results for the financial years ending January 2012 and 2013 may be examined and compared. This paper will look at the performance in terms of revenues, cost of goods, accounts receivable and payable and inventory management.

evenues

The performance of a firm often starts with an assessment of the revenue that is generated and the way in which this changes over time. The revenues for both WalMart and Target are shown in table 1.

Table 1; evenue for WalMart and Target 2012-2013

WalMart

Target

2012(Jan)

2013(Jan)

2012(Jan)

2013(Jan)

evenues ($ millions)

446,950

469,162

69,865

73,301

Change in revenues from previous year

The levels of revenues demonstrate that…

References

Target, (2013), 10k, retrieved  https://corporate.target.com/_media/TargetCorp/annualreports/content/download/pdf/Annual-Report.pdf?ext=.pdf 

WalMart, (2013), 10k, retrieved  http://www.sec.gov/Archives/edgar/data/104169/000010416913000011/wmt10-k.htm

CVP Analysis in Making Informed Decisions:

Managerial accounting is basically about making informed business decisions and incorporates various tools and approaches. One of the most powerful techniques available for managers to crunch numbers, obtain a thorough understanding of a situation, and conduct a what-if evaluation is Cost-Volume-Profit (CVP) analysis. The foundation to a strong and successful business venture is a clear understanding of the financial effect that most basic decisions may have. Cost-Volume-Profit (CVP) analysis helps in answering some of the basic questions regarding business operations. This is primarily because it is a means of evaluating the relationship between the business fixed and variable costs, volume, and profits. Generally, CVP analysis provides three major tools i.e. contribution margin analysis, breakeven analysis, and operating leverage.

For an entrepreneur starting a business, CVP analysis is a helpful tool for making informed business decisions. The individual can use this tool to make informed…

Reference:

"Business Decisions and Your Finances: Cost/Volume/Profit Analysis." (2012, May 24).

Business Owner's Toolkit. Retrieved February 7, 2014, from  http://www.bizfilings.com/toolkit/sbg/finance/your-financial-position/contribution-margins-analysis.aspx

knowledge and abilities in finance were improved dramatically. There were a number of different concepts covered in this course including aspects of both financial and managerial accounting. The latter I feel as been especially valuable to me. I can envision in my career as a manager. Consider the different uses of managerial accounting -- making financial decisions, strategic and operational planning and cost management (Owens, 2012). All of these areas were covered in the course. Throughout the course I always took time to see how each of these concepts could apply to my past and future managerial experience, and I could see these uses right away. I also think that the combination of the different concepts was very useful. For example, activity-based costing can be combined with contribution margin to make better determinations about pricing, and what products should be maintained in a business portfolio.

I think that for the…

Works Cited:

Owens, M. (2012). The uses of management accounting. eHow. Retrieved May 14, 2012 from http://www.ehow.com/about_5549234_uses-management-accounting.html

The Economist. (2009). Activity-based costing. The Economist. Retrieved May 14, 2012 from  http://www.economist.com/node/13933812

VHA Managerial Challenge

In recent years, the United States Department of Veterans Affairs has experienced a great deal of challenges ranging from lack of accountability and lack of employee apprehension to mismanagement of finances. In particular, a key managerial challenge that the VA faces today is the lack of timely provision of health care to veterans across the nation. Increased wait times at the various VA medical facilities are a key hindrance to obtaining timely medical health care. These protracted wait times have led to hindered accessibility to health care, which causes severe and abrupt occurrences, disability and death of the patients. There is need to assimilate financial and operational decision making to efficaciously meet this challenge and enhance organizational performance. This is because the agency caters to more than six million patients who require health care and benefits. To begin with, there is need to provide funds to employ…

References

Boyer, D. (2016). VA still plagued by problems two years after scandal. The Washington Times. Retrieved from:  http://www.washingtontimes.com/news/2016/apr/3/va-still-plagued-by-problems-two-years-after-scand/ 

Fales, A., Choi, J., Borger, C., Gernoversa-Wong, K. et al. (2016). 2016 Wounded Warrior Project® Survey Report of Findings. Westat. Retrieved from:  https://www.woundedwarriorproject.org/media/2641/2016-wwp-annual-warrior-survey.pdf 

Globerman, S., Esmail, N., Day, B., & Henderson, D. R. (2013). Reducing wait times for health care: what Canada can learn from theory and international experience.

Heath, S. (2016). Patients Still Struggle to Access Mental Health Care at VA. Patient Engagement HIT. Retrieved from: http://patientengagementhit.com/news/patients-still-struggle-to-access-mental-health-care-at-va

Healthcare Finance

What is the difference between simple interest and compound interest?

Simple interest is gauged on the basis of the loan's principal amount while the compound interest is derived on the basis of the principal amount and also the accumulated interest. Simple interest has been attained when one multiplies the principal amount with both interest rate as well as the payment period with in a loan. On the other hand, compound interest is derived when one multiplies the principal amount with one and add the resulting figure with the annual interest rate, which is elevated to the figure of compound periods subtracted by one (Horngren et al., 2012).

What is the formula for determining the future value of an amount?

The formula for calculating the future value of an amount is as follows:

Future Value = Present Value x (Future Value factor for n = number of years, i…

References

Keat, P. G., Young, P. K. Y., & Erfle, S. E. (2013). Managerial Economics: Economic Tools for Today's Decision Makers. New York: Preason.

Horngren, C.T., Datar, S.M., and Rajan, M. (2012). Cost Accounting: A Managerial Emphasis. New Jersey: Prentice Hall, Fourteenth Edition.

Healthcare Practices in Nursing Today

Over the last 50 years, health care systems all over the world have experienced rapid and significant changes. Some of these changes have been the result of innovative developments in medical science and technology that have greatly benefited patients, prolonging and saving the lives of millions. Some of these changes, however, have had the unfortunate result of limiting patient access to prescribed treatment and diminishing the overall quality of care.

Significant challenges are being faced in health care as systems restructure and reinvent themselves in a difficult and often painful effort to make more efficient use of their available resources (ICN, 2001). Since health care is such a labor-intensive industry, the stresses on these systems inexorably trickle down to affect those employed by the system. Nurses, who are the most highly trained caregivers who have ongoing, regular patient contact, stand at the very heart of…

References

Abramson, S. (1980). Adverse Occurrences in Intensive Care Units. Journal of the American Medical Association 244 (14): 1582-1584.

Ahmadi, M. (1989). Traditional vs. Nontraditional Work Schedules. Industrial Management 31(2), 20-23.

Bennett, M. & Hylton, J. (1990). Modular Nursing: Partners in Professional Practice. Nursing Management 21(3), 20-24.

Beauchamp, T.L. & Childress, J.F. (1994). Principles of Biomedical Ethics, 4th ed. New York: Oxford University Press.

Healthcare Finance

What are the four sources of long-term debt financing? What are the five characteristics of long-term debt financing?

Long-term debt is employed to finance business investments that have lengthier payback periods. There are four sources of long-term debt financing, which include: term loans, bonds, hire purchase and debentures. There are different features of long-term debt financing. One of the characteristics is that long-term debt typically has a greater principal balance than other debt obligation. This is for the reason that individuals do not normally get long-term loans for smaller buys. The second feature is that long-term debt more often than not comes with lower rates of interest compared to short-term financing. This is for the reason that debt such as mortgages and loans for cars are in general indemnified with the property as security to decrease the risk of the lender. Collateral is another characteristic of long-term debt.…

References

Horngren, C.T., Datar, S.M., and Rajan, M. (2012). Cost Accounting: A Managerial Emphasis. New Jersey: Prentice Hall, Fourteenth Edition.

Houston, G. (2014). The Similarities Between a Cash Budget and Long-Term Financial Planning. Chron. Retrieved 26 May 2016 from:  http://smallbusiness.chron.com/similarities-between-cash-budget-longterm-financial-planning-25110.html 

Kokemuller, N. (2016). Characteristics of Long-Term Debt. The Nest. Retrieved 26 May 2016 from:  http://budgeting.thenest.com/characteristics-long-term-debt-24810.html 

Xi, T. (2016). Differences & Similarities of Aggressive & Conservative Asset Mix Strategies. Zacks. Retrieved 27 May 2016 from:  http://finance.zacks.com/differences-similarities-aggressive-conservative-asset-mix-strategies-8693.html

Healthcare Finance

What are the four sources of long-term debt financing? What are the five characteristics of long-term debt financing?

Long-term debt is employed to finance business investments that have lengthier payback periods. There are four sources of long-term debt financing, which include: term loans, bonds, hire purchase and debentures. There are different features of long-term debt financing. One of the characteristics is that long-term debt typically has a greater principal balance than other debt obligation. This is for the reason that individuals do not normally get long-term loans for smaller buys. The second feature is that long-term debt more often than not comes with lower rates of interest compared to short-term financing. This is for the reason that debt such as mortgages and loans for cars are in general indemnified with the property as security to decrease the risk of the lender. Collateral is another characteristic of long-term debt.…

References

Horngren, C.T., Datar, S.M., and Rajan, M. (2012). Cost Accounting: A Managerial Emphasis. New Jersey: Prentice Hall, Fourteenth Edition.

Houston, G. (2014). The Similarities Between a Cash Budget and Long-Term Financial Planning. Chron. Retrieved 26 May 2016 from:  http://smallbusiness.chron.com/similarities-between-cash-budget-longterm-financial-planning-25110.html 

Kokemuller, N. (2016). Characteristics of Long-Term Debt. The Nest. Retrieved 26 May 2016 from:  http://budgeting.thenest.com/characteristics-long-term-debt-24810.html 

Xi, T. (2016). Differences & Similarities of Aggressive & Conservative Asset Mix Strategies. Zacks. Retrieved 27 May 2016 from:  http://finance.zacks.com/differences-similarities-aggressive-conservative-asset-mix-strategies-8693.html

Some of that came from the sunk costs, but much of it also came from the escalation of commitment between the countries, as well (Beniada, 2006). In other words, if there are two entities working on a project and one of them says it will not back down and will finish the project, the other entity will often do the same to save face and to keep its commitment. That is an important way that companies and individuals continue with the commitments they have made to one another, but it can also be problematic when it leads to an overzealous belief that a project must be completed no matter what, and that both entities working on the project have to focus their entire beings on the project at hand. The Concorde was very expensive, took longer to build than expected, and cost both Britain and France much more than the…

References

Beniada, F. (2006). Concorde. Minneapolis, MN: Zenith Press.

Sarbanes-Oxley Act of 2002 is will probably be known as one of the most significant change to federal securities laws in the United States since the New Deal. The act was passed after a series of corporate financial scandals made the national news, which included a slew of companies such as Enron, Arthur Andersen, and orldCom. The most notable provisions of the act include such items as both criminal and civil penalties for securities violations, a push for auditor independence from the corporation, requirements that guarantee certification of internal audit work by external auditors, and significant calls for increased disclosure regarding executive compensation, instances of insider trading as well expanding types of information that must appear on financial statements.

Even though the act may lessen the burden of the consequences of unethical acts that the public has to bear, all publicly traded companies now have to deal with the formidable…

Works Cited

Open Pro. (2011). OPENPRO AND SARBANES-OXLEY COMPLIANCE. Retrieved from Open Pro:  http://openpro.com/products_features_sox.html 

Pele-Sol. (2011). What is Business Process Automation. Retrieved from Pele-Sol Engineered:  http://www.pele-sol.com/pele_factsheet_new.pdf 

Solu Soft. (2009, January 13). Business Process Management. Retrieved from Solu Soft:  http://solu-soft.com/CompliancewithSarbanes.pdf

Farson, Richard. Management of the Absurd. With a forward by Michael Crichton. New York, 1997.

In his book, provocatively entitled Management of the Absurd, the author Richard Farson attempts to demonstrate that management is often a deceptively simple science, despite attempts by other business gurus of leadership to state otherwise and render the meaning of leadership into complex formulas and intricately worded principles. Intriguingly, Farson structures his book upon what he defines as paradoxes of leadership that are present within any organization, dealing with emotional rather than rational aspects of organizational behavior.

Some of these insights take the form of slogans, such as "the more we communicate, the less we communicate." By this, Farson means that quite often, the more an organization is structured to lead by formulized talking, through a constant resorting to the protocol of committee meetings and the re-hearing of differences, the less gets done in actual,…

In Liz Clairborne's case,

Debt Ratio = Total Debt/Total asset value = 78%.

In Kenneth Cole's case,

Debt Ratio = Total Debt/Total Asset = 77%

As we can see, the debt ratio value is similar in the two companies and shows a reasonable financing of the business with outside financial sources.

The Times Interest Earned value (TIE) shows how much income can decrease in the company without financial problems appearing, as an incapacity to pay the annual interest rates.

At Kenneth Cole, TIE = Earnings efore Interest and Taxes/Interest Expense = 32,890,000/40,000 = 822 times. The value itself may appear ludicrous, but the reason is quite simple. If we look at the statement of cash flows, the cash paid for interest in 2003 is only $40,000, similar to the previous years.

In Liz Clairborne's case, TIE = 392,072/30,509 = 12.85

The large difference between the two companies can be explained…

Bibliography

1. Halpern, Paul. Weston, Fred. Brigham, Eugene. Canadian Managerial Finance. Harcourt Brace & Company. Fourth Edition. 1994.  http://finance.yahoo.com/q/co?s=KCP 

3. Annual Reports for Kenneth Cole and Liz Clairborne

Halpern, Paul. Weston, Fred. Brigham, Eugene. Canadian Managerial Finance. Harcourt Brace & Company. Fourth Edition. 1994.

Ibid.

While the first chapter was brief, it is important to explain what will be studied and then move forward into the literature review.

In Chapter 2, the literature review provides a review of academic literature by way of journals and textbooks. This information is placed into separate sections which allow for ease of understanding. An introduction is made to capital structure, and information is given on the Indian capital structure specifically.

Chapter 3, the data methodology, provides the methodology that was used for the data. The reasons behind the methodology and what was studied are both discussed.

Chapter 4, data analysis and findings, is the chapter in which the results of the data analysis are presented.

Chapter 5, the conclusion, provides not only a conclusion to the research that was conducted in this paper but questions that are left and areas for further research in the future.

Literature Review

The…

Bibliography

Baral, K.J. (2004). 'Determinants of Capital Structure: A Case Study of Listed Companies of Nepal'. The Journal of Nepalese Business Studies, Vol. 1(1).

Baral, K.J. (2004). 'Determinants of capital structure: A case study of listed'. The Journal of Nepalese Business Studies, Vol. 1(1).

Bauer, P. (2004). 'Determinants of Capital Structure Empirical Evidence from the Czech Republic'. Czech Journal of Economics and Finance .

Bellalah, M. & Wu, Z (2009). "An intertemporal capital asset pricing model under incomplete information." International Journal of Business. 1st January 2009. Downloaded from  http://www.highbeam.com/doc/1G1-192485625.html  as at 17th September 2009.

In an era of terrorism and turbulence in global markets the greater the level of shared risk and transparency, the greater the likelihood financial institutions will be more resilient in the face of greater challenges of operation. This is a critical point that must be kept in mind in the context of the IFI CS Maturity Model, as globalization forces a higher level of inter-process and cross-functional coordination throughout a value chain. The IFI CS Maturity Model also brings up the critical point of the best defense against uncertainty is a strong offense that seeks higher levels of performance through greater synchronization of both financial services value chain data and greater levels of cross-financial services provider coordination.

IFI CS Maturity Model Assumptions

The following are the key assumptions regarding the definition of the IFI CS Maturity Model:

1. The end result for lenders and financial institutions are pursuing higher levels…

References

Marwan Mohamed Abdeldayem. 2009. An Examination of Social Disclosures by Islamic Banks: Evidence from UAE. Journal of American Academy of Business, Cambridge 14, no. 2 (March 1): 350-356.

Muhammad Iqbal Anjum. 2008. Islamic world's development policy responses to the challenges of financial globalization. Humanomics 24, no. 1 (January 1): 5-16.

Masudul Alam Choudhury 2001. Islamic venture capital - a critical examination. Journal of Economic Studies 28, no. 1 (January 1): 14-33.  http://www.proquest.com  (accessed March 28, 2009).

Masudul Alam Choudhury 2006. Islamic macroeconomics? International Journal of Social Economics 33, no. 1/2 (January 1): 160-186.

financial analysis we need to consider. First of all, an overview of the main financial ratio, with their meaning and a keen evaluation of their score. Second of all, a progressive analysis, which would refer to the way these financial ratios have evolved in the four-year period we are looking at. The latter will allows us to draw relevant conclusions as to the performance of the management team.

The profitability ratios are best to show how well the company is actually performing. If we look at St. Mary's profitability indicators, all three of them have shown remarkable progress in the last four years and all of them have positive figures in the present. The return on equity indicator, for example, estimates the return rate for the stockholders. While ROE was - 69.92% in 1990, which meant that the stockholders were retrieving much less than they had invested, in 1993, ROE…

Bibliography

1. Halpern, Paul. Weston, Fred. Brigham, Eugene. Canadian Managerial Finance. Harcourt Brace & Company. Fourth Edition. 1994.

On one hand, international service companies will increase the original price of the company, mainly because to the original demand, now one will also need to add the additional charges of the international service companies, acting as intermediaries. However, on the other hand, it is more viable for the original producing companies to outsource, due to a lower opportunity cost.

Again, this type of judgment is functional in a non-transnational economy as well, but in an international context, one tends to have an atomicity of potential international service providers, outsourcing can be extended virtually to no limits and, additionally, the overall costs of the producing company are likely to be much smaller. As shown, this only works in an international capitalist system, where supply and demand work freely on the market, only then is the producer looking for the lowest costs for his company in a global context and only…

References

Maitra, P., 1997, Globalization of Capitalism, Agriculture and the Negation of Nation States, International Journal of Social Economics, Vol. 24, Issues 1/2/3, pp. 237-254, MCB UP Ltd.

Mehmet, O., 1996, on Globalization and Capitalization, Managerial Finance, Vol. 22, Issues 5, pp. 31-40, Barmarick Publications

May 2, 2002, Globalisation under Scrutiny, the Economist

September 27, 2008, Globalisation and Its Critics, the Economist

investment in a rental/real estate property. There is a one-time purchase of $10,000 in land that can subsequently be rented for a yearly $3,500 rent for a period of several years. At the end of the rental period, the investor aims to sell the land for a certain price. The longer the period of the rental is, in number of years, the more the land will degrade and, as a consequence, will be valued at a lower sum at the end of the entire period of time.

As a consequence, the several scenarios that will be taken into consideration will look at a comparison between longer years of rental vs. lower price for the final sale of the land or a shorter period for the rental period, but a higher price for the final sale at the end of the rental period.

This paper will look at three different scenarios…

Bibliography

1. Halpern, Paul et. Al, (1998). Managerial Finance. Dryden 2. Project Economics and Decision Analysis, Volume I: Deterministic Models, M.A.Main

3. Hazen, G.B., (2003). A new perspective on multiple internal rates of return. The Engineering Economist 48(2),

In order to refer to this, we need to mention that the cash flow statement for the year generally reflects three different cash flow positions or categories: cash flows from operating activities, cash flows from investing activities and cash flows from financing activities. I have discussed the interrelationship between the cash flow from operating activities and the balance sheet. The other two categories are also reflected in the balance sheet.

Indeed, the company may invest during the financial year in fixed assets, such as property or equipment. The negative difference reflected on the statement of cash flows will be noted as an increase in the total asset value on the balance sheet, that is, an increase in the value for "property, plant and equipment."

This is the same for the cash flows from financing activities, which are strictly connected to the "liabilities and owners' equity" fields on the balance sheet.…

Bibliography

1. Halpern, Paul; Weston, Fred; Brigham, Eugene. Canadian Managerial Finance. Dryden, Fourth Edition. 1994

2. www.apec.umn.edu/faculty/gpederso/PPTLectures/Lecture_2.ppt

3.  http://www.investorwords.com/769/cash_flow_statement.html 

4. Business Owner's Toolkit. On the Internet at http://www.toolkit.cch.com/text/P06_7040.asp

Davis enter the mass market with the Eggsercizer? Why or why not?

The three types of marketing strategies available to any company are mass marketing, niche marketing and skimming. The method that Davis at the moment is adapting is skimming. Why? He seems to rely on the trade shows and the occasional retailer who is interested in the product and skims the surface of the market potential. His product is a niche product that has applications in more than one sector. Thus the company has not been able to establish a niche yet. The aim of mass marketing is to capture a large segment of the market and retain it, either by a slow penetration process or by a rapid program where the market is captured by creating a mass awareness and demand. (Avlonitis; Papastathopoulou, 2006)

The methods of the rapid or the slow penetration requires many variables that build…

References

Avlonitis, George J; Papastathopoulou, Paulina. (2006) "Product and services management"

SAGE.

Burke, W. Warner; Lake, Dale G; Paine, Jill Waymire. (2008) "Organization Change: A

Comprehensive Reader" John Wiley and Sons.

Christian-Based Ethics in Business

Ethics

Having strong ethics is vital to the success of an organization but often that component is bypassed in the name of profit. With a strong ethical foundation, an organization will perhaps face more obstacles but will also have a better opportunity for success and longevity. Society, particularly American society, has changed greatly within the past 50 years, and continues to evolve. And with those changes, value systems and the emphasis placed on them changes as well. At the same time, society has dealt with large technological advances. And of course, as knowledge and technology increase, new questions and situations arise to challenge society's morals and ethics. Inadvertent disclosure of information becomes more prevalent as more people become involved in document handling. And the more documents that are handled by more people, conflict of interest may arise, with the potential to threaten the organization.

Particularly in…

Resources

Bagley, C.E., & Savage, D.W. (2010). Managers and the Legal Environment. Mason, OH: South-Western Cengage Learning.

Harmeling, S., Sarasvathy, S., & Freeman, R. (2009). Related debates in ethics and entrepreneurship: Values, opportunities, and contingency. Journal of Business Ethics, 84(3), 341-365. doi:10.1007/s10551-008-9713-4.

Lee, S. (2009). Guiding your small-business clients through the downturn maze. Journal of Financial Planning, 22(5), 24-29. Retrieved from Business Source Complete database.

Madsen, A. (2009). Navigating tough conflict of interest situations. Nonprofit World, 27(1), 18-19. Retrieved from Business Source Complete database.

So doing the right thing and being an ethical company would be the best choice for Sports Products, Inc. To make. Making the right choice will in the end will help the company to be more successful.

D. Does the firm appear to have an effective corporate governance structure?

No, it does not appear that Sports Products, Inc. has an effective governance structure. If the stakeholders are the owners of the corporation and have the power to elect a board of directors to run the company, then the company should be running in the shareholders' best interests. During the 20 years that this company has never paid out a dividend to its shareholders. This raises a large red flag that points to the mismanagement that is going on.

The profits of the company are increasing while the stock prices continue to fall. This leads one to question whether the stakeholders…

Clealy Amex has a majo poblem in the picing aea of thei business today. In tems of pomotion, the company's continual evolution as a band that stesses an aspiational message also pesents a dilemma to the company as well. Attacting consumes who may not have the disposable incomes to fit the aspiational spending that the Amex band potays equies cedit scoing, data mining to alleviate isk, and moe pecise maketing as well. Fom this standpoint, if the aspiational selling of thei band woks too well the company will also find that its image with its coe custome base suffes as well. Fo Amex they must make thei band become pat of the pesonas of thei most loyal customes while also undescoing the aspiational aspects of thei sevices tempeed with eality (Zalaznick, 2008). Of the fou aspects of the maketing mix, Amex continues to stuggle with distibution o place, when taken…

references, and Price Response. Journal of Money, Credit, and Banking, 40(1), 149. Retrieved March 18, 2009, from ABI/INFORM Global database. (Document ID: 1454964811).

Haksin Chan, Lisa C. Wan. (2008). Consumer Responses to Service Failures: A Resource Preference Model of Cultural Influences. Journal of International Marketing, 16(1), 72. Retrieved March 16, 2009, from ABI/INFORM Global database. (Document ID: 1480887581).

Deborah Donberg. (2005). TI Technology Aids Amex Card Security. Paper, Film and Foil Converter, 79(8), 16. Retrieved March 15, 2009, from ABI/INFORM Trade & Industry database. (Document ID: 887925891).

Ursula Fairbairn. (2005). HR as a strategic partner: Culture change as an American Express case study. Human Resource Management, 44(1), 79-84. Retrieved March 16, 2009, from ABI/INFORM Global database. (Document ID: 797686871).

Kathleen a Farrell, Gordon V Karels, Kenneth W. Monfort, Christine a McClatchey. (2000). Celebrity performance and endorsement value: The case of Tiger Woods. Managerial Finance, 26(7), 1-15. Retrieved March 16, 2009, from ABI/INFORM Global database. (Document ID: 282778741).

This is an essential requirement of their roles in an organizations s they progress to more senior positions over time (Nejmeh, 1994). Mastery of complex software is a critical aspect of how members of this market segment continually improve their marketability and also gain greater options for career transitions into senior management. In selling to this segment, it is imperative to not just sell at them, but to educate them through a series of useful interchanges. One of the most critical areas of all for these professionals is knowledge of Software-as-a-Service (SaaS) and cloud computing, and how it relates to the financial performance of their organizations (Jacobs, 2005). There is also a critical need for understanding and gaining mastery on how entire series of cloud platforms are used for managing an entire enterprise as well, specifically in the area of virtualization and cloud-based performance management (Mladenow, Kryvinska, Strauss, 2012). From…

References

Jacobs, D. (2005). Enterprise software as service. ACM Queue, 3(6), 36-42.

Lindley, J.T., Topping, S., & Lindley, L.T. (2008). The hidden financial costs of ERP software. Managerial Finance, 34(2), 78-90.

Mladenow, a., Kryvinska, N., & Strauss, C. (2012). Towards cloud-centric service environments. Journal of Service Science Research, 4(2), 213-234.

Nejmeh, B.A. (1994). Internet: A strategic tool for the software enterprise. Association for Computing Machinery.Communications of the ACM, 37(11), 23-23.

Annual reports for two rivalry U.S. Pulic companies have selected two pulic companies from the chocolate industry, Tootsie Roll and Hershey.

Tootsie Roll was founded at the end of the 19th century y an Austrian emigre who started producing a chocolate, chewy candy named after his five- year- daughter. The company expanded and today it is one of the largest candy companies in the United States. Headquartered in Chicago, it has operations in Massachusetts, New York, Tennessee, Wisconsin and Mexico and total net sales at the end of 2002 of $393 million.

Hershey, on the other hand, is considered to e the leading North American manufacturer of chocolate, with rands such as Almond Joy and Mounds candy ars and Cadury Creme Eggs or Hershey's Cookies 'n' Creme candy ars. Hershey's operations are divided into two main divisions: Hershey Chocolate North America and Hershey International. The former is the leading producer…

Corporate Governance and Risk Management

The charity and commercial sectors offer different notions concerning risk management in the corporate arena. Currently, the charity sector is facing various difficulties including a reduction in the funding amount and the need to adopt the use of the ever-changing technology. esides, the communication means is dynamic hence creating emptiness in service provision. However, it embraces new ideas and innovation that prepare the corporate field for the future. Risk management is the process of ensuring that the occurrence of various risks or activities does not cause any financial loss to the entity (Merna, and Al-Thani, 2011). This differs to corporate governance, which refers to the identification and clarification of activities and responsibilities undertaken by various individuals in an organization (rikend, 2014). The commercial sector offers direct and proportional risk management proposals where the corporate management pays some money for it to be covered against the…

Bibliography

Brikend A. 2014. Corporate Governance: A Literature Review. Management Research and Practice, 09/2014, Volume 6, Issue 3, p. 53

Brown, I., Steen, A., and Foreman, J. 2009. Risk Management In Corporate Governance: A Review And Proposal. Corporate Governance, ISSN 0964-8410, 2009, Volume 17, Issue 5, pp. 546 -- 558

Dellaportas, S., Langton, J., West, B. 2012. Governance And Accountability In Australian Charitable Organizations. International Journal of Accounting & Information Management, Volume 20, Issue 3, pp. 238 -- 254

Jizi, M.I., et al., 2014. Corporate Governance And Corporate Social Responsibility Disclosure: Evidence From The U.S. Banking Sector. Journal of business ethics, Volume 125, Issue 4, pp. 601 -- 615