Good communication skill are essential

The most thorough note taking framework requires consideration on your part to upgrade understanding. Successful note taking is a significant practice to ace at college. At the point when you consider composed sources you have to remember that not the entirety of the content is applicable to you. You have to fabricate your expertise of reasoning and sorting out thoughts by utilizing primary thoughts and supporting ideas.Note taking can be utilized in shortened forms and you can make your own contraction as long as you are the erson who comprehends what these truncations implies as we utilize numerous techniques for listening note taking, we can likewise take notes while we are perusing. The great method of note taking in perusing is that you can compose all the references of the content to make it simpler for you when you are evaluating your data later on. One method of being a functioning peruser is by utilizing skimming and filtering. They constrain you to work with a book foreseei ng, molding and anticipating the content previously and during your eading† (Grellier and Goerke, 2010, p. 14). Another approach to improve your perusing and broaden your comprehension by building up a methodical type of clarifying that way make you to be increasingly dynamic as a peruser likewise to assist you with finding the data effectively when you surveying the content In request to comprehend and think about the youth current premiums, advancement and learning you have to take notes.As instructors can utilize these notes to make a total formative image of small kids. It can likewise offer significant data for parent/instructor gatherings. By building up a framework and keeping them objective.

How are the issues presented in Barn Burning still relevant in the Research Paper

How are the issues introduced in Barn Burning still significant in the ongoing history of the United States - Research Paper Example In the past the African Americans had not been conceded the human rights proportionate to their white partners. This isolation won in each office and even out in the open spots including clinics, parks, railroad stations and in broad daylight transport, where the Blacks were bound to empty the seats in the transports for the whites as a token of their alleged predominance. The Blacks were not permitted to try and sit in transports and other open places close by the white individuals, and even needed to empty their seats at transports gave any white individual entered in a transport with no seat to sit in. (Parks, 1992) However, time turned exceptional change, and the developments of the Black people group to win equivalent rights for them turned out fruitful, and the isolation of the races at schools, open places and even open workplaces watched total and unequivocal destruction. The African American understudies used to look for training at isolated schools separate from the whites. Some way or another, the ethnic and racial separation saw the continuous annihilation from the very substance of the US society, where the people having a place with each race and ethnic gathering watched social equity and equity in the nation. Therefore, the entryway of chances looked all the way open for one and all in the nation, and the Black could consider, play, work, travel and eat alongside the white individuals in the result of the human rights development propelled by Martin Luther, Malcolm X, Rosa Park and a few other Black pioneers. In any case, as indicated by Faulkner, the white kept up genuine second thoughts about the disposition and conduct of the African Americans because of the very reality that they had all the earmarks of being unmistakably progressively forceful, opponent and vindictive during their contention with the whites, and investigate every possibility to deliver retribution of their mortification especially on account of the individuals from white Ang lo Saxon Population (WASP). The equivalent occurred in the story under investigation where Abner Snopes, the individual from Black people group, consistently experienced embarrassment on account of his master(s) in view of his amazingly drowsy and slouch nature. Rather than agreeing to the sets of his lord, and paying due regard to his expert obligations of taking care of the animal dwellingplace, harvests and cows, Abner gives off an impression of being investing a large portion of his energy in accepting rest just as engaging in gab with relatives and companions. In this way, he moves the obligations alloted to him to his little girls, which are not in a situation to play out the equivalent in an appropriate way. It chafes the bosses, yet in addition prepares towards Abner’s affront and mortification. Some way or another, rather to repairing his ways, Abner turns reactionary and conspiringly set the horse shelters under his watch to fire before leaving the spot he has been working. Answer 2: Since Faulkner has watched a few occurrences with respect to the Black people’s turning out reactionary, the author is of the view that such an unreliable demeanor of the African Americans startles the white network, yet in addition they are hesitant to enlist the administrations of the Blacks for any reason. As a matter of fact the white network had shown their disdain for the Blacks in every single social establishment gave they thought about them as their slaves and the offspring of their old slaves, which ought to be dealt with remembering their old past. It is thusly

Margin vs Markup Explained

Margin vs Markup Explained I cannot count the number of times I have heard someone use the words markup and margin interchangeably.Many business owners do not know that there is a difference between the two terms, and unfortunately, the confusion between the two terms can negatively affect the bottom line of your business.The confusion between the meaning of the two terms stems from the fact that the same inputs are used to calculate both markup and margin, and the two of them provide information about the same transaction.However, margin and markup are totally different things.They show different information and are accounted differently.In this article, we are going to explain the difference between margin and mark up and explain why it is important to tell each apart from the other.Before we go into the differences between margin and markup, it is important to first understand three terms which will come in handy when calculating both the margin and the markup. These terms are:Revenue: This refers to the in come earned after products or services are sold. Revenue reflects to all the money earned from the sale before any deductions have been made. Revenue is usually the top line in an income statement.Cost of goods sold (COGS): This refers to all the expenses that the business incurs while making products and delivering services. During the calculation of cost of goods sold, only variable costs are considered. Variable costs are those that are directly incurred in the production of goods and those that may vary depending on the amount of goods being produced. Examples of variable costs that are calculated as part of COGS include the cost of raw materials, manufacturing costs, product packaging, direct labor, freight, and any other costs that can be directly attributed to making and selling the product. Fixed costs are not considered part of the cost of goods sold. Examples of fixed costs include rent, office expenses such as utilities, supplies, internet, telephone, and so on, the salar ies of office staff who are not directly involved in production, professional fees, insurance, advertising, promotional and other sales expenses, payroll taxes and employee benefits, etc.Gross profit: This is the part of the revenue that remains after the expenses of manufacturing your products or delivering your products have been deducted. Gross profit is the difference between revenue and COGS.Keep these three terms in mind since we will use all of them to calculate margin and markup.WHAT IS MARGIN?The margin, also referred to as gross margin, is a figure that shows the amount of revenue earned after the COGS has been deducted.Margin can be expressed in dollar value or as a percentage. Margin is calculated by dividing the gross profit by the revenue.Below is the formula for calculating margin: To make the margin formula easier to understand, let’s use an example to illustrate how it works.Let’s assume a pair of headphones is sold at $400 and costs the company $200 to make.The margin on a pair of headphones would be: Alternatively, you can express the margin as a percentage as by multiplying the figure above by 100. In our example above, the margin for a pair of headphones is 50%.This means that 50% of the total revenue is kept by the company, while the other 50% of revenue covers the cost of producing the headphones.From this, we can say that margin is a measure of how much of every dollar earned in revenue is kept by the company after deducting expenses.In our example, for every dollar made in sales, the company retains $0.50.The higher the margin, the greater the portion of revenue the company keeps after making a sale.The gross margin is a very important metric when evaluating the financial performance of a company because it tells whether the company is making or losing money on sales, which is a very crucial aspect of business, since a business that is not making money on sales is failing.In addition, the gross margin is a useful indicator of how efficient the management of the company is in using supplies and labor in the production process.For a company that has a very low gross margin, there are two major approaches for improving this key metric.The first one is by increasing the price of products or services, while the second is by reducing the cost of production. None of these two approaches is easy.A price increase in a bid to increase the profit margin can result in a reduction in sales.If the sales become too few, the business might be unable to bring in enough revenue to cover operating costs.Therefore, before increasing the price, the business needs to consider factors such as supply and demand for the product, completion from other businesses, inflation rates, and so on.The second option for companies that want to increase their gross margin is to reduce the variable costs associated with producing their product.For this to happen, the company needs to either reduce the cost of acquiring materials or make the production process more efficient.A great way of cutting costs on materials is to take advantage of volume discounts.By buying more material from a s upplier at a go, you are more likely to receive discounts.Alternatively, you might opt to look for a less costly supplier.You should be careful when doing this since low prices on materials might mean lower quality materials.If you decide to reduce your production cost by making your production process more efficient, you should also take care to ensure that the quality of goods is not compromised.WHAT IS MARKUP?Just like margin, markup also analyzes the profit made after making a sale.However, markup looks at gross profit as a function of the cost of goods sold, rather than revenue.In other words, whereas you divide the gross profit by revenue to calculate margin, you have to divide the gross profit by the COGS to determine the markup.You can think of markup as the extra percentage on top of the cost of production that you charge your customers.Markup can be calculated using the following formula: Once again, let’s use the example from above where it takes $200 to produce a pair of headphones, which are then sold at a price of $400. Here is how we would calculate the markup. Alternatively, you can express the markup as a percentage as by multiplying the figure above by 100. The markup in this case is 100%, which means that the headphones were sold for 100% more than what it cost to produce them. In other words, the selling price is double the cost of production.Markup is a measure of how much more you sell a product compared to what it cost you to produce the product.Just like margin, the higher the markup, the greater the portion of revenue the company keeps after making a sale.Markup can also be described as the factor by which you multiply the cost of production to come up with a selling price. This can be expressed as: THE DIFFERENCE BETWEEN MARGIN AND MARKUP As you might have realized by now, margin and markup are like the two sides of a coin.They describe the same thing, but they provide different perspectives.The margin shows the relationship between gross profit and revenue, while markup shows the relationship between profit and the cost of goods sold.Aside from showing different perspectives, there are some other key differences between margin and markup, which include:Having a markup on your products ensures that your business is making a profit with each sale and provides a way of quantifying that profit.Markup is a great tool in the initial stages of a business since it helps you to better understand how cash flows into and out of your business. This can be very usefully in helping you locate efficient points and bottlenecks within your business.Margin, on the other hand, is a precise and reliable tool for calculating profits and provides a clear picture of how sales are impacting your comp any’s bottom line.MARGIN VS. MARKUP CHARTWhile the margin and markup offer different perspectives of the same thing, it is important to understand how each behaves in relation to the other, since confusing the two can impact your profitability.Considering that the reference for calculating markup is cost of goods sold, which is a lesser value, the markup will always be bigger than markup, which is calculated based on revenue.Generally, a profit making business should have a markup percentage that is higher than the margin percentage.If your markup is lower than the margin, this means that your business is making losses.The relationship between markup and margin is not an arbitrary one.Generally, the relationship between margin and markup can be expressed using the following formula. For instance, in our headphones example above, we saw that the margin was 50% while the markup was 100%.Let’s confirm if our formula above will get the same thing. Alternatively, we can use a specific margin to determine what markup is required to achieve the margin. In this case, we use the following formula: Once again, going with our previous example, we know that a 50% margin will give you a 100% markup. Plugin this into our formula confirms this. Using the above two formulas, we can accurately predict how margin and markup interact with each other.A specific markup will always produce a specific margin.To easily determine what markup will produce what margin, a margin vs. markup chart is used.Below is an example of a margin vs. markup chart:Markup      Margin15%13%20%16.7%25%20%30%23%40%28.6%50%33%75%42.9%100%50%PRICING YOUR PRODUCTS BASED ON MARGINSetting the right price for your products is very crucial, and can be the difference between attracting customers by the loads and your business going under.One of the most common ways of pricing products is to adjust the cost of goods sold by the target profit margin.This way, as a business owner, you can always be sure that a specified percentage of each dollar made from sales represents profit over the COGS.For instance, if you adjust your COGS by a target margin of 30% to come up with a selling price, 30 cents of every dollar earned from sales will be a profit.To come up with a selling price based on the margin, you should start by diving your target gross margin by 100 to convert it from a percentage into a decimal.For instance, if you have a target margin of 30%, divide 30 by 100 to get 0.30.Once you have your target margin as decimal, subtract it from 1 to determine what portion of your selling price will represent the cost of goods sold. In this case, the cost of goods sold would be represented by Once you determine the portion the cost of goods sold represents, divide the cost of goods sold by this figure to come up with the selling price.For instance, if manufacturing your product costs $14, then the price in this case would be: In this case, you would sell the product at $20.When coming up with your target margin, it is always advisable to include other costs besides what goes directly into the making of the product, such as overhead.This will ensure that your selling price is enough to cover all the costs of doing business.When setting the price, you should also keep in mind that there are several other factors other than the cost of making the product that will affect the price.For instance, the price that the market can bear will also have an impact on your price.Setting a price based on a specific target margin will not be effective if customers are not willing to pay that price.Therefore, in as much as you want to achieve a specific target margin for every sale, you should also make sure that your price allows your product to maintain a competitive advantage.PRICING YOUR PRODUCTS BASED ON MARKUPSome entrepreneurs may also choose to set up their price based on markup.When using markup as the basis for s elling price, the markup must be big enough to cover all the expenses and reductions that are part of business, such as markdowns, customer discounts, and so on, while at the same time ensuring that the business earns a significant profit.Therefore, if you want to use markup as a basis for pricing your products, you should make sure that you are well informed about all aspects of your business, such as total operating expenses, including costs such as labor, materials, and overhead costs, as well as things such as sales figures.When setting price based on markup, all you need to do is figure out all the costs associated with producing and selling a product and then multiply this by the markup to come up with the price.Below is the formula for calculating a markup-based price: Going by our earlier example, if the cost of manufacturing a pair of headphones is $200, and the company wants a markup of 100% on the headphones, then the price of the headphones would be calculated as follows: There are some factors that you need to keep in mind before deciding the markup you will use on your products or services.The two most important factors to consider are the costs associated with producing the product and the market demand for your product.Aside from these factors, you should also consider the industry in which you are operating.In most cases, you will find that there is standard markup within certain industries, and it might be wise to stick to the standard in order to maintain your products’ competitive edge.One of the greatest advantages of using markup as a basis for your product pricing is that it guarantees that your business generates a proportional amount of revenue for each sale.The revenue will remain proportional even when your cost of goods sold increases or decreases.However, this does not mean that a business owner should blindly stamp a flat markup percentage on all of the business’ products and services.This is not a very effective strategy. Instea d, you should consider using different markups based on the characteristics of your products.For instance, if you are an electronics retailer, you might have different markups for different products, such as TV sets, home theater systems, fridges, cookers, and so on.The markup should also depend on factors such as the products’ turnover.For instance, products that have a very high turnover might have a lower markup compared to those with lower turnover.This is because the high sales might be enough to cover operating expenses, despite the lower markup.To explain how this works, let’s assume that two companies, company X and company Y are in the same industry and sell similar products.It costs both companies $10 to make the product. However, company X places a 50% markup on the product, while company Y places a 30% markup on the product.This will result in a price disparity between company X and company Y, with company Y’s products being more competitively priced. This differen ce in price can result in company Y selling two or three times more than company X and making more profits than company X, despite company X having a higher markup on their products.This is based on the law of demand, which states that the price of a product is inversely proportional to demand.An increase in price leads to reduced demand, while a decrease in price leads to increased demand for the product.MARGIN VS. MARKUP â€" WHICH SHOULD YOU USE?At the start of this article, I mentioned that confusing between margin and markup can be hurtful for your business.So, which of the two should you use? Generally, most small businesses, and especially retailers, depend on markup to set prices for their products.However, when it comes to recording financial information about your business, you accountant, bookkeeper or accounting software will be more interested in the margin rather than the markup.If you use markup in the place of margin, you will end up with bungled accounting numbers, w hich might make you think that your business is making more money than it is actually making.Therefore, while both can be used to determine how to price your products, you should stick to the gross margin when it comes to accounting, because it is a more accurate representation of the profit your business is making.WRAPPING UPUnderstanding the relationship between margin as well as the difference between the two is very important for every business owner.Confusing between the two messes up your accounting and may even result in your business losing money without your knowledge.On the other hand, knowing the difference between the two terms and how they related to each other helps in setting the right goals for your business and implementing short and long term strategies for your business.Understanding margin and markup also helps you to properly price your products.It allows you to competitively price your products while ensuring that you are not leaving any revenue on the table.

Managing financial resources and decisions in business startups - Free Essay Example

Sample details Pages: 8 Words: 2372 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? John Caird had been working in an engineering consultancy firm. Recently he laid off with redundancy payment. He is planning to start his own business. In this assignment I discussed various forms of financing of business, how he can start his business, what are the problems of his business and many business and finance terms. Chapter-1- Identifying the sources of finance available to business. Don’t waste time! Our writers will create an original "Managing financial resources and decisions in business startups" essay for you Create order Task answer: There are several possible business options for John Caird. These options are sole trader or proprietorship, partnership and corporation. Sole trader or proprietorship 2. Partnership 3. Limited company Sole trader: a sole trader is an individual in business. Generally sole traders businesses are small with their own name. It is the most common organization. There are some advantages of being a sole trader: independence, personal service, simplicity. Since they have few legal requirements, sole proprietorships are easy to form and operate. They can also be more affordable since no legal documents need to be filed in most cases. Basically, all one has to do to form a sole proprietorship is get a business license and begin operations. Although the sole proprietorship does have the advantage of simplicity, the negatives can turn entrepreneurs away from this form of business association. The disadvantages of a sole proprietorship stem from its very nature the business and the business owner are undividable. This leads to three potential problems. First, owners can lose some beneficial tax-free perimeter benefits because they cannot participate in company-funded employee benefit plans like medical insurance and retirement plans. Second, since the owner and the business are inseparable, whoever sues the business actually sues the owner. The owners personal exposure is unlimited. Finally, the business owner is personally liable for the debts of the company, and unfortunately, personal assets can be taken to pay company obligations. Partnership: A partnership is a group of individuals working together in business with a view to making a profit. It is similar to a sole trader but has two or more owners. Like the sole trader, the partnership is not a separate legal entity from its owners. Unlike the sole trader, however, the partnership can hold property and incur debt in its name. A partnership is easy to establish and involves two or more people running a business together. The partners are the business. Examples of partnerships include group of doctors, dentists, accountants and solicitors. A partnership does not have to be registered any where but it is often advisable for partners to have a partnership agreement drawn up by a solicitor. This will state what capital. Limited Company: A limited company is a separate legal entity, owned by shareholders and run by directors. A limited company is quite different from a sole trader in that it has a legal identity separate from its owner. The owners the shareholders- are not personally liable for the companys debts, but can be made so if they are asked by a lender to provide security. A limited company must be registered at Companies house. An annual return and financial statements must be sent each year to Companys House by company. The rules for running the company must be set out in the Memorandum and Articles of Association, a copy of which must also be sent to Companies House. There is must paper work involved in establishing and running a limited company. Task B Requirements Term Explanation Building and fixtures Long term It can be purchased by mortgage loan. Office Vehicle Mid tern It could be financed by commercial bank or bond. Security System Mid term Leasing and hire purchase should be suitable for it. Payroll Expense (year 1) Mid term Bank loan is a option. Marketing expense Short tern/ midterm Office Stationary Short term From personal savings. Printing and Publications Short term It can be financed by trade credit. Sources of Finance Depending on the date of maturity, sources of finance can be clubbed into the following: Long-term sources of finance: Long-term financing could be raised from the following sources: Share capital or else equity share Preference shares Retained earnings Debentures/Bonds of different types Loans from financial institutions Loan from financial firm Loans from commercialÂÂ  banks Venture capital funding Asset securitization Medium-term sources of finance: Medium-term financing can be raised from the following sources: Preference shares Debentures/bonds Public deposits/fixed deposits Commercial banks Financial institutions Financial corporations Lease financing / hire purchaseÂÂ  financing External commercial borrowings Foreign currency bonds ÂÂ  Short term sources of finance: Short-term financing can be raised from the following sources: Trade credit Commercial banks Fixed deposits for a period of 1 year or less Advances received from customers Various short-term provisions Task C DEBT EQUITY None Hire-Purchase Mortgage Loan Leasing Bonds and debenture Invoice factoring Share capital Retained earnings Personal savings Cash management Invoice discounting Debt- These are cost where interest forms of payment is paid. Equity- These cost are paid from the part of profit or income. Chapter-2- Assess the implications of different sources of finance. Task D There are a number of ways of buying these things. The business might go to the bank for a loan, arrange some sort of finance deal with the supplier, use cash they have in the business or arrange a lease option. A lease effectively means that the business is paying for the use of a product but do not own it. Also it is called hiring. A lease contract on a van, for example, might mean that the firm pays out 350 per month for a three year lease. At the end of the three years the vehicle returns to the owner. Lease agreements can be of benefit to the firm for the following reasons: It can be cheaper to organize a lease rather than having to buy apparatus outright Leases can be very flexible equipment might only be needed for a short time or for a particular development and so does not warrant being bought outright. The company that owns the equipment, machines or vehicles is liable for the maintenance and this can help decrease costs for the business. The payments made are usually fixed and will not therefore change as interest rates change. This helps business plan more effectively. (Reference from www.bized.co.uk ) Before taking any lease we should conform how long do we plan to stay? And we must know the rules and regulation of leasing party. And do there demands match with my requirements and ability. Task E FactoringÂÂ  is aÂÂ  financial transactionÂÂ  whereby a business sells itsÂÂ  accounts receivableÂÂ  to a third party at aÂÂ  discountÂÂ  in exchange for immediate money with which to finance continued business. Also it is taken when there is a massive amount of sales is done on credit. It is generally used by businesses to progress cash flow butÂÂ  canÂÂ  also be used to shrink administration overheads.ÂÂ  Business that provides this service is called factors or debt factoring companies. Invoice discounting is another way of drawing money against your invoices. However, your business retains control over the administration of your sales ledger. As well as providing finance,ÂÂ  it offers important support services and credit insurance. Factoring provides a fastÂÂ  forestallmentÂÂ  against your sales ledger. It allows you, at a cost, to flexibly increase your working capital and improve cash flow. FactoringÂÂ  is offered to businesses trading with other businesses on credit terms.ÂÂ  It is not usually available to retailers or to cash traders. Factors requirements differ, so what follow is an indication and not a firm list. We may find a matter even if the following features not met. Johns business may be suitable for factoring if it has: An annual turnover of at least 50,000 although some factors will consider start-ups and smaller businesses Business should have more than just a few customers. No single customer accounts for more than about a third of turnover. Customers that allow the standard payment terms for the industry. Customers that agree to a reasonable period of credit. (Reference from www.businesslink.gov.uk ) Task F Trade credit is an arrangement to buy goods or services on account that is without making immediate cash payment. In other words, trade credit is Buy now, pay later. For many businesses, trade credit is a crucial tool for financing growth. Trade credit is the credit extended to you by suppliers who let you buy at this instant and pay later. Any time you take delivery of materials, equipment or other valuables without paying cash on the spot, youre using trade credit. We can acquire materials very fast by trade credit. Most of the time paying duration is very shorter than bank loans. When we are first starting our business, however, suppliers most likely arent going to offer trade credit. They are going to desire to make every order c.o.d. (cash or check on delivery) or paid by credit card in advance until we have established that we can pay our bills on time. While this is a fairly regular practice, we can still try and negotiate trade credit with suppliers. One of the things that will help us in these negotiations is a properly prepared financial plan. So Mr. John Caird could buy security system, stationeries and printings by trade credit. Task G If Mr. John Caird wants to issue share capital or bond/ debenture to increase more fund for his organization he should start limited company. Limited companies are the largest form of business enterprise. Finance is provided by individuals and financial institution- such as pension funds and unit trust managers- buying shares in the company. The way the investment is made will depend on the size of the company. Limited companies, like sole trader and partnerships need finance for long-term purposes. They may also need finance for the acquisition of other companies and business. Also limited company must follow the rules of the Memorandum and Articles of Association. There are the differences of issuing share capital and bond debenture. Issuing Shares Bonds/Debentures Type of Finance Equity Debt Cost High Relatively much lower Risk Low or no risks High Bonds and Debentures are debt instruments. The Company issues the Bond or Debenture as the case may give details of the interest to be paid and the period of the loan, and how the loan will be repaid. When we buy any bond or debenture we become a creditor to the company. Share is equity participation in the Company. When we buy a share, we become a shareholder of the company. The company will pay us dividend on the shares. To issue a share / bond / debenture, the company must be registered and must have the necessary minimum capital. Chapter-3- Select appropriate sources of finance for a business project Task H If John Caird is interested to start sole-proprietorship form of business then he should finance the following requirements:| Building and fixtures: This need long term finance. In my opinion Mr. John can go for leasing buildings and fixtures. Although there are no ownership but he can reduce finance cost. He has limited capital thats why it can be risky to buy buildings and fixtures. And when Johns business will run well he could purchase buildings and fixtures. Office Vehicle: It will better to buy on mid term loan, as means of paying it by instalments. Security system: Mid term finance is suitable for security system, because every year new and better security systems are updating. So John could go for mid term financing like- leasing. Payroll Expense (year 1): it can be financed by short term finance like-loans from commercial bank or personal savings. Marketing expense: It must be go to the short term loan. Because marketing expense vary on situation and factors. Also marketing policy changes dramatically. Office Stationary: John Caird can buy office stationary by hire purchasing. This will be best for him. Printing and Publications: Printing and publication should be financed by short term form. John can use trade credit or advances received from customer. Task I Cairn Energy illustrated that their Property, Plant Equipment- Development/Producing assets has increased from $1,119.6m in 2008 to $1,828.6m in 2009. And theres something in balance sheet called share premium which is 30 times larger than Called up share capital. Called up share capital- Called up share capital is the money required to be paid by the share holders immediately. Share premium- Share premium is the value which is set above the face value (the increased amount). Excess amount received by a firm over the par value of its shares. This amount forms a part of the non-distributable reserves of the firm which usually can be used only for purposes specified under corporate legislation. Task J EPS stands for earnings per share. The portion of a companys profit allocated to each outstanding share of common stock.ÂÂ  Earnings per shareÂÂ  serve as an indicator ofÂÂ  a companysprofitability. Calculated as: When calculating, it is more accurate to use aÂÂ  weighted average number of shares outstanding over the reporting term, because theÂÂ  number of shares outstanding can change over time. However, data sourcesÂÂ  sometimes simplify the calculationÂÂ  by using the number of shares outstanding at the end of the period.( https://www.investopedia.com/terms/e/eps.asp) Diluted EPSÂÂ  expands on basic EPS by including the shares ofÂÂ  convertibles or warrants outstanding in the outstanding shares number.ÂÂ   Dilution: A reduction in earnings per share of common stock thatÂÂ  occurs through the issuance of additional shares or the conversion of convertible securities. Diluted EPS: AÂÂ  performance metric used to gauge the quality of a companys earnings per share (EPS) if all convertible securities were exercised. Convertible securities refer to all outstanding convertible preferred shares, convertible debentures, stock options (primarily employee based) and warrants. Unless the company has no additional potential shares outstanding (aÂÂ  relatively rare circumstance) the diluted EPS will always be lower than the simple EPS. ( Reference by Principles of managerial finance, Tenth edition, Lawrence J Gitman.) Conclusion: From three chapters we could know the way how to finance of a company. In my opinion, to established Mr. John Caird Company he should follow this steps. Otherwise the unnecessary steps can increase and he may fall in nuisance.

Finance - 2208 Words

Sustainable Business amp; Enterprise Roundtable (SBER) Assessment Corporate Users April 2015 Introduction The Sustainable Business and Enterprise Roundtable (SBER) service provides an annual, confidential qualitative Diagnostic and Assessment to benchmark Member-Clients against their peers and recommend areas for improvement. This Assessment Report details benchmarks and performance in five component areas, which are rolled up to a weighted SBER Index (Figure 1). The component and index scores are updated with information sourced from participating Member companies on an ongoing basis. This report details best practices for the Corporate Users, comparing PGamp;E with similar businesses within the SBER. The members of this†¦show more content†¦| | Leader gt;75% Advanced 65-75% Committed 50-65% Needs Improvement lt;50% Leader gt;75% Advanced 65-75% Committed 50-65% Needs Improvement lt;50% Examples of Member Best Practices for Vision and Governance * Publish a vision of sustainable real estate and operations that is aligned with the corporate vision. * Formally charter a sustainability council (green team) that reports to the executive committee and Board of Directors at least once a year. * Adopt a sustainability policy, signed by CEO. Strategy Strategy | | | With regard to real estate and operations, do you: | | | Overall Strategy | | | Have a defined enterprise-wide strategy for sustainability? | | Have a roadmap to implement the strategy? | | Strategic Goals | | | Have strategic sustainability goals for the operations? | | Allocating Resources for Sustainable Outcomes | Undertake indoor environmental quality (IEQ) upgrades in addition to energy efficiency (EE) upgrades? | Valuation | | | Have methodology for the valuation of more sustainable operations? | | Alternative Workplace Strategies | | | Have a policy for allowing remote work, flexible schedules, or innovative office design? | Leader gt;75% Advanced 65-75% Committed 50-65% NeedsShow MoreRelatedFinance1352 Words   |  6 Pagesfinancial manager differ from the traditional financial manager? Does the modern financial managers role differ for the large diversified firm and the small to medium size firm? 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(Moffett) Although there are several complicatedRead MoreFinance998 Words   |  4 PagesPlant Improvements Total Investments: total investment in plant and equipment brought forward from the Production spreadsheet. Sales of Plant and Equipment : total sales of plant and equipment brought foraad from the Production spreadsheet. Common Stock * Shares Outstanding: The number of shares of common stock in the hands of shareholders. Reflect any issue/ retire stock transaction at the beginning of this year * Price Per Share: stock price as of yesterday’s close. Stock will be issuedRead MoreInternal Sources Of Finance And Finance Essay2349 Words   |  10 PagesInternal sources of finance: Internal sources of finance are funds that arise from within the business such as profits as they can be retained to grow the finance and selling assets. Retained profit Retained profit is the money kept in the company after paying dividends. It is used to reinvest in the business or to pay debt. 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Sustainable Business amp; Enterprise Roundtable (SBER) Assessment Corporate Users April 2015 Introduction The Sustainable Business and Enterprise Roundtable (SBER) service provides an annual, confidential qualitative Diagnostic and Assessment to benchmark Member-Clients against their peers and recommend areas for improvement. This Assessment Report details benchmarks and performance in five component areas, which are rolled up to a weighted SBER Index (Figure 1). The component and index scores are updated with information sourced from participating Member companies on an ongoing basis. This report details best practices for the Corporate Users, comparing PGamp;E with similar businesses within the SBER. The members of this†¦show more content†¦| | Leader gt;75% Advanced 65-75% Committed 50-65% Needs Improvement lt;50% Leader gt;75% Advanced 65-75% Committed 50-65% Needs Improvement lt;50% Examples of Member Best Practices for Vision and Governance * Publish a vision of sustainable real estate and operations that is aligned with the corporate vision. * Formally charter a sustainability council (green team) that reports to the executive committee and Board of Directors at least once a year. * Adopt a sustainability policy, signed by CEO. Strategy Strategy | | | With regard to real estate and operations, do you: | | | Overall Strategy | | | Have a defined enterprise-wide strategy for sustainability? | | Have a roadmap to implement the strategy? | | Strategic Goals | | | Have strategic sustainability goals for the operations? | | Allocating Resources for Sustainable Outcomes | Undertake indoor environmental quality (IEQ) upgrades in addition to energy efficiency (EE) upgrades? | Valuation | | | Have methodology for the valuation of more sustainable operations? | | Alternative Workplace Strategies | | | Have a policy for allowing remote work, flexible schedules, or innovative office design? | Leader gt;75% Advanced 65-75% Committed 50-65% NeedsShow MoreRelatedFinance1352 Words   |  6 Pagesfinancial manager differ from the traditional financial manager? Does the modern financial managers role differ for the large diversified firm and the small to medium size firm? The traditional financial manager was generally involved in the regular finance activities, e.g., banking operations, record keeping, management of the cash flow on a regular basis, and informing the funds requirements to the top management, etc. But, the role of financial manager has been enhanced in the todays environment;Read MoreFinance1074 Words   |  5 PagesCORPORATE FINANCE COURSE CORPORATE FINANCE 2.1 Working Capital Management Sept. 2014 Ir Frank W. van den Berg mba Vrije Universiteit, Amsterdam ALYX Financial Consultancy bv, Aerdenhout FWvdB/2014 1 OUTLINE CORPORATE FINANCE FWvdB/2014 †¢Ã¢â‚¬ ¯ Basics Guiding principles †¢Ã¢â‚¬ ¯ Time value of money + Capital Budgeting †¢Ã¢â‚¬ ¯ Valuation of CF + Bonds †¢Ã¢â‚¬ ¯ Valuation of shares (+ co.’s) †¢Ã¢â‚¬ ¯ Financial Analysis (Ratios) †¢Ã¢â‚¬ ¯ Financial Planning (EFN) †¢Ã¢â‚¬ ¯ à  Ã¯Æ'   Working Cap. Mgt. (A/R,Read MoreThe Finance1054 Words   |  5 Pagesrequires intentional short-term and long-term planning. More importantly, in order for capital management to be deemed successful, it is required that all members of an organization are on board. â€Å"Capital budgeting is not only important to people in finance or accounting, it is essential to people throughout the business organization†lt; /spangt; (Block, Hirt, amp; Danielsen, 2011). As the duration of the investment period increases, and the size of investment increases, the residual risk also increasesRead MoreEquity Finance And Debt Finance823 Words   |  4 PagesStockholders are those entities who provide a company with the risk capital such as preference share owners and ordinary share owners (Freeman and Reed, 1983). Generally, stockholderis one of long-term finance providers with the aim to maximize their wealth.According toBrickleyet al. 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It is due to my understanding of the importance of finance and investment, coupled with my longstanding interestRead MoreFinance : Finance A Carry Trade1144 Words   |  5 PagesIn finance a carry trade is a strategy that consists of borrowing at a low interest rate currency to fund investment in higher yielding currencies. (Moffett) Th e country in which the investors borrow from is called the funding country and the country where the investment occurs is called the target country. (4) Carry trade is also termed currency carry trade; this strategy is speculative in that the currency risk is present and not managed or hedged. (Moffett) Although there are several complicatedRead MoreFinance, Banking And Finance Industry2170 Words   |  9 Pagescomplete your transaction and move on with your day. The last thing on your mind is how that transaction is taking place. You don’t care what happens behind the scenes as long as your money is where it needs to be and is safe. As the banking and finance industry has transformed, so has the process of how your money is handled. To accompany those changes, regulators and lawmakers create laws designed to protect consumers, banks, and the economy as a whole. As you will learn, the history of the bankingRead MoreFinance : Finance A Carry Trade Essay1144 Words   |  5 Pages In finance a carry trade is a strategy that consists of borrowing at a low interest rate currency to fund investment in higher yielding currencies. (Moffett) The country in which the investors borrow from is called the funding country and the country where the investment occurs is called the target country. (4) Carry trade is also termed currency carry trade; this strategy is speculative in that the currency risk is present and not managed or hedged. 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It comes by a business after it makes profit and is kept separate to use in other ways such as expanding the business by developing new buildings or certain areas, buying new

Finance - 2208 Words

Sustainable Business amp; Enterprise Roundtable (SBER) Assessment Corporate Users April 2015 Introduction The Sustainable Business and Enterprise Roundtable (SBER) service provides an annual, confidential qualitative Diagnostic and Assessment to benchmark Member-Clients against their peers and recommend areas for improvement. This Assessment Report details benchmarks and performance in five component areas, which are rolled up to a weighted SBER Index (Figure 1). The component and index scores are updated with information sourced from participating Member companies on an ongoing basis. This report details best practices for the Corporate Users, comparing PGamp;E with similar businesses within the SBER. The members of this†¦show more content†¦| | Leader gt;75% Advanced 65-75% Committed 50-65% Needs Improvement lt;50% Leader gt;75% Advanced 65-75% Committed 50-65% Needs Improvement lt;50% Examples of Member Best Practices for Vision and Governance * Publish a vision of sustainable real estate and operations that is aligned with the corporate vision. * Formally charter a sustainability council (green team) that reports to the executive committee and Board of Directors at least once a year. * Adopt a sustainability policy, signed by CEO. Strategy Strategy | | | With regard to real estate and operations, do you: | | | Overall Strategy | | | Have a defined enterprise-wide strategy for sustainability? | | Have a roadmap to implement the strategy? | | Strategic Goals | | | Have strategic sustainability goals for the operations? | | Allocating Resources for Sustainable Outcomes | Undertake indoor environmental quality (IEQ) upgrades in addition to energy efficiency (EE) upgrades? | Valuation | | | Have methodology for the valuation of more sustainable operations? | | Alternative Workplace Strategies | | | Have a policy for allowing remote work, flexible schedules, or innovative office design? | Leader gt;75% Advanced 65-75% Committed 50-65% NeedsShow MoreRelatedFinance1352 Words   |  6 Pagesfinancial manager differ from the traditional financial manager? Does the modern financial managers role differ for the large diversified firm and the small to medium size firm? The traditional financial manager was generally involved in the regular finance activities, e.g., banking operations, record keeping, management of the cash flow on a regular basis, and informing the funds requirements to the top management, etc. But, the role of financial manager has been enhanced in the todays environment;Read MoreFinance1074 Words   |  5 PagesCORPORATE FINANCE COURSE CORPORATE FINANCE 2.1 Working Capital Management Sept. 2014 Ir Frank W. van den Berg mba Vrije Universiteit, Amsterdam ALYX Financial Consultancy bv, Aerdenhout FWvdB/2014 1 OUTLINE CORPORATE FINANCE FWvdB/2014 †¢Ã¢â‚¬ ¯ Basics Guiding principles †¢Ã¢â‚¬ ¯ Time value of money + Capital Budgeting †¢Ã¢â‚¬ ¯ Valuation of CF + Bonds †¢Ã¢â‚¬ ¯ Valuation of shares (+ co.’s) †¢Ã¢â‚¬ ¯ Financial Analysis (Ratios) †¢Ã¢â‚¬ ¯ Financial Planning (EFN) †¢Ã¢â‚¬ ¯ à  Ã¯Æ'   Working Cap. Mgt. (A/R,Read MoreThe Finance1054 Words   |  5 Pagesrequires intentional short-term and long-term planning. More importantly, in order for capital management to be deemed successful, it is required that all members of an organization are on board. â€Å"Capital budgeting is not only important to people in finance or accounting, it is essential to people throughout the business organization†lt; /spangt; (Block, Hirt, amp; Danielsen, 2011). As the duration of the investment period increases, and the size of investment increases, the residual risk also increasesRead MoreEquity Finance And Debt Finance823 Words   |  4 PagesStockholders are those entities who provide a company with the risk capital such as preference share owners and ordinary share owners (Freeman and Reed, 1983). Generally, stockholderis one of long-term finance providers with the aim to maximize their wealth.According toBrickleyet al. (1985), long-term finance provi ders are more likely to focus on the matter whether the financial structure in the company is sound or not and the durability of profitabilityrather than temporary profits that a potentiallyRead MoreFinance, Economics, And Finance Essay1245 Words   |  5 Pagesalso studied business, management, economics, and finance. These courses impressed upon me the importance of the financial sector in the economy. Finance professionals have the unique responsibility of managing assets and analyzing risks to ensure the future success of a company or organization. It is difficult to overstate the importance of this role, as the financial crisis of 2009 showed. It is due to my understanding of the importance of finance and investment, coupled with my longstanding interestRead MoreFinance : Finance A Carry Trade1144 Words   |  5 PagesIn finance a carry trade is a strategy that consists of borrowing at a low interest rate currency to fund investment in higher yielding currencies. (Moffett) Th e country in which the investors borrow from is called the funding country and the country where the investment occurs is called the target country. (4) Carry trade is also termed currency carry trade; this strategy is speculative in that the currency risk is present and not managed or hedged. (Moffett) Although there are several complicatedRead MoreFinance, Banking And Finance Industry2170 Words   |  9 Pagescomplete your transaction and move on with your day. The last thing on your mind is how that transaction is taking place. You don’t care what happens behind the scenes as long as your money is where it needs to be and is safe. As the banking and finance industry has transformed, so has the process of how your money is handled. To accompany those changes, regulators and lawmakers create laws designed to protect consumers, banks, and the economy as a whole. As you will learn, the history of the bankingRead MoreFinance : Finance A Carry Trade Essay1144 Words   |  5 Pages In finance a carry trade is a strategy that consists of borrowing at a low interest rate currency to fund investment in higher yielding currencies. (Moffett) The country in which the investors borrow from is called the funding country and the country where the investment occurs is called the target country. (4) Carry trade is also termed currency carry trade; this strategy is speculative in that the currency risk is present and not managed or hedged. (Moffett) Although there are several complicatedRead MoreFinance998 Words   |  4 PagesPlant Improvements Total Investments: total investment in plant and equipment brought forward from the Production spreadsheet. Sales of Plant and Equipment : total sales of plant and equipment brought foraad from the Production spreadsheet. Common Stock * Shares Outstanding: The number of shares of common stock in the hands of shareholders. Reflect any issue/ retire stock transaction at the beginning of this year * Price Per Share: stock price as of yesterday’s close. Stock will be issuedRead MoreInternal Sources Of Finance And Finance Essay2349 Words   |  10 PagesInternal sources of finance: Internal sources of finance are funds that arise from within the business such as profits as they can be retained to grow the finance and selling assets. Retained profit Retained profit is the money kept in the company after paying dividends. It is used to reinvest in the business or to pay debt. It comes by a business after it makes profit and is kept separate to use in other ways such as expanding the business by developing new buildings or certain areas, buying new