Business owners, managers, aspiring entrepreneurs form business organization selec t-based considerations, including taxes, liability, capital contributions, sharing profits losses, management control, survivorship.
Marginal cost and marginal revenue
Marginal revenue
The concept of marginal revenue is generically understood as the additional revenue the company generates from the sale of one more unit of its product or service. In a different formulation, the marginal revenue represents the money generated by the sale of the last item, be it product or service.
The marginal revenue is computed through the division of the change in total revenue by the change in quantity of sold items. This computation method also represents the relationship between the marginal revenue and the total revenue.
M = Change in T / Change in Q, where
M is the marginal revenue
T represents the total revenues, and Q. represents the quantity of items sold (Economics. Fundamental Finance).
Marginal cost
Similar to the marginal revenue, the marginal cost also refers…...
mlaReferences:
Marginal revenue, Economics. Fundamental Finance, last accessed on July 29, 2011http://economics.fundamentalfinance.com/micro_revenue.php
Marginal cost (MC), EconModel, last accessed on July 29, 2011http://www.econmodel.com/classic/terms/mc.htm
Profit, Investopedia, last accessed on July 29, 2011http://www.investopedia.com/terms/p/profit.asp
Profit maximization, Investor Words, last accessed on July 29, 2011http://www.investorwords.com/7690/profit_maximization.html
business, it is vital for business owners to measure the value of their assets and to evaluate the performance of their business at any point in time. In fact, majority of strategies for popular multinational corporations, such as Samsung, Apple and Starbucks, are formulated based on the financial performance of the company as compared to other companies in a particular industry. Two courses, ACC201 and FIN301, introduce learners to fundamental principles in accounting and finance, which are meant to equip the said learners with the knowledge and skills needed to understand how businesses are valued and how leaders make important financial decisions that affect their companies in the long-run. This text summarizes the readings and assignments we covered in ACC201 and FIN301, the skills learnt and how they will be applicable in future careers.
Module 1 introduced us to the analysis of various financial statements. Using this skill, we went…...
mlaReferences
The Gap, Inc. (2015). Annual reports and proxy. Retrieved January 25, 2015 from http://investors.gapinc.com/phoenix.zhtml?c=111302&p=irol-reportsAnnual
Verizon. (2015). Annual reports. Retrieved January 25, 2015 from http://www.verizon.com/about/investors/
Weygandt, J.J, Kimmel, P. D & Kieso, D.E. (2010) Managerial Accounting: Tools for Business Decision Making. New Aster: John Wiley & Sons, Inc.
Yahoo! Finance. (2015). Apple, Inc. Cash Flow. Retrieved January 25, 2015 from http://finance.yahoo.com/q/cf?s=AAPL+Cash+Flow&annual
Small business owners should consider numerous business ratios. The measures of liquidity enable the business to live within the day-to-day expenses. These short-term obligations must be fulfilled by the business. Measures of liquidity are obtained through the two main features in the current ratio and net working capital. The ratio between the current assets and current liabilities should be considered by the business. Activity ratios are another business ratio that must be used by the small business. The business will be able to gauge and know how it is using its assets towards productivity. The amounts of accounts received together with the total assets and inventories are indispensable while determining the benefits of productivity within the organization. The other ratio that is of benefit is the measures of profitability ratio. With this ratio, the business will be able to know the level of its returns in accordance to the sales,…...
mlaReferences
Bragg, S.M. (2011). The new CFO financial leadership manual. Hoboken, N.J: Wiley.
Puxty, A.G., Dodds, J.C., & Wilson, R.M.S. (1988). Financial management: Method and meaning. VNR International.
Sadgrove, K. (2005). The complete guide to business risk management. Aldershot, Hants,
England: Ashgate Pub.
hybrid contract to the small-Business owner, and why the government is likely to choose you in the sealed-bidding process.
The hybrid contract contains the combination of both fixed-price and cost-reimbursable contracts. To understand the hybrid contract, therefore, one has to understand these other two types:
Fixed-price -- a contract that defines a fixed total price for a clearly defined scope and piece of work. Bonuses may also be included as well as other incentives. Vendors working for fixed-price contracts are legally held to complete their work at stated proscriptions with financial implications if they fail.
cost-reimbursable contracts -- this is a contract that involves payments / reimbursements to the vendor for all costs involved in the business and act of producing product / giving service as well as a fee that goes for vendor profit. uch contracts may also include financial incentive clauses that state that vendor wins or loses a certain…...
mlaSources
the Business Owner's Toolkit
GovWin Network Government Procurement Process
pm student.com Contract type: Here's the best one… http://pmstudent.com/contract-type-heres-the-best-one/http://govwin.com/knowledge/procurement-process
small size business owner has to continually assess the status of the enterprise relative to both itself (as evolution in time), as well a relative to the industry, in order to identify its current status and position. One important means in which the economic agents come to conduct this assessment is represented by the financial status of the company, revealed through the lenses of financial ratios. Some notable examples of financial rations to be considered by small size economic agents in their assessments include:
Liquidity ratios, such as the quick ratio or the current ratio, which assess the company's ability to pay its debts
Asset turnover ratios, such as the receivable turnover or the inventory turnover, which assess the company's ability to use its assets to generate revenues
Financial leverage ratios, such as the debt to equity ratio, which indicate the status of the company's capitals
Profitability ratios, such as the gross profit…...
mlaReferences:
2010, Financial ratios, Net MBA,
Decision Making and Accounting Theories
Business owners find that they always have to put on business hats when they are starting up or managing their businesses. However in business it is not the owners who are meant to make decisions only, decisions can also be made by employees. When classification of business decisions is done it is on the basis of how predictable that particular decision is. Programmed decisions are those that are straightforward, routine and repetitive. They can easily be dealt with by the creation of procedures and routines. On the other hand there are decisions that are unstructured and valid which do not require systems that are clear cut so as to be made. Those in business are often faced with various decisions which they have to make some of which are particularly important when it comes to the profitable existence of any business. Decisions result to success there…...
mlaReferences
Kaipa, P. & Radjou, N. (2013). 7 Business Decisions That Looked Bad but Turned Good. Retrieved August 27, 2013 from http://www.cnbc.com/id/100634625
Wicks, D. (2013). Top 5 Biggest Decisions Business Owners Make. Retrieved August 27, 2013 from http://smallbusiness.chron.com/top-5-biggest-decisions-business-owners-make-10131.html
Krippendorff, K. (2013). The Greatest Business Decisions of All Time. Retrieved August 27, 2013 from http://www.fastcompany.com/3001870/greatest-business-decisions-all-time
Kruse, K. (2013). The Top 5 Business Decisions of All Time. Retrieved August 27, 2013 from http://www.forbes.com/sites/kevinkruse/2013/05/22/business-decisions/
Small Business Owner: Financial atios
Understanding concepts
Financial analysis is one of the most reliable means of assessing an economic agent as it relies on quantitative data, which is unbiased, objective and which can be extrapolated. Still, despite these advantages of financial analysis, fact remains that its results can generate relative findings based on the characteristics of the assessed company. For instance, while a small size company would be more interested in decreasing debt, a large size entity would pay less attention to debt.
In the context of a small size company, some of the more relevant financial ratios to be assessed refer to the profitability ratios, the liquidity ratios, the debt ratios and the activity ratios. Each of these categories contains several important ratios, as follows:
Profitability ratios: the gross profit margin, the net profit margin, the return on equity
Liquidity ratios: current ratio, quick ratio or current ratio
Debt ratios: debt ratio, debt to…...
mlaReferences:
Cooper, J., 2011, How to calculate financial ratios for your small business, Mimosa Planet, accessed on August 21, 2012http://mimosaplanet.com/Small-Business-Blog/bid/62950/How-to-Calculate-Financial-Ratios-for-Your-Small-Business.htmllast
2010, Financial ratios, Net MBA, / last accessed on August 21, 2012http://www.netmba.com/finance/financial/ratios
2012, Beta risk, Investopedia, last accessed on August 21, 2012http://www.investopedia.com/terms/b/beta-risk.asp#axzz24AKreBy1
Systematic and unsystematic risk, Nerimanhb, accessed on August 21, 2012http://narimanhb.com/2010/08/18/systematic-unsystematic-risknon-diversifiable-and-diversifiable-risk/last
decisions a small business owner. Since microeconomics study individual households, firms, government, a closer operations a franchise firm. . You select ONE firm a list Entrepreneur magazine: http://www.
Microeconomics
McDonald's is one of the most popular franchises across the globe. The firm represents the epitome of corporate success, but it is also an emblem of the American way of life. The fast food industry is an important segment of the current life style, of working women, busy schedules and less time for traditional eating.
Part of the success registered by McDonald's is represented by the business model selected by the firm. Specifically, the fast food giant operates through franchises, meaning that its stores are operated by tertiary parties, under the emblem of McDonald's, but with shared risk, resource consumption and profitability.
In order to better assess the company, it is useful to approach it through the lenses of the three fundamental questions of…...
mlaReferences:
Adams, B., 2007, McDonald's strange menu around the world, Trifter, / last accessed on January 16, 2012http://trifter.com/practical-travel/budget-travel/mcdonald%E2%80%99s-strange-menu-around-the-world
Royle, T., 2000, Working for McDonald's in Europe: the unequal struggle, Routledge
Website of the McDonald's Corporation, last accessed on January 16, 2012http://www.mcdonalds.com
parameters, there are five general traits of attracting venture capitalists that should be assessed and analyzed. In no particular order, they are scrutinizing your business with a critical eye, beefing up of management, keeping up a high profile, targeting of the search, keeping a lookout and the investigation of possible venture partners. The author of this report has been asked to determine and explain which step is the "most difficult" for an entrepreneur to completely and why. Subsequent to that, there will be an explanation of how to attract venture capitalists while making the foundations of the business in question strong.
Of the five mentioned above, the one that would seem to be the most difficult would be keeping a high profile. So much of life and business is about managing perceptions and most people know full well that perceptions are subject to just that…perception. Venture capitalists are obviously trying…...
mlaReferences
Apex,. (2015). New managers need grooming to succeed. Apex CPAs & Consultants. Retrieved 21 August 2015, from http://www.apexcpas.com/insights-resources/articles/blog-details/articleid/46/new-managers-need-grooming-to-succeed
Bradshaw, M. (2011). Financial investors vs. business owners: Every startup's 'offside' relationship - Memeburn. Memeburn. Retrieved 21 August 2015, from http://memeburn.com/2011/10/financial-investors-vs.-business-owners-that%E2%80%99s-offside-ref/
Entrepreneur,. (2005). How to Attract VC Investors. Entrepreneur. Retrieved 21 August 2015, from http://www.entrepreneur.com/article/80458
FindLaw,. (2015). Pros and Cons: Going Public - FindLaw. Findlaw. Retrieved 21 August 2015, from http://smallbusiness.findlaw.com/business-finances/pros-and-cons-going-public.html
Black Women: Diversity and Inclusion Programs - Are they really assisting?
In the last few decades, researchers, policymakers, economic development experts, and analysts of public policy are increasingly concentrating on the aspect of entrepreneurship in the African-American community, with respect to devising distinct strategies for facilitating economic success. Establishment of set-aside initiatives for minorities (or disadvantaged business initiatives) is one political strategy which serves as an instrument for enhancing small, poor businesses' chances of survival. Several of these businesses were African-American-owned and -run businesses (House-Soremekun, 2007; Chatterji, Chay & Fairlie, 2013). This paper will look into the economics-politics interrelationship, by analyzing the aforementioned disadvantaged business initiatives' effect on African-American businesswomen's economic outcomes.
The research question that this paper poses is: Are the programs (such as the set-aside initiatives) that are designed to support small and disadvantaged (or minority) business owners really successful -- or do they rather perpetuate inequality in the system?
The…...
mlaReferences
Bardach, E. (2011). Practical guide for policy analysis: the eight-fold path to more effective problem solving, 4th Edition. Sage
Bates, T. and Williams, D. (1995). Preferential Procurement Programs and Minority-Owned Businesses, Journal of Urban Affairs, 17(1): 1-17.
Bates, T. and Williams, D.L. (1993). Racial Politics: Does It Pay? Social Science Quarterly, 74(3): 507-22.
Boston, T. D. (1998). Trends in Minority-Owned Businesses, prepared for the National Research Council Conference on Racial Trends in the United States, Georgia Tech Working Paper.
Community Treasure Hunt: Pleasant Grove, Texas
In Pleasant Gove news coverage has stopped depicting violent crimes in its articles because it's old news. People die here every day, it's nothin'.
Pleasant Grove, Texas resident c. 2015
I was born and raised here and have traveled the world, but I could never imagine any place lovelier to call home.
Norma Davis, Chair, Pleasant Grove Historical Society, 2015
Introduction, Demographic Information, and Community Immersion (suggested length: 3 pages)
There are a number of ways to conceptualize a community, with its geographic boundaries being among the most straightforward (Knowing your community). The geographic boundaries of Pleasant Grove, located in the southeast section of the Dallas, are shown in Figure 1 below.
Figure 1. Location of Pleasant Grove
Source: https://www.google.com/maps/
Geographic boundaries alone, however, reveal little about the people that comprise a community and this is certainly the case with the working-class community of Pleasant Grove. Described by the Web site Blacks in…...
mlaReferences
Davis, N. (2017, April 5). The Pleasant Grove Historical Society. Retrieved from https://www.facebook.com/groups/156970454468433/ .
Davis, N. (2015, June 25). Why I love Pleasant Grove. D Magazine. Retrieved from https://www.dmagazine.com/neighborhood-guides/2015/06/why-i-love-pleasant-grove/ .
Hallman, T. & Martin, N. (2015, March). Fear, fights, crime thrive at Pleasant Grove intersection. The Dallas Morning News. Retrieved from https://www.dallasnews.com/news/crime/2015/03/01/fear-fights-crime-thrive-at-pleasant-grove-intersection .
Humphrey, J. P. (2017, May 28). The Pleasant Grove Historical Society. Retrieved from
Business Mentoring
Mentoring is a critical job and is important for the one providing it as well as the party seeking it. The business parties seeking mentoring are normally those that are beginners and they wish to avoid problems by seeking expert advice. On the other hand the mentor's credibility and business experience is proved when he offers mentoring and advice. Theft and fraud are two most common issues faced by the starting businesses. The paper discusses what advice can be offered to beginners to avoid theft and fraud in business.
What advice can be offered to beginners to avoid theft and fraud in business?
Mentor
Mentoring is an advisory job and should be backed by proper knowledge and experience. Based on the three decades of business experience, it can be said that fraud and theft are most common in business however only a little more carefulness can help avoid fraud and theft. The…...
mlaReferences
Epstein, L., (2013), "Protecting Your Business from Theft and Fraud," Retrieved from:
http://www.dummies.com/how-to/content/protecting-your-business-from-theft-and-fraud.html
Matthews, C., (2002), "Preventing Small-Business Fraud," Retrieved from:
Additionally, businesses must anticipate seasonal shifts in demand when allocating and anticipating costs. A toy company cannot assume that the revenue it enjoys after a Christmas marketing a 'hot toy' will be sustained all year 'round.
In terms of taking a long-term view, a business should treat its employees in an ethical fashion. If employees are treated in a respectful manner, they are likely to perform better and show more loyalty to the organization. Additionally, if a company is found to be exploiting its employees, as was the case of Nike and the 'sweatshop'-type conditions of its offshore operations, this negative publicity can deter individuals from buying from the company. Employee costs in the long and short-term, in terms of compensating employees for overtime and giving them reasonable benefits, must also be included in the business plan. Also, the possibility of stock options, should the company incorporate, is another issue…...
mlaReferences
Business plan for starting out, 2010, Score Retrieved September 4, 2010 at www.score.org/.../Business%20Plan%20for%20Startup%20Business.doc
The value of a business plan. (2010). Striding Out. Retrieved September 4, 2010 at http://www.stridingout.co.uk/business-planning/the-value-of-a-business-plan.html
III. METHODS of ANALYSIS to INFORM usiness OWNER
Various methods of analysis exists which are useful in gaining needed information. One method of analysis is termed a SWOT analysis which examines the business in terms of its 'strengths', 'weaknesses', 'threats', and 'opportunities'. Another analysis that is informing in relation to: (1) Firm strategy, structure, and rivalry, (2) government; (3) factor conditions; (4) related and supported industries; and (5) demand conditions is the method known as Porter's Diamond analysis.
ibliography
Diamond Model - Porter on Nations (nd) Value-ased Management Online available at http://www.valuebasedmanagement.net/methods_porter_diamond_model.html
SWOT Analysis (nd) usiness & Economics. Online available at http://bizeco.blogspot.com/2005/08/SWOT-analysis.html
Keener, renda (2006) Creating a Competitive Analysis. Suite 101. Online available at http://marketingpr.suite101.com/article.cfm/creating_a_competitive_analysis...
mlaBibliography
Diamond Model - Porter on Nations (nd) Value-Based Management Online available at http://www.valuebasedmanagement.net/methods_porter_diamond_model.html
SWOT Analysis (nd) Business & Economics. Online available at http://bizeco.blogspot.com/2005/08/SWOT-analysis.html
Keener, Brenda (2006) Creating a Competitive Analysis. Suite 101. Online available at http://marketingpr.suite101.com/article.cfm/creating_a_competitive_analysis
Business Plan
Description of the Business
The business is a gourmet candy shop. The shop will sell gourmet candy that has been sourced from all over the world. The shop will operate with one storefront location, and there will be an Internet/mail order component as well.
The rationale for the business is simply. There is a growing trend towards hedonistic approaches to dining. We have seen in the past few years the rise of the bacon fetish, high end craft beer and coffee, cupcakes, the move of fine dining to the mass market and a full embrace by Americans of better quality indulgent goods. Much of this trend can be credited to the aging of the population, as people seek to maximize pleasure. They have the financial means to treat themselves, and seek to balance this hedonism with a desire to be healthy. The intersection of these ideals is where indulgences are small,…...
mlaReferences
Bailey, E. (2013). Pros and cons of incorporation. Suite101.com. Retrieved November 14, 2013 from http://suite101.com/a/pros-and-cons-of-incorporation-a42401
FASB. (2013). International convergence of accounting standards. Financial Accounting Standards Board. Retrieved November 14, 2013 from http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156245663
IRS.gov. (2013). Publication 946. Internal Revenue Service. Retrieved November 14, 2013 from http://www.irs.gov/publications/p946/ar02.html#en_US_2012_publink1000270861
NCA. (2013). Profile of the U.S. candy industry. National Confectioners' Association. Retrieved November 14, 2013 from http://www.candyusa.com/content.cfm?ItemNumber=1607
When most people think about the impact of the COVID-19 pandemic on economics, they think of it as being purely destructive. While there can be no doubt that the COVID-19 pandemic has created economic uncertainty in many sectors, leading to a loss of production and high unemployment rates in many areas, it cannot be ignored that the pandemic has also led to new opportunities for certain businesses. Understanding those opportunities may be critical to the overall recovery of the global economy, as those industries that have experienced gains determine how to leverage them in a way that....
Some key factors to consider before starting a new business venture include:
1. Market research: It is important to thoroughly research the market to understand the needs, preferences, and trends of your target customers. This will help you identify opportunities and potential competitors.
2. Business plan: Creating a detailed business plan is essential for outlining your goals, strategies, financial projections, and operational plans. It will also help you secure funding and attract potential investors.
3. Financial planning: Consider the costs of starting and running your business, including initial investment, operational expenses, salaries, and marketing costs. Determine how you will fund the business and....
Key Factors for Small Businesses Choosing Insurance Coverage
Protecting assets and mitigating risks is paramount for small businesses. Understanding the key factors involved in choosing the right insurance coverage can empower business owners to make informed decisions and safeguard their ventures.
1. Business Size and Industry:
The nature and scale of a business influence its insurance needs. Smaller businesses with fewer employees and lower revenue may opt for more basic coverage, while larger businesses with complex operations require more comprehensive policies. Industry-specific risks also impact insurance requirements. For instance, a construction company needs specialized insurance for managing construction hazards.
2. Assets and Liabilities:
Thoroughly inventory....
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3. A Question Hook: "Are you tired of crafting boring and ineffective marketing materials? Discover how powerful essay hooks can transform your business marketing strategies."
4. A Provocative Hook: "Attention all marketers: The secret to capturing your audience's attention lies in the art of crafting powerful....
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