Role of Long Term Finance

Questions: 1. Explain the different forms of business units(sole proprietorship, partnership, limited company) available, highlighting the benefits and limitations of each? 2. Explain financial accounting and management accounting, highlighting the differences between the two strands of accounting? 3. Assuming that you have not been given any information about the inheritance of the brothers. Explain the sources of finance available to a business owner, looking at Short-term sources, Medium-term sources and Long-term sources of finance giving examples of each? Answers: Introduction In the world of accounting there are various forms of business each having its own advantages and disadvantages that needs to be looked into before any particular business is being understood and started by the company. There is always a question that what would be the best form to control a particular business and how it would be well managed by the enterprise. There are various factors such as how to plan for the same and where to invest in the long run so that maximum benefits can be reaped out without any issue involved. 1. Accounting refers to the systematic process of verifying, recording, classifying, measuring, interpreting, identifying and communicating the financial information of business entity. It is a body of knowledge and practice which are concerned with the following activity: Keeping the financial record of the financial entity. Undergoing Internal audit Providing advise on the matter related to tax Objectives of Accounting To ascertain the financial result in the form of profit/loss of an enterprise. To determine the liquidity proportion of an enterprise. To support the enterprise decision making process. To keep the track record of all the transaction. Types of business units sole proprietorship A sole proprietorship is a type of self owned business and controlled by one person. There does not exist a separate legal entity concept in this form of business Sole proprietorship is an easiest form of business to start with. The person who starts the business of sole proprietorship is known as sole proprietor. A sole proprietor can start his business by using any trade name other than his own name.(Badson, 2007) Benefits of Sole Proprietorship Concern; There is just not few but many reasons why a person can choose to start a business in the form of sole proprietorship, the reasons are as follows: Ease of formation: Starting a sole proprietorship form of business is the easiest one when compared with any other form of business unit. It can be started by just one single person whereas in any other form of company; minimum number of person required to start the business is two. Tax Benefit: Health insurance benefit for employees is not deductible in the case of sole proprietorship form of business. There is various other tax benefit given to sole proprietor. Capital required: A sole proprietorship form of business can be started up with a small amount of capital. There is no fixed minimum capital requirement mentioned in any act to start or begin the sole proprietorship. Decision Making: In a sole proprietorship sort of business concern, there exists a feature of quick decision making. Since there is just one person who manages and controls the entire business unit and takes all necessary decision, therefore the time taken by other business unit in consulting the other member of the company is reduced in case of sole proprietorship. Limitation of Sole Proprietorship Concern The major limitations which are associated with sole proprietorship are as follows: Unlimited liability: The main liability of the owner is unlimited. It may extend to its personal property. Limited Capital: The sole proprietor is the only person who brings in capital in such type of business unit, thus the total amount of capital available is very less in such type of business unit Limited Scope of growth: In sole proprietorship, the scope for the growth of business is less due to the availability of small amount of capital and limited managerial skill and expertise. Partneship Form Of Business Unit A partnership is an arrangement between two people who with their mutual consent agree to manage the affairs of the business, and share the loss or profit of the business as decided mutually. The persons who agree to form a partnership business are known as partners.(Li, 2012) Benefits of Partnership Concern Ease of formation: The start up cost of setting up such a business unit is not too high. Even the compliance of legal formalities to start the partnership form of business is also very simple. Large resources: The resource or funds bringing capacity of partners are more than a single person which helps in the smooth running and growth of the business unit. Diverse skill and knowledge: Partnership is an association of skilled and expertise people who on the basis of their knowledge can help in the growth of business unit. Flexibility: Partnership form of business is flexible i.e. its operation can be changed depending on the circumstances. Limitation of Partnership Concern Cautious approach: Due to the unlimited limited of the partners, the partners play or run the business cautiously. They hesitate in taking up any new step or investment strategy. Non- transferability of interest: The partners cannot transfer their own interest in the firm to any other party or the third party without consulting the other partners. Lack of public confidence: In a partnership form of business, there exist no legal binding on the partners to furnish the accounts to public, thus the partners fails to receive the confidence of the general public. Limited Company Form Of Business Unit There are two types of limited company:(Blankenburg, 2010) Private Limited Company Public Limited Company Private Limited Company Private limited company is a association of at least two and maximum fifty members. The liability of members in a private limited company is limited to the extent of shares subscribed or the amount of guarantee given by them. Benefit of Private Limited Company Continuity of existence: Private limited company enjoys continuity of existence. Company enjoys perpetual existence i.e. it continues to exist even after the death of its member. Limited Liability: it refers to the liability of the members in a private limited company is just limited as the amount of shares held by them, or the amount of guarantee given by them. Limitation of Private Limited Company Non-transferability of share: The shares of private limited company are not freely transferable i.e. they are not issued to general public for subscription. Lack of secrecy: the financial information of the company can be viewed by any number of people once it is filed by the registrar of the company. Public Limited Company A public limited company is a company whose shares are freely transferable i.e. it can be traded in the market. Public limited company requires the minimum capital of rupees five lacs to start up the business. Benefits of Public Limited Company Limited Liability: it refers to the liability of the members in a public limited company is limited to the extent of shares subscribed or the amount of guarantee given by them. Transferability of shares: It means shares are freely transferable i.e. the shares of public limited company is free for subscription, the public on their call can subscribe the share of the company which are traded or available in the stock market. Limitation of Public Limited Company Lack of secrecy: the financial information of the company can be viewed by any number of people once it is filed by the registrar of the company. Delay in Decision: Public limited comp0any is backed by a large number of members, thus all of them need to be consulted while taking any major decision, therefore making the decision making process time consuming. Whatever may be the form of the company, each and every business unit is useful to the user on the basis of their need. Sole proprietorship is of benefit to those who want to take quick decision and want to have a complete control on the company. Partnership is beneficial for those users who are reluctant to take the entire risk associated with the business and thus by the mutual consent agree to manage the affairs of the business and share the profit jointly. Whereas limited company is beneficial to those users who want their share to be freely transferable, and who are not willing to accept the unlimited liability burden associated with the other form of business. 2. Financial accounting is that part of accounting which describes the company position as a whole. Financial accounting deals with ascertaining the companys financial result, companys financial position and changes in the structure of the company. Management Accounting is also known as book-keeping accounting. Management accounting is concerned with managing the activity of collecting transmitting and processing the financial information for the proper analysis of the companys budget and internal control procedure. The difference between the two accounting method is as follows:(Mitra, 2009) Basis Management Accounting Financial Accounting Objective Book keeping and recording the transaction To ascertain the financial result and financial position. Task To record the transaction To draft the financial statement Legal binding Management accounting report is optional to be prepared. Financial accounting report is compulsory to be prepared. Segment Reporting Pertains to individual department of the organization Pertains to entire organization. Information Company goal driven information Monetary and verifiable information Focus It focuses on present and forecast the future It focuses on the past recorded information. Audience It produces information and report for the use of organization, employees and managers It produces reports for the external parties. Both management accounting and financial accounting is useful for a business concern. Management accounting develops the base of accounting whereas the financial accounting carry out the other necessary task to complete the task associated with the term accounting. 3. The different sources of finance are as follows: Short term finance Medium term finance Long term finance Short Term Source Of Finance There are various types of sources of short term finance available in the markets; some of them are as follows: Trade Credit- Trade credit is the credit given by the suppliers of the raw material to the manufacturers and traders. Usually suppliers give 30-90 days credit to the manufacturer.(Fosberg, 2013) Bank Credit- Commercial bank gives advances in the form of short term finance which is known as bank credit. When bank credit is allowed the withdrawer can withdraw the amount either in installment or at one time. Discounting of Bill- Bank also advance fund through promissory notes, hundies and bills of exchange. When customer present this document to bank, bank credit the amount mentioned in the bill after deducting discount. Medium Term Source Of Finance The types of medium term source of finance are as follows:(AbdulsAleh, 2013) loan provided for a term of 3-7 years period is known as medium term finance. The interest on loan can be fixed or variable. Lease Financing: Bank also provide finance lease which are supported by some foreign investors when compared with traditional source of finance. When other source of finance is not available or does not satisfy the need, it can be used. Currency bond: through domestic and foreign entities such bonds are issued to investors. Maturity period for such bond range from 9 months to 30 years. Long Term Source Of Finance The types of long term source of finance are as follows: A share is a share in the share capital which includes stock. A share is a best way of raising fund from the general public. By subscribing the shares of the company one become the member of the company and the company is able to get fund in the form of share capital. Government grant: some firms may be eligible to get grants from the government may be national or international. Such grant is received on a long term basis by the government. A debenture is a document under the common seal that acknowledges loan to the company. Interest payments on debentures are tax deductible. Factoring refers to the services provided by the financial institution. Factoring is highly convenient form of finance. Rate of interest charged on factor is same as the rate charged on bank overdraft.(Caprio, 2012) All the three types of finance i.e. short term finance (for a period of maximum 3 years), medium term finance (for a period of maximum 3-7 years) and long term finance (for a period of more than 7 years) can be taken up by the business concern depending on their need and want of fund or capital. Conclusion On going over all the sources of finance available and the business forms which can be taken from the money inherited from the will and thus keeping in mind the advantages as well as the cons the decisions of the business form should be taken. If the capital is good enough to expand the business in future it can choose to go for LLP or company as well which would provide it with a good stage to grow in the long run Recommendation. The major decision is that whether the amount of loon needed can be financed from the long term or short term funds to suit the business style taken by the brothers. If they think of a limited company then there will be a need for the long term funds and of high amount also and if not small amount would also suffice. Therefore the decagons to the choose the write source rests on the company and the manager itself. References AbdulsAleh, A. M. (2013). MEDIUM TERM FINANCING. International Journal of Business and management , 1-19. Badson, D. (2007). benefits and limitaion of sole proprietorship. The New York Times , 1-4. Blankenburg, S. (2010). Limited liability concept. Cambridge journal of Economics , 1-4. Caprio, G. (2012). Role of long term finance. Oxford Journal , 171-189. Fosberg, R. H. (2013). Short-Term Debt Financing . International Journal of Business and Social Science , 1-5. Li, L. (2012). Partnership. Journal of Business Strategy , 1-9. Mitra, J. K. (2009). Difference between mangemnet and financial accounting. New Age International , 1-14. AASB. (2014). AASB has approved four new Standards. Australia Government , 1-1. AASB. (2013). Amendments to the Australian Conceptual Framework. Australia: Australian government. Accountants, C. (2013). Conceptual framework. CA Australia new zealand , 1-1.

Ideas, Formulas and Shortcuts for Awesome How to Topics to Write about for an Essay

Ideas, Formulas and Shortcuts for Awesome How to Topics to Write about for an Essay There are a few guidelines and tips that you could follow to assist you submit an interesting inspirational speech which everyone will like. If you choose to make an outline, write your topic at the peak of the webpage. The website supplies you with the right to select your own writer. Spending time to select the most suitable topic is likely to help you submit a superb assignment. When it has to do with the middle school, the argumentative essay incorporates moderate topics. Choosing topics for argumentative essays is essential for your general success. They are some of the best you can write as a student. An argumentative essay requires you to choose a topic and have a position on it. No matter the mission of the essay, be certain that you're interested in your topic. If you're in a college and wish to compose an argumentative essay, you should pick a subject of high importance. If the majority of your MIT essays concentrate on in-school accomplishments and activities, attempt to write a minumum of one essay about something different. Writing the college application essay is a difficult gig. Always think deeply about the way to create an excellent essay structure it's a significant part academic writing. There are lots of aspects about a sport which can be argued in an essay. By now you're probably well familiar with the structure of an essay outline. Don't forget your thesis statement reflects the structure of the entire essay and needs to be relevant to every example. Awesome How to Topics to Write about for an Essay Secrets Particularly in the world of private development, it's simple to become obsessed with a life that is far too severe. So repetitiveness and a deficiency of creativity are boring. Take into consideration the experience that you would like to write about. Somebody gets essential wisdom and experience there. How to Get Started with Awesome How to Topics to Write about for an Essay? If you're uncertain what things to write about, an excellent way to discover new suggestions for your own personal essays is to read fantastic examples of private experience stories you can locate on the internet. You might discover that several of the topics can be adapted to suit almost any sort of writing assignment. There's no lack of strategies to compose expository essays. It's also wise to constantly work to boost your writing style and create your essay attractive to read and simple to navigate. A selection of good personal narrative topics is vital, as it ought to be interesting for readers. So, it's a remarkable foundation for assorted epic stories! When you're writing about yourself, make certain to include words that explain the emotions you're feeling at various regions of the story. You need to be able to use persuasive language. Also, make certain your paragraph order is logical. The writing procedure is much easier whenever you have a superior plan. If your essay is describing a process, including how to make a huge chocolate cake, make sure your paragraphs fall in the right order. At any time you catch yourself feeling captivated by somebody's essay or article, take a better look at it. So you don't actually wish to come across a topic! You might have your topic assigned, or maybe you be given free reign to write on the topic of your selection. Deciding on a topic is a critical issue that partly estimates final success of the job. You will probably locate a different and fantastic topic you will love to write about. To choose which subject you're likely to discuss, it's vital to see the complete collection of good persuasive speech topics from the special area of study. One particular important and appropriate subject is technology. If you haven't been assigned a topic, you have a bit more work to do. Very often it becomes tough to choose 1 topic either on account of the many ideas in the student's head, or due to their complete absence. On our site you'll find a great deal more useful exceptional information that is certain to be helpful for junior and higher school kids from, like common home task essay about Hamlet, along with, for instance, application essays for college for future students. The most attractive quality of the website is that you could order any papers. College is for a high degree of study. A good deal of times students are requested to compose persuasive essays for many occasions.

Good Persuasive Essay Topics For 7th Grade

Good Persuasive Essay Topics For 7th GradeGood persuasive essay topics for 7th grade should be interesting and dynamic. It is crucial that you have a strong and cohesive topic and that you are able to convince the reader to engage with your ideas. Below are some examples of good topics for 7th grade:Learning Mathematics: Math is one of the most fascinating subjects to study. It is a subject that allows you to analyze things in a systematic manner and it can help you to develop logical reasoning. Studying math can really help you analyze something new and explain it to others. With the help of this subject, you can apply certain mathematical concepts in life.Science: Being a lover of the natural world, studying science is one of the most fascinating subjects to learn. You will get to know about the scientific processes involved in the growth of plants and animals. You will also learn about the natural processes that occur every day around the world. Science can help you to solve probl ems that you encounter every day.Interests: Understanding your interests and understanding how you can make use of them is one of the best skills that you can acquire as a child. The only problem that you might face is being confused as to what your interests are. What interests you most? What kind of hobby do you like? These are all good questions to ask yourself to figure out what you want to study at school.Need: How can you make use of the education that you have? Having an interest and knowing how to apply this interest is a skill that you need to develop as a young adult. Learning about science, mathematics, reading, writing, mathematics and the importance of understanding these subjects is just one of the many skills that you can get from studying. A person who has developed the necessary skillcan gain other skills and knowledge that he or she needs to know.As you can see, there are some good and outstanding persuasive essay topics for 7th grade. By knowing what topics are re quired in your subject, you can make the most of the subject, which will benefit you later on in life.As you can see, there are a lot of persuasive essay topics for 7th grade that you can prepare for. The best way to prepare for this subject is to take a break from your usual routine and go through the things that you love. Since you will be preparing for your school work, it is important that you will really need the skill to achieve success in this subject.

Why is Better Writing Comparing Essay Writing to Anything Else You Can Do?

Why is Better Writing Comparing Essay Writing to Anything Else You Can Do?Why is better writing comparing essay than anything else you can do? Well, the fact is that you can't achieve something to be considered a 'great writer' unless you've tried. The same is true for anything else you can do. The fact is that no one else is going to become a great writer unless they work hard and for a long time to achieve that goal.First of all, comparing essay writing to anything else you can do is simply not true. There are few other things that are more valuable and yet have the greatest potential for greatness. So comparing essay writing to anything else you can do is simply absurd. It makes sense that comparing essay writing to writing the best resume is just silly and you need to put in the hours and make that article that is truly compelling, a most quality article.Second of all, compare writing to most any other job out there is simply ludicrous. You can't do anything like compare writing to becoming a lawyer or president or a rock star or a fireman, for example. No, you can't do anything like that because the very word 'writing' is a very subjective term which is used to describe many other aspects of the human experience.Third of all, if you could compare writing to any of these things you would find that the only thing that all of them have in common is that they all involve creativity and imagination. Now this isn't to say that writing isn't an artistic act, it is simply to say that if you don't have those two things you won't be able to compare writing to any of those things. So, to use your analogy again, the only thing that all of these things have in common is that they all have something to do with creativity.Now, if you want to compare writing to being a rock star then you have to compare it to writing a rock song. Writing a rock song has everything to do with creativity. But for the purpose of this article we are going to consider writing a rock song. It i s a great song, it is a masterpiece, but it doesn't mean that there is any significance to compare writing to being a rock star.If you want to compare writing to becoming a lawyer, you have to compare it to writing an article and printing it. This is the comparison that you should consider. Writing an article and printing it can mean that you are able to fill in the blanks and come up with a great idea or it can mean that you have to go through a painful amount of editing and rewriting. And in the case of the article you have to be honest with yourself about what you are trying to achieve, is it to be the 'best' article ever written or do you want to jump onto a potential big career track?So what is the value in writing, compared to anything else you can do? Just because something is compared to writing something else doesn't mean that it will be. In the case of the comparison to becoming a lawyer, you would need to have completed your education, or you would need to have spent time at a law school or you would need to have been in the habit of doing so for many years. So in that case, the comparison would be to graduate from the same school, or have spent your life in law school.

Sample Narrative Essay - How to Write a Childs Story Using a Sample Or a Narrative Essay

Sample Narrative Essay - How to Write a Child's Story Using a Sample Or a Narrative EssayThere are several ways to approach the sample narrative essay writing for a child that has special needs. First of all, you want to ensure that your sample narrative is as accurate as possible. This is necessary so that it will speak to the reader and leave them with more than one reason to continue reading the article.Having said that, the first way to approach a sample narrative is to write your essay like a standard essay. Remember, writing for children is all about the theme and the tone of the essay. Your child will become familiar with the tone and content of the sample. When they experience it for the first time, they will most likely relate back to it as well.The second way to work with the child is to not worry about writing it that way. You should really focus on being authentic. You should not feel pressured into making it too conversational and not relaxed enough to ensure that the es say is as unique as possible.Another important tip is to make sure that the sample narrative is in simple language. Don't make it too long for it to lose its tone. With this said, be sure to take each idea that you use, and use them correctly.The final tip on how to go about creating a sample narrative is to pay attention to the structure of the piece. The first sentence should be very direct and to the point. This is not necessarily the beginning of a paragraph, but if it is used at the beginning of a sentence, then that will work best.Be sure to follow the sentence up with a third one. If you do this, then the composition of the sentences should flow nicely from one to the other.If you are able to follow these guidelines, then you can rest assured that your writing will become an asset for your child as they continue to read and understand it. As a parent, you should feel more at ease and confident when working with your child, and this can only be done through making sure that yo u do it the right way. If you continue to create a narrative for your child that is as unique as possible, then you should be able to relax and move forward with your day.

New Ideas Into The Other Wes Moore Essay Topics Never Before Revealed

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Some Important Kennedy Essay Topics

Some Important Kennedy Essay TopicsIt's easy to find a good Kennedy essay topic on the Internet. But, you'll want to make sure you get the right one before you submit it. Here are the things to look for when choosing your topic.o A better choice of essay topics can be found at websites. The best sites are probably the ones that offer a variety of topic categories. You'll be able to choose between political, financial, social, medical, and even artistic topics. The options don't stop there either. You can also get other types of essays too including family, relationships, and more.o A good way to narrow down your choices is to read some of the other essay topics that others have submitted. Looking over the topics on many websites will help you find a topic that fits your topic area. This can make your search much easier.o Your topic must be one that you are interested in or at least interested in reading about. If you don't have enough of an interest in the subject to write about it, then it may not be the right topic for you. You'll also want to be sure that your topic has enough space left for you to share an idea and to explain how you came up with it.o The essays that other people have submitted can help you find your best possible topic for your essay topics. Reading through some of the essays should give you ideas for your own topics. For example, you can read through some of the online conversations and understand more about what others are thinking.o Make sure that your essay topics don't bore the reader. If they're too long or too involved, they may begin to lose interest. If you don't have room for a lot of information, it's not the best idea to take on the length of a biography.These tips will help you find the best essay topics. With a little research, you'll be able to find the best essay topics that you'll use for your Kennedy essay topics.