Parenting theory.
Parenting theory From Harvard University Express. http://www.google.com.au/search?q=cache:annYRlB09n4J:www.fihrd.or.th/lf1999/panel1.html+%22what+is+a+good+society%22+%2B+%22good+society+is%22%22&hl=en&ie=UTF-8 Parent org is an intermediary between investors and businesses. Parenting org will try to answer 2 question: which business should we own? What parenting approach will get the best performance from those busineses? Instead of looking at how businesses relate to one another, a parent organization should look at how well its skill fit its businesses' needs and whether owning them creates or destroy value. Parenting theory suggest that most CEO should concern with two crucial questions: what business should this company, rather than rival, own and why? And What org structure. Management process and philosophy will foster superior performance from its businesses? The best parent companies create more value in their businesses than rivals would. Multi business bring together under a parent org businesses that could potentially be independent. Such parent company can justify themselves economically only of their influence creates value. For example: The parent org can improve business' plan and budget , promote better linkages among them, provide especially competent central function or make wise choices in its own acquisitions , divestment and new ventures. How
Analyse the impact of the economic environment of business performance.
AO7 - Analyse the impact of the economic environment of business performance For this assessment objective there are four options which I will interpret. Option One Option one is to invest the money in a Building Society high interest account in order for it to earn some interest and retain the capital. Investing the money in a building society: Inflation Inflation is looking at the increase of price in goods over time. Inflation has its own target which needs to be met every year and is set by the central bank of England. The rate has to be 0.5 percentages above or 0.5 percent below 2%. The banks of England have meetings every month to discuss the inflation rate. They check whether any particular product is going to have a major affect on the inflation rate. Impact on the option The money invested in a saving's account will lose value if the interest is paid on the account is at a lower rate the current rate of inflation. A highly inflationary rate will often provide a low return on the investment. Interest Rates The interest rate is the amount that individuals or businesses are given back on their investments. Impact on the option Interest rates need to be higher then the rate of inflation and provide a better return in any other investment. The interest rate needs to be high as possible to get a better rate of return. She will gain interest so the money will
ACCURAL_BASED_ACCOUNTING_AND_CASH_BASED_ACCOUNTING
ACCRUAL BASED ACCOUNTING AND CASH BASED ACCOUNTING In this essay, I am going to write about two different types of accounting methods such as accrual and cash based accountings. Firstly, I will give a single definition for each and then I will explain the areas where they have been used, the people who have used them and, finally, the purpose of using them. Accrual based accounting is all about shipping or receiving the goods by the business company. But the cash based accounting is more like a bookkeeping which is recording the incoming and outgoing cash. Indeed, accrual based accounting does not really care about when the money is being received. Accruals concept is looking at the point where the revenue is recorded when it is earned without looking at the actual payment time. As an example to the according index above, if you use the cash based accounting for your telephone bills, when you have small or no income and have to pay lots of telephone bills, then if you record your accounting you don't earn and so you have lost. Instead, if you had been using the accrual based accounting for the same purposes, telephone bills again, when you don't pay your bills and have some earnings it looks like you have good income because you don't pay your bills, so you have earned. It does not really show what actually is occurring in the business so there is a majority of
Sources of finance for a new business.
Task 3 Obtaining Finance Often the biggest hurdle for an entrepreneur to jump is being able to raise sufficient capital to get their enterprise started. In the real world, there are many ways in which an entrepreneur can do this. But for us, we are restricted to only a few. Own capital The cheapest and easiest way for an entrepreneur to invest capital into the business in investing their own money. An entrepreneur's own capital may not always relate to money. He/she may have already bought other pieces of equipment that he/she already owned into the business. This would be valued alongside the money invested in the business in order to calculate the capital the owner has contributed to the business. Investing one's own money into the business also brings opportunity cost. If an entrepreneur invests their own money into the business enterprise, they are taking on all financial risks. If the venture goes horribly wrong, they could lose all their investment. If the business is a sole trader or partnership, like most business ventures when they first begin, the entrepreneur(s) will be responsible for all the business's debts from their own personal wealth. However if the business only has limited liability, the form of liability that private and public limited companies have, the owners will only lose what they originally invested and their own personal wealth is protected.
How a trial balance is extracted from a set of accounting records
How a trial balance is extracted from a set of accounting records A trial balance is a list of the names and balances of all the accounts showing in the ledger including cash and bank balances from the cash book. A trial balance checks to see if the debit equals the credit. If debit total is not same as the credit total then the records don't balance and there must be a mistake. Debit accounts include asset, expense accounts and credit accounts include liability, equity, revenue accounts. Assets are listed first followed by liabilities and then owner's equity. The Trial Balance can be taken at any point in time. It lists all ledger accounts and their balances and is used to see if debit and credit balance. Assets are listed first followed by liabilities and then owner's equity. Debit balances are listed in the left side and credit balances in the right side. The Trial Balance is a list of all the ledger accounts. You have to list all your total debits and credits from each general ledger account. There should be three columns and they should be account name, debit and credit. For each account you have to total your debit and credit for the accounting day for which you are doing the trial balance. You have to record the total for each account in the right column. It is listed on one day and this is usually the final day of the financial year and the heading tells us this
The Soul Food Shack
Terms of Reference I have now been assigned to work as a Specialist Business Advisor for Gordon Ramsey. I will need to use my specialist help to investigate into the business problems and how to solve them using my specialist technical business analysis and evaluation. Procedure In order to complete this assignment I will be watching The Soul Food Shack video in order to help me to know about the problems that Mama Cherri's Soul Food Shack is facing. I will be watching this video so that it shows what the problem are and what has to be done to solve them. Findings Mama Cherri's Soul Food Shack is an American Restaurant based in Brighton. Aim The Aim of the business Mama Cherri's Soul Food Shack is "To increase profit". Objectives The objectives of the Momma Cherri's Soul Food Shack are:- * To increase the number of customers coming into the restaurant * To cut the amount of cost that is going out of the business * To increase the number of cost coming into the business The way the business can meet this objective "To increase the number of customers coming into the restaurant" the way the business can do this is by making sure that the food is fresh and present it better to customers that they will want to come back to the restaurant. Advertising is another way the business can help meet this objective. The way the restaurant can meet the objective
Modelling data is concerned with representing real life situations.
Modelling is concerned with representing real life situations. Variables can be changed with a model to find out different outcomes. Modelling has a number of advantages: - * It is cheaper to set up a computer model than build the physical model. * The computer model can be changed modified quickly and easily to allow the user to view the effects of changing variables. * You can reset your test as often as you like. * Dangerous situations or conditions can be modelled safely. * Using a computer model speeds up the overall development process. Below are also some various disadvantages: - * A computer model may not completely reflect real life situations. * Answers and results are only as good as the model. * Humans are unpredictable in nature so the model may be considered unreliable. The spreadsheet package has been adopted for this modelling situation. This is a package which models and processes numerical data. It is made up of a grid into which numbers are entered. The program contains many mathematical, statistical and financial calculations, which can be applied to the numbers. Spreadsheets can also present the numbers in the form of graphs. Spreadsheet packages come with a library of formulae and functions as part of the program. There are formulae for financial calculations, for handling dates and times, for mathematical and statistical work and for logical
Evaluate the adequacy of accounting ratios as a means of monitoring business health in a selected organisation, using examples.
D2: Evaluate the adequacy of accounting ratios as a means of monitoring business health in a selected organisation, using examples. The importance of ratios in any business is vital because it gives the business a better understanding of the financial data. By using ratios we can compare data from the current year with the previous years, from this the business will identify if they are making more profit or a loss of if they just broke even. There are four types of ratios that a business has to calculate: * Investment ratio * Financial ratio * Profitability ratio * Utilisation ratio Investment ratio: This ratio is usually used when investors want to invest in an organisation. The ratio calculation that they find normally consists of the performances of the businesses and if investing is a good idea or not in that business. Then the shareholders fund the company, and it is likely that they will get more investors and grow bigger if the business is in profit. Ordinary shareholders are who in fact owned the business and they are the ones that take the risk of accepting the money from the shareholders because they would have to pay back the shareholders if the business goes in loss and they may have to shut down. I do not think that having shareholders in a business is good, because the business doesn't stay yours. You will be funded by the shareholders however you will
Analysis of financial performance For this task using the following ratios, I will be interpreting the financial performance of Whitbread PLC:
Analysis of financial performance For this task using the following ratios, I will be interpreting the financial performance of Whitbread PLC: A ratio is the relationship or comparison between numbers. Ratios are used to compare numeric figures in order to produce a measurement of some sort. An example of this is if someone wanted to know the ratio between boys and girls taking part in an OCR National Level 3 course in London, it would be shown as 10:8. There are many different types of ratios used in a business, here are ratios used by business demonstrated by Whitbread PLC's financial performance: Profitability Ratios: In a business this ratio is considered as the most important profitability ratio, it helps to outline the relationship between the capital and the net profit earned. Return On Capital Employed (ROCE) Whitbread PLC would hope to find that their ROCE ratio is higher than a percentage rate they could earn from placing their money in a savings. To work out ROCE for a business they would need to do the following: Net profit after interest x 100 = ROCE Shareholder funds An example of this is looking at the accounts of Whitbread PLC, their ROCE shows: 2001/2 2002/3 74.4 / 1888.5 x 100 = 3.95% 263.8 / 1983.9 x 100 = 13.29% From the 2001/2 to the 2002/3 Whitbread PLC has made a 9.34% increase on their Return On Capital Employed ratio. This may be
Accounting for Managerial Decision Making
Recognition Position Paper University of Phoenix Accounting for Managerial Decision Making ACC 539 August 21, 2004 Memorandum To: Chief Executive Officer, Ace Manufacturing From: Team A -Team M1, Big Picture Consulting Subject: RECOGNITION POSITION PAPER Date: August 21, 2004 This memorandum is reflective of Team A's, Big Picture Consulting, recommendations to Ace manufacturing for the recognition of revenues and expenses. Revenue and expense recognition is the process of identifying and recognizing the sources of revenues or expenses and is crucial to reporting corporate performance. We have entered into a new era in corporate responsibility and are now holding top-level executives accountable for their organizations fiduciary responsibilities as changes in reporting requirements and methods evolve. The Financial Accounting Standards Board (FASB) with pressure from the Securities and Exchange Commission (SEC) is moving forward to standardize the revenue and expense recognition requirements and methods in place to regain private and public trust of corporations after many large-scale public corporation scandals. The recognition process includes: * Definition - Is the item an asset, liability, equity, revenue, expense, gain or loss? * Measurability - Does it possess the characteristics that permit reliable measurement? * Relevance - Will it make a
