"If faced with rising inflation, the government might apply a severe contradictory economic policy. What might that involve and what might be the effects upon a business of your choice?"

BUSINESS STUDIES H/W 2 Q: "If faced with rising inflation, the government might apply a severe contradictory economic policy. What might that involve and what might be the effects upon a business of your choice?" Inflation is the general rise in prices across a wide range of goods and services. Inflation is also the loss in the purchasing power of money. The government may apply a contradictory policy; this may include changing the interest rates. This will mean it becomes more expensive for people and businesses to morrow money. Therefore, businesses will invest less. Individual will consume less because they will be paying more else where in mortgages reducing the amount of surplus money that would have normally been available. The cuts in investment and the cuts in spending will mean a reduction in the level of demand in the economy. The second method is by increasing Taxes, this reduces purchasing power and consumption generally. The third method to reduce inflation is by cutting government spending. The business is a small drinks warehouse outlet by the name of Bay Distribution. This company is growing and each year it makes more investments. I rise is interest rates would affect this company a lot because it trying to invest by increasing it sales. I rise in the interest by the government will affect the consumers as the cost of borrowing money increases, meaning

  • Word count: 865
  • Level: University Degree
  • Subject: Business and Administrative studies
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When sky is the limit.

When sky is the limit The problems that have bedevilled Japanese banks are well known - the quicksand of ''directed lending'', NPAs, and the rest - as is the way these problems have been at the heart of Japan's inability to pull itself out of the trough for over a decade. The Long Term Credit Bank of Japan, the giant LTCB, followed the same trajectory as other banks, except that it has suddenly, in just two years, shot out of the pack. LTCB was established in 1952. It was one of the principal financiers of Japan's phenomenal industrialisation after World War II. As the 1990s rolled on, its troubles became deeper and deeper. It went bankrupt. To prevent the collapse from bringing down other parts of the banking sector, the Government had no alternative but to nationalise the bank. That was in 1998. The bank continued to haemorrhage. Soon, in June 2000, it had to be sold to a consortium of international investors. That was a thunderclap for Japan - this was the largest organisation that had to be sold to foreigners. The bank was renamed the Shinsei Bank. In just two years, it has turned around, even as others are still in the morass of old problems. It turns out that Indian professionals - a thousand of them from Nucleus Software Exports, Mphasis, Polaris, i-Flex Solutions and Wipro - have played a crucial role in transforming the bank: they are the ones who have

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  • Level: University Degree
  • Subject: Business and Administrative studies
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"A striking feature of most emerging economies, is the prominent role played by business groups" (Khanna and Rivkin, 2001,) Assess the importance of business groups in the economic development of emerging markets.

"A striking feature of most emerging economies, is the prominent role played by business groups" (Khanna and Rivkin, 2001,) Assess the importance of business groups in the economic development of emerging markets. The term 'emerging markets' was defined in 1981 by Antoine W. Van Agtamael of the International Finance Corporation (IFC) of the world bank as an 'economy with low-to-middle per capita income.'1 Such countries constitute approximately 80% of the global population, representing about 20% of the worlds economies. In order to answer, I have decided to use examples from the following emerging markets. Firstly, Japan whose Corporate groups of networks and alliances is more commonly known as the Zaibatsu. Secondly, South Korea, the Chaebol and finally Argentina where there are a variety of large interrelated family connections. At the beginning of the 20th century, the US, UK and Germany were the worlds leading Industrial economies. Developing new technologies and improving methods of communication meant that the 'gap' between these three countries and the rest of the world grew larger. In addition to this, barriers to entry, particularly in terms of price and quality of their products, they soon became the source for continuous learning to enhance the productivity of the existing technologies and to commercialise closely related ones. After WWII, catch up began for

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  • Level: University Degree
  • Subject: Business and Administrative studies
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"Describe and compare the alternative methods that companies can use to raise capital in the various capital markets. Include in your discussion the advantages and disadvantages for the companies and investors and the role of intermediaries".

University of Essex Department of Accounting, Finance and Management AC302 Corporate Finance "Describe and compare the alternative methods that companies can use to raise capital in the various capital markets. Include in your discussion the advantages and disadvantages for the companies and investors and the role of intermediaries". ) Describe and compare methods of capital raising in various capital markets 2) For each of the methods evaluate the advantages and the disadvantages to: - Companies - Investors - The role played by intermediaries in raising capital Word count: BA Accounting and Management . Introduction Bodies, Kane and Marcus (2002) suggest that "Financial markets are traditionally segmented into money markets and capital markets" Sources of finance from money markets are described as short-term, cash equivalents usually marketable, liquid meaning easily transferable to cash, low risk debt securities. These include treasury bills, commercial papers, bankers acceptance and alike. In our discussion however we will be focusing on capital markets which are in contrast to the former in that they are longer-term more risky securities. Capital market instruments can be further divided into four categories, debt markets, equity markets and derivative markets which constitute options and futures contracts the latter we will only be discussing

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Examine q-theory and other theories of investment. How well do they explain investment decisions?

"Two key aspects of the investment decisions of firms are that they are undertaken in a cloud of uncertainty, and that investment spending over the business cycle is highly volatile. Concentrating on the investment decision as the balance between the return and the cost of the investment does little towards a useful economic explanation". Examine q-theory and other theories of investment. How well do they explain investment decisions? Most of the literature that focuses on the behaviour of investment either tends to focus on the relationship between the return and cost of capital or the relationship between investment and output. With regard to the former, the most basic neoclassical theory looks at investment decisions under a situation of perfect competition. There is no uncertainty, a perfect elastic supply of capital goods and the firm can adjust their capital stocks costlessly. If these assumptions hold the firms profits can be written as follows: In the above equation, 'K' is the amount of capital a firm rents, the X variables are exogenously given so as to include the cost of other inputs and the price of the firms product, and 'rK' is the rental price of capital. By taking the first derivative of the above equation, the firm rents capital until its marginal revenue product equals its rental price - a balance between the return and cost of capital. However, one can

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Wal-Mart Stores Inc. international exchange exposure.

Wal-Mart Stores Inc. international exchange exposure. Wal-Mart Stores Inc. is the largest retailer in the world. They operate in the US and International market. Even if they did not have an international segment, they would be exposed to fluctuations in international exchange rates. More and more Wal-Mart is buying there products internationally. Their strategy as low price supplier forces them to buy products from countries that have a lower cost structure. The following is an extract from the management discussion of Annual report of 2003: "Wal-Mart is in the business of serving customers. In the United States, our operations are centered on operating retail stores and membership warehouse clubs. Internationally, our operations are centered on retail stores, warehouse clubs and restaurants. We have built our business by offering our customers quality merchandise at low prices."1 It is important to note that Wal-Mart is offering quality merchandise, not the highest quality, at the low prices, not the lowest prices. It is interesting to know that often the larger quantity packages offered by Wal-Mart are more expensive (per item) than the lower quantity packages. In other stores that is generally not the case, but consumers are generally unaware of this fact and think it is cheaper to buy lager quantity packages. Because of Wal-Marts strategy, offering our customers

  • Word count: 2786
  • Level: University Degree
  • Subject: Business and Administrative studies
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How much is my education costing me?

Yinka Charles M00030974 YC261 MBS1111 Tutor: Jonathan Moont Group (Mon 11:00-12:30am) How much is my education costing me? For this literature I will be looking at both the income and expenditure for the first year of the LLB degree of which I will be studying. This will enable me to estimate the level of debt that I will accumulate by the end of my studies. After looking at my income and expenditure for the first year of my studies (calculated on the spreadsheet attached). It is estimated by the end of the first year of study my ending balance will be £6,142.70 this is going on the probability that I do not occur any unforeseeable costs. This balance would end as a credit and could be carried forward as an opening balance for the second year of my studies. The second year would start off with an opening balance of £6,142.70, which would be more than enough to survive on taking into consideration other income coming in for that year. This would mean I might not have to borrow any money for that year from a student loan. This would be beneficial, as I would owe less money on completing my degree. Alternatively the balance of £6,142.70 could be carried forward and added to year two and three of which I do borrow the same amount from a student loan for each year allowing myself a bigger credit at the end of the degree. I would then use whatever income is left over to put

  • Word count: 540
  • Level: University Degree
  • Subject: Business and Administrative studies
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The report is prepared in terms of addressing the financial situation of the enterprise known as "Pizza Express Plc".

Terms of Reference The report is prepared in terms of addressing the financial situation of the enterprise known as "Pizza Express Plc". The analysis is based on the "Pizza Express Plc" annual report from 2002, requested February 10th, 2004 and handed in March 2nd, 2004. Introduction The principle activity of Pizza Express Plc is operating restaurants, franchising restaurants and the wholesale and merchandising of food and beverages. Hence, the operating cycle should be relatively short. Pizza Express Plc may be identified as enjoying the fifth consecutive year of sales increase, which is a 214% growth since 1998. This is in accordance with the growth strategy proposed by the company. Similarly, one may identify the company's assets to have increased by 14.03% in 2002. One may recognize this capital expenditure to be financed primarily through net cash funds generated by operating activities. This could also have resulted in the company having a negative working capital. Moreover, the company raised £1.9 million in equity as a result of the conversion of deferred convertible non-voting shares and the exercise of share options. However, the company was still able to increase paid and proposed dividends per share for the year by 25%. One may also identify that Pizza Express Plc's relatively small amount of debt has remained changed by paying of the debts to the extend of

  • Word count: 3841
  • Level: University Degree
  • Subject: Business and Administrative studies
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Strategic Accounting for Decision Making

Strategic Accounting for Decision Making Assignment- AF4H17 07235569 Table of Contents Topic Page No Table of Contents 1 Introduction 2 Profit and Loss Account and Balance Sheet for Taffview for year ended 31st March 2008 3 Values of Financial Ratios 4 Comparative Analysis of the Ratios 4 Comparison of Relative Profitability of Canteen and Pool in Taffview 7 Sources of Finance for Converting the Central and Taffview Pools into Fitness clubs 9 Equity Finance: 9 Leasing 10 Hire Purchasing 10 Benefits of Introducing the System of Budgetary Planning and Control 11 Conclusion 14 Reference 15 Appendix 16 Introduction The accounting data gives us the ability to understand the working of the organisation. Fairvalue Leisure Ltd has acquired new pools which are Taffview and Central. With the accounting information there has been the analysis done to improve the profitability of the pools. There are also information on sources of finance and budgeting. Profit and Loss Account and Balance Sheet for Taffview for year ended 31st March 2008 Profit and Loss Account for Year Ended 31st March 2008 Taffview Pool Income 570000 Expenses Employee Cost 840000 Equipment and materials 295000 Heat and light 93000 Catering Provisions 62000 Depreciation for Land and building 92950 Depreciation for Machinery 33000 Unpaid Overtime wage 3000

  • Word count: 4342
  • Level: University Degree
  • Subject: Business and Administrative studies
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Implied trust of the home.

Implied trust of the home Express = need evidence in writing S.53 (1) (b) LPA 1925 Implied= no need of writing S.53 (2) LPA 1925 Resulting trusts Usually involves a contribution to the initial cost of the home and it is whole in the name of another person. Equity does not presume an outright gift but rather that the person who gave the money wanted to retain a beneficial interest in the property. Bull V Bull, mother and son bought a house and put it in the sole name of the son. When he got married his wife wanted to kick out the mother in law. The court held that they were tenants in common behind a statutory trust for sale. The share of the interest is usually the proportion in which they contributed to the value of the house Cowcher V Cowcher = Mrs. paid one third of the price of the house and later paid for some of the instalments the husband paid for the rest. When they divorced the wife asked for half but the court gave her only a third. Tinsley V Milligan = Later mortgage payments can be taken into account in a resulting trust if they could have been anticipated at the out set Constructive trusts It is bases on common intention of the parties to share the properties. In Lloyds Bank Plc V Rosset Lord Bridge says that the intention can either be . Express, based on evidence of express discussion 2. inferred from conduct . Express agreement Lloyds Bank Plc V

  • Word count: 2652
  • Level: University Degree
  • Subject: Business and Administrative studies
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