Identify the basic elements of business formation

Business Entity Selection 1 Running head: BUSINESS ENTITY SELECTION Business Entity Selection Michelle McClard University of Phoenix Legal Environment of Business LAW 529 Bill Eshelman August 29, 2005 Business Entity Selection 2 Abstract The purpose of this paper is to identify the basic elements of business formation such as business vision, legal and regulatory issues, selecting professionals for business advice, and choosing a legal entity for the hypothetical business situation NO.1 supplied by the course instructor. Business Entity Selection 3 Business Entity Selection For the entity selection exercise, the writer chose business situation No. 1 because of her personal goal of one day owning her own business. The writer used this exercise to explore business ownership and the many aspects that are involved in creating and maintaining a successful company. In business situation No. 1, Joe operates a successful commercial landscaping and tree trimming business. He has 50 employees, many of which are seasonal workers. Business capital is estimated at $250,000 which consists mostly of equipment (trucks, earth movers, lawnmowers, etc.), and a yearly revenue in excess of $500,000. While Joe has a thriving business, he is still plagued with problems and concerns that are hindering business growth. By developing a business vision, identifying legal and

  • Word count: 1341
  • Level: University Degree
  • Subject: Business and Administrative studies
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Globalisation…. Friend or threat?

Introduction 2 Pro and Anti Globalisation Groups 3 Conclusion 9 Globalisation.... Friend or Threat? Introduction The term Globalisation is universally recognised and understood, however, the definition of which is not so commonly understood. There are Pro and Anti-Globalisation groups who would readily provide their understanding of the global frontier that is globalisation. To many Globalisation opens new markets, provides wealth and prosperity to countries which have been economically isolated and provides unity and opportunity to people all over the world to benefit from global trading. In opposition, globalisation spells out loss of sovereignty and individuality, decline in domestic cultures and traditions and the invasion of the natural environment. Critics of this global force believe exploitation, pollution and greed are all covert yet fundamental elements of globalisation that are devastating as readily as they are beneficial to a country. The aim of this essay is to provide arguments and relevant evidence where possible that globalisation is a positive or negative force on a 'host' country, in conjunction with the viewpoints of many different pressure and interest groups. 'The trend toward looking at economic and financial issues, instruments, and portfolios from a worldwide rather than a single-country viewpoint' The above definition is provided by the

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  • Level: University Degree
  • Subject: Business and Administrative studies
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How Does Risk Affect Large Commercial Organisations? What Motivates these Organisations to Utilise costly Risk Management?

Andrew Baker Risk Management Decisions (N1B409) How Does Risk Affect Large Commercial Organisations? What Motivates these Organisations to Utilise costly Risk Management? "Humanity's struggle to manage or cope with risk is a critical theme in social, economic and political history." (Williams, Smith & Young, 1998, p1). Risk and uncertainty exist whenever the future is unknown and as such are integral to the existence of both the individual and the organization. Indeed, risk management is a subject of rapidly increasing importance for corporate mangers. Froot et al (1993) highlight the fact that a survey of financial executives discovered risk management to be high on their list of priorities. The belief of Shirivastava (1995) and others that the western world has developed into a postindustrial 'risk society', where we are performing "the processes of critically assessing and dealing with the risks created by industrialization" highlight the high, and growing, importance of risk management in the modern world. In this essay I will define risk and related concepts, assess the impact of risk on corporate organisations and consider the motivation for firms to incur the cost of undertaking risk management polices, in particular those focused on large, potentially catastrophic, events. There are numerous definitions of risk and uncertainty, in many cases, particularly in the

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  • Level: University Degree
  • Subject: Business and Administrative studies
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How does valuation in the Ohlson or Feltham-Ohlson framework differ from valuation in more traditional accounting-based frameworks?

How does valuation in the Ohlson or Feltham-Ohlson framework differ from valuation in more traditional accounting-based frameworks? The traditional accounting-based valuation methods predict the future from information in the current financial statements. These simple forecasts are based on the prediction that the current profitability and growth, as revealed in the financial statements, will continue in the future. In an SF1 forecast (where SF stands for simple forecast), earnings of the next period are forecast as the closing book value for the current period multiplied by the cost of capital. Operating income is forecast by expecting the net operating assets to earn at the required return for operations. Finally, net financial expense is forecast by expecting the net financial obligations to incur the expense at the cost of net debt. This is summarised in table 1. Earnings component Earnings forecast Abnormal earnings forecast Operating Financing Earnings E(OIt+1) = Rf . NOAt E(NFEt+1) = RD . NFOt E(CEt+1) = RE . CSEt E(AOIt+1) = 0 E(ANFEt+1) = 0 E(AEt+1) = 0 Table 1 As shown in table 1, SF1 assumes abnormal earnings to be nil. SF1's are good forecasts if the relevant balance sheet amount is at fair value. So an SF1 is typically a good forecast for the financing activities, but a poor forecast for the operating activities. Since it predicts nil abnormal

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Discuss the theory of entrepreneurial failure between 1870 and 1914. Were the criticisms of entrepreneurs fair?

Edward Wingate 02-12-03 Economic History D Jenkins Discuss the theory of entrepreneurial failure between 1870 and 1914. Were the criticisms of entrepreneurs fair? The late decades of the 19th century, were viewed by many as an absolute contrast to the preceding 'Industrial Revolution'. Widespread agreement was that the 'Industrial Revolution' was a time of great prosperity for Britain, as it dominated World trade and was christened the 'Workshop of the World'. However, this statement was not the accurate representation of Britain at the time that many viewed it as. Britain's range of exports was far too narrow to sustain success as other countries industrialised around it, rapidly becoming more competitive overseas. This boom abroad and many factors contributed to result in what was thought of as a downturn in the British economy in the late 19th century - 'The Great Depression'. This short essay will focus on a single potential reason for this poor performance, as opposed to discussing in full all of the possible factors which resulted in such a downturn in the British Economy. In preference to simply stating and discussing the case for and against the entrepreneur, this essay will be structured to show the accusations made of entrepreneurs during this period, whilst attempting to prove or disprove each charge, resulting in a conclusion being formed as to if, and to

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  • Level: University Degree
  • Subject: Business and Administrative studies
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The bankruptcy and dissolution of air Canada were due to restrictive government policy that made it impossible for the air line to respond in extremely competitive market in the aftermath of September 11th.

AIR CANADA'S FLIGHT TO BANKRUPTCY The bankruptcy and dissolution of air Canada were due to restrictive government policy that made it impossible for the air line to respond in extremely competitive market in the aftermath of September 11th. The causes of Air Canada's bankruptcy were due to the restrictive government policy, increased competition, decrease in demand, changes in market and the impact of September 11th. In the following essay this will be explained by examining the causes and effects of the bankruptcy of air Canada and the steps Air Canada is taking for successful restructuring. The airline industry in which Air Canada operates is extremely competitive. Air travel has become a commodity where travelers will often choose the airline that can deliver the product most cheaply. The market in which Airline industry operates is 1Oligoplolistic environment. Observing the airline industry it can be stated that Air Canada was operating under cutthroat competition. Air Canada immediately after its merger with Canadian Airlines faced tremendous amount of competition from domestic "low fare" airlines. As stated earlier that travelers choose airline that has the lowest fares specially the business travellers, which used to represent a significant portion if air Canada profit margin increased their bookings with low fare carriers like Westjet and Jetsgo, which are the

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Working as an economist for northeast bank in Yorkshire.

Working as an Economist for NorthEast Bank in Yorkshire, I have been given the following information by Robert Earl Pincher my line manager in order to calculate some important information for NorthEast Bank. Price (£) Quantity Demanded (000) Quantity Supplied (000) 0.50 200 2000 0.00 300 900 9.50 400 800 9.00 500 700 8.50 600 600 8.00 700 500 7.50 800 400 7.00 900 300 6.50 000 200 6.00 100 100 5.50 200 000 5.00 300 900 Question one (a) Demand curve The demand curve shows the connection between the price of a good and the quantity of the good demanded. The price is on the vertical axis and the quantity demanded on the horizontal axis. The demand curve shows us how the quantity demanded changes as price rises or falls. Supply Curve This is the connection between the price of a good and the quantity of the good supplied. Diagram showing the Equilibrium Price and Quantity The equilibrium price and quantity is the point where demand and supply meet, in this case as you can see in the above diagram they meet at £6.00 and at 1100 units. Question one (b) Price floor A definition of price floors is when a price floor exists when the price is artificially held above the equilibrium price and is not allowed to fall. With a price floor at £10.00 the graph below shows the effects it would have. The equilibrium price is £6.00. The

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  • Level: University Degree
  • Subject: Business and Administrative studies
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A Case Study on O.M. Scott and Sons Company

University of the Philippines College of Business Administration Diliman, Quezon City A Case Study on O.M. Scott and Sons Company Submitted to: Prof. Marie-Therese F. Agustin Submitted by : Group 5 Acuña, Nickalo Caseñas, Jovy Ross Lacang, Carol Ann Perez, Donalyn BA 141 TFX September 10, 2007 CASE CONTEXT The company is facing a good economy as evidenced by the increase in sales. Industry is investing in research and development of products. Competitors are slowly entering the market. O.M. Scott and Sons Company is a business in the lawn care and garden product industry. Currently, the company is reviewing the results of 1961 and preparing plans for the 1962 selling season. Sales were increasing and so is net income except for the year 1960 to 1961. Presently, the company is using a combination of traditional seasonal dating plan and trust receipt plan to encourage and enable as many dealers as possible to be well stocked in advance of seasonal sales peaks. Also, this combination was used to retain security interest in merchandise shipped. PROBLEM DEFINITION With the current internal complications, what must O.M. Scott and Sons Company do to be able to decrease cost of sales and operating expenses? How will the company keep up with its goal of a 25% annual growth rate in sales and profit considering the current policies? How should the company finance

  • Word count: 1984
  • Level: University Degree
  • Subject: Business and Administrative studies
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Applying Parametric Delta Normal VAR on Share Prices of Some Companies in the Gulf.

Introduction Optimal selection of asset portfolios is a key concern of Applied Finance. This is to maximize returns while minimizing risk through different measures. Stock markets come under several types of financial risks which influence business institutions, for example, operational risk, liquidity risk, and credit risk. Financial institutions and capital market regulators monitor financial risk to aid them devise and restructure their risk management strategies. Value at Risk (VaR) has become a standard measure of risk analysis in finance. Value at Risk is the maximum possible loss that a security or portfolio may suffer with a specified probability over a given time horizon. It is the worst case outcome expected over a predetermined period of time at a specified confidence interval. It mirrors the potential loss to an investor with a probability over a said period of time. The Extreme Value Theory is a popular technique of estimating VaR values. There are two common approaches applied. The high-threshold method uses fat tailed distributions, for example, the Generalized Pareto Distribution or Hill's estimation method (1975) applied by de Vries and Danielson (1997) and Mikosch, Embrechts, and Kluppelberg (1997). Literature Review The generalized Pareto Distribution Model is useful in analyzing high swings of volatility in the stock prices and crashes in the stock

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Comparison within Industries

CASE 1: The Financial Detective, 1996 Comparison within Industries Health Products: The first company holds a substantial number of patents on original research. Therefore it would have a higher profit margin, as there is little to no competition in the area of original products. Because distributes drugs to only doctors and hospitals it would have a relatively low inventory and receivables. This would result in a lower current ratio. In contrast the second company mass markets a broad line of over-the-counter products and therefore would face higher competition, resulting in a lower profit margin. Furthermore since it adopts a mass-market approach it would have a relatively higher inventory, and a higher asset turnover ratio. Based on the above analysis, I conclude that the first company is Company B, and the second company is Company A. Household Appliances: The first of the Household appliance companies focuses on a high quality with a commensurate price strategy and therefore would expect to see a higher profit margin. The second company currently has a multiyear contract with one of the leading retailers in the US and therefore has more certain future cash flows, meaning that the company is less risky; highlighted by the lower Beta. Based on the above analysis, I conclude that the first company is Company D, and the second company is Company C. Computers: The

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  • Level: University Degree
  • Subject: Business and Administrative studies
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