Financial aspects of business an overiew - Assignment Example

Only on StudentShare

Extract of sample
Financial aspects of business an overiew

For sale traders, the liability is unlimited and the personal assets can be used to repay the liabilities of the business. It is important for sole traders to maintain their accounts in order to have an idea about the performance of the business. It would enable the owner to have an idea about the present debt condition of the business. It would also enable in keeping a track on the total sales and purchases of the goods and services. It is essential to keep and maintain accounts because it helps in maintenance of transparency of the business transactions. It also reduces the existence of flaws in any decision making by the trader. Partnership business is conducting business activities together by two or more partners and earning and sharing the profit earned from the business operations. In case of partnership business, the company needs to maintain its book of accounts in order to have a clear and transparent disclosure of all the business activities to all the business partners. It would also enable assessment of profitability of the company followed by its division among all the business partners. It is very important to keep a track on all the financial transactions of the partnership business in order to maintain its stability. ...
Download paper

Summary

Financial aspects of business: An overview Table of Contents Table of Contents 2 Question1 3 Question 2 3 a.1) Trading Account 3 a.2) Profit and Loss Account 4 b)Balance Sheet as on 31st December 2012 4 c)Importance of double entry book keeping 4 Question 3 6 Works Cited 9 Name of the Student: Name of the Professor: Name of the Course: Date: Question1 Sole trading is the simplest form of any business structure…
Author : malloryyundt

Related Essays

Finance and Accounting Essay: Business Financial Crime
Earnings management is one of the most popular measures of financial business crimes, occurring in companies on a habitual basis. It can be defined as a process of intentional interference of the management in the establishment of the earnings of a business, misrepresenting the data to show better results than they actually are. Several reasons lead to management of earnings which include manager’s compensation, raising stock price, or pushing for government funding. There are different strategies available that managers can use for the purpose of earnings management and hence satisfy their...
12 pages (3012 words) Essay
International aspects of business law
Increasingly international trade organizations such as the WTO and bilateral free-trade agreements such as those in place with the United States and E.U. can significantly shape and alter the economic environment in a way that financial planners must identify and manage for investment clients with advance preparation. The importance of international law to traders in this context of financial investment services and commodities trading particularly cannot be understated, as it is a direct aspect of risk management operations that form a part of due diligence in any overseas investment...
8 pages (2008 words) Coursework
Financial Information for Business Decisions
Marks and Spencer’s well established business attracts a great deal of consumer base irrespective of demography. The company’s main business consists in selling fabric items and clothing for men, women and kids’. The company, by applying prudent marketing techniques, has been able to grab market share of around 11.0%2 by value and 11.2%3 by volume. Marks and Spencer has also been actively involved in the business of marketing and selling edible products which has earned the company immense revenue in the past few years. Through its unmatchable food quality, Marks and Spencer is now...
8 pages (2008 words) Essay
Be able to evaluate the financial performance of a business
Investors often use financial analyses for making appropriate investment decisions. Financial Institutions: In order to arrive at suitable decisions regarding granting a company with extended debt securities like debentures or long-term bank loan, or new working capital etc, financial institutions will need to verify the financial statements of companies. Government Entities: They need to verify these statements to determine the correctness and accuracy of taxes and further duties stated and paid by a business. Such statements will also help them in ensuring that the company is...
7 pages (1757 words) Assignment
Business Financial Metrics
Company managers, investors and government regulators utilize various metrics and ratios to analyze company financial statements such as income statements and balance sheets so as to determine the fiscal viability of the organization in the short and long term. This paper will examine some of the ratios and metrics utilized by various stakeholders to appraise different financial statements, examining how various stakeholders can successfully employ the metrics and ratios in their decision making. The examination of balance sheets entails the use of financial ratios as the primary metrics....
5 pages (1255 words) Essay
ABC Financial Business Research
Business planning to expand its sales with a 25% increase requires the management and its shareholders to set their targets and goals through a forecast budget. An effective business will lays out the perfect strategy in realizing the companies’ goal of profit maximization. By having the capability to read the agency’s future, it is practical to form feasible strategies that work in favor of the additional products that can leverage the current ABC employee skill-set as well as the manufacturing facilities. In this case, it is critical to form a financial plan to assist the agency’s long...
3 pages (753 words) Research Paper
Business plan for a start-up ( Financial data)
With god business plan, the future of the business is certain and all future occurrences will be met with certainty. For a stat-up business, plan is used by business to determine its future survival and viability. Businesses cannot run effectively without a plan. Most plan make assumptions about the future. Any assumption made should be made with great caution as failure for the assumption to hold, the whole plan might be jeopardized. A successful business plan should be prepared based on past experiences fact and empirical data. It requires lo of expertise to prepare a concrete plan for a...
10 pages (2510 words) Literature review
Got a tricky question? Receive an answer from students like you! Try us!