Name: Candace Samuel
Institution: Clarence Fitzroy Bryant College
Subject: Accounting
Lecturer: Mrs. Rogers
Student Number:
Territory: St. Kitts

Table of Contents Aims and Objectives...........................................................................................................................3
Introduction........................................................................................................................................4
Description of Business........................................................................5
Module ONE.................................................................7

Aims and Objectives

The aims and objectives of this study are to undertake an investigation into the operations of the Trading and Development Company, to fully understand its internal affairs in relation to financial accounting, then to access and evaluate the information into this study.
The Specific objectives of this study are:
Module ONE * Describe and illustrate control systems * Justify the use of control systems in organizations
Module TWO * Identify and Describe the Various forms of business organizations * Assess critical the advantages the disadvantages of the various forms of organizations

Module THREE

* Discuss the social and ethical issues in financial reporting * Analyse the performance of an entity using ratio analysis, and explain the limitations

Introduction

Description of Business

TDC, the St. Kitts Nevis Anguilla Trading & Development Company Limited (TDC) is a vibrant, innovative, and diverse Public Company that opened its doors for business on 1st February 1973. In the ensuing years, it has grown significantly and now operates strategic business units in the fields of Trading, Finance, Tourism, Development, and Manufacturing. The Parent Company TDC Ltd., has its Registered Head Offices at Fort Street in Basseterre, St Kitts.
Currently, the Group's Corporate structure includes approximately 1300 shareholders, a Board of Directors, which is made up of six (6) Executive Directors and six (6) Non-Executive Directors, Parent Company departments, and Subsidiary and Associated Companies. In June 2003, the TDC Group officially listed on the Eastern Caribbean Securities Exchange (ECSE), which has helped to create the platform for the Organization to fulfil its Vision Statement; to be the leading Public Company in the OECS. Since its establishment, the Company has had as its motto: "TDC FOR SERVICE, TDC FOR QUALITY,TDC YOUR COMPANY"
The TDC Group of Companies has revolutionized trading in St. Kitts and Nevis. In the process, through the expansion of its original trading businesses, diversification, acquisitions and joint ventures it has become the largest local non-bank business enterprise and one of the largest companies in the OECS region. The Company has always traded profitably and has paid a dividend every year.
TDC's strategy is to deliver a superior customer/client experience and to build deeper long-term relationships by offering the most complete range of products and services of the highest possible quality. The Company aims to do this with investments in every facet of the business but most importantly, in the development of our human resources to ensure above market returns on shareholders' funds.

Module ONE
An internal control system includes all the procedures and policies taken by an entity to safeguard assets and ensure accuracy of financial records. The system also endures compliance with company policies and laws passed down by the government with the ability to evaluate performance of company personnel in order to promote efficiency of operation. Some objectives of the control system in an organization are as follows: * To identify the social and ethical issues in financial reporting; * To comply with company’s policies, regulations and government laws. * To provide reasonable assurance that the company’s goals and objective are achieved * To assess the operating effectiveness of the organization and its structure. * To discourage occurrence of errors or regulations.
Harold Randall, Lystra Stephens-James, Cecelia Lamorell, Lennox Francis, Dennis Noel, Accounting, (2007) illustrates the following as internal controls:
Segregation of duties- requires that the person who is responsible for an asset should not maintain the accounting records of that asset.
Adequate documentation- good record provide a means of control. Poor record invite laxity and often theft. Documents verify that a transaction took place. Therefore documents must be adequate to provide assurances that all assets are accounted for and are the basis for accounting records. Documents should be: - pre- numbered; prepared on the date of transaction; clear and simple; designed for multiple use.
Independent internal verification- work should be divided among individuals or departments. The transactions are related and divided in such a manner that the work of one acts as a check on that of another.
Proper authorization- transactions are executed in accordance with management’s specific or general authorization.
Competent personnel with clear responsibilities- Where there are shared duties, one person should be made responsible, so that if something goes wrong, it may not be difficult to determine who is at fault.
Physical safeguard of assets- there are physical, mechanical and electronic devices t safeguard assets. Physical controls are used to safeguard essential assets.
Security guards- they are used to prevent the unauthorized removal of goods from business premises. Person’s taking goods from the compound should have documents indicating the permission to do so. Without documentation one can consider the activity illegal.
Perimeter fence- this prevents easy access by unauthorized persons and vehicles to material
Administration- this is the unit that is responsible for the preparation and storage of documents and data. The purchasing department places the order, the receiving section accepts the invoice and the accounting department when reliably informed pays for the order. Reports from each of these areas when matched will ensure that all stock is accounted for.
Identity badges- identification cards are used in this business to ensure that you are a part of the company which will have you permitted into “staff only” areas. The internal Control systems that TDC uses in their daily operations include Identity Badges(which must be visibly worn at all times), Segregation of Duties and Security Guards, the system also includes cameras and password protection to access certain areas of the business.

Module TWO
Some of the common types of business organizations in which entrepreneurial skills are exhibited are sole traders, co-operatives, partnership and corporations. A business organization refers to how a business is structured. www.ehow.com defines the following business organizations:
Sole Trader: A sole proprietorship is a business organization owned by one individual who controls all aspects of the organization, makes all the decisions, responsibility and profits from the business they run.
Partnership: an organization where two or more individuals utilize their money, talent and labour to build a company. All partners personally share in the profit and loss of the company. Taxes are paid by the individuals. Partners are liable in the event of lawsuit. When a partner dies, the partnership ends.
Corporations: this is a business organization that is recognized under the law as an entity separate from its owners; ownership is divided into transferable units of stock. There are two typical types of corporations Public Limited Companies and Private Limited Companies. Public Limited Companies is authorized to sell shares to the public market for easy transfer of ownership while Private Limited Companies do not have the legal right to sell their shares on the stock market; the shares are normally between family members or close friends of the family who own the business.
Co-operatives: Firm owned, controlled, and operated by a group of users for their own benefit. Each member contributes equity capital, and shares in the control of the firm on the basis of one-member, one-vote principle (and not in proportion to his or her equity contribution).
I can now conclude from the data above that the Trading and Development Company (TDC) operates as a corporation, more specifically a private limited company which includes approximately 1300 shareholders. In June 2003, the TDC Group was officially listed on the Eastern Caribbean Securities Exchange (ECSE)

Advantages and Disadvantages of Business Organizations
Sole Trader Advantages | Disadvantages | * they have low start-up costs compared to other businesses * bookkeeping is simple * the owner also takes all of the profits made by the business and all financial information is kept private | * all the liability falls on the sole proprietor |

--------------------------------------------
[ 1 ]. Harold Randall, Lystra Stephens-James, Cecelia Lamorell, Lennox Francis, Dennis Noel, Accounting (Cambridge University Press,2007)pp. 18.