Free Essay

Business

In:

Submitted By solaiman1021
Words 2494
Pages 10
Statistics for
Business and Economics

Chapter 1

Describing Data: Graphical

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-1

1.1

Dealing with Uncertainty

Everyday decisions are based on incomplete information Consider:





Will the job market be strong when I graduate?
Will the price of Yahoo stock be higher in six months than it is now?
Will interest rates remain low for the rest of the year if the federal budget deficit is as high as predicted?

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-2

Dealing with Uncertainty
(continued)

Numbers and data are used to assist decision making 

Statistics is a tool to help process, summarize, analyze, and interpret data

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-3

1.2



Key Definitions
A population is the collection of all items of interest or under investigation




N represents the population size (N ≈ Infinity)

A sample is an observed subset of the population


n represents the sample size



A parameter is a specific characteristic of a population



A statistic is a specific characteristic of a sample

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-4

Population vs. Sample
Population
a b

Sample

cd

b

ef gh i jk l m n o p q rs t u v w x y

z

Values calculated using population data are called parameters Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

c

gi o n r u

y
Values computed from sample data are called statistics Ch. 1-5

Examples of Populations


Names of all registered voters in Canada



Incomes of all families living in Vancouver



Annual returns of all stocks traded on the
Toronto Stock Exchange



Grade point averages of all the students in UBC

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-6

Random Sampling
Simple random sampling is a procedure in which






each member of the population is chosen strictly by chance, each member of the population is equally likely to be chosen, every possible sample of n objects is equally likely to be chosen

The resulting sample is called a random sample

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-7

Descriptive and Inferential Statistics
Two branches of statistics:


Descriptive statistics




Graphical and numerical procedures to summarize and process data

Inferential statistics


Using data to make predictions, forecasts, and estimates to assist decision making

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-8

Descriptive Statistics


Collect data




Present data




e.g., Survey

e.g., Tables and graphs

Summarize data


e.g., Sample mean =

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

X

i

n
Ch. 1-9

Inferential Statistics


Estimation




e.g., Estimate the population mean weight using the sample mean weight

Hypothesis testing


e.g., Test the claim that the population mean weight is 140 pounds Inference is the process of drawing conclusions or making decisions about a population based on sample results
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-10

Types of Data
Data

Categorical

Numerical

Examples:





Marital Status
Discrete
Continuous
Are you registered to vote? Examples:
Examples:
Eye Color
(Defined categories or

Number of Children

Weight groups) 
Defects per hour

Voltage
(Counted items)
(Measured characteristics)

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-11

Measurement Levels
Differences between measurements, true zero exists

Ratio Data
Quantitative Data

Differences between measurements but no true zero

Interval Data

Ordered Categories
(rankings, order, or scaling) Ordinal Data
Qualitative Data

Categories (no ordering or direction)

Nominal Data

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-12

Graphical
Presentation of Data

1.3



Data in raw form are usually not easy to use for decision making



Some type of organization is needed
 Table
 Graph



The type of graph to use depends on the variable being summarized

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-13

Graphical
Presentation of Data
(continued)


Techniques reviewed in this chapter:
Categorical
Variables

• Frequency distribution
• Bar chart
• Pie chart

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Numerical
Variables
• Line chart
• Frequency distribution
• Histogram
•Scatter plot

Ch. 1-14

Tables and Graphs for
Categorical Variables
Categorical
Data

Tabulating Data

Frequency
Distribution
Table

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Graphing Data

Bar
Chart

Pie
Chart

Ch. 1-15

The Frequency
Distribution Table
Summarize data by category
Example: Hospital Patients by Unit
Hospital Unit
Cardiac Care
Emergency
Intensive Care
Maternity
Surgery

Number of Patients
1,052
2,245
340
552
4,630

(Variables are categorical) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-16

Bar and Pie Charts


Bar charts and Pie charts are often used for qualitative (category) data



Height of bar or size of pie slice shows the frequency or percentage for each category Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-17

Bar Chart Example

Cardiac Care
Emergency
Intensive Care
Maternity
Surgery

Number of Patients
1,052
2,245
340
552
4,630

Hospital Patients by Unit
5000

Number of patients per year

Hospital
Unit

4000
3000
2000
1000

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Surgery

Maternity

Intensive
Care

Emergency

Cardiac
Care

0

Ch. 1-18

Pie Chart Example
Hospital
Unit
Cardiac Care
Emergency
Intensive Care
Maternity
Surgery

Number of Patients

% of
Total

1,052
2,245
340
552
4,630

11.93
25.46
3.86
6.26
52.50

Hospital Patients by Unit
Cardiac Care
12%

Surgery
53%

(Percentages are rounded to the nearest percent) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Emergency
25%

Intensive Care
4%
Maternity
6%

Ch. 1-19

1.4

Graphs for Time-Series Data



A line chart (time-series plot) is used to show the values of a variable over time



Time is measured on the horizontal axis



The variable of interest is measured on the vertical axis

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-20

Line Chart Example

Magazine Subscriptions by Year
350

Thousands of subscribers

300
250
200
150
100
50
0

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-21

Frequency Distributions
What is a Frequency Distribution?


A frequency distribution is a list or a table …



containing class groupings (categories or ranges within which the data fall) ...



and the corresponding frequencies with which data fall within each class or category

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-22

Why Use Frequency Distributions?



A frequency distribution is a way to summarize data



The distribution condenses the raw data into a more useful form...



and allows for a quick visual interpretation of the data

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-23

Class Intervals and Class Boundaries



Each class grouping has the same width
Determine the width of each interval by largestnumber  smallestnumber w  interval width  number of desiredintervals





Use at least 5 but no more than 15-20 intervals
Intervals never overlap
Round up the interval width to get desirable interval endpoints

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-24

Frequency Distribution Example
Example: A manufacturer of insulation randomly selects 20 winter days and records the daily high temperature

24, 35, 17, 21, 24, 37, 26, 46, 58, 30,
32, 13, 12, 38, 41, 43, 44, 27, 53, 27

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-25

Frequency Distribution Example
(continued)


Sort raw data in ascending order:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58



Find range: 58 - 12 = 46



Select number of classes: 5 (usually between 5 and 15)



Compute interval width: 10



Determine interval boundaries: 10 but less than 20, 20 but

(46/5 then round up)

less than 30, . . . , 60 but less than 70


Count observations & assign to classes

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-26

Frequency Distribution Example
(continued)

Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Interval

10 but less than 20
20 but less than 30
30 but less than 40
40 but less than 50
50 but less than 60
Total

Frequency

3
6
5
4
2
20

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Relative
Frequency

.15
.30
.25
.20
.10
1.00

Percentage

15
30
25
20
10
100
Ch. 1-27

Histogram


A graph of the data in a frequency distribution is called a histogram



The interval endpoints are shown on the horizontal axis



the vertical axis is either frequency, relative frequency, or percentage



Bars of the appropriate heights are used to represent the number of observations within each class

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-28

Histogram Example
Interval

Frequency

Histogram : Daily High Tem perature
3
6
5
4
2

7

6

6

Frequency

10 but less than 20
20 but less than 30
30 but less than 40
40 but less than 50
50 but less than 60

5

5

4

4

3

3

2

2
1

(No gaps between bars)

0

0

0
0 0 10 10 2020 30 30 40 40 50 50 60 60 70
Temperature in Degrees

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-29

Questions for Grouping Data into Intervals


1. How wide should each interval be?
(How many classes should be used?)



2. How should the endpoints of the intervals be determined?






Often answered by trial and error, subject to user judgment
The goal is to create a distribution that is neither too "jagged" nor too "blocky”
Goal is to appropriately show the pattern of variation in the data

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-30

How Many Class Intervals?
Many (Narrow class intervals)

3
2.5
2
1.5
1
0.5
60

Temperature

Few (Wide class intervals)




may compress variation too much and yield a blocky distribution can obscure important patterns of variation. 12
10

Frequency



8
6
4
2
0
0

30

60

More

Temperature

(X axis labels are upper class endpoints)

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-31

More

56

52

48

44

40

36

32

28

24

20

16

8

0
4



may yield a very jagged distribution with gaps from empty classes
Can give a poor indication of how frequency varies across classes

12



3.5

Frequency



The Cumulative
Frequency Distribuiton
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46, 53, 58

Class

Frequency Percentage

Cumulative Cumulative
Frequency Percentage

10 but less than 20

3

15

3

15

20 but less than 30

6

30

9

45

30 but less than 40

5

25

14

70

40 but less than 50

4

20

18

90

50 but less than 60

2

10

20

100

20

100

Total

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-32

1.6





Relationships Between Variables
Graphs illustrated so far have involved only a single variable
When two variables exist other techniques are used: Categorical
(Qualitative)
Variables

Numerical
(Quantitative)
Variables

Cross tables

Scatter plots

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-33

Scatter Diagrams


Scatter Diagrams are used for paired observations taken from two numerical variables



The Scatter Diagram:
 one variable is measured on the vertical axis and the other variable is measured on the horizontal axis

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-34

Scatter Diagram Example

23

125

26

140

29

146

33

160

38

167

42

170

50

188

55

195

60

Cost per Day vs. Production Volume

Cost per day 200

250
Cost per Day

Volume per day

200
150
100
50
0
0

10

20

30

40

50

60

70

Volume per Day

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-35

Cross Tables


Cross Tables (or contingency tables) list the number of observations for every combination of values for two categorical or ordinal variables 

If there are r categories for the first variable
(rows) and c categories for the second variable (columns), the table is called an r x c cross table

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-36

Cross Table Example


4 x 3 Cross Table for Investment Choices by Investor
(values in $1000’s)

Investment
Category

Investor A

Investor B

Investor C

Total

Stocks

46.5

55

27.5

129

Bonds
CD
Savings

32.0
15.5
16.0

44
20
28

19.0
13.5
7.0

95
49
51

Total

110.0

147

67.0

324

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-37

Graphing
Multivariate Categorical Data
(continued)


Side by side bar charts
C o m p arin g In vesto rs
S avings
CD
B onds
S toc k s
0

10
Inves tor A

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

20

30
Inves tor B

40

50

60

Inves tor C

Ch. 1-38

Side-by-Side Chart Example


Sales by quarter for three sales territories:
East
West
North

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
20.4
27.4
59
20.4
30.6
38.6
34.6
31.6
45.9
46.9
45
43.9

60
50
40

East
West
North

30
20
10
0

1st Qtr

2nd Qtr

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

3rd Qtr

4th Qtr
Ch. 1-39

1.7

Data Presentation Errors
Goals for effective data presentation:


Present data to display essential information



Communicate complex ideas clearly and accurately 

Avoid distortion that might convey the wrong message Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-40

Data Presentation Errors
(continued)


Unequal histogram interval widths



Compressing or distorting the vertical axis



Providing no zero point on the vertical axis



Failing to provide a relative basis in comparing data between groups Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-41

Chapter Summary


Reviewed incomplete information in decision making 

Introduced key definitions:





Parameter vs. Statistic





Population vs. Sample
Descriptive vs. Inferential statistics

Described random sampling
Examined the decision making process

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 1-42

Chapter Summary
(continued)



Reviewed types of data and measurement levels
Data in raw form are usually not easy to use for decision making -- Some type of organization is needed:
 Table



 Graph

Techniques reviewed in this chapter:




Frequency distribution
Bar chart
Pie chart







Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Line chart
Frequency distribution
Histogram
Scatter plot
Cross tables and side-by-side bar charts
Ch. 1-43

Similar Documents

Premium Essay

Business to Business

...Social Networks and Media Conquer B2B Social Networks are a flourishing phenomenon in today’s generation. It has already entered and affected the B2C network. In B2C network the social networks have become a concerning factor and plays a major role in marketing and communications. As we are all familiar with the B2B network and what does it actually implies, the question arises whether the social networks can play an important role in B2B network and for B2B companies. Social networks are not another passing phenomenon; they have matured and have registered themselves highly in the minds of the customers. B2B network also gets conquered by the social networks the business houses that trade with each other are actually the customers of each other and they also engage themselves in social networking. Some useful statistics from the social networking world states that the total time spent on social media has increased from 6% in 2007 to 20% in 2011. The registered users will almost reach 2 billion people by 2014. These figures show relentless growth and usage of social media. Already 91% of the B2B companies are active on Facebook, 53% on Twitter and 47% on LinkedIn. These statistics reveal that social media has conquered B2B network and has entered in that chain as means of effective communication and presentation. B2B companies deal with people and not robots. So the influence of emotions before purchasing a product is applicable to them also as they are not immune to these...

Words: 798 - Pages: 4

Premium Essay

Business

...- BTEC FIRST DIPLOMA BUSINESS - Unit 16: Business Enterprise Assignment [pic] [pic] • The due date for the whole assignment is Friday 25th May 2012 • You will have time allocated to complete the MERIT and DISTINCTION criteria only when the PASS criteria is completed • You will be able to gather evidence for Level 2 Key Skills in Communication, Application of Number and Information Technology from completing the assignment You will also be able to gather evidence for Key Skills Level 2 Improving Own Learning and Performance (LP2.1, Lp2.2 and LP2.3) as you plan, review and complete the assignment ASSIGNMENT TASKS The scenario You and some friends have always been interested in working for yourself rather than being an employee. You now feel it is the right time to start up a new business and so you begin to consider the idea and investigate the possibilities further with your friends. There are many ideas you have but before you can start the business you have decided to investigate what things you need to know about starting up a business. You and your friends are considering asking your bank manager to provide you with the finance for starting up the business and so it is important that you know exactly what is involved. You and your friends will have to present your business idea to the bank manager so it is important that you know what you have to do…! ______________________________________________________________ ...

Words: 905 - Pages: 4

Free Essay

Business

...to this issue. The latest issue can be found on the Edexcel website: www.edexcel.com References to third-party material made in this specification are made in good faith. Edexcel does not endorse, approve or accept responsibility for the content of materials, which may be subject to change, or any opinions expressed therein. (Material may include textbooks, journals, magazines and other publications and websites.) Authorised by Roger Beard Prepared by Susan Hoxley Publications Code BH029073 All the material in this publication is copyright © Edexcel Limited 2011 Edexcel BTEC Level 4 HNC Diploma in Business Edexcel BTEC Level 5 HND Diploma in Business Edexcel BTEC Level 5 HND Diploma in Business (Accounting) Edexcel BTEC Level 5 HND Diploma in Business (Management) Edexcel BTEC Level 5 HND Diploma in Business (Marketing) Edexcel BTEC Level 5 HND Diploma in Business (Human...

Words: 15079 - Pages: 61

Premium Essay

Business

...Unit Title: The Business Environment Guided Learning Hours: 160 Level: Level 5 Number of Credits: 18 Learning Outcome 1 The learner will: Understand the significance of the environment on business activity. Assessment Criteria The learner can: 1.1 Explain the features of business activity. Indicative Content 1.1.1 Explain the business organisation as a transformation process. 1.1.2 Describe the different ways in which a business may structure its activities. 1.2 Discuss the complex interactions that operate between a business and its environment. 1.2.1 Discuss the complexity, volatility and uniqueness of an organisation's environment. 1.2.2 Explain the influence of shareholders on the internal environment of an organisation. 1.2.3 Outline the nature of the external environment (PEST). 1.3 Explain the need for change and its management within an individual business. 1.3.1 Discuss the need to monitor changes in the external environment. 1.3.2 Discuss the implications of environmental change for a business, its stakeholders and society. 1.3.3 Explain reasons for resistance to change by firms, managers and employees. 1.3.4 Describe ways in which resistance to change may be overcome. Learning Outcome 2 The learner will: Understand the structure and organisation of business. Assessment Criteria The learner can: 2.1 Discuss the impact of industrial and legal structure and size on organisational behaviour. Indicative Content 2.1.1 Classify businesses...

Words: 1138 - Pages: 5

Premium Essay

Business

...A business undertaking is an organisation which is engaged in some industrial or commercial activity. It represents an institutional arrangement for carrying on any kind of business activity. It may be owned and controlled by a single individual or by a group of individuals who have entered into a formal or informal agreement to jointly conduct the business. Every business undertaking is a separate and distinct business unit. It has its own identity and separate ownership. It can be distinguished from other undertakings on the basis of its ownership, management and control. According to Wheeler, a business undertaking is a concern, company or enterprise which buys and sells, is owned by one person or a group of persons and is managed under a specific set of operating policies". Thus, a business undertaking may be defined as an organisation operating under separate ownership, management and control and carrying on any business activity with independent risk- bearing. All business undertakings are directly or indirectly engaged in the transfer or exchange of goods and services for value. They deal in goods and services on a regular basis. Their main motive is to earn profits and they are exposed to various types of risks. Characteristics of a Business Undertaking The basic features of a business undertaking are as follows: 1. Separate identity: Every business undertaking has a separate identity. It has a distinct name and separate existence. Its assets and liabilities are...

Words: 1147 - Pages: 5

Premium Essay

Business

...Gerri Bednarcyk Ch 1 Assign - Business Now: Change is the Only Constant Respond to these questions in a Word document. You do not have to include the question, but make sure to number the response.  You need to use complete sentences and correct grammar.  Once you have answered all the questions, save it as Chapter 1 – [your name] and upload it as an attachment. Watch the lecture video:  Make sure you have read Chapter 1 and have posted in the discussion forum. 1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why? The factors that contribute to the rapid pace of change in business are Human Resources, Capital, Natural Resources, Entrepreneurship, and Technology. The factors are more than likely to increase because all factors listed are increasing at a fast pace. I feel that factors are increasing because they are definitely in high demand at this time in our economy. 2. Explain the term "business".  A business is any organization or activity that provides goods and services in an effort to earn a profit. Businesses are leading in capitalist economies, where most of them are privately owned and ran to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit or state-owned 3. Explain the role of business in the economy. The economies of the country depends upon the employment provided by big and small businesses and produces the goods and provide...

Words: 908 - Pages: 4

Premium Essay

Business

...The Business Enterprise 1.) Discuss the common elements described in the theories/philosophies of Case, Kouzes, and Drucker including how their principles/strategies relate to the new definition of entrepreneurial leadership presented in Understanding Entrepreneurial Leadership in today’s Dynamic Markets. Case, Kouzes and Drucker each have good theories and philosophies on entrepreneurship and leadership. Each had different ways of stating what they thought made a good entrepreneur but for the most part focus on some of the same things and agreed that with the right balance of these characteristics then succeeding, as an entrepreneur would be possible. One of the common elements that each focused on was people. Interaction with people is important when it comes to entrepreneurship and leadership skills according to Case, Kouzes, and Drucker. Each inferred that if a person does not have people skills, then the person would not succeed as an entrepreneur or a leader. People skills would be the ability to motivate others and interact. A leader cannot lead without being able to interact with people. Starting a business requires interaction with people on some level. Another common element that they all thought were important was not being afraid to take risk. Taking a risk in order to monopolize an industry to succeed is important. The definition of entrepreneurial leadership is one of an enterprising, transformational leader who operates in a dynamic...

Words: 1383 - Pages: 6

Premium Essay

Business

...Business communication can take many forms, written and verbal. It can be between managers and employees within a company, or between a company and its customers, partners or suppliers. The purpose of business communication also varies, but it should always benefit your business. When carried out effectively, business communication can build your company's reputation, resolve and prevent conflicts, and contribute to strong relationships between your company, its customers and the business community. Build Customer Relationships Few businesses would grow or even survive without the benefits gained through marketing communications. You can take advantage of the wide variety of media available to let the public know about your products or services. Use business communications to establish your company as an authority or thought leader in your industry. Offer a white paper or online articles that discuss common problems business owners face and present your company's solution. A weekly or monthly newsletter to your prospects or established customers will help build trust by providing helpful tips and information. Occasionally sending out a direct mail or email survey will help you get to know your customers and better fill their needs. Freely sharing your expertise and gathering feedback from your customers will help you build a strong relationship with your customer base, and establish your company as a trusted expert in your industry. Motivate Team Good communication...

Words: 763 - Pages: 4

Premium Essay

Business

...ecutive Summary The New Australian Company is a new red wine brand that will be introduced in Singapore. The brand is a unique and high quality red wine brand that meets the growing preference of consumers. It will be distributed to several hotels, restaurants, supermarkets, and wine boutiques/shops that are located in the commercial business districts of the city-state. The brand is managed and owned by a group of wine-lover businessmen who have tremendous experienced in business administration, marketing and sales management and customer service. The owners are now looking for additional investments in order to capitalize the project well. The company has already made several negotiations with successful business distributors in Singapore. The company is confident to compete with many large distributors because it is closely working with top-notch suppliers and manufacturers who are known as wine experts or cellar masters. The target market is the Generation Y or the millennial because it is 77 percent of the population. This group also consumes wines at a faster and higher rate. The sales forecasts for the New Australian Company begin with $700,000 for the first year, and this will increase to 50 percent ($1, 050,000) in the second year, and 60 percent ($1,680,000) in the third year of operation. The company will be expecting a profit margin of 30-40 percent, and at least 25 percent return of investment in the first operational year. The company wants to change...

Words: 1216 - Pages: 5

Premium Essay

Business

...Recording Transactions Keeping business records accurate and up to date is important for the smooth running of a business. The business owner must record all of the money coming into the business from successful sales of the product and all of the money going out, such as expenses including money owed for storage, wages that are paid and money to purchase the stock. If a business fails to do this it may find itself not chasing payments, forgetting to pay bills or, even in trouble with HM Revenue and Customs. If the business does not record its transactions correctly, it cannot report its financial performance accurately and therefore tax payments may be wrong. By recording the sales made, the business owner is given a clear indication of what’s popular and so it becomes clear what products should have increased stock or altered price. In your case, it is very important that you monitor your sales as a new business will most likely not make any profit straight away, so it’s vital to record your transactions so you are able to at least breakeven until more customers become aware of your business and you can start to make a profit. Furthermore, since you have negotiated a one month credit with a supplier, it is important to record your transactions so you know that you can repay the supplier after the month has passed and avoid any consequences. It would be beneficial to you if you could keep your credit supply as then you will have money coming in from your customers to then...

Words: 274 - Pages: 2

Free Essay

Business

...The United States exists in a capitalistic economy meaning that private enterprise is based on fair competition, economic freedom, and private ownership therefore; business is the heartbeat of our economy. Everything from manufacturing, health care, sales, and agriculture involves business in some way. Businesses provide jobs and produce goods and services that we depend on every day (What Role Does Business Play in Our Economy..?). They pay state and federal taxes to the government on their services provided. The taxes paid by businesses and the people employed by them allow the government to function. Looking at businesses in this way you can clearly see that business is a pivotal part of the economy. Within our economy two types of business organizations exist: for-profit and nonprofit. A for-profit organization will produce goods or services in the hopes of making revenue off its products. Most organizations you think of today are probably a for-profit establishment. Organizations that are classified as not-for-profit or nonprofit often operate under the guise of the emotional appeal of compassion but can also become major economic engines. They are business like establishments but unlike a for-profit business, their primary goals do not include making monetary profits. For profit businesses operate to generate revenue under the idea to have more profit than loss at the end of the day. Unlike for- profit businesses, nonprofits are organizations that are classified...

Words: 1532 - Pages: 7

Premium Essay

Business

...Module-16 The role of business in The economy: M arkets and coMMerce TEACHER’S GUIDE P. 487 P. 491 P. 492 P. 492 P. 493 P. 496 P. 497 P. 501 Defined Content standards Materials Procedure Lesson outline Closure Assessment Overheads VISUAlS N Visuals for overhead projector. Copy to transparent paper for overhead. P. 502 NVisual-1: Market defined P. 503 NVisual-2: Business defined lESSonS 2 Copy and handout to students. P. 506 P. 513 P. 518 P. 522 2Lesson-I: I, Pencil 2Lesson-II: Specializing in production 2Lesson-III: Wal-Mart 2Lesson assessment the role of business in the econoMy Markets and coMMerce Module-16 Teacher DEFInED A market is a social arrangement that allows buyers and sellers to discover information and complete voluntary exchanges of goods and services. commerce consists of trading something of economic value such as a good, service, information, or money between two entities. business is the management and coordination of people and resources to accomplish particular production goals, usually for the purpose of making profit. business, commerce, and markets create many benefits for consumers, and as a result of business, commerce, and markets in the economy, consumers experience an increased standard of living. businesses obtain resources such as labor and equipment, and businesses specialize in the production of particular goods and services. As a result of business in the economy, the variety...

Words: 9175 - Pages: 37

Premium Essay

Business

...offer the bases in preparing, presenting and displaying even in interpreting general-purpose financial statements. There are some important accounting concepts that support the readiness and preparation of any accounting arrangement or financial statements such as Going Concern Concept, Consistency Concept, Prudence Concept, and Accruals Concepts. For example, Going Concern Concept is a company or organizations will not be going to bankrupt unless there have a confirmation and evidence to the contrary and this is supported by accountants. Purpose of Accounting Conventions An accounting convention refer to regular and common practices which are all around followed in recording and exhibiting accounting data and information of the business entity. They are taken after like traditions, convention, and so forth in a general public. Accounting conventions are evolved through the normal and consistent practice throughout the years to encourage uniform recording in the books of accounts. Accounting conventions help in contrasting accounting information of various specialty units or of the same unit for various...

Words: 645 - Pages: 3

Premium Essay

Business

...cover cover next page > Cover Business, Management and Finance Small Business; Entrepreneurship title author publisher isbn10 | asin print isbn13 ebook isbn13 language subject publication date lcc ddc subject : : : : : : : Entrepreneurship and Small Business Burns, Paul. 0333914732 9780333914731 9781403917102 : : : : cover next page > file:///Z|/_==%CF%CE%C8%D1%CA==/Entrepreneurship%.../0333914732__gigle.ws/0333914732/files/cover.html [06.10.2009 1:01:58] page_i < previous page page_i next page > page_i next page > Page i Entrepreneurship and Small Business < previous page file:///Z|/_==%CF%CE%C8%D1%CA==/Entrepreneurship%...0333914732__gigle.ws/0333914732/files/page_i.html [06.10.2009 1:02:00] page_ii < previous page page_ii next page > page_ii next page > Page ii < previous page file:///Z|/_==%CF%CE%C8%D1%CA==/Entrepreneurship%2...0333914732__gigle.ws/0333914732/files/page_ii.html [06.10.2009 1:02:00] page_iii < previous page page_iii next page > page_iii next page > Page iii Entrepreneurship and Small Business Paul Burns < previous page file:///Z|/_==%CF%CE%C8%D1%CA==/Entrepreneurship%2...333914732__gigle.ws/0333914732/files/page_iii.html [06.10.2009 1:02:00] page_iv < previous page page_iv next page > Page iv © Paul Burns 2001 All rights reserved. No reproduction, copy or transmission of this publication may be...

Words: 182024 - Pages: 729

Premium Essay

Business

...CHANGING CLOTHES. CHANGING CONVENTIONAL WISDOM. CHANGING THE WORLD. Fast Retailing has the conviction and vision to face the challenge of creating a better world. PARIS Valerie Dassier, Head of E-Commerce and Customer Care, Comptoire des Cottonniers and Princess Tam Tam To become a leader, it’s not enough to do it a little bit better. Great leaders see a different reality. LONDON Kate Pierre, Store Manager, Uniqlo UK We are going to be the number one casual clothes company in the world. And we will look to our managers in the company to take on bigger roles in their local countries and abroad. MOSCOW Aleksandr Kurchatov, Store Manager, Uniqlo Your attitude and your smile go a long way. My philosophy is to give people the chance to smile and they will open up. NEW YORK Jennifer Parker, VP Store Management, Theory, NY More than any other retailer, FR empowers people to be the CEOs of their own four walls. They put the onus on the store manager to change themselves and make it the most important role. SAN FRANCISCO Daisuke Tsukakoshi, Director West Coast, Uniqlo USA In the U.S., the home of casual clothing, competition is fierce. We’ll need people who are willing to play major roles in opening up this effort. SHANGHAI Joanne Lam, Merchandising Director, Uniqlo, Hong Kong and Mainland China I always admired Coco Channel as a kid. She turned around the whole fashion industry of her time. I want to work in a big company that is prepared to make that...

Words: 6333 - Pages: 26