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...Diploma in Business | Unit Title: Finance in the Hospitality Industry | INTRODUCTION A business is a commercial enterprise which exists with a view to making a profit.it may be a sole trader business, partnership or a company.( Financial accounting acca f3, study manual for exam in 2013) There are different legal private business sector structure. Sole trader, partnership and limited companies . Sole trader is a business owned by one person . the advantage of this business is that the owner has a full control of his business and all the profit are for him self. The desadvantage relied on unlimited liability. Partnership is a business owned by two people or more. The advantage is about shared decision and the desadvantage is that the profit also is shared. Limited business is a business run by directors and the advantage is shareholders has limited liability and whenever the owner dies the busines will exist. The disadvantage is that all the profit from the busines is shared among members. TASK 1 SOURCES OF FINANCE FOR DIFFERENT BUSINESS INCLUDE APPROPRIATE SOURCES OF FINANCE FOR THE ENCHANTED VALEY B&B. Finance is about the money that a business can use to purchase things that is needed . however, business can need money or finance for three reasons: to buy equipment or premises, to expand the business and to start the business. We have two types of sources of finance: internal sources of finance and external sources of finance. Internal sources of...
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...Introduction “Show me the money!” said Cuba Gooding Jr’s in movie “Jerry Maguire”. That’s what financial statements do. It shows where a company’s money came from, where it went, and where it is now. There are four main financial statements - balance sheets, income statements, cash flow statements and statements of shareholders’ equity. * Balance sheets show what a company owns and what it owes at a fixed point in time. * Income statements show how much money a company made and spent over a period of time. * Cash flow statements show the exchange of money between a company and the outside world also over a period of time. * The fourth financial statement, called a “statement of shareholders’ equity,” shows changes in the interests of the company’s shareholders over time. Task 1 Financial statements There are two main purposes of financial statement: first of all, to report on the financial position of an entity; secondly to show how the entity has performed over a particular period of time. Throughout the existence of a business many requests will be made for its financial statements. Financial statements are intended to provide information on the recourses available to management, how these recourses were financed, and what the company has accomplished with them. Financial statements are formal presentations of the flow of money into, through and out of a business. Financial statements are comprised of four main areas - balance sheets, income statements...
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...Steven W. Simmons Sr. University of Phoenix Business Structures Fin/571 – Corporate Finance Oscar Lewis August 16, 2014 Business Startup When making important business decisions, the concepts of corporate finance tend to be the best model to use. These concepts offer proven methods, which improve the financial success. Discussed below are basic corporate financial concepts, which can be applied and yield positive results. Principles of Corporate Finance When dealing with business investments most commercial entities have used corporate financing in the company. The principle of self-interested behavior is the principle which creates a financial advantage for all parties involved when the playing field is equal or all components associated with the deal are equal. As we strive to gain a deeper comprehension of business transactions through human behavior we find that each of the 12 principles carry invaluable weight to the success or failure of the company. Comparative advantage, diversification, options, risk-return tradeoff, signaling, and valuable ideas are some of the principles used in business dealings. Financial principles, financial markets, and business ethics form a foundation for the financial decisions that managers routinely make. Accounting Net Income and Cash Flows Changing a business from one process or industry to another will completely alter the process of recording business...
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...Finance Course: Corporate Finance MBA−10 California College for Health Sciences MBA Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−55204−6 Text: Harvard Business School Entrepreneurship Cases Corporate Finance, Seventh Edition Ross−Westerfield−Jaffe Harvard Business School Finance Cases This book was printed on recycled paper. Finance http://www.mhhe.com/primis/online/ Copyright ©2005 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 FINAGEN ISBN: 0−390−55204−6 Finance Contents Ross−Westerfield−Jaffe • Corporate Finance, Seventh Edition I. Overview 1 1 20 34 34 35 70 98 130 152 152 193 219 219 241 241 275 1. Introduction to Corporate Finance 2. Accounting Statements and Cash Flow II. Value and Capital Budgeting Introduction 4. Net Present Value 5. How to Value Bonds and Stocks 7. Net Present Value and Capital Budgeting 8. Risk Analysis, Real Options, and Capital Budgeting III: Risk 10. Return and Risk: The Capital−Asset−Pricing...
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...CORPORATE FINANCE COURSE CORPORATE FINANCE 2.1 Working Capital Management Sept. 2014 Ir Frank W. van den Berg mba Vrije Universiteit, Amsterdam ALYX Financial Consultancy bv, Aerdenhout FWvdB/2014 1 OUTLINE CORPORATE FINANCE FWvdB/2014 • Basics & Guiding principles • Time value of money + Capital Budgeting • Valuation of CF + Bonds • Valuation of shares (+ co.’s) • Financial Analysis (Ratios) • Financial Planning (EFN) • à Working Cap. Mgt. (A/R, Inv., A/P) • Debt Financing • • 2 FIN 1.5 FIN 2.1 Entrepreneurial Finance / Raising Equity Mergers & Acquisitions / Corp. Restructuring FINANCIAL RATIOS - Example 1 FWvdB/2014 Sample Balance sheet (000’s €) Cash + bank 500 Accounts Receivable 5.000 Inventory 3.000 ------CA 8.500 Machinery Buildings 6.000 4.000 Total assets -------18.500 STB (bank credit line) Accounts Payable CL LTD (Bonds) Nom. Cap. (500.000 x 2) Paid-in-capital (x 3) Retained Earnings Treasury Stock Shareholders’ Capital Total liabilities + OE 3 3.000 3.000 ------6.000 6.000 1.000 1.500 4.500 - 500 6.500 -------18.500 RATIOS: SAMPLE INCOME STATEMENT REVENUES (= Sales = Turnover) CGS = Costs of Goods Sold (materials, labor costs + energy costs incl. 1.000 depreciation) GROSS PROFIT SGA= Selling Administrative & General Expenses (incl. overhead, management, insurance, marketing) EBIT = Earnings Before Interest and Tax Interest Expense...
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...Wal-Mart Stores, Inc was established in 1969 and it is a company that operates different formats of retail stores across the world. Wal-Mart offers a variety of general merchandise to its customers and this includes electronics, home furnishings, housewares, healthy and beauty aids, hardware, automotive products, jewelry and other products. Wal-Mart operations are classified into three business segments which include Wal-Mart U.S, Wal-Mart international and Sam’s club. The company has different retail formats that includes discount stores, supercenters, neighborhood markets, express stores, market side and also does business online through Walmart.com (Wal-Mart, 2011). Reuters (2011) provides that Wal-Mart has retail stores in 50 states and also in Puerto Rico. Wal-Mart has 681 discount stores in 45 sates and in Puerto Rico, 2,952 supercenters nationwide, 185 neighborhood markets, Reuters (2011) provides that Wal-Mart has retail stores in 50 states and also in Puerto Rico. Most Wal-Mart supercenters have specialty shops such as bank, pharmacy, employment agency, Tire & Lube express, health clinic, vision center, and hair salon (Wal-Mart, 2011). Reuters (2011) provides that during the financial period that ended on January 2011 Wal-Mart U.S business segment contributed 62.1% of the company’s total sales. In addition to selling products Wal-Mart U.S is involved in providing financial products and services such as bill payment, money orders, and check cashing. Wal-Mart...
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...8. Moral hazard occurs when individuals tend to be very risky when there are protections if a loss occurs. This is more likely in indirect finance. For example, when an individual purchase a new car, they insure it and their policy dictates that if an individual accidentally hits their vehicle, they are obligated to a new vehicle. So after a few years and that individual gets tired of their vehicle and is desperately in need of a new one, they would intentionally drive a bit reckless to allow someone to hit their vehicle. Lemons problem can be both indirect and direct finance. It occurs when one party to a transaction do not have the same degree of information. The party with less information take a risk hoping that the “lemon” is a good buy. For example, in the used car industry, the seller has all the information about the car and may limit the actual reason as to why they are selling the car, the problems the car has etc. intermediaries in the financial market can reduce lemon problems by reducing the attractiveness of direct finance by offering more incencitives to individuals when acquiring finances, offer provision for information, enforce laws on information given ensuring individuals receives sufficient information. Financial intermediaries have expertise in assessing the risk of the applicant for funds that reduces adverse selection and moral hazard. They have easy access to various databases that provide information on both individuals and businesses, and they...
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...Personal FinanceIt is important to plan the finance for any regular expenditure suchas the basic needs of any person like food, clothes, accommodation,bills etc.To be able to for fill all your personal needs you must have some kindof personal income, which will cover these expenses.The sources of personal income might be:Salary or wages =============== A regular earned income from employment, for these earnings the employee and the employer both have to pay a deduction to the government such as income tax and N.I. contribution. Overtime An extra earned income for the additional hours of work Commissions ----------- An employee can get a percentage of the selling price of product from his/her employer. Bonus ----- Bonus is an earning for good performance at work place. Interest -------- Interest using your money to create more money, expressed as a rate per period of time, usually one year, in which case it is called an annual rate of interest. Winnings -------- You may win money from playing the lottery or gambling on sport events. Gifts ----- Money received from a friend or relative on a special occasion such as birthday. Sale of personal items ---------------------- Earned income from selling personal items Gross and net pay ----------------- Gross pay is the total amount of money earned by an employee before any deduction is made. Net pay is the amount of money an employee receives after deduction have been made for income tax, national insurance and any voluntary contribution...
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...V O LU M E 1 9 | N U M B E R 2 | S PRING 2007 Journal of APPLIED CORPORATE FINANCE A MO RG A N S TA N L E Y P U B L I C AT I O N In This Issue: Valuation, Capital Budgeting, and Disclosure Enterprise Valuation Roundtable Presented by Ernst & Young 8 Panelists: Richard Ruback, Harvard Business School; Trevor Harris, Morgan Stanley; Aileen Stockburger, Johnson & Johnson; Dino Mauricio, General Electric; Christian Roch, BNP Paribas; Ken Meyers, Siemens Corporation; and Charles Kantor, Lehman Brothers. Moderated by Jeff Greene, Ernst & Young. The Case for Real Options Made Simple 39 Raul Guerrero, Asymmetric Strategy Valuing the Debt Tax Shield 50 Ian Cooper, London Business School, and Kjell G. Nyborg, Norwegian School of Economics and Business Administration Measuring Free Cash Flows for Equity Valuation: Pitfalls and Possible Solutions 60 Juliet Estridge, Morgan Stanley, and Barbara Lougee, University of San Diego Discount Rates in Emerging Markets: Four Models and an Application 72 Javier Estrada, IESE Business School Rail Companies: Prospects for Privatization and Consolidation 78 James Runde, Morgan Stanley A Real Option in a Jet Engine Maintenance Contract 88 Richard L. Shockley, Jr., University of Indiana A Practical Method for Valuing Real Options: The Boeing Approach 95 Scott Mathews, The Boeing Company, Vinay Datar, Seattle University, and Blake Johnson, Stanford University Accounting for Employee...
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...SUGGESTED PROGRAM PLAN FOR FINANCE MAJORS FIRST YEAR Fall Semester (14 or 15 credits) Spring Semester (15 or 16 credits) ENG106 Writing Intensive First Year Seminar* HCS100 Hum Comm Studies HIS101 World History I* HIS106 World History II* MAT108 Finite Math MAT181 Applied Calculus I ________ General Education elective ISM142 Business Computer Systems* BSN101 Foundations of Bus Admin (2 crs.)* ________ General Education elective or a General Education elective* or ECO113 Principles of Economics (4 crs.) SECOND YEAR Fall Semester (16 or 15 credits) Spring Semester (15 credits) ACC200 Fundamentals of Financial Accounting ACC201 Managerial Accounting SCM200 Statistical Applications in Business* BSL261 American Legal Environment* ECO113 Principles of Economics (4 crs) ECO280 Managerial Economics or a General Education elective ________ General Education elective ________ General Education elective ________ General Education elective ________ General Education elective THIRD YEAR Fall Semester (15 credits) Spring Semester (15 credits) FIN311 Financial Management FIN313 Advanced Financial Management (SP) MKT305 Principles of Marketing FIN333 Applied Comp. & Security Analysis (SP) MGT305 Organizational Behavior SCM330 Supply Chain & Operations Management ________ General Education elective ________ Free elective ________ General Education elective ________ General Education or Free elective FOURTH...
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...FINANCIAL INCLUSION USING PRADHAN MANTRI JAN-DHAN YOJANA - A CONCEPTUAL STUDY 1. Mr. Divyesh Kumar, Research Scholar, Assistant Professor, Dayananda Sagar Academy of Technology and Management, Udayapura, Kanakapura Road, Bangalore – 560082 email: divyesh.kumar4@gmail.com Mob: +91 9448888381 2. Dr. H R Venkatesha, Research Guide, Director, Acharya Bangalore B School, 5th cross, Syndicate Bank Employees Housing society layout, Off Magadi Road, Andrahalli Main Road, Bangalore – 560091 email: hrvenkatesha@gmail.com Mob: +91 9448407444 DECLARATION This is to certify that the paper titled “FINANCIAL INCLUSION USING PRADHAN MANTRI JAN-DHAN YOJANA - A CONCEPTUAL STUDY” is an original work by us and the same has not been submitted earlier for any publication / conferences / seminars. Divyesh Kumar Dr. H R Venkatesha ABSTRACT Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. An estimated 2.5 billion working-age adults globally have no access to the types of formal financial services delivered by regulated financial institutions. Financial inclusion is an innovative concept which enables the alternative techniques to promote the banking habits and acts as enabler in reducing the poverty and the launch of Pradhan Mantri Jan Dhan Yojana (PMJDY) by Government...
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...Ch.19 – short-term financing is concerned w/ the analysis of decisions that affect CA & CL (Networking capital=CA-CL) *Short term financial management is called working capital management * The most important difference btwn short-term and long-term is the timing of the cash flows (short term – cash inflows and outflows within a year or less) * Cash = LT – debt + Equity + CL - CA other than cash – Fixed Assets ⇒activities that increase cash: 1. long term debt 2. equity (selling some stock) 3. CL 4. CA other than cash (selling some inventory for cash) 5. fixed assets (selling some property). * Activities that decrease cash (opposite of above) * Operating Cycle – the period between the acquisition of inventory and the collection of cash from receivables. 1. Inventory period – the time it takes to acquire and sell inventory. 2. Accounts receivable period – The time between sale of inventory and collection of receivables. (Operating cycle = Inventory Period + Accounts Receivable Period) * The operating cycle describes how a product moves through the CA accounts moving closer to cash. * Accounts Payable Period – The time btwn receipt of inventory & payment for it. *Cash Cycle – The time btwn cash disbursement and cash collection. The Cash Cycle is the number of days that pass before we collect the cash from a sale, measured from when we actually pay for the inventory. (Cash Cycle = Operating Cycle – Accounts Payable Period) * Cash Flow Timeline - A graphical representation...
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...as preparing forms and financial statements. It is a good job for people who want to work independently and are very organized (this is only a very brief description, if you are interested in accounting, consult your accounting instructor for more information). Finance: The financial manager or consultant places primary emphasis on decision making. It uses the financial statements prepared by accountants to make decisions about the firm’s financial condition and to advise others about possible losses and profits. In some cases, finance is more a type of leadership position. A financial manager has to deal not only with finance, but also with economics, accounting, statistics, math, and management. For example, people working with stocks and bonds have to understand and analyze how the underlying companies are performing. How a given company is going to perform during recession? Should they sell or buy stocks or bonds. How a decrease in the interest rate in England may affect the projects a company has in that country. Finance also deals a lot with risk. Derivative securities (options, futures, swaps, etc) are used to hedge against possible increase in risk. Risk managers are in great demand everywhere. Most finance majors find jobs in banks and other financial institutions, government, real estate, consultant companies, insurance, investment companies, stock market exchanges, fundraising, and any firm that needs someone to make financial decisions....
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...WHARTON on... Global Finance ............... http://executiveeducation.wharton.upenn.edu http://knowledge.wharton.upenn.edu Global Finance: Looking Back, and Ahead The world is undergoing the worst financial crisis in decades. Although the global credit crunch was sparked by the bursting U.S. housing bubble, one of the most important causes was more basic: For too long, spending in the United States has outpaced incomes. This fundamental mismatch was supported temporarily by an extremely lax U.S. monetary policy that led to easy credit, and by foreign producers who supplied cheap goods to America in part by managing their currencies. The resulting, unsustainable imbalance led to financial collapse and a worldwide economic downturn, even in rapidly developing countries such as Brazil, Russia, India and China—the BRIC countries. The following articles from Knowledge@Wharton look at these and other developments in global finance. They also examine how similar crises have been managed successfully—or not—on a national basis in the past, and what lessons they may offer. 3 Contents Huge Reserves, Emerging Market ‘Challengers’ and Other Forces Are Changing Global Finance Rapidly developing economies (RDEs) have increasingly become drivers of change—and sometimes disruption—in global financial markets. That has important implications for companies in the United States and Europe as new players emerge, including sovereign wealth funds, state-controlled entities, and acquisition-minded...
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