Question 1 The first step：Legal Issue The legal issue is the establishment of a company and its corporate liability in terms of debts. The legal issue seeks to determine if Samantha is entitled to collect the payment of $50,000, which she has loaned to the company. The second step：Principle of Law According to the resource a company is considered as “a separate legal entity,” (Hicks and Goo 2008, 95) and under its own name, the company has the power to own properties and to sue or be sued (Hicks
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score. The current ratio between income and outstanding financial obligations will also be taken into consideration. Competent credit management seeks to not only protect the vendor from possible losses, but also protect the customer from creating more debt obligations that cannot be settled in a timely manner. After establishing the credit limit for a customer, credit management focuses on providing the client with accurate and
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impact of firm size, the market-to-book ratio, and the effect of inflation are not reliable. The empirical evidence seems reasonably consistent with some versions of the trade-off theory of capital structure. When corporations decide on the use of debt finance, they are reallocating some expected future cash flows away from equity claimants in exchange for cash up front. The factors that drive this decision remain elusive despite a vast theoretical literature and decades of empirical tests. This
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Guidelines for Credit Risk Management As the central bank and apex regulatory body for the country's monetary and financial system, Bangladesh Bank provides a number of recommended policy and procedural guidelines to the financial sector that are directional in nature and aims to improve the risk management culture. Policy guidelines of Bangladesh Bank include Lending Guidelines, Credit Assessment & Risk Grading, Approval Authority, Segregation of Duties and Internal Audit while Procedural Guidelines
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inexpensively formed • It is subject to few government regulations • The business pays not corporate income taxes • It is difficult for a proprietorship to obtain large sums of capital • The proprietor has unlimited personal liability for the business’s debts. • The life of a business organized as a proprietorship is limited to the life of the individual who create it. Partnerships A partnership exists whenever two or more per-
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BRIEF CASES THOMAS R. PIPER JEFFREY DEVOLDER Jones Electrical Distribution -HARVARD ~BUSINESS \g7 PUBLISHING 4179 APRIL 6, 2010 After several years of rapid growth, in the spring of 2007 Jones Electrical Distribution anticipated a further substantial increase in sales. Despite good profits, the company had experienced a shortage of cash and had found it necessary to increase its borrowing from Metropolitan Bank-a local onebranch bank-to $250,000 in 2006. The maximum loan that Metropolitan
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2.4. Reasons of conducting different capital structure 9 3. Capital Structure of NEXT 11 3.1. Comparative analysis of internal and external financing of NEXT 11 3.2. Comparative analysis of debt capital and equity capital of NEXT 13 3.3. Comparative analysis of current debt and non-current debt of NEXT 15 3.4. Financial performance of NEXT 2013-2015 17 4. Conclusion 19 5. Reference 20 6. Appendixes 22 Appendix I 22 Appendix II 23 Appendix III 25 Appendix IV 27 Appendix V 29
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Questions 1,2,3 1. The U.S. financial system is composed of (1) policy makers, (2) a monetary system, (3) financial institutions, and (4) financial markets. Indicate which of these components is associated with each of the following roles: a. Accumulate and lend/ invest savings – financial institutions b. Create and transfer money – monetary system c. Pass laws and set fiscal and monetary policies – policy makers d. Market and facilitate transfer of financial assets
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KEY RESPONSIBILITIES • Manage, control and ensure that company accounting activities and procedures conform to generally accepted accounting principles • Ensure that all financial transactions are handled and processed in-line with the approved policies and procedures. • Oversee the daily operations of the finance department • Prepare the monthly financial reports with all needed financial and costing analysis comparing with Budget and KPIs. • Manage the preparation of the official annual report
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Q1 The case concerns about disposal of a capital asset. The vacant land, which is acquired by Colourvision Pty Ltd at $12,000,000 on 1 January 1986, is sold for $3,000,000 on 1 January 2014. As the land is acquired after 20 September 1985, the old law cannot apply, capital gains need to be caught by CGT according to Part 3-19(ss. 100-1- 121-435) and Part 3-3(ss. 122-1- 152-430). As all the discussion can be only in the progress based on a “CGT event”(s 102-20 ITAA97), and “CGT event” are always
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