Net Present Value and Business - 9074 Words

IGNOU MBA MS - 04 Solved Assignments July 2011 Course Code : MS - 04 Course Title : Accounting and Finance for Managers Assignment Code : MS-04/SEM - I /2011 Coverage : All Blocks Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with. 1. Discuss and explain the relevance of the following accounting concepts a) Business entity b) Money measurement c) Continuity d) Cost e) Accrual f) Conservatism g) Materiality h) Consistency i) Periodicity Solution: FUNDAMENTAL CONCEPTS OF ACCOUNTING Accounting is the language of business and it is used to communicate financial information. In order for that information to make sense, accounting is based on 12†¦show more content†¦LLCs are similar to corporations, but can be taxed as a partnership. In California, the LLC can have either one owner or two. Regardless of the number, these owners carry the legal title of member. The LLC provides a shield for your personal assets just like a corporation. Partnerships In my opinion, it is better to have died a small child then be in a partnership. Unfortunately, many business owners form partnerships and don t even know it. This occurs when they go into business with another person. If no business entity is formed, the law considers the business to be a partnership and treats it accordingly. Partnerships are dangerous for one primary reason: a partnership does not provide any protection from liability and, in many ways, invites personal liability. Under well-established law, most partnerships are classified as general. This simply means that all the partners are contributing to the administration and running of the partnership business. This classification can have grisly results. In a general partnership, each partner is jointly liable for the debts of any other partner arising from the business. For instance, you and your partner go to a business dinner with a client. Your partner has a drink and then a few more. They then get into an accident on the way home. Each of the partners is liable for the damages claimed by the injured people. That means YOU! Even if you were not in the car, did not rent the car, never saw theShow MoreRelatedCash Budget For 3 Months Ending 31st August 20151350 Words   |  6 Pagesthis was one of the factor that helped the business to stay out of minus figures in the closing balance of the cash budget. By putting this cash injection into their business it enabled them to average out the inflow and outflow of money within the business. Bank overdraft With the bank overdraft even though it is not shown in the cash budget this will have an important impact on the business as Zahlee Ltd will have more money to spend within the business. With having this overdraft it will helpRead MoreGuillermo Furniture Capital Budget Recommendation Essay example1087 Words   |  5 PagesGuillermo Furniture Capital Budget Recommendation ACC/543 Professor Deborah Fitzgerald-Thomas University of Phoenix November 08, 2010 Abstract Recent changes in the business environments and economy have prompted Guillermo to find different options to invest and stay in business. As a new hire accountant for employer Guillermo Furniture, I have analyzed and differentiate capital budge techniques and recommended best suited course of action. Capital Budget Recommendation GuillermoRead MoreFinance1546 Words   |  7 PagesThe short and long term investments of an organization affect the day to day decisions of management and it also affects the organization’s value. 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Revenue Enhancing Projects focuses more on generating higher revenue through distinct promising measures such as business expansion, research and development for improving current product. For example, Teshla is planning to launch a bullet train, this new invention might be a ground breaking invention for Teshla. Similarly, Volkswagen launched diesel cars to enter aRead MoreCaledonia Products Integrative Problem1039 Words   |  5 Pages 2013 Daneene Barton Caledonia Products is determining a new business proposal. The organization is planning a free cash flow investment and evaluating a project to determine the net present value of the business proposal. In the project financial analyst from Caledonia Products will consider the net value versus the internal rate of return. The research will determine if the organization will become profitable over the duration ofRead MoreProject Selection Method For Project Management Professionals Essay1560 Words   |  7 Pagesimplement some set of them so that the objectives of the parent organization will be achieved. This same systematic process can be applied to any area of the organization’s business in which choices must be made between competing alternatives. SELECTION METHODS: There is various project selection methods practised by the modern business organisation. These methods have different features and characteristics therefore selection method is different for different organization. Although there are many differencesRead MoreCapital Budgeting : An Important Tool842 Words   |  4 Pagesfinancial manager can use different techniques of capital budgeting such as Net Present Value, Adjusted Present Value and two other business valuation models that are popular, Payback Period and Accounting Rate of Return. 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