The Company as an Open System: Internal and External Environments
The Company as an Open System
The company, as a living entity, interacts with other businesses to produce goods and services that meet market needs. It serves two primary functions:
- Producing goods and/or services at the individual level
- Creating wealth at the societal level
Systems Approach
The systems approach to management views the organization as a unified system with a specific purpose, composed of interrelated parts. This perspective allows managers to consider the organization as a whole and
Read MoreJoint Production: Allocation of Joint Costs and Split-Off Point
Joint Production: Distinction and Challenges
1. Simple Production
Obtaining a single product. Analytical accounting is straightforward as all consumption is necessary for the sole product, eliminating the need for cost allocation.
2. Multiple Outputs
Obtaining different products. Common costs must be distributed using allocation keys, which vary depending on the type of multiple-product production.
A. Joint Production
Different products are obtained by choice, allowing for the abandonment of one product
Read MoreBudgeting: A Comprehensive Guide for Managers
8) Self-Imposed Budgets
What is a self-imposed budget?
A self-imposed budget is a budget prepared with the full cooperation and participation of managers at all levels. It is also known as a participative budget.
Major advantages of self-imposed budgets:
- Individuals at all levels of the organization are recognized as members of the team whose views and judgments are valued by top management.
- Budget estimates prepared by front-line managers are often more accurate and reliable than estimates prepared
Understanding Business Finance: Sources, Types, and Advantages
Capital Expenditure
Money spent to acquire fixed assets in a business (machines, land, building).
Revenue Expenditure
Money used in the day-to-day running of a business. Daily payments or expenses (rent, wages, raw materials, insurance).
Internal Sources of Finance
Money obtained from within the business
Personal Funds/Savings
A source of finance for sole traders that comes mostly from their own personal savings.
Retained Profits
Profit that remains after a business has paid a corporation tax to the government
Read MorePrinciples of Organization and Sales Management: A Comprehensive Guide
Principles of Organization
Objective
The organs of a business structure must know exactly what their particular objectives are, which cannot hinder the achievement of the company’s main objective.
Specialization
The activities of each member of an organization should be limited to the performance of a single main function.
Coordination
The company’s main purpose is to facilitate coordination. The interdependence between the different organs should be clearly established and known to all the organs of
Read MoreNavigating Health Insurance: A Comprehensive Guide for Canadians
1. Understanding Health Insurance Coverage
The Meyers’ Situation:
- Covered by Nova Scotia’s health care plan for necessary medical services within provincial limits.
- Gigi’s hospital stay in Seattle not covered unless she had travel insurance.
- Marni needs an extended health care plan that suits their family’s needs.
- Meyers considering private health insurance to cover additional costs not covered by the province.
Emergency Travel Health Insurance:
- Marni’s provincial health plan does not cover 100% of emergency