Organizational Structure and Design Concepts
Structure of a Company
Organizational design concept. Divides in 2- formal organizational structure: established by management in a planned manner. Informal organizational structure: unplanned relationships, spontaneously. Organizational design: process through which managers evaluate, create, and modify the formal organizational structure to carry out necessary activities to achieve objectives. Formal structure reflected in an organization chart. Organizational structure is not static, adapts to
Read MoreUnderstanding Car Expenses, Insurance, and Financial Terms
CAR EXPENSES:
For one-off expenses, such as purchase price, stamp duty & transfer of registration fee (where applicable). For annual & ongoing expenses, including registration, compulsory car insurance, optional car insurance, loan repayments (if applicable), fuel, parking, car maintenance, & car servicing (for periods not covered by warranty if applicable). If there is an accident involving your car, you could have to pay for the costs resulting from injuries to yourself/others, damage
Read MoreUnderstanding Debentures and Corporate Finance
Debentures
Debentures are one of the principal sources of raising borrowed capital to meet long and medium term financial needs. Over the years debentures have occupied a significant position in the financial structure of the companies. The term debenture has come from the Latin word ‘debere’ which means to ‘owe’. The term debenture has not been defined clearly under Companies Act. Sec 2(30) of the Companies Act 2013, only states that, ‘the word debenture includes debenture stock, bonds
Read MoreMarket Profitability Analysis and Key Success Factors
Market Profitability Analysis
According to Porter (1985), the attractiveness of a market or an industry is measured by the long-term return on investment of the average firm. This in turn depends on five factors that influence profitability:
- the intensity of competition
- the existence of potential competitors who will enter if profits are high
- substitute products that will attract customers if prices become high
- the bargaining power of customers and suppliers
Competitors: The intensity of competition from
Read MoreAccounting 3
1. Gaw Company owns 15% of the common stock of Trace Corporation And used the fair-value method to account for this invesment. Trace reported Net income of $110,000 for 2018 and paid dividends of $60,000 on October 1, 2018. How much income should Gaw recognize on this investment in 2018?
B) $ 9,000
2. Yaro Company owns 30% of the common stock of Dew Co. And uses The equity method to account for the investment. During 2018, Dew reported Income of $250,000 and paid dividends of $80,000. There is
Read MoreFinancial Statements and Budgeting Methods
Ch 1
Accounting equation (Ch 1):
The balance sheet shows the relationship between assets, liabilities, and stockholder’s equity at a particular date. In equation form, Assets = Liabilities + Stockholder’s Equity. This is referred to as the basic accounting equation.
Financial statements (Ch 1) Format/Content (which accounts belong on each financial statement):
Four types of financial statements:
Income Statement:
Summarizes all revenue and expenses for period (month, quarter, or year). If revenues
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