There are important disadvantages to this business form, too. For example, a sole proprietor is legally responsible for the business’s contracts and the torts he or she or any of his or her employees commit in the course of employment. In addition, a sole proprietor’s access to the business’s capital is limited to personal funds plus any loans he or she can obtain A sole proprietor bears the risk of loss of the business; that is, the owner will lose his or her entire capital contribution if the business fails. In addition, a sole proprietor has unlimited personal liability (Cheeseman, 251, 2012). General partnership, or ordinary partnership, A general partnership, or partnership, is a voluntary association of two or more persons for carrying on a business as co-owners for profit.
After filing for bankruptcy, there is a wealth exemption X, which includes the states exemption for home equity and other commodities. Also, there is a fixed fraction m, which is exempted from future earnings. In this fraction, 0 < m ≤ 1. It is assumed that bankruptcy costs a fixed of S dollar. While in bankruptcy, the debtors’ debt is discharged but he or she must use all the non-exempt wealth to settle the debt they owe their
Materiality is defined by the FASB as an omission that would affect a normal person by a misstatement such as using earnings management to skew the true earnings or revenue. This calls in to play the unethical behavior that earnings management places on the public (violating AICPA Code of Professional Ethics). SOX further required management and accountants to be cognizant of the material errors that financial misstatement and false reporting could have from an ethical standpoint. It holds them accountable for all financial reporting from their company. This includes criminally and financial accountability.
Pricing, billing and collecting fees What CPA firms can do to run their businesses more efficiently and effectively. By Edward Mendlowitz, CPA/ABV/PFS/CFF CPA firms provide invaluable advice to business clients but often struggle to run their own businesses effectively, particularly in the areas of pricing, billing and collections. Failure to set appropriate fees, deliver bills in a timely fashion and collect payment promptly—or even in full—cuts into a firm’s profitability, hurting the business and the accountants in it. Remedying this situation requires CPA firms to make a conscious effort to ensure they get paid an appropriate price in a timely fashion. To best do this, CPA firms should secure the fee agreement upfront, when their value to the client is greatest, and make sure they deliver excellent work on, or ahead of, schedule.
When consumers have a positive outlook on the economy they are more likely to purchase more products from staple stores. 1.1 Economic Factors The consumer staple from a macroeconomic standpoint is a very stable sector because it provides consumers with the basic necessities that people have made a part of their lives. This includes food, tobacco, drug retail, food distributors, food retail, brewers, distillers and vintners, household products, personal products, soft drinks, and agricultural products. The best time to buy a consumer staple is at the peak of a recovery. Staples perform well during recessions because
The return on assets and return on equity ratios are also better for Hershey’s because the company is making more money on less investment then Nestlé. External Analysis The first of Porter’s five forces is the threat of new entrants. “Identifying new entrants [to an industry] is important because they can threaten the market share of existing competitors” (Strategic Management). Fortunately for The Hershey Company,
The rise in the international trade is essential for the growth of globalization. Foreign trade helps every country to make optimum use of its natural resources. Each country can concentrate on production of those goods, for which its resources are best suited. Wastage of resources is avoided in this way and people in general get a feeling that their government is concerned about them, their resources and their money. Therefore quality goods will be produced and more money can be obtained since the good can be sold at a more expensive price.
Supply chain management is the complex process of managing systems to ensure that products are where they should be when they should be there, while minimizing costs and creating opportunities for profit. It is the strategic linkage and collaboration of all departments in a firm that enhances the product flow through the firm, which eventually adds value to the customer. Firms can lower costs, positively differentiate their services, constantly perform value-added services, increase flexibility and responsiveness, and engage in constant process innovation by incorporating best-practice supply chain management into their system. Not all supplier-buyer relationships are equal in value, and therefore, it is important to segment customers based on service needs and develop the appropriate relationship for that particular requirement. Robert J. Trent discusses four types of relationship management in his article “Why Relationships Matter.” Counterproductive relationships have no value because each organization is working against the other, this is often called a lose-lose relationship.
In the long run the changes should help the company become more profitable, but it will be an uphill battle to convince the investors that more funds are necessary as they have previously withdrawn funds for change. As long as the slip rates are not changed the government will not object to changes. The Fourwinds Marina has many strengths. The resort atmosphere
Apply cost saving strategies to increase turnover and profit In targeting high‐end customers, Li & Fung will be able to increase their margins and therefore lower their volume. By capitalizing on their already extensive network of suppliers, Li & Fung already has an advantage of attracting this new consumer segment. By implementing processes to better handle variability, Li & Fung will have a better handle on forecasting and economic conditions. The use of an ERP system, although extremely expensive, will improve Li & Fung’s ability to look at all the different aspects of the company and how they are affecting each other. By considering variability in their business strategy, Li & Fung will also be able protect itself from liability concerns should their customers not be able to pay their manufacturers.