A strong credit rating will not be quite as critical for leasing as it would be for buying. This may be a big concern for start-ups and small businesses. · Tax deductions. Your monthly lease payment is tax deductible because it's a business expense. The business can usually deduct the full cost of lease rentals from taxable income · Freedom.
From an accounting prospective, the major problem with the calculations mentioned in the article is determining the rate of return and length of the marketing investment. While the initial value of the “investment”, i.e. marketing expense, can be easily determined, determining the real value after the investment has been made has the potential to be biased without a commonly used measurement. The value of the investment could also fluctuate from year to year based on the companies’ profitability even though marketing had not direct
For this, you must have expertise in finance. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. | Advantage | Disadvantage | Sole proprietorship: | -easily and inexpensively formed-subject to few government regulations-income not subject to corporate taxation | -difficult to obtain capital needed for growth-unlimited personal liability-life of proprietorship limited to life of founder | Partnership: | -easily and inexpensively formed-subject to few government regulations-income not subject to corporate taxation | -difficult to obtain capital needed for growth-unlimited personal liability-life of proprietorship limited to life of founder | Corporation | -unlimited life-easy transferability of ownership interest-limited liability | -corporate earnings may be subject to double taxation- more complex and time- consuming than creating a proprietorship or a partnership | c. How do corporations go public and continue to grow?
Upon reviewing the balancer sheet, Holmes suggested accounts receivable being considerably reduced, since this was an area which was controllable. Sales will be impacted by this move although sale stabilization will occur over time. Conceivably, one could think that this is a no brainer and follow the recommendations. But other factors are not being considered. The turnaround time for Reed is shorter because the store has everything on hand as opposed to other stores which may take orders on “specialty” items.
The only reason(s) for a co-signer would be because my job pays very minimal and my credit is not good. As far as the car dealer, they would want to make sure they gets their money because
A huge national debt has no effect on the money market. The fed has the ability to decrease interest rates, which could cause spending to increase. (Schiller) This ultimately increases the money supply and allows for more circulation in the economy, from which the economy can prosper. With a prospering market, taxes can be increased in order to stimulate the economy and prevent the money supply from surpassing equilibrium and reaching inflation. The revenue from these taxes can
It cannot affect the amount of the firm's operating income that goes to taxes. c. It makes it more difficult for the firm to raise additional capital. d. It makes the firm's investors subject to greater potential personal liabilities. e. It makes it more difficult for the firm's investors to transfer their ownership interests. 2.
The three most common forms of alternate dispute resolution are negotiation, mediation, and arbitration. Nontraditional Litigation Negotiating prior to going to court can be less expensive and take far less time for both parties. One risk faced with traditional litigation is that you can spend an exorbitant amount of money and not receive any compensation. A wealthy opponent can even stretch out a lawsuit for years. Some states require alternate dispute resolution before a case can go to court.
Conversely, an organisation (of internal customers) without external customers will cease to exist in any real sense. 2. Explain why increasing the lifetime value of a customer is an inexpensive way to secure the future of an enterprise and the four ways to do this. If an organisation already has a repeat customer and that customer’s lifetime customer value is estimated to be worth ‘X’, increasing the lifetime value of that customer can only be greater than ‘X’. Gaining a new customer can, however, be costly.
1. How do you calculate free cash flow to the firm? To equity? To the firm (unlevered free cash flow): EBITDA less taxes less capital expenditures less increase in net working capital. To equity (levered free cash flow): Same as firm FCF and then less interest and any required debt amortization.