Economics Economic conditions can affect businesses in many ways. The basic concept of economics is how a country takes it resources, makes something, and distributes it to others for consumption. Global economics and politics play a vital role in today’s market because so many companies participate in free trade. It is very important to stay informed of global and national economics to be competitive (Nickels, 2012, p.30). Business is not only for the business owner, it also contributes to the economic growth of the community in which it operates.
Why consider an organization’s approach to IM/IT resources and services as an exercise in portfolio management? •forces you to relate specific IT investments with the associated business need(s) and value propositions •provides a framework and standardized lens for the assessment of all IM/IT investments as well as measures for valuing those investments •focuses on a methodology for the valuation of IM/IT projects that connects well with the understandings of enterprise business leaders and IT governance •allows for year to year measurement of changes in IM/IT investments versus the impact (attributed results generated) by those investments •allows for qualitative if not quantitative comparisons between various IM/IT investments pursued by business units within the same enterprise and conceivable between competing businesses within the same industry How does an IM/IT portfolio management methodology help to serve the needs of the greater organization and facilitate a better appreciation by the business of its IM/IT products and services? •the organization has the following information resource management needs: • o to transact o to manage, control, make tactical decisions o to innovate, transform, increase its strategic competitiveness o control costs and improve overall performance •the portfolio model tracks and measures IM/IT project and service value and performance in the very manner that the business thinks of and measures value in these and any other corporate investments; aligning the description of and thinking about IM and IT investments in this manner allows for a common basis for understanding •IT transactional value is all about cutting operational costs and/or improving the efficiency of existing operations. •IT informational value is all about enabling management, control, and decision making. •IT strategic value is all
How do Equator Principles Financial Institutions categorise projects when implementing the Equator Principles? Q9. What steps do Equator Principles Financial Institutions take to ensure the Equator Principles are followed? Q10. Do Equator Principles Financial Institutions really have to change their business processes to ensure robust implementation?
This is regularly taking into account interest for the merchandise and administrations it offers, contrasted with the expense of creating them. Financial specialists use forecasting to figure out whether an occasion influencing an organization, for example, deals desires, will expand or diminish the cost of shares in that organization. Forecasting additionally gives a critical benchmark to firms, which have a long haul viewpoint of operations. Stock experts use different forecasting routines to decide how a stock's cost will move later on. They may take a gander at income and contrast it with financial markers, or may take a gander at different pointers, for example, the quantity of new stores an organization opens or the quantity of requests for the merchandise it produces.
It helps for forecasting on making certain financial decisions. The three groups that use these ratios are managers, potential investors or lenders, and stockholders. The reason the managers use these ratios, is to have a closer look and be able to identify situations that need their instant attention with in the firm. Potential investors are lenders used a ratio to determine if they should invest in the company or not. As for stockholders they mainly use this information for forecasting dividends, earnings on the free cash flow.
The American Institute of Certified Public Accountants (AICPA) has published guidance on various ethical issues that may possibly arise from the shift in business strategy in this firm. The following paragraphs will explain this firm’s plan for ethical and economic success. Economics and Pricing Economic issues tend to dictate many aspects of business, including the pricing of services and products. Land values, inflation, access to healthcare, the cost of living, and unemployment are examples of key issues that indirectly affect economy as a whole. Inflation and cost of living change the way consumers spend their money.
There are four competing Business, Government, and Society (BGS) models, the Market Capitalism model, the Dominance model, the Countervailing Forces model and the Stakeholder model. The purpose of these models are simplified descriptions of the Business, Government and Society relationship. According to the Market Capitalism Model business operates within a market environment and responds primarily to the powerful economic forces. There are many important assumptions regarding this model. Some of the key assumptions include slight government interference in the economy, consumers are able to make decisions because they are informed about the products they are looking to purchase and the price of the products and banks and laws exist for the sole purpose of easing commerce.
FASB & IASB: Benefits of Convergence Mohammad F. Ibrahim Keiser University Professor Diann Ferrell Introduction Today’s environment has turned business leaders towards looking at their organization in a global perspective. Every company has to either compete or participate in the global market. Competition is about the position of the organization comparing to other organizations performing the same activity. Financial statement is one of the main facilitators to the comparison process, according to IAS 1.1 financial statements presentation used for promoting the comparability with other entities financial statements (2010). Financial statements describe the organizations financial position, and should be prepared in a manner that the investors, which are the most important external users of the financial statements, could make a better understanding and comparability with other financial statements; to be comparable financial statements should be set in accordance with a set of standards such as IFRS and GAAP.
Cost of capital can help define the acceptability of investment opportunities. Besides, the cost of capital can scheme the corporate finance arrangement. Generally, the best way for designing the corporate finance structure is based on information of changing of the capital market. So, manager can figure out information like accounting reports and their cost of capital to market. By using the information, manager can use cost of capital for restructure the market price and earning per share in order to bring advantage for company.
The paper focuses on how budgets and performance reports assist the furniture maker in the decision making process, and how ethics might influence his decisions. In addition, the paper focuses on the most relevant accounting information necessary for appropriate business decisions. Budgets and Performance Reports A budget is a quantitative expression of a plan of action (Horngren, C., Sundem, G., Stratton, W., Burgstahler, D, & Schatzberg, J., 2008). Budget reports specify allowable expenditures of each business function, and allow the business to control costs. Performance reports depict the businesses complete budgeting management system.