The reason I would make this choice is to stimulate lending to businesses, reduce unemployment and increase household income so that the economy could then recover naturally. Scenario 2 In 150 to 200 words, explain your reasoning for the way you are planning on using the Discount Rate. Be sure to address the following: 1. How the Discount Rate can affect the economy 2. How your action will affect economic growth 3.
The first way to improve working capital is to make the excess liquid funds work for the company. These funds should be invested back into the company. This can be accomplished by reducing long-term liabilities with high interest rates such as the mortgages on facilities. The second is to manage the inventory held by the company. Currently Competition Bikes purchases inventory for production the month before it goes to the production line.
The reason of all the expenditures can be done by the financial determination of all the expenses. The budget can be determining the expenses and revenue from the previous year. If the revenues will be higher than last year, the expenditures will be a plus for the store. The comparables of the revenue with the sales plan of the store will be another area to focus. The process of attracting new customers can be an alarming duty for any business.
Income is an important area of budgeting, this because without income there is no money to work within. It is necessary to raise the amount of income that is available for the budget. To do this the business could sell more products or raising prices. If costs are higher but income is not increased then this means that the profits will be affected. A business with a proper budget should be able to pay its expenses and keep
As far as being 100% effective goes, the employees may still be able to effectively do their jobs, but she has to take into consideration the fact that by not getting new equipment, the methods in which they do their jobs is outdated. If they wait to make the purchase until prices go down to a level the supervisor finds satisfactory, the employees may no longer be able to work at the “100% efficient” level. I would also explain the concept of Moore’s Law, the prediction that computer performance would double every 18 months, to the supervisor. This would allow her to see how important it is to stay
While theft and low income consumers bring the possibility of providing only moderate revenue gains, if not a loss, operating in impoverished areas can also be a source of growing potential for the business. Many companies advertise philanthropic missions, such as donating to charities every year or helping to provide for the families of their employees. While these are messages that consumers hear, a more powerful message can be the one that the consumers themselves see. Rather than closing down those stores, Company Q should focus on the reasons for the high crime, and offer ways to reduce that crime rate. Offering work programs that help prepare young people for management or skilled positions is a good way to take crime off of the streets while showing to the community that the business cares about the welfare of the population.
Moreover the importance of profits to any business is that they need money to pay rents, insuranceand wages if the business makes no profit and more loss they may lose the shop because they cannot pay the rent. Also Shafal has six workers in her business so this means if Shafal doesn’t give the employees’ wages they may leave her business as well as take her to court. Most business has aims and objectives which are to make a profit so if any business doesn’t make profit they have not succeeded in their mission. Also importance of profit for a business
9). The rotation of perishable goods can be improved by conducting a survey and a questionnaire to the customer to indicate the needs of customer. Analyzing a turnover ratio per capital of each product will minimize the perishable rates. If a proper turnover ratio were set for the operation of buying and stocking of a product, KFF can easily expect what to expense and when to allocate the budget cutting the loss of excessive supply of the product. Specialty Shops Because KFF offers sophisticated professions such as butcher, baker, and wind steward, “payroll of these specialty positions is higher than that of the clerks and stock personnel” (KFF strategic plan, p. 9).
In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient
Consider small businesses as an example, a company spends money to hire a new salesman. That person will probably increase sales and the company will regain what it spent hiring him/her. If the company spends money on a fancy lounge area they will just lose money. This type of unnecessary spending is what makes a deficit dangerous. Debt should not be a problem because we can just borrow more, right?