BTEC FIRST UNIT 3 P1 All businesses need money to survive in order to buy materials and pay wages and other types of expenses or costs, like utility bills (gas, electricity and water), business rates and advertising. Money coming into a business is called income or revenue and usually comes from customers who pay for the goods and/or services that business provides. If a business' income is greater than its expenditure, it is said to be making profit since money is entering the business than income - then the business is making a loss. Firstly start-up costs are faced once, so they are not too much of a problem. Operating costs, however, are faced every fortnight for the whole time of the business.
Since there are several business functions requiring specific skills and separate management personnel for each area, Cypress Private Security is a vertical organization. The company also covers a decent size geographic location requiring more employees in management level positions because the Chief Executive Officer is not able to be in all places when needed (Bateman, T. S., & Snell, S. A. 2010). While Cypress Private Security is a simple company with a basic business plan, it requires a more complex organizational structure to ensure the jobs run smoothly as intended. The clientele is unlimited and this becomes a factor that requires there to be more support to present and future customers in the security industry.
In which this can lead to downtime for the business and its users. Most companies rely on their network and cannot afford to have any downtime at all; therefore, it is necessary to have the correct topology to help make your business profitable. A bank or a major business depends on having a reliable network that will not have a significant amount of downtime that would affect their everyday business. For the second scenario XYZ Technology Consultants, I also think that Ethernet would be the better choice here. With the amount of floors, being occupied the reliability of using CAT 5, wireless, or Fiber Optic lines to ensure fast and reliable data transfer would seem to be necessary.
They were very large and very expensive and used proprietary architectures that did not support cross-platform communications. Therefore the majority of them were bought by businesses because they could afford the payment to the proprietor. If you made the software for a particular mainframe computer company, then you as far as career wise you’re set because only your software will work with the mainframe produced by your company. This is called closed architecture technology. They did this to prevent competing technologies from directly interfacing or interact with each other.
Accrual basis accounting is used by the large businesses in the United States, Canada, and in most foreign countries for the statements is prepared according to the generally accepted accounting principle (GAAP). Most businesses use the accrual statements like the GAAP to get loans from banks and get a better focus on the company’s business for the future. So the accrual accounting is necessary for small companies and a private company that what to focus on their outlook for the future. Some company’s prefers not to use the accrual basis for it is costly and some do use it for it shows the loss and profit of the
Accrual basis on accounting is the method of accounting that most business and professionals are required to use by law because of its matching principles. It provides better picture of a company’s profits during an accounting period. Cash basis accounting is a very simple form of accounting. In cash basis accounting, revenues are recorded when cash is actually received from customers and expenses are recorded when they are actually paid, no matter when they were actually invoiced. According to "Accrual" (2012),” Cash-basis accounting does not recognize promise to pay or expectations to receive money or service in the future, such as payables, receivables, and prepaid expenses”.
Most jewelry stores’ prices aren’t greatly different from others’ and buyers have very little influence on prices due to the high cost of raw materials to make the products. Substitutes: Substitutes are a relatively strong force, since there are other companies who are willing to create same or similar jewelry at cheaper prices to undercut their competitors. Government: The government plays a smaller role since the UN restricts the diamonds being sold are mined without conflict (aka
Furthermore, all companies have capacity to compete. No switching costs and product differentiation raise the degree of competition because it is easy for them to go where the lowest prices are. This characteristic leads to price wars which is present in the industry. Industry growth is the only factor that lowers rivalry – growth is high with few stores opening so companies do not need to compete for market share. Power of Suppliers – Low There is low supplier concentration relative to the industry they sell to and a single supplier does not account for a large part of a retailer’s business.
There are many suppliers in the retail industry. Large firms like Wal-mart can easily affect these suppliers. • Wal-Mart purchases huge quantities of products from its suppliers • Low switching costs from one supplier to another • Products have a lot of substitutes • Almost all the products are not critical for Wal-Mart. • Large population of suppliers • Tough competition among suppliers • High availability of supply Potential entrants / Barriers to entry: HIGH New entry of retail firms is easily achieved even in the presence of giants like Wal-mart. Small retailers can enter the market and compete on the basis of convenience, location, specialty, and other factors.
Is it the case with Dawson Stores Inc.? If so, then the need for an increase in receivables and inventory (with the loan) is deemed necessary. Basically, you don’t want to lend money where it is not needed or does not serve any significant purpose in the company’s operations. Compute the following ratios: current, acid, debt / equity, sales / receivables, sales / inventory, profits / equity and payables / purchases. The first five ratios are basic to all companies, whilst the remaining is specific to this case study.