Circular Flow Model Essay

#1: This week, we look at Budgeting. #2: We will look at the major types of budget and particularly focus on operating budget. Especially, we will take a close look at operating budget in three parts: forecasting revenue, expenses, and profits. #3: This is my note – Budgeting is a kind of planning to determine a financial plan for a certain period time. There are three types of budget: operation(operating), capital, and cash budget. #4: Particularly, operating budget is a projected financial…

Pros & Gains of P.I.P.E Transactions 1. A large lot or a quantum of shares can be sold to well-informed investors on a long term, ensuring the company to meet its funding needs. 2. PIPE shares do not need registration with the Stock Exchange, transactions are handled with fewer administrative requirements than secondary offerings. 3. The investment is made upon a predetermined fixed price therefore it overrules the threat of under subscription. 4. No fresh Public issue is required for any…

For a start-up, the pursuit for a fluid and suitable business model is very vital. According to Blank’s (2006) work, this hunt can be broken down into two phases. First is the business model design process, following trial-error underlying forces. This process is expected to provide framework that guides the organizational structure. The second phase refers to the application…

1. Define a flexible budget. Provide an example of how a flexible budget is used in the real world. A flexible budget consists of adjusting expenditures according to the evolution of real incomes. So we get a budget with real results. The flexible budget is restructured according to activity levels, which is why it is a good performance evaluation tool and useful for any planning. Just like its good odds the flexible budget has its disadvantages as well. It may be a good tool but…

c) What is the “net spendable income” (Burkett, 12)? Net spendable income is that portion available for family spending. Some of your income does not belong to the family and therefore cannot be spent. For instances- category one: the tithes; since the term tithe means “a tenth,” (Burkett, 12) I will assume that you give ten percent of your total income to God. Category two: taxes; federal withholding, taxes must also be deducted from your gross income. Self-employed individuals must not forget…

Question 1: (i) If we look at the consolidated income statement of Brambles Limited we can clearly understand that they have implemented the function of expense method in order to classify their expenses. This method requires the company to relocate its expenses among functions of the company such as its selling expense, administrative expense, cost of goods sold etc. For instance depreciation of administrative building could be presented as administrative expense by using the function of…

From an economic view, it is understandable why a person wants to go into business. The whole idea of going into business is to provide some form of product to society and to generate a platform of cash flow for the business and themselves. However, there are potential risk taken in every investment opportunity. A series of questions need to be considered and answered before processing includes if the risk is reasonable or not. Now, realizing that success is an important goal in everything…

Method The purpose of this study is to investigate and analyze financial knowledge and financial behaviors of 21st century Chinese college students in Zhejiang province. This study uses mixed methods to collect and analyze data. Due to the research question is specific and limited by the region, a questionnaire is considered to be the best method to collect relevant data. The questionnaire consists of 16 questions, which is specifically designed to collect information about Chinese…

INTRODUCTION 1.1 The concept of elasticity Elasticity is an economics concept that measures the responsiveness of one variable to changes in another variable. Suppose you drop two items from a second-floor balcony. The first item is a tennis ball. The second item is a brick. Which will bounce higher? Obviously, the tennis ball. We would say that the tennis ball has greater elasticity. Beggs (2017) wrote that elasticity can take a number of different forms, depending on what cause and effect…

1. State the Miller Modigliani (MM) dividend irrelevance proposition Modigliani and Miller (MM) proposed that in an ideally simple and perfect capital market, shareholders are indifferent between dividend and capital gains, and the value of a company is determined solely by the earning power of its assets and investments. Focuses more on firm value but not on firm risk. MM argued that if a company with investment opportunities decides to pay dividend, so that retained earnings are insufficient…