In this essay I will be advising Eric on certain ways to severe the property and explaining the differences between joint tenancy and tenancy in common. I will be using relevant case law and statues to prove my advisory. Starting off, when Tom died he left his property Mason Towers off to his 5 children, assuming this is after the 1926 the children will be held as joint tenants instead of tenants in common. However, in the law it states that there can only be a maximum of 4 joint tenants, so the first four listed names will be held as joint tenants. Also because Bill is only 16 he will need to wait until 18 to get a share of the property. Both joint tenancy and tenancy in common are two separate titles that origin from co-ownership of property. In joint tenancy, tenants have equal share of interest of the property according to Lord Nicholls in Burton v Camden LBC . A joint tenancy can only be formed when the four unities are fulfilled. Which are Unity of time, possession, interest and title. Unity of time is when co owner’s acquire property at the same time similar to unity of possession when have the right to possess property. Unity of possession which is when all tenants have the right possess the property, this happened when Tom left is property to his children after he died, they all have the right to possess the property. Unity of interest is all tenants have the same interest in property. Lastly unity of title is when co owners must arise out of the same instrument.…
Principles of Economics describes the difference as “Accounting profit is … total revenue minus explicit costs … [whereas] Economic profit is total revenue minus total cost, including both explicit and implicit costs.” (OpenStax, 2014, p. 159). Building on the examples above, in our martial arts business, we pay taxes on any accounting profits which our bookkeeper calculates as revenue minus the expenses on the books; while our economic profit would be calculated as the difference between the…
and service costs to individual customers, there is no way of knowing whether the investments made in business development are justified. CPA enables account managers to bring marketing expenditures per customer in line with current revenues per customer and with future revenue potential. Revenues are managed through pricing. There are three important issues related to pricing: discounts, the pricing of value-added services, and discriminatory pricing. Discounts are based on sales volume now…
It measures profitability after factoring in the amount of capital used in a business or a project at a period of time. As a true measurement of value creation, the ratio shows how much profit each pound of employed capital generates. This metric also measures value created for a firms’ shareholders as it illustrates the effectiveness of long-term financing strategy and how efficient the business can use its capital (Damodaran, 2007). A notable aspect of accounting based measures is that they…
Materialism and Capitalism In our society, the majority of people strive to maximise their material welfare. The objective applies to individuals and companies in the same way. On the stock exchange listed companies are under pressure to increase their shareholder value to ensure their success in a globalised and highly competitive marketplace. According to shareholder wealth maximisation theory a company is conditioned to increase the wealth of their shareholders to maximise the society 's…
play. During periods of economic expansion and prosperity, there are heightened incentives for organizations to invest into their infrastructure and expand capacity. During times of economic decline, organizational growth wanes as profit margins dwindle, and increased organizational efficiency becomes key. This paper intends to demonstrate how growth is inextricably linked to environmental factors. Economic prosperity has a great impact on an organization’s success and thus, its decision…
due."(WestJet, 2015). With reference to Appendix 1 and 2, and investigating the relationship between the airline 's current assets and liabilities, over the past few years, WestJet has displayed the ability to pay its current debts using assets that can be easily converted to cash in the near term. WestJet has been able to maintain a ratio that is higher than 1.0 and higher than the industry average, which suggests that 's they well equipped to meet current financial obligations. Their current…
This indicates a higher risk than the previous year, such a small increase in operation profit leads to greater amount of returns to shareholders; the interest cover ratio measures the quantity of available operating profit to cover interest payable showing a decrease from 8.2% to 7.4% involving greater risk for lenders where interest payments might not be met caused by increased borrowings but mainly declines in profitability. This translates the stiff competition characterised by huge…
situational analysis, it has been reflected as the incentive scheme is defined in terms of ROI. The main advantage for Steel Purity use ROI as a performance measure is thus ensured that a decentralized policy, each branch performance basis depending on variables crucial to the company, such as the increase in securities sales monetary and profitability or return on investment. Managers were evaluated and encouraged with respect to these variables, therefore, its main objectives are focused in…
supported also by the large spike (49% increase) in short-term debt from 1999 to 2000. We can assume this debt was taken on in order to fund the uptick in inventory, which although still steadily increasing sales, is not making a large impact in the overall picture of profit. Switching over to the Ratio Analyses shown in Exhibit 3, we notice that there is a fair substantial increase in their Debt/Equity ratio. In 1999 there is a fairly substantial rise of .78 coming into 2000. This combined…