Balance of trade

appetite can be expressed qualitatively and or quantitatively. Meaning, the level of risk that SPEND Ltd board and executive management are willing to accept, before action is considered necessary to reduce it (Wikipedia, 2015). This represents a balance within SPEND Ltd, between the potential benefits of innovation and also the threats that change unavoidably brings. This is the high level subjective description of the degree of risk which is acceptable to SPEND Ltd or to stakeholders…

risks and HVPS is not excluded. HVPS faces risks such as liquidity, legal, operational and credit. To minimize liquidity risk, HVPS provide functions such as account inquiry, balance warning and business queuing which helps to improve liquidity management. HVPS have taken measures such as business limitation, account balance control and debiting control to strengthen the management of credit risk. Whereas to prevent legal risk, People’s Bank of China (PBC) has formulated a series of regulations,…

manner is associating a cost to the items, like the appraisal value and overhead cost (Schroeder et al, 2011). Brignall (2007) mentions that under the general accepted accounting principles (GAAP), the assets a firm acquires must be recorded on the balance sheet with the historical cost; additionally, the long lived assets must be assessed accordingly due to inflation minus the depreciation rate. Schroeder et al (2011) added that the depreciation of the assets is computed for financial purposes,…

are involved in valuable economic activities and their major concerns remain their survival and profitability. On the asset side of the balance sheet, banks guarantee the smooth flow of funds by lending to deficit spending units while providing liquidity to savers on the liability side. In addition, banks provide payment and settlement systems which facilitate trade. However, by ensuring the productive investment of capital and the profitability of other varied functions…

order theory, which is based on the asymmetric information between people inside and outside the firm and the adverse selection problems resulted from the information asymmetry. The pecking order theory does not estimate an optimal leverage ratio as trade-off theory. However, it claims that a firm’s debt level is just a preferential order of financing options (internal or external sources) when the firm needs more funding, It is determined by the availability and cost of resources rather than…

performance be measured by one financial and seven nonfinancial metrics. 1. Profitability (measured by residual income) 2. Market share 3. Productivity 4. Product leadership 5. Public responsibility 6. Personnel development 7. Employee attitudes 8. Balance between short-range and long-range objectives The roots of BSC are embodied in those eight objectives. Unfortunately,…

The two men had tentatively discussed the possibility that Northrop Bank might extend a line of credit to Cartwright Lumber up to a maximum amount of $465,000. Cartwright thought that a loan of this size would more than meet his foreseeable needs, but he was eager for the flexibility that a line of credit of this size would provide. After this discussion, Dodge had arranged for the credit department of Northrop National Bank to investigate Mark Cartwright and his company. The Cartwright…

revenue to capital employed level up until 2012. In comparison with Tesco, Morrison has a higher value; which suggests that the firm is using their assets more productively than Tesco to generate sales revenue. This is also reflected in Morrison’s lower trade payables rate and inventory turnover period. Morrison’s value is not too high to suggest overtrading on their assets (Atrill and McLaney, 2011). This ratio helps ordinary shareholders and banks monitor the efficiency in the use of their…

during the process. 4.99 6.73 Lakeside is above the industry average. Lakeside has a better use of asset than the industry average. 10.46 26.4 Lakeside is above the industry average. The company has better abilities in return on equity. 1. A debit balance appears in the “Allowance for Doubtful Accounts” account. 2. A huge increase in repairs and maintenance 3. Inventories increased 4. Accounts payable has increased. 5. Estimate the bonuses have risen…

Describe the main issues/barriers that separate each side. The main issue that separated AT&T vs. The Department of Justice during this negations were Horizontal Merger Guidelines. Those guidelines include the Herfindahl-Hirschman Index (HHI), the analytical tool that regulators use to evaluate these deals to determine if the transaction is likely to be anticompetitive. The HHI is a measure of market concentration that factors in the number of firms in a given industry and their respective…