Before agreeing to any project, that has medium or long term effects on the company, a financial analysis has to be done. It is necessary to find out the financial effects before spending any money on it. Investment appraisal techniques Every model has advantages and disadvantages, so it is advisable to use more than one for any given project. Net Present Value (NPV) The NPV model is the most common method analysing investment decisions. It measures capital growth, which is the fundamental…
management firm. The group has operations in four areas: corporate private equity, global marketing strategies, real assets and investment solutions with its specialisation being in Private equity. The group has over $193 billion of assets under management across 128 funds. The firm has investors from various strata of the society ranging from public and private pension funds to sovereign wealth funds, union and corporations. Carlyle’s corporate private equity segment was established in 1990 and…
1. Discuss the advantages and disadvantages of the corporate tax. (6 marks) Advantages i. Source of Revenue - Corporate taxes can be effectively utilized as a tool for the government to generate higher revenues as corporations are the largest money makers in the every economy. The government can therefore create a steady and strong flow of cash by targeting those making large profits. ii. Distribution – Taxing companies that are making profits helps redistribute the benefits to the society…
1. The importance of financial management. Finance is the essential and regarded as the life-blood requirement of every organization (public or private, profit oriented or even non-profitable organization). The efficient management is closely linked with the efficient management of its finances. Resources are always limited, particularly in developing countries, compared to its demands or needs. So, the focus, is concerned with optimum utilization of resources, to take maximum benefit, in the…
Sole Proprietorship A sole proprietor is a business owned by a person. This person will file his or her business taxes using Schedule C while filing form 1040. For a charitable contribution, it will not be filed on the person’s Schedule C it will be taken as a deduction on his or her personal taxes. The taxpayer would file a Schedule A. However, the caveat for this would be if the individual does not have enough deductions to itemize and must take the standard deduction. Then the person…
Corporate Criminal Liability: A Need of the Hour Aanchal Lamba Aditi Khanna Abstract The purpose of this article is to throw light on the current need for a legislation to deter the crimes committed by corporate firms. The paper describes the concept of corporate criminal liability, its diverse interpretation adopted over the years and the current scenario of corporate crimes in India. It discusses the need to intensify the current punishment given to corporations and proposes alternative…
1. What is the maximum amount of new loans that this bank can make? The bank is only required to keep 10% of the demand deposits as reserves. 10% of $99000 is $9900. The bank can therefore make loans up to $99,000 - 9900 = $89,100. It has actually made loans worth $66,000. So even with no change in the required reserve ratios the bank can still make additional loans worth $23,100. 2. Assume that the bank makes these loans. What will the new balance sheet look like? If the Fed reduces…
This is also a quite reliable source. Tim Worstall essentially intends to express that Apple isn’t going to transfer back their manufacturing jobs because of the high corporate tax in the US and the high costs of labor. Tim Worstall is a British-born writer who writes on environmentalism and economics, specifically the corporate tax, his contributions have appeared in a lot of important publications. The article was published on September 25th, 2013, which is relatively recent, so we could…
Debt? Or success? Most Americans aren’t fluent in the in the language of money. While more states are beginning to require some sort of personal finance instruction, there aren’t enough that do so. Just 13 states require students to take a personal finance course or include, the subject in an economics course before they graduate from high school. Meanwhile, 34 states (including those 13) have personal finance within their curriculum guidelines. Others believe that students should not be…
Lowering the Voting Age Does the legal age for voting at 18 really matter? This has been an ongoing topic for a long time but especially during these last few years. Politicians go back and forth trying to figure out what is best for the United States of America. Although many argue the topic there is many reasons why sixteen year olds should be allowed vote. In our country today, the government is letting teens drive and that is basically a pathway to death for them and everybody else on the…