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long-term creditors
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∙ 11y ago
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Why is profit important to businesses?
If there is no profit the business fails because thats the reason for the business in the first place. :-)
According to the U.S. Small Business Administration approximately what percentage of small businesses fails within the first five years?
50%
How business valuation works?
There exist 3 main ways in which businesses can be valued. The first is the multiples method (earnings are multiplied by an industry standard number), the second is the assets method (the business is worth the liquidatable value of its assets), and the third and most accurate is the Discounted Cash Flow methodology. This method is far more complicated, and is typically utilized by finance experts. The oversimplification is the business is worth the sum of all of its future cash flows, discounted back to the present using a discount rate. The discount rate includes inflation, risk adjusted return on investment, and other factors. I had my business valued by EZaluate.com and was extremely pleased with their work. They use the DCF method and it was only $149.
Is it good to start a business or be employed?
It's good to be employed and to start a business but you should probably be employed first to learn how to run a business and then you have to have the money to invest in a business.
If you're formatting a multipage business report how should you number the first page of the report?
When formatting a multi-page business report, you should not number the first page of the report. The first page includes the business's letterhead or contact details. After the first page, page numbers should be at the top of the page.
Who has first rights to its remaining assets after a company fails?
Preferred Stockholders.
Why is profit important to businesses?
If there is no profit the business fails because thats the reason for the business in the first place. :-)
According to the us small business administrations approximately what percentage of small business fails within the first five years?
50%
What rights does shareholders and suppliers of loan have over operating income of a company.?
in the case of a company being liquidated, the suppliers of finance have the first preference over the assets of the company. One they have all been paid, then the preference shareholders will be ther next one to be paid. If there is any assets left, then the ordinary shareholders would be considered.
According to the U.S. Small Business Administration approximately what percentage of small businesses fails within the first five years?
50%
Who will paid first debenture holders or preference share holders?
Debenture holders will get preference over preference shareholders
What are the disadvantages of physical assets?
First, owning them requires capital and/or taking on debt.Second, they must be maintained and repaired.Third, they take up space and space too can be costly.If you can structure deals with business partners where they hold and maintain the physical assets of the shared enterprise (inventories, for example) then your business will use its capital resources for other opportunities.
Is Beginning inventory in balance sheet?
Beginning inventory is a closing inventory for last period and that's why shown as a current assets in the assets side of balance sheet. If business has started first year of activities even than beginning inventory is an asset of company and shown under current assets of balance sheet.
What is an UNLIKELY outcome when a writer fails to revise a first draft?
Approval of the first draft is the unlikely outcome when a writer fails to revise a first draft.
Liquidations is the process of what?
Creditors liquidate assets to try and get as much of the money owed to them as possible. They have first priority to whatever is sold off. After creditors are paid, the shareholders get whatever is left with preferred shareholders having preference over common shareholders.
What is preference shares?
Lets understand meaning of Preference Share in Layman language. As name suggest preference shares are those kind of shares which has preference in payment of dividend, and price of shares over equity shares. If company earn net profit, then first return to preference shareholders are given at first, and then to equity shareholders.
Difference between debenture and preference share?
Preference shares are equity form of capital while debentures are debt form of capital both type of capital has preference to be paid before the normal share capital holders in case of liquidation but interest paid on debentures is tax deductable which means that by paying interest company can save tax as interest reduces the net income of company while preference share holders receive interest after tax deducted net profit.
