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Capital budgets require the approval of top-level company executives because they involve significant financial commitments that can impact the company's long-term strategy and financial health. Executives need to ensure that proposed projects align with the company's overall goals and priorities, as well as assess the potential risks and returns. Their approval also helps allocate resources effectively and maintain accountability for large expenditures. Ultimately, executive oversight ensures that capital investments contribute positively to the company's growth and sustainability.

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1mo ago

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How do you transfer reserves to share capital?

To transfer reserves to share capital, a company typically follows a formal process that involves board approval and possibly shareholder approval, depending on the jurisdiction and company bylaws. The company will pass a resolution to capitalize the reserves, which may involve issuing new shares or increasing the nominal value of existing shares. The reserves are then reclassified as share capital on the balance sheet, reflecting the change in the company's equity structure. It's important to ensure compliance with local laws and regulations during this process.


What is the capital maintenance rule in a company?

to maintain a company's capital as a form of security for creditors


Why is a cash budget so vital to a company?

Cash budgets are very important to a company and that is because CASH is so vital to a company, it is the lifeblood of the business. Cash Budgets help management plan ahead to cover possible shortfalls in cash and to plan out investment activities if it appears that there will be a substantial excess of cash.


What is post issue paid up capital?

The amount of a company's capital that has been funded by shareholders. Paid-up capital can be less than a company's total capital because a company may not issue all of the shares that it has been authorized to sell. Paid-up capital can also reflect how a company depends on equity financing.


Called up share capital?

Called-up capital is the part of a company's issued capital which the board of directors of the company has called upon the subscribers to make payment.

Related Questions

What is nominal share capital?

Nominal share capital is like an authorized share capital. The share capital that the company allowed (the maximum amount) to issue as registered capital when the company is incorporated. It can be changed later by the approval of the shareholders.


What is nominal share?

Nominal share capital is like an authorized share capital. The share capital that the company allowed (the maximum amount) to issue as registered capital when the company is incorporated. It can be changed later by the approval of the shareholders.


How are capital investment decisions made?

Capital investment decisions are made by a group of executives in a business firm. These decisions are crucial to the longevity of not only the business but also the future stockholders of that company. http://www.finweb.com/investing/capital-investment-management-how-are-key-decisions-made.html


Why should you have a budget?

Budgets are tools for control and management. With the help of budgets company evaluates that how well its management has performed as well as budgets are used for performance measurement.


A company budgets 800 for maintenance How much money can it spend if an acceptable variance is 5 percent of the budgeted amount?

If a company budgets $800 for maintenance with an acceptable varience of 5%, then the company can spend up to $840. ($800+5%)


What is the nature and purpose of marketing budgets?

The nature of marketing budgets is that they entail all the marketing aspects like advertisements and promotions. The purpose of these budgets is help increase the revenue of the company through marketing.


Do the profits go primarily to a small group of company executives and shareholders or does Nike share its wealth with its employees?

Nike shares none of its wealth with their employees. Everything is shared among company executives.


Can you give a sentences for the word executive?

The executives in my company do not value their employees.


What does the Pakom company do?

The Pakom company is a company that is an investment company. They are located is Siberia and was founded in 2006. There is not much information about their executives or board members.


What function do corporate executives perform in a company?

Corporate executives manage the areas of a company that they specialise in. For example a sales executive will manage the sales force and targets and a financial executive will look after budgeting and forecasting.


Is engro foods multinational company?

A company working in a single country is a NAtional company or simply a company. A company working in more than one country is known as multinational company (MNC). MNCs are usually big companies having their operating and marketing budgets more than the budgets of many countries alone.


What has the author Robert J Ballon written?

Robert J Ballon has written: 'Top executives and company presidents in Japan' -- subject(s): Businessmen, Executives