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Unlike the service funds, it is frequently desirable for enterprise funds to operate at a profit (increase in net assets). Like commercial business, operating profits are necessary to establish adequate working capital, provide for expansion of physical activities, and retire debt. Additionally, governments may find it desirable to use enterprise fund profits to support general government expenditures that would otherwise require increased taxes.
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What happens to resources when a pure monopoly is at the profit maximizing output?
The economy is at equilibrium as both government suffer insufficient funds
Explain the difference between an investor and a creditor of a business?
A person who invests money in order to make a profit is an investor. A creditor is lender of the funds, to whom someone owes a loan.
How would the use of eftpos by a retail business improve its productivity?
Since the funds are transferred immediately from the customer to the retailer, the retailer doesn't have to wait for the money to clear the banking system. This means the retailer will have more cleared funds at their disposal - meaning they can use the funds to buy more stock - giving the customer more choices. Hopefully that would lead to customers spending more money - making more profit for the business.
What are the goals of cash management for a business?
The goals of cash management should be applied to every business. Cash management ensures that a business can manage funds and maintain their operational need, business obligations, and profit goals.
How do futures and investment advisory firms operate?
Futures and investment advisory firms typically provide advice and manage pools of funds for institutional clients. On a fee or contract basis, these firms seek to minimize their clients' exposure to risk
What is a 501c and why do you need it?
A 501(c) is a section of the IRS tax code that designates an organization as tax-exempt. Nonprofit organizations often seek 501(c) status to receive tax benefits, such as exemption from federal income tax and eligibility for grants and donations. Having 501(c) status also helps establish credibility and trust with donors and supporters.
Can a non profit organization operate under the umbrella of a for profit business?
== == I'm not sure what you mean by "umbrella". It cannot be a part - like a division - of a for profit business. I presume you mean can a qualified tax exempt not for profit Incorporated entity be a subsidiary of a for Profit Co... No. A zillion reasons, but lets leave it as it couldn't be a qualified NFP entity. ::edit:: A for-profit business can in fact start a non-profit. Of course, there are stipulations regarding management, operation, board structure, and inurement of funds, but the underlying point is that, though challenging, it is possible. http://www.socialedge.org/features/skoll-world-forum/discussions/business-models/creating-a-hybrid-for-profit-non-profit-social-enterprise-structure/view ::end edit::
Can a for- profit business operate under the umbrella of a non-profit organization?
== == I'm not sure what you mean by "umbrella". It cannot be a part - like a division - of a for profit business. I presume you mean can a qualified tax exempt not for profit Incorporated entity be a subsidiary of a for Profit Co... No. A zillion reasons, but lets leave it as it couldn't be a qualified NFP entity. ::edit:: A for-profit business can in fact start a non-profit. Of course, there are stipulations regarding management, operation, board structure, and inurement of funds, but the underlying point is that, though challenging, it is possible. http://www.socialedge.org/features/skoll-world-forum/discussions/business-models/creating-a-hybrid-for-profit-non-profit-social-enterprise-structure/view ::end edit::
How do load funds operate?
Shares in load funds are usually sold through separate distributorships
Can a non-profit partner with a for-profit corporation to do phone solicitation and and pay them out of funds collected?
Yes, it is a common practice.
Why don't non-profit organizations have to pay into the unemployment insurance funds?
cause
Is profit equal to the amount of cash collected by an entity?
No, profit often includes cash, but it rarely the entire quantity. Profit is usually the combination of liquid and non-liquid funds.
Why might one invest in mutual funds?
One might invest in mutual funds to get good returns for their money. The whole idea is to make a profit and mutual funds enable one to gamble on investments.
What are the various approaches of financial management?
Traditionally Finance involves arrangement of funds required by the business enterprise from and through financial institutions ('from' signifies procurement of loan capital, and 'through' implies the selling of securities by financial institutions). Hence, the traditional approach of financial management focused on 'arrangement of finance' for meeting various financial needs of an enterprise. In the modern sense, financial management encompasses wider applications, viz., assessment of funds required, effective procurement of those funds through most economical means, and efficient utilisation of those funds through profitable investments, as well as cash and liquidity management. To put it in the words of Ezra Solomon, the key questions in financial management of a business enterprise happens to be: "(i) What is the total volume of funds an enterprise should commit? (ii) What specific assets should an enterprise acquire? (iii) How should the funds required be financed?" These questions, if answered properly, lead to four broad decision areas of financial management, viz., funds requirement decision, financing decision, investment decision, and dividend decision.
How does the cost of business funds determined?
by knowing how much u spend and how much profit u make
Depreciation is source or application of funds?
DEPRECIATION IN NEITHER A SOURCE NOR APPLICATIONS OF FUNDS.IT IS MERE ADDED BACK IN PROFIT WHILE PREPARING STATMENT OF APPLICATIONS & SOURCES OF FUNDS.
What is excess revenue?
EXCESS OF REVENUE OVER EXPENSESEXCESS OF REVENUE OVER EXPENSES in the not-for-profit sector. There is a common misconception that not-for-profit organizations are not allowed to have a financial cushion as they are 'not-for-profit'. In this context it is useful to remember that not-for-profit organizations are also 'not-for-loss' organizations. An organization cannot sustain losses over the long term without ceasing to operate or going bankrupt. Excess of revenue over expenses is the planned financial position that there will always be a sufficient amount of funds on hand to continue to run the not-for-profit entity for some period without additional funding; usually 3-4 months.
