...Questions 1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board’s Why Governmental Accounting and Financial Reporting Is-and Should be-Different. 1. Organizational Purposes-A governments organizational purpose is to provide public services for the well-being of citizens regardless of profit. Whereas a for-profit business’s organizational purpose is to generate a profit for the owner while providing services to the public. 2. Sources of Revenues-A for-profit business’s source of revenue is its net income (total revenues (sales)-total expenses). A government’s source of revenue is mainly from taxes. 3. Potential for Longevity-State and local governments rarely go out of business, because they are given the ability to tax. For this reason, governments view accounting operations on a long-term basis instead of short-term. Governments focus on maintaining services and how to meet future demands. 4. Relationship with Stakeholders-Since a Governments main source of revenue is taxes, which are paid by citizens; they are required to account for these public funds. Whereas a business can use its resources as it chooses. 5. Role of Budget-Business’s prepare a budget for planning and control purposes and are normally not provided to creditors or investors. Governments on the other hand, prepare a budget which is expressed as a public policy...
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...Is new leadership going to revitalize an organization, thus bringing success to it? Leadership to an organization is rudder to a ship, without too much emphasizing on the importance of leadership, I agree that those in power need to step down for better leadership when necessary. If leaders are making big mistakes, they need to step down anytime necessary. But if current leaders are leading their organizations to make significant progress, they need to stay in power for the sake of their organizations’ continuous progress. New leaders can bring new ideas, innovation and other important resources to their organizations, which are important for the success of organizations. By the 1980s, Haier Group had debt of over CNY ¥1.4 million and suffered from dilapidated infrastructure, poor management, and lack of quality control. The company was on the verge of bankruptcy. Zhangruimin, the saver of Haier Group, introduced the sense of quality to its members by smashing 76 faulty refrigerators in front of everybody. The company started turning around in late 1980s with Zhangruimin’s disciplined management. As an avid reader of western and Japanese business, he brought Haier into international competition after cooperating with Germany Liebherr Group. This has been one of the most told stories where a new innovative leader saves an almost bankrupted company. Under some extreme circumstances, those in power might need to step down before the end of their due time. Chairman...
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...Issue 1 As people rely more and more on technology to solve problems, the ability of humans to think for themselves will surely deteriorate. Write a response in which you discuss the extent to which you agree or disagree with the statement and explain your reasoning for the position you take. In developing and supporting your position, you should consider ways in which the statement might or might not hold true and explain how these considerations shape your position. ANSWER With the development of science and technology made through out the human history, especially the past one hundred years or so, people these days are spending more time relying on technology to solve various types of problems. Does the ability of humans to think for themselves really deteriorate as they rely more and more on technology? Admittedly, the improvement of technology and its concomitant contribution to a more convenient daily life does to certain extent obviate the necessity of many traditional tasks, subtly affecting the humans’ ability of thinking. Nevertheless, as a whole effect in general, technology progress improves working efficiency and labor safety, and frees humans from low-level repeated physical work to high-level decision-making intellectual work. In addition, technology proposes brand-new problems as well which challenges the humans’ thinking ability to an even unexpected extent. It is true that in many situations, the requirement for thinking seems less demanding than before due to...
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...R.A. 8289 AN ACT TO PROMOTE, DEVELOP AND ASSIST SMALL AND MEDIUM SCALE ENTERPRISES THROUGH THE CREATION OF A SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (SMED) COUNCIL, AND THE RATIONALIZATION OF GOVERNMENT ASSISTANCE PROGRAMS AND AGENCIES CONCERNED WITH THE DEVELOPMEN Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: CHAPTER I Section 1. Title. — This Act shall be known as the "Magna Carta for Small Enterprises." Sec. 2. Declaration of Policy. — recognizing that small and medium scale enterprises have the potential for more employment generation and economic growth and therefore can help provide a self-sufficient industrial foundation for the country, it is hereby declared the policy of the State to promote, support, strengthen and encourage the growth and development of small and medium enterprises in all productive sectors of the economy particularly rural/agri-based enterprises. To this end, the Senate shall undertake the spur the growth and development of small and medium enterprises throughout the country and thereby attain countryside industrialization: (a) by assuring, through the establishment of adequate support structure, and the creation and promotion of an environment conducive to the viability of these enterprises, establishment of mechanisms, the access and transfer of appropriate technology needed by small and medium enterprises; (b) by intensifying and expanding programs for training in entrepreneurship...
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...theory, Enterprise strategy Mainly in product and market as the core to arrange (corporate). However, the actual business affected by the market and non market factors in reality, more and more enterprises realize, government regulation and policy, public support, stakeholders, the news media are they get an important source of competitive advantage. Enterprises through the prompted the government to Competitor Or Substitute Manufacturer imposed regulation, or win over rivals more preferential policies, or through some Policy Influence of upstream and downstream enterprises to win for a supply of sth. ability, so as to win the comparative advantage over competitors. Non market factors to the enterprise produces is directly affected, and not just through the role of market factors Indirect effects . Therefore, in the real environment of competition, not strategy and enterprise market based on environmental factors to solve various problems, western scholars gradually the non market strategy into strategic management of enterprises Theory Field of vision, as a part of enterprise strategic system to study and in this field has been made certain achievements. Non market strategy - background From the perspective of strategic management From the perspective of strategic management, production and development strategy research of non market involves the background changes in two aspects, one is the non market factors directly impact on the development of enterprises is more...
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...Answer: State Owned Enterprise is more suitable for Social and Economic Welfare. • Since sole tradership and partnership and joint stock company’s main objective is to earn profit, those companies is not suitable for social and economic welfare. • State owned enterprise does not have profit in mind rather then serving the nation by doing social and economic welfare. Therefore, State Owned Enterprise is more suitable for Social and Economic Welfare. My arguments in support to State Owned enterprise for social and economic welfare are given below:- Therefore, • Argument # 1: To be profitable is not the aim of this organization. Welfare to the people of the country is the aim of this organization. Such as - making employment for the unemployed people, economic growth of the country, provincial development etc. • Argument # 2: Though to be profitable is not the aim of state enterprise, as a business organization it gains profit. This kind of profit is Submission to the government fund and is spent for the welfare of the country and people. • Argument # 3: Generally government is the capital supplier of state enterprise: But in case of joint proprietorship, the government and people provide capital for the state enterprise. For social welfare, Government can supply huge capital. • Argument # 4: The ownership of this organization is government. But sometimes government provides Some share...
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...find out the reasons behind the success of China’s special economic zones (SEZs). This paper examines different policies that China implemented in the SEZs and other advantages that SEZs possess while other regions in China do not in an attempt to find out factors made so successful. The reasons behind the success of SEZ in China can be divided into two different aspects: economic and political. This paper is mainly separated into two parts. The first part describes the political changes that China has made and how these changes benefit SEZs. The second part explains how different economic policies that are implemented and advantages SEZs have contribute to their success. Introduction Ever since its establishment, the Chinese government had been following the Stalinist economic model, a communism political-economic system created by the Soviet Union (Zhang, 1989), in which there was absolutely no consideration for the role of the market. This economic system undoubtedly benefited China in the very beginning. Yet, China’s economy had dropped significantly after a few decades, especially the time during the Great Leap Forward (Zhang, 1989). Not only did China suffer from domestic problems, such as outdated production technology, low industrial productivity, and declining growth rate of national income, but it also failed to keep up a pace with other developed countries (Zhang, 1989; Crane, 1990). An economic reform is obviously necessary for China, and establishing...
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...Macroeconomic Short Answer Questions Student’s Name: Professor’s Name: Institution Affiliation: Course Title: Date: 1.2 Suppose the consumption of a good entails rather sizable spillover benefits. How might the resulting misallocation of resources be corrected? Spillover benefits refer to both costs and/or benefits that individuals or groups of people reap through the production or consumption of goods and serves, although they are these person(s) do not take part in decisions that aid the process of production or consumption. These costs and benefits result from both over or under-consumption of goods and services and over or underproduction of goods and services (Gupta, Mandal & Gupta, 2008). As a result, misallocation of resources occurs. In order to correct the misallocation of resources, the source of the costs or the benefits need to be identified. That is, if it is taking place on the production side or the consumption side. Where there spillover benefits occur as a result of production, there is either overproduction or underproduction. In case of underproduction, there is need to boost production and this can be achieved through provision of subsidies in order to encourage firms to produce more. In case of overproduction, the firms’ potential is high and resources available for production meet an output that exceeds the actual demand. To correct this, the firms would have to be taxed more in order to make the production process expensive, bringing...
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...Why Government Accounting and Financial Reposting is - and Should be-Different. Government and Business Enterprises environments differs. The environment differences between them are organization purposes, process of generating revenue, relationship with stakeholders, budgetary obligation and potential for longevity. Due to these environmental differences the need for their accounting and financial reporting users differs too. The accounting and financial reporting standards for government and business enterprises need to focus and meet the requirements of their stakeholder’s needs. The stakeholders for the business enterprises financial reports are creditors, Equity Investors and their regulators who can use financial reports to make decision on whether to invest or not on those business and creditor whether to borrow them or not .The stakeholders for the Government are creditors and citizens who are primarily the resources provider though taxes, who need assess the government accountability in how public resources were acquired and used so as to make political, social and economic decisions. Creditors generally they look for the assurance if there will be sufficient fund to repay debt. In Business enterprises they seek the how the earnings are generated while in the government they seek information about the ability and willingness to correct taxes and generate other revenue to debt repayment. Major environmental Differences between Government and Business are described...
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...Chapter 07 Accounting for the Business-type Activities of State and Local Governments True / False Questions 1. | For proprietary funds, governments generally present a statement of net position in a format that displays assets, plus deferred outflows of resources, less liabilities, less deferred inflows of resources, equals net position. True False | 2. | Internal service funds of one government may not provide goods or services, on a cost-reimbursement basis, to other governments. True False | 3. | Revenues of internal service funds should be recognized only when they are expected to be available in time to pay current liabilities of the fund. True False | 4. | Internal service funds should account for operating expenditures on the accrual basis. True False | 5. | Internal service funds account within the fund for any long-term liabilities to be serviced from revenue derived from fund operations. True False | 6. | Internal service funds should not account for depreciation of capital assets used in their operations, since this would, in effect, charge the government twice for the same assets. True False | 7. | Internal service funds are intended to operate on taxes or other financing sources authorized by the legally enacted revenue budget for each year; therefore, they are classified as governmental funds. True False | 8. | The net position of an internal service fund consists...
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...ECONOMICS ASSIGNMENT Introduction This assignment is focused on describing neoliberal globalization and identifying that how it has changed the relationship between business and governments. The perspective that what needs to be done in order to ought to the current situation is also discussed and analyzed in this assignment. The suggestions to the government are also provided regarding neoliberalism in this assignment. Neoliberal Globalization Neo-liberalism refers to economic liberalism which has become very important in the international economy (Kotz and David, 1998). Neoliberal globalization is defined as setting up the market free and private enterprises are free from any bonds or regulations imposed by the government of the state (Ong, 2006). Neoliberal globalization mainly promotes the concept of free market economy. The rules of neo-liberal globalization include cutting the public expenditure and reducing the social safety net. It also involves reducing the government regulations or everything that could result in reduction in the overall business profitability of the private enterprises (Harvey, 2005). The state enterprises are sold to the private investors and concepts of ‘public good’ and ‘community’ are eliminated and the individual responsibility is increased. There is a huge criticism that this system usually involves pressing the poorest people within the society which could result in social distress within the society. At the global level, the neoliberal...
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...Department of Homeland Security is one of the most important departments in our federal government. It is largely responsible for ensuring that the United States as a country is kept safe from harm, whether through natural or terrorist events. However, even a department as large as the DHS is unable to fully protect the homeland from every threat possible. There is no way to always cover every avenue for potential threat to the U.S. To combat this unfortunate reality, the DHS relies on help from private enterprise. The DHS includes an office, known as the Office of Policy, which includes the Private Sector Office as one of its sub-departments. The Private Sector Office provides the Secretary and Department leaders with advice on issues relevant to the private sector, including academia, non-profits, NGOs, and businesses (dhs.gov). In addition, the PSO helps create and foster strategic communications with the private sector to enhance the primary mission of the Department to protect the American homeland (dhs.gov). This paper will explain the involvement of the Department of Homeland Security with private enterprise via the PSO, explain why this involvement is crucial to the mission, and explain how the DHS uses private enterprise in the protection of critical infrastructure and key resources. This paper will also give examples of programs that address governments on all levels, private enterprises, or individuals in the DHS mission areas of Prevention, Response, and Recovery. The...
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...INTRODUCTION The participation of the state in enterprises in Nigeria dates back to the colonial era. The task of providing infrastructural facilities such as railway, road, bridges, water, electricity and port facilities fell on the colonial government due to the absence of indigenous companies with the required capital as well as the inability or unwillingness of foreign trading companies to embark on these capital-intensive projects(Iheme 1997).This involvement was expended and consolidated by the colonial welfare development plan (1946 – 56) that was formulated when the labour party came to power in the United Kingdom. This trend continued after independence such that by 1999, it was estimated that successive Nigeria Governments have invested up to 800 billion Naira in public owned enterprises (Obasanjo, 1999). THE CONCEPT OF PRIVATIZATION Although the concept of privatization is an is an emotive, ideological and controversial one evoking sharp political reactions, its political origins, meaning and objectives are not ambiguous. Iheme (1997).defines privatizations as: …any of a variety of measurers adopted by government to expose a public enterprise to competition or to bring in private ownership or control or management into a public enterprise and accordingly to reduce the usual weight of public ownership or control or management. However, in a strict sense, privatization means the transfer of the ownership (and all the incidence of ownership, including...
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...state-owned or public owned property to individuals or groups that intend to utilize it for private benefits and run the entity with the aim of profit maximization. In other words, it is a route from public or state ownership to private players or a group. From the other point of view, it is a strategy that provides advantages to a few at the price of many. However, this is always subjected to the circumstances involved. In this paper, the aim is to understand the major advantages and disadvantages of privatization in this country. Index Terms: Privatisation, advantages, Public administration. I. INTRODUCTION Privatization is a managerial approach that has attracted the interest of many categories of peopleacademicians, politicians, government employees, players of the private sector, and public on the whole. As per the opinion by the subject experts, privatization can be advantageous in terms of the higher flexibility and scope of innovation it offers along with cost savings, many a times. However, other specialists defiantly debate that privatization has an adverse impact on the employee morale and generate fear of dislocation or termination. More likely it also adds on to the apprehensions pertaining to accountability and quality. Experts both advocate and criticize privatization making it more or less a provocative...
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...them to assess the ability of the enterprise to pay dividends. (b) Employees. Employees and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the enterprise to provide remuneration, retirement benefits and employment opportunities. (c) Lenders. Lenders are interested in information that enables them to determine whether their loans, and the interest attaching to them, will be paid when due. (d) Suppliers and other trade creditors. Suppliers and other creditors are interested in information that enables them to determine whether amounts owing to them will be paid when due. Trade creditors are likely to be interested in an enterprise over a shorter period than lenders unless they are dependent upon the continuation of the enterprise as a major customer. (e) Customers. Customers have an interest in information about the continuance of an enterprise, especially when they have a long-term involvement with, or are dependent on, the enterprise. (f) Governments and their agencies. Governments and their agencies are interested in the allocation of resources and, therefore, the activities of enterprises. They also require information in order to regulate the activities of enterprises, determine taxation policies and as the basis for national income and similar statistics. (g) Public. Enterprises affect members of...
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