...Company, Sole Trader or Partnership | Law 102 | 1. Sole Trader “A sole trader business is one which is fully owned by one individual. Although the owner can employ other staff, the owner retains full responsibility and ownership for the business.” (Admin. (2009). Definition - Sole Trader. ) The advantages of this type of business include no legal filing requirements or fees, as well as no professional advise for the set up of the business; you literally go into the business on your own. Simplicity is also an advantage because there is only one person running the business; there is no need for a complex organizational structure where there might be miscommunication and misunderstanding. The disadvantages to a sole trader business are the unlimited liability for the debts of their business; there is no difference between the sole trading business and the sole trader himself, meaning that they are personally liable for all the debts of the business. In addition, it is not a useful way for raising capital, and the capital must be provided through personal savings or bank loans. 2. Partnership A partnership is a business made up of two to twenty people. Similar to a sole trader, the partners involved have unlimited liability for the debts of their business. Each partner is liable jointly with the other partners in the firm. There are several advantages and disadvantages to being involved in a partnership. One of the advantages to becoming involved in a partnership...
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...Cherie Heng Yi Ting (A0131713U) MNO2009 Individual Analysis Tutorial H01 The market for digital financial services is on the rise with a strong potential in creating an online platform to promote gamified social trading platform in a relatively unsaturated financial technology (Fintech) market. Current competitors Trade Hero and Ayondo (TechinAsia, 2016) focus on risk-free stimulated trading aimed towards competition and real life trading connection respectively in the mass market. Thus, in this online trading field, there is a missing social network that integrates gaming features for trading and education through forum sharing for youths. Insights from TradersHub, a failed start-up with a similar business model by Travis Ong (Annex A), can be adopted to understand how to successfully penetrate Singapore’s fintech market and be a recognised player in virtual trading, before extending and monetising the business. The main reason for TradersHub’s failure is due to their idealistic causation approach not bound by a realistic understanding of the industry. This exemplifies the need to balance the approach in an effectuative way by firstly analysing the fintech ecosystem for external factors that will shape the positioning of the business model (Forbes, 2016). Singapore has cultivated a conducive market that provides fintech start-ups with high availability of financial and developmental support. The high penetration rate of technology encourages the scalability...
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...Global Economic Climate-China’s Perspective * Chinese Stocks Have Further To Fall * Negative wealth effect on Chinese households * Financing Channels Now Closed * Property Market Stability At Risk * Renewed stability in the property market in the past * The weakening stock market reflects poor incomes and housing affordability * Banks become increasingly risk averse * Recession And/ Or Financial Crisis Risks Growing * Economic growth structure too reliable on debt * Excess Capacity of Manufacturing industry * Chinese demand is underperforming the bullish expectations Details With the Chinese equity bubble finally bursting in line with our expectations and likely to continue declining much further from still-extreme valuations, we are assessing the potential for either a recession or a financial crisis, which we believe are growing risks. * Chinese Stocks Have Further To Fall * Negative wealth effect on Chinese households * Financing Channels Now Closed * Property Market Recovery At Risk * Renewed stability in the property market in the past * The weakening stock market reflects poor incomes and housing affordability * Banks become increasingly risk averse Given that the property market and the upstream industries supplying it (cement, metal etc) accounts for almost 30% of GDP, and property and land prices are a major source of loan collateral, the housing market remains a crucial factor in China's...
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...Questions: ETHICAL ISSUES Q1. How serious were Stephen Richards’ actions? If Computer Associates achieved the same financial results within “allowed accounting flexibility”, will this change your answer? Q2. Richards describes how difficult it is to operate in the “gray areas of accounting” and wanted more guidance from senior management. Do you agree or disagree with him? If you were placed in the same position as Richards, how would you handle the situation? What are the options that you think you would face in deciding what to do? Q3. Step back and consider management’s incentives and choices. What are Computer Associate’s motivations to manage earnings and the financial value represented by the statement of financial position? What type of corporate governance structures in firms have been identified by the research as a flag, or indicator, that a firm is more likely to manage/manipulate financial accounting outcomes? ACCOUNTING ISSUES Q4. Comment on the GAAP standard that allows software firms to recognize the entire value of the licensing contract as revenue in the quarter that the contract was affirmed. Do you think this accounting treatment contributed to the culture at Computer Associates? Why or why not? Q5. Exhibit 4 provides an overview of the inflated recorded revenue and EPS. Is it important for Computer Associates to meet analyst estimates? Why or why not? Q6. Does accounting management/manipulation have an impact on stock prices? (Hint:...
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...Naomi Piché Professor John Burtt BUS 114 Management May 21, 2013 Case Study 1 : Trader Joe’s 1. In what ways does Trader Joe’s demonstrate the importance of each responsibility in the management process-planning, organizing, leading, and controlling? -Trader Joe’s demonstrates planning by intending to carry unique products at a low cost within a fun, relaxing environment. Their organizing skills were apparent due to their approach to find unusual foods from around the world, contract directly with manufacturers, label their products with catchy phrases and by maintaining a small stock of each product. Their leadership was exemplified by hiring employees with job skills such as being “ambitious and adventurous” and providing a laid-back atmosphere both for their workers and customers. Their employees had higher pay rates than those that worked for their competitors and had great benefits. Because managers were hired from within, they had an ultimate knowledge-base of how the system works. Also, the employees were encouraged to taste and learn about the products to be able to share with their customers, creating a more involved employee to customer relationship. Regarding Trader Joe’s control, they were able to control real estate costs by buying smaller stores and staying away from “prime” locations. Their “one in, one out” policy to get rid of poorly selling products or have rising costs replaced by new products helped to control costs and also showed their customers...
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...the basic server market share. Performance of the Zink is approximately equivalent to that of the Tronn without PESA. Ontario’s mode of sales is mostly done online as their business model aims at providing leading technology to customers by way of the most flexible and innovative supply chain strategy possible. This has led to Ontario being able to drive out non value added costs and compete on price ($1,700) since it is able to produce at a lower cost ($1,214), indicating operational efficiency. Pricing Strategy for Atlantic Bundle After careful observations of the facts surrounding our competitor as well as consumer behavior in the target market segment (refer to Appendix 1), we hereby propose for Jower to give a price of $2,436 to Day Trader Journal.com using the Value –in-use pricing strategy which is a method of setting prices in which an attempt is made to capture a portion of what a customer would save by buying Atlantic Bundle (refer to Appendix 2 for calculations). Atlantic Bundle at this Price would lead to a cost saving of $3,591.14 for DayTraderJournal.com should they purchase 2 Atlantic Bundles as against 4 basic web servers (Zink). The basic assumptions made for this pricing strategy are as follows: • A 50-50 sharing of the...
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...ARUCAN, PEARLNETTE GAY JUNE V. MANAGEMENT ADVISORY SERVICES MWF 1:30-3:30 ROBERT KIYOSAKI Who is Robert Kiyosaki? A fourth-generation Japanese American, Kiyosaki was born and raised in Hilo, Hawaii. After graduating from Hilo High School, he attended the U.S. Merchant Marine Academy in New York, graduating with the class of 1969 as a deck officer. He is an investor, businessman, self-help author, motivational speaker, financial literacy activist, and occasional financial commentator. Kiyosaki is perhaps best known for his Rich Dad Poor Dad series of motivational books. As a devout global financial literacy advocate, Kiyosaki has been a staunch proponent ofentrepreneurship, business education, investing, and that comprehensive financial literacyconcepts should be taught in schools around the world. Why did he filed for bankruptcy? Robert Kiyosaki filed for corporate bankruptcy through one of his companies, Rich Global LLC. Rich Global LLC filed for Chapter 7 bankruptcy protection on Aug. 20 in a Wyoming bankruptcy court. Kiyosaki and his bankruptcy attorney did not immediately respond to requests for comment. The company had been weighed down by a lawsuit filed by Learning Annex, one of Kiyosaki's earliest backers who had helped arrange his public speaking events earlier on. Bill Zanker, the founder and president of Learning Annex, sued Kiyosaki after he allegedly failed to pay a percentage of profits from his speaking engagements. A district judge in New York...
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...com/shop/unit-iv-managerial-decision-making/ 1. Recently, a number of major banks have rejected federal bailout money citing that they did not like the rules that the government placed on them if they took the cash infusion. Research these decisions and report your findings. Discuss how self-serving reasoning could play a part in these decisions? Your answer must be a min. 200 words, try to keep it under 300 words when possible. Must use course textbook as a reference. You can use additional creditable references as needed to answer the question but it is not required. 2. Lately, the stock market has experienced unprecedented volatility – wild ups and downs. Discuss how stock trading has created a lot of this volatility and the decisions for stock traders to buy and sell wildly in terms of hyperbolic discounting. Your answer must be a min. 200 words, try to keep it under 300 words when possible. Must use course textbook as a reference. You can use additional creditable references as needed to answer the question but it is not required. 3. Discuss a recent decision that you made (purchase an automobile or home, change jobs, etc.). How did motivation and emotions influence your decision? Did you experience any internal conflict (a battle between what you wanted versus what you should do)? How did you resolve this conflict? Your answer must be a min. 200 words, try to keep it under 300 words when possible. Must use course textbook as a reference. You can use additional...
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...attributed to psychological factors such as fear, greed, regret, and other emotional responses to price changes and changes in personal wealth. A growing number of economists, psychologists, and financial-industry professionals have begun to use the terms ‘behavioral economics’ and ‘behavioral finance’ to differentiate themselves and their ideas from the standard, rational theories (such as the Efficient Market Hypothesis) in economics and finance. Akrisios Stathopoulos is the President of the Pacific Futures Trading Company (PFTC). Futures trading is a form of investment which involves speculating on the price of a commodity, such as gold, cotton, wheat, or steel, going up or down in the future. Futures are popular instruments amongst traders, from private individuals through to multi-million dollar hedge funds. Founded in 1972, the Pacific Futures Trading Company is a second generation family owned business. With Akrisios as President, his brother Epifanio as Vice President of...
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...of Team D’s real life experiences of personal values that drive actions, behaviors as it is aligned between personal values, actions and behaviors. Team D will analyze the degree of alignment between Trader Joes organization stated values and the organizations actual plans and actions. This paper will explicate the differences of degree of alignment between Team D’s group members individual values and the organizations values of Trader Joes; as reflected by Trader Joes plans and actions. Trader Joe’s was established in the 1950s as a convenience store. In 1967, Trader Joes changed its course and created larger grocery stores that offered hard to find, great tasting food (Our Story, 2012) with the Trader Joes brand name. The idea was to have innovative products that customers could save money on. Trader Joes does not believe in carrying an item that sits and does not sell. Doing this will eliminate product waste and different products can be brought in that will be higher in demand. This also saves both Trader Joes and the consumer money. Trader Joes vision is “great food plus great prices equals value” (Our Story, 2012). Trader Joe’s does not charge a suppliers fee to stock products on shelves like other grocery stores. This saves also saves the consumer money. Trader Joe’s two main goals are great products and great prices. This is important because consumers want to save money on products, yet eat...
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...сразу скажется на торговле. 2) Воспринимайте трейдинг не как увлекательное дело, а как самую обычную работу. Возможно, это звучит спорно, но… Нашим словам есть очень легкое объяснение. Во время торговли ваша голова должна быть чиста – никаких эмоций. А если у вас эйфория – вы уже не адекватно воспринимаете происходящее и можете потерять деньги 3) Обязательно заведите хобби, которое будет расслаблять вас и придавать энергию. Торговля на фондовых рынках – энергоемкий процесс, и вам нужно научиться быстро восстанавливаться. 4) Не спорьте с базовыми принципами. Постоянно держите их в голове, они сэкономят вам кучу времени – быстрее начнете понимать суть. 5) Ни в коем случае не боритесь с рынком. Вспомните фильм rogue trader – и посмотрите, чем закончилась борьба с рынком. Плывите по течению, и у вас все будет хорошо. 6) Отпускайте упущенные акции, не концентрируйтесь на убытках. Их, конечно, надо осмысливать, но если будете слишком много думать о них – завязнете в депрессухе. 7) Общайтесь с другими трейдерами и инвесторами. Когда вы будете видеть, что через похожие проблемы проходят все биржевики – не будете думать, что вы один такой, и будет легче со всем справиться. 8) Если у вас убыточная серия – лучше на пару дней перейти на бумагу – так вы сможете реабилитироваться и при этом не потерять деньги. Как только увидите, что все опять окей – вернетесь на реал. 9) Не пытайтесь отбиться. Иначе потеряете адекватную оценку и наделаете...
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...Part 1 After watching the “Rogue Trader”, we can say that the main reason for the collapse of Baring Banks is the lack and inadequate internal controls under COSO combine with Nick’s fraudulent activities. The biggest deviation arises from the control activities, particularly the segregation of duties. When Nick Leeson got the job opportunity in Singapore, he was hired as the general manager of the trading floor and also was the person responsible for the settlement which means that he was making the trading transactions and at the same time recording and reporting them into the accounting system. It is a big problem because the positions assumed by Nick are related to generating revenue and doing the record keeping which are 2 areas that can create a conflict of interest, in retrospect those functions should have been held by two different persons and the communications process between them should be monitor to reduce the possibility of collusion or fraud. Another lack in control activities was the total absence of an authorization system. As we saw in the movie, when BeauMarchais asked him to buy 4000 contracts, even though the market average trade was 20000, he did not need any authorization nor anybody review the transaction to be sure that it was in accordance with the company objective. In another instance, he was able to transfer 7.8 billion yen between accounts. To avoid questionable situations and be able to make people accountable for their actions, they could...
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...com/shop/unit-iv-managerial-decision-making/ 1. Recently, a number of major banks have rejected federal bailout money citing that they did not like the rules that the government placed on them if they took the cash infusion. Research these decisions and report your findings. Discuss how self-serving reasoning could play a part in these decisions? Your answer must be a min. 200 words, try to keep it under 300 words when possible. Must use course textbook as a reference. You can use additional creditable references as needed to answer the question but it is not required. 2. Lately, the stock market has experienced unprecedented volatility – wild ups and downs. Discuss how stock trading has created a lot of this volatility and the decisions for stock traders to buy and sell wildly in terms of hyperbolic discounting. Your answer must be a min. 200 words, try to keep it under 300 words when possible. Must use course textbook as a reference. You can use additional creditable references as needed to answer the question but it is not required. 3. Discuss a recent decision that you made (purchase an automobile or home, change jobs, etc.). How did motivation and emotions influence your decision? Did you experience any internal conflict (a battle between what you wanted versus what you should do)? How did you resolve this conflict? Your answer must be a min. 200 words, try to keep it under 300 words when possible. Must use course textbook as a reference. You can use additional...
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...These are sole proprietor, partnership and company. Option 1: Sole proprietor A sole propriety is an option for the start-up whereby one individual of the pair would control and manage the business. For example, David starts up, controls and manages the business and Christina is merely employed by David. The registration requirements of a sole proprietor would include David as the owner applying for an Australian Business Number and for a Tax File Number (Birt et al. 2012). David will need a TFN as and income he earns as a sole trader will be treated as his income and taxed accordingly. David will have sole responsibility for paying tax on the business’ income. David will have many options for the way he chooses to report the entity’s financial position. This may include using an accounting package such as MYOB to determine profit. A sole-trader structure is commonly used for hairdressers and tradesmen (Birt et al. 2012). Advantages: * The company start-up and wind-down is fast and is not costly. * The paperwork required to start-up is minimal (Birt et al. 2012). * David will have complete autonomy over the running of his business. * David will not be bound by accounting standards and legal regulations. * David can use accounting packages to report financial position of company- easier to use. * David does not pay a separate income tax for his business (Birt et al. 2012). Disadvantages: * David as the owner will have full and sole liability...
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... Pg. 4 * Question 2 Pgs. 5-6 * Question 3 Pgs. 7-8 * Conclusion Pg. 9 Executive Summary The kiosk business would be registered as a sole proprietorship. Since it is a small scale business, not much money is required to start up the business. The owner has full authority over the business and can run it any way they please. Not many legal documents required, only a trading license. The business is very flexible, structure can be changed relatively easily. Not many employees required, maybe one or two at most. However, if the business goes in debt, the owner is held fully responsible and no one else; although being a small business, the losses won’t be very big. There is also restricted capital investment; not easy to get a loan for a sole trader. Not...
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