Define the term- how are businesses organised, Financial Accounting

Assignment Help:

Define the term- How are businesses organised

Nearly all businesses which involve more than a few owners and/or employees are set up as limited companies. This means that finance would come from the owners (shareholders) both in the form of a direct cash investment to purchase shares (in the ownership of business) and through owners allowing past profits, which belong to them, to be reinvested in business. Finance will also come from lenders (banks, for instance), who earn interest on their loans and from suppliers of services and goods being prepared to supply on credit, with payment occurring a month or so after the date of supply, generally on an interest-free basis. In larger limited companies, owners (shareholders) aren't involved in daily running of the business; In its place they appoint a board of directors to manage business on their behalf. Board is charged with three major tasks:

? Setting the overall strategy and direction for business;

? Monitoring and controlling its activities;

? communicating with owners and others connected with business.

 


Related Discussions:- Define the term- how are businesses organised

Prepare a balance sheet and trial balance, Requirements: a.   Record the...

Requirements: a.   Record the following transactions in the journal of Howell Consulting. Explanations are not required. b.   Create T accounts for each transaction (Use the

the current stock price of great pumpkins farms, Great Pumpkin Farms just ...

Great Pumpkin Farms just paid a dividend of $3.50 on its stock.  The growth rate in dividends is expected to be a constant 5 percent per year indefinitely.  Investors need a 16 per

Bankrupt person-bankruptcy and liquidation, Bankrupt person A bankrupt ...

Bankrupt person A bankrupt is a person against whom an adjudication order has been made by the court primarily on the grounds of his insolvency. Any person (other than a body c

Accounting concepts, Accounting concepts The word 'Accounting Concept' ...

Accounting concepts The word 'Accounting Concept' is used to denote necessary assumptions and ideas which are basic to accounting practice. The variety of accounting concepts i

International accounting, the role of international accounting toward promo...

the role of international accounting toward promotion of generally accepted accounting principle

Retained earnings, Q. Retained earnings is increased by each of the followi...

Q. Retained earnings is increased by each of the following except a. some disposals of treasury stock. b. net income. c. prior period adjustments. d. All of these increase retained

Investment of accumulated income-trusts laws and accounts, Investment of ac...

Investment of accumulated income The income accumulations must be invested from time to time and the investments earmarked as being on Accumulations Account. The income aris

Consolidated financial sttements, Cherry Ltd has the following segment info...

Cherry Ltd has the following segment information from the consolidated financial statements for the years ended 31 December 2011 and 2012: Operating segments C V I N$ N$ N$ Sales

Loan stock in subsidiary-group accounts , Loan stock in subsidiary The h...

Loan stock in subsidiary The holding company may also invest in the loan stock of the subsidiary company or part of the loan stock of the subsidiary company. The cost of the loa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd