Explain the difference between capital and revenue items of expenditure and income for a business Essay Example

Explain the difference between capital and revenue items of expenditure and income for a business Essay Example Explain the difference between capital and revenue items of expenditure and income for a business Paper Explain the difference between capital and revenue items of expenditure and income for a business Paper In FF the capital income will come from the investors that own FF(Future Fashion). Investor’s money is used to buy things that will stay in the business for a medium to long period of time – FF’s premises, vehicles or equipment. These are called fixed assets. When FF sets up a business, Capital Income might also be used to buy opening stock, but as the business develops, stock should be paid for by sales income. The sources of capital income available to business owners are influenced by the type of Business.Sole trader: Sole traders are people who own a business by them self, they will have to find all the capital income for the business on their own by things such as personal loans. Sole Traders often invest their personal savings into a business or borrow from the bank using their personal assets, such as their house to secure a loan. Sole Traders take a big risk when they do this as they are ultimately responsible for the debts of the business. Being a sole t rader can also limit the size of the business but all the profit made from the business can be kept by the sole trader. This would not affect FF; as they are not a sole trader.Partnership: Partnerships are when two or more people join together to make a business as partners. Each partner would be expected to contribute towards the capital income, hence increasing the potential amount of money available. Partners will share all decisions made in the business as-well as the profits made. Loans that are taken to start the business are still secured by the partners’ assets, so this is still a high risked operation. This would not affect FF; as they are not a Partnership.Shares: A company is when a business is registered with companies’ house and issues shares to its shareholders. The shareholders and owners of the business will all have to contribute towards the capital income for the business. Shareholders will receive voting rights and the more shares they own, the great er their ability is to influence decision making. Shareholders are rewarded a share of the profits for their investments in the company/business. FF consists of different shareholders who contribute towards the capital income. These shareholders have voting rights and the more shares they own, the greater their ability is to influence decision making. These shareholders are rewarded a share of the profits for their investments in FF.Loans: A loan would be a sum of money that is borrowed to a business or business owners from a bank. The loan will be a lump sum which we then have to be paid back every month at a set amount. Most loans often last five years, although longer loans can be arranged, but these would be longer and charge more interest. When taking a loan the business would have to pay the fixed amount even if they haven’t made a profit. The banks are also not guaranteed to lend money to a business, so the business would have to justify how the money borrowed would be spent and, more importantly, how they can afford and repay it. The bank loan will have to be secured using an asset that belongs to the owners such as a car or house. This means if the business fails to meet payments, the bank can reclaim the asset. FF will not need to loan money from the bank as they have shareholders who generate the capital income for them.Sales: Sales is money that comes in from the sales of goods and services, for example, FF will make money when customers come in and buy products. Sales turnover is therefore determined by the prices charged and the number of customers. Sales can be either cash sales, or credit sales.Rent Received: A business that owns property and charges others for use of all or part of property will receive rent as their main source of income. FF does not rent their buildings so this won’t apply to them.Capital ExpenditureExpenditure is money spent by a business and can be split into two categories; capital expenditure and revenue ex penditure. This is used to buy capital items, which are assets that will stay in the business for a long period of time. Capital items are fixed assets and intangible assets, as explained below.Revenue IncomeRevenue Income is the money that comes into the business from performing its day-to-day function which would be selling goods or providing a service. The nature of the revenue income depends on the activities that the business does to bring in money, sources of that can be; sales, rent received, commission receivedTrademarks: A trademark is a symbol, logo, brand name, words or even colour that sets apart one business’s goods or services from those of its competitors. FF’s logo is a key influence because it is very well known and can build brand loyalty.Commission Received: A business may sell products and services as an agent of another business. This will mean that they sell other business products on their behalf and for each sale they make a small percentage of the sale. This percentage is called commission.Fixed AssetsFixed assets are items owned by a business that will remain in the business for a reasonable period of time. These are shown on a business’s balance sheet and include land and buildings, office equipment, machinery, furniture and fittings, and motor vehicles. These are sometimes referred to as ‘tangible assets’ because they can be touched.Most fixed assets will lose value over time and for this reason they are depreciated. This means that each year their value in the balance sheet is reduced in order to give fair value of the asset.IntangibleAn intangible asset is something owned by the business, that cannot be touched but adds value to the business. Intangibles that exist within businesses.Goodwill: When you buy an existing business, its name and reputation will already be known and it may already have an established customer base or set of clients. FF do not use good will as they will open up their own new stores.Patents: A patent is the legal protection of an invention, such as a unique feature of a product or a new process. This means that FF can patent their products which are unique from other people’s products; which will mean that people cannot copy the idea.Revenue ExpenditureRevenue Expenditure is when you spend money on a day-to-day basis. These are the expenses incurred by a business that are shown on the profit and loss account. These types of costs incurred vary from different businesses, some on the common types include:* Administrative costs – In FF, administrative charges are for things like postage, printing and stationary, which might include items such as business cards, headed paper and order books* Staff costs – Staff costs is the money FF will spend on their employees, FF must pay all their employees for the work that they do. FF must pay Salaries, Wages, Insurance, Pensions and for any Training required.* Selling and distribution costs â €“ If FF is to survive it must make enough sales to cover all its costs. It must be able to attract customers to come and use their products and services. There are two crucial functions that carry additional costs. Selling and distribution costs include: Sales Staff Salaries – Many businesses will employ workers with specific responsibility for sales. This might be a sales representative who travels around trying to generate sales, sales assistances who help the customer or accounts managers who look after regular customers. Sales staff receive a commission-based salary, meaning the more they sell, the more they can earn.Carriage of sales – This is the cost FF must pay of getting the sale to the customer and can range from something as simple as an envelope and a stamp or courier delivery to something much more complex with bulky or fragile products or even products being shipped to another country. Some business might make the customers pay this charge by quoting a sales price plus postage and packing costs. Marketing – This covers a whole range of costs for FF associated with attracting the customer and convincing them to make a purchase. Possible marketing costs might include advertisements, promotional literature, promotional events, point of sale materials and so on.* Finance costs FF do not operate on a cash-only basis – they are likely to accept payments by cheque, card or direct bank transfer. They are likely to make payments in the same way. This means FF must have a bank account. Banks are also businesses and they too want to make a profit so they charge for their services. Finance costs to a business can include Bank charges (business charge for every transaction made) and Loan and mortgage interest (Banks charge interest on loans and Mortgage)* Purchase of stock – FF will require stock as they are providing goods and services. When FF is first started up it is likely to buy stock with cash as it will not hav e built a reputation, but then when it gets more well known it may be able to buy stock in credit which FF can do now. Bigger and more established business may be able to drive the cost of stock when buying in larger quantities, there are other costs related to stock such as insurance and storage costs.

Historical Profile of the Visigoths

Historical Profile of the Visigoths The Visigoths were a Germanic group considered to have separated from other Goths around the fourth century, when they moved from Dacia (now in Romania) into the Roman Empire. Over time they moved further west, into and down Italy, then to Spain where many settled and back east again into Gaul (now France). The Spanish kingdom remained until the early eighth century when they were conquered by Muslim invaders. East-German Immigrant Origins The Visigoths origins were with the Theruingi, a group comprised of several peoples Slavs, Germans, Sarmatians, and others under the recently acquired leadership of Gothic Germans. They came to historical prominence when they moved, along with the Greuthungi, from Dacia, across the Danube, and into the Roman Empire, possibly because of pressure from Huns attacking westwards. There may have been approximately 200,000 of them. The Theruingi were â€Å"allowed† into the empire and settled in return for military service, but rebelled against Roman strictures, thanks to the greed and mistreatment of local Roman commanders, and began plundering the Balkans. In 378 CE they met and defeated the Roman Emperor Valens at the Battle of Adrianople, killing him in the process. In 382 the next Emperor, Theodosius, tried a different tactic, settling them in the Balkans as federates and tasking them with the defense of the frontier. Theodosius also used the Goths in his armies on campaign elsewhere. During this period they converted to Arian Christianity. The Visigoths Rise At the end of the fourth century a confederation of Theruingi and Greuthungi, plus their subject people, led by Alaric became known as the Visigoths (although they may only have considered themselves Goths) and began moving again, first to Greece and then into Italy, which they raided on numerous occasions. Alaric played off rival sides of the Empire, a tactic which included plundering, in order to secure a title for himself and regular supplies of food and cash for his people (who had no land of their own). In 410 they even sacked Rome. They decided to try for Africa, but Alaric died before they could move. Alaric’s successor, Ataulphus, then led them west, where they settled in Spain and part of Gaul. Shortly after they were asked back east by the future emperor Constantius III, who settled them as federates in Aquitania Secunda, now in France. During this period, Theodoric, who we now regard as their first proper king emerged, who ruled until he was killed at the Battle of the Catalaunian Plains in 451. The Kingdom of the Visigoths In 475, Theodoric’s son and successor, Euric, declared the Visigoths independent of Rome. Under him, the Visigoths codified their laws, in Latin, and saw their Gallic lands to their widest extent. However, the Visigoths came under pressure from the growing Frankish kingdom and in 507 Euric’s successor, Alaric II, was defeated and killed at the Battle of Poitiers by Clovis. Consequently, the Visigoths lost all of their Gallic lands bar a thin southern strip called Septimania. Their remaining kingdom was much of Spain, with a capital at Toledo. Holding together the Iberian Peninsula under one central government has been called a remarkable achievement given the diverse nature of the region. This was helped by the conversion in the sixth century of the royal family and leading bishops to Catholic Christianity. There were splits and rebel forces, including a Byzantine region of Spain, but they were overcome. Defeat and End of the Kingdom In the early eighth century, Spain came under pressure from Umayyad Muslim forces, which defeated the Visigoths at the Battle of Guadalete and within a decade had captured much of the Iberian peninsula. Some fled to the Frankish lands, some remained settled and others found the northern Spanish kingdom of Asturias, but the Visigoths as a nation ended. The end of the Visigothic kingdom was once blamed on them being decadent, easily collapsing once they were attacked, but this theory is now rejected and historians still search for the answer to this day.

IT technology becoming the basis of every employment Essay

IT technology becoming the basis of every employment - Essay Example Lifelong learning is seen as a solution to long-standing social and economic problems, despite criticism of adult education colonisation unleashing libratory forces, scholars pointing out bifurcation of labour market, and the ever-existing criticism of political shift towards neoliberalvalue. The article deals with the tussle between the viewpoints of UNESCO and OECD. Lifelong learning, initially thought to be an answer to societal and economic crises, was launched by OECD in 1948 to help Western Europe's economic revival under Marshall Plan and it was referred to as Vocational Training. unprecedented enrolment in 1960s due to economic growth caused stir and resulted in oversupply of graduates who could not be fully absorbed and said that recurrent education should be distributed along lifespan, with work, leisure and retirement. Later it adopted the concept as a long-term strategy and created two axes, vertical, to integrate educational opportunities against disrupted childhood lear ning and a horizontal, for further education according to requirements of labour, research and opportunities. Behind the belief of additional opportunities, economic stability, knowledge, satisfaction, there exist pragmatic issues like non-achievement of equality and opportunity. Due to 1968 student revolt, UNESCO realised that education export from First World to Third failed to meet latter's need. Faure commission was set up to meet the educational challenge and for growth of scientific mind by promoting lifelong modern learning. Although starting point approach was overlapping, there are fundamental differences in later approach. While OECD is unable to connect education with labour potential, UNESCO stops short at educational modernisation. If oecd's aim is to bring non-traditional students into the educated cluster, unesco's goal is to make education basis of democratic process. While first is focussed on industrialised nations, second has global outlook. While first approaches from technical updating point of view, second sees it as a tool of equality and wants a learning world society. It wants to provide the educational facility at any point with a worldwide dimension. There is a suggestion of classless society in the concept and seventies onwards, li felong learning has figured in the national policy of many nations. With globalisation, capitalism has erupted and oecd stressed on education as need of changing society and its reports links education with economy. Second generation of human capital theory questioned the relevance of initial approaches and firmly placed the lifelong educators in labour market/unemployment. Both EC and oecd concentrated more on learning, than on education and human resources became more important now. CRITICISM Article also says that by then unesco had lost its importance on educational issues. The new Commission reported the tension between global, national, regional and local vested interests, tension between individual and universal, tradition v. modernity, long-term v. short-term, spiritual v. material etc. Even from outside, they are regarded differently. Unesco has humanistic tradition and intellectual role while oecd is regarded as capitalistic. While presenting the two paradigms connected to two world views, the article has

Analysis a quantitavtive reserach articale to see whether it is a good Assignment

Analysis a quantitavtive reserach articale to see whether it is a good reserach and any problem - Assignment Example The analysis while be conducted as per the headings into which it is organized. While it is not stated expressly, one can deduce the research problem. One of the primary goals of the development stages of late adolescence through early adulthood is for the individual to become independent in thought and actions and to develop self-control. All this must happen while the young adult remains connected to their parents. Achievements in information and communication technologies (ICTs) have made it possible for college students to stay in with their parents, the distance notwithstanding. According to Barbara, however, very little is known of the frequency of the communication between young college students and their parents, its content and its impact on the development of the student. Hofer’s statement of the research problem falls short on many grounds. First, Hofer does not explain why they think their research problem is important(May & Meerwald, 2013). In other words, it is not clear how the knowledge obtained from the research will be put to use. Secondly, Hofer does not justify the urgency of their problem that is, why they think the problem calls for immediate research and action. Thirdly, the researcher has failed to explain how their research will help address the problem they have identified. Fourth, Hofer does not explain what aspects of the problem they intend to examine and the expected outcomes of such examination. Literature review serves two purposes in scientific research. First, it sets the stage for the research by giving background information on the research subject and topic. Secondly, it the foundation on which the research is based(Hagger & Chatzisarantis, 2011). By this is meant that the literature review informs the research problem, research questions, research objectives and the methodology employed in the research. In a bid to give their

Global Forces of Change Essay Example for Free

Global Forces of Change Essay 1. From the case facts, describe how globalization and technology have influenced the business directions of GE Medical Systems. Technology Since new requirements in healthcare business had been emerged, in the market it is required to implement personalized medicine to support specific client – not mass population. Moreover, trend on find the way to prevent sickness is more concerned than to heal. This is massive challenge to medical equipment manufacturers whether which company can find the best technology to support these requirements. GE believed that the best technology would always win in the marketplace so they responded to these requirements by investing more on RD and also product design. As the result, corporate RD invented some new products which replace need of existing product, for example, digital detectors for X-ray machines that would replace the need for X-ray film. Globalization Globalization increases connectivity and interdependence of the world’s markets and businesses. Emerging middle-classes of Asia, Eastern Europe and Latin America is also an opportunity for healthcare company like GE to expand their markets, increase sales and profits. Beside of sales side, GE can also reduce their manufacturing cost by shifting manufacturing from high-cost countries to low-cost countries. This would increase their competitive advantage. 2. Identify possible projects by which a company dealing in Healthcare and Medical Diagnosis like GEMS can profitably ride the waves of globalization, liberalization and technology. * Shifting manufacturing base from high-cost countries to low-cost countries in order to reduce production cost. * To develop healthcare IT system, this is to manage necessary data systematically such as patient data, treatment record etc. This is also helpful for diagnosis. * To apply Free Trade Agreement with emerging countries in order to facilitate access of healthcare products. * Even general needs of customers in healthcare in each country is same but there are some specific requirements which are required individually so GEMS should not neglect RD in each local market. Hiring local staffs is an effective alternative since local people might understand needs in their society well. * RD is vital since technology changes every day. GEMS should keep investing on find out the way to increase effectivene ss of their equipment and also invent new products which can replace existing one. 3. Describe the world do you envision in 2050, especially with China and India likely to take center-stage? Touch on the economic, political, social and cultural adaptation that you think can take place. According to many reports show that over the next 50 years China and then India’s economies will overtake US. Large and growing market opportunities in China and India are widely seen and understood as evidenced by the large flows of foreign direct investment to China, both for the domestic market, but also to use China as a low cost platform for exports to the rest of the World. China is communist. Due to their political characteristics, control in a repressive way substantial part of the economy, especially the financial sector that brought about massive imbalance. A centralized decision-making process, although discretionary would presumably ease political action by by-passing all types of necessary approvals from a parliament or congress in a democratic system. So changing of Chinese government would possibly change the world. About social and culture, as foreign companies would base their manufacturing in China, learning local culture would be very important in order to have smooth operation and avoid any conflict. China language will become as vital as English. On the other hands, due to growing of China economic dominance, Chinese people will also spread over the world. Their culture will unavoidably absorb to everywhere. We have no choice but adapt with it.

Descriptive Statistics: Raw Data Essay -- Data Analysis, Standard Dev

Several things can be done to the raw data in order to see what they can say about the hypotheses (Neuman, 2003). An inspection of the raw data can be done by using the descriptive statistics to find obvious coding errors. The minimum and maximum values for each variable must fall within the admissible range. Pairwise correlations depict that all relationships must be in the expected direction. Meanwhile, listwise deletion of missing values indicates that the data can be used for analysis. An outlier is an observation that is unusually small or large. Outliers assist researchers in detecting coding errors. According to Bagozzi and Baumgartner (1994), outliers are not recommended to be routinely excluded from further analysis. Data collected were analyzed by using three approaches: 1. Cronbach’s alpha (a) was used to test the reliability. Cronbach’s alpha indicates how well the items in a set are positively correlated to one another. This is to make sure that the scales are free of random or unstable errors and produce consistent results over time (Cooper & Schindler, 1998); 2. Descriptive statistics where the researcher used mean, standard deviation and variance to get an idea on how the respondents reacted to the items in the questionnaire. The major concern of descriptive statistics is to present information in a convenient, usable and understandable form (Runyon & Audry, 1980). Descriptive summary, including frequency and descriptive, was used to screen the data set. Among basic statistics to use were mean, median, mode, sum, variance, range, minimum, maximum, skewness and kurtosis. 3. Inferential statistics concerned with generalizing from a sample to make estimates and inferences about a wider population (Neuman, 2003... ....e. more than 30 (Hair et al., 2006). Sekaran (2003) suggests the approximation to normality of the observed variables could be investigated by inspecting the data through histograms, stem-and leaf displays, probit plots and by computing univariate and multivariate measures of skewness and kurtosis. Histograms, stem-and-leaf and probit plots indicate the symmetric distribution of variables or sets of variables. Tabachnick and Fidell (1996) suggest the value of skewness and kurtosis is equal to zero if the distribution of a variable is normal. Chou and Bentler (1995) emphases the absolute values of univariate skewness indices greater than 3 can be described as extremely skewed. Meanwhile, a threshold value of kurtosis greater than 10 can be considered problematic and value greater than 20 can be considered as having serious problems (Hoyle, 1995; Kline, 1998).

Third Industrial Revolution

Third Industrial Revolution based on Offshoring and Education It’s no doubt that our economy is changing and so is the world we live in. The major changes in our society stared off with the First Industrial Revolution. Many jobs changed from farm to factory beginning in the late 18th century. This was the largest revolution because it shaped the way we live today. The second revolution was the shift from manufacturing jobs toward service jobs. It’s believed that we are still in this shift. Now we are on the brink of a third industrial revolution which is due to the increase of technology.Often called the Information Age, the third revolution will require change as the first and second have before. However, it seems as if little changes have been made to accommodate the changing world. We are now facing the struggle of keeping jobs in the country and along with that comes the need to enhance our educational system. The two may not seem to work together, but they do. Impr ovement in education may change the way we off shoring our jobs. There has been suggested a few ways that could help improve United States and keep us on top instead of having other countries take our jobs.Alan S. Blinder is the Vice Chairman of the Board of Governors of the Federal Reserve System. He is the one that presented the idea of changing the way we educate our youngster to have them better prepared for the future. Researching his ideas and theories on how to solve the problem with education, I did agree with him on most of his theories. In the past the fight for our jobs was with computers and technology. Many jobs were being taken by computers, which resulted in many people being laid-off. We can’t deny that we do need computers and the improvement of technology makes our lives easier.We can’t â€Å"dumb down† our economy to keep jobs. People eventually had to accept the increase of computers and the facts that many jobs we needed to do, can now be do ne for us. We now have another force that’s taking our jobs, offshoring. Offshoring is taking over many companies and there is nothing we can do about it. The good deal of having someone do the same job for a lot less is too good of a deal for a company to pass up. For the heads of companies they love the idea, but for the average worker we have to compete with workers in India and Asia for jobs in our own country.Offshoring is no longer only limited to service jobs. It was thought that call centers and manufacturing companies were the jobs affected for foreigners taking their jobs, but with the increase in technology that is no longer the case. With the increase of offshoring, the jobs more aimed at leaving the country are impersonal jobs. By not needing face to face contact with customers, it makes it easier to have the job completed overseas. Offshoring is an event that we can prepare for, by better preparing the workforce for a new economy of work.Training the future need s to be different than in the past because we are emerging into a whole new era. The increase of computers causes an increase of impersonal jobs, which makes it easy to complete many services by electronic means. Blinder’s suggested, â€Å"We need to think about, plan, and probably redesign our educational system with the crucial distinction between personal service jobs and impersonal service jobs in mind. † Because many impersonal are the first ones being offshoring, the more personal jobs are the one staying in the country.We do need to help the future understand the change that is progressing around us. It does make sense that we need to change our educational system from one that was implemented over 50 years ago. Getting every school and college to change their curriculum will take time and work, but with an effective plan the need for change will eventually happen. The essential need for education needs to change. Learning about a careers that will be available years down the line, will help us be more prepared. Jobs that can’t be offshored or done by a machine will be the product of a new growing economy.Suggestions of ways to improve the educational system would be to include the following. To keep jobs we need to focus on the advancement of skills that cannot be outperformed by a computer or taken away by someone overseas. The thing that makes us American and different than any other culture is what we need to put emphasis on. Creativity, ingenuity, spontaneity, culture, interpersonal relations, etc. are factors that make us an individual and if these are applied into the education system it’s possible that we will gain more jobs back.Memorization seems to be something that many schools try to help develop, but that skill is something that a computer can very well accomplish better than the average worker could. Also by bringing in more group and interactive activities we could improve our personal skills. Just a few newer approaches to increasing the way we learn and information that we learn can help put us on the right track to keeping jobs that we could do better than a foreign country and we could be better prepared for jobs that won’t be offshored.Blinder stated as his main objective, â€Å"We need to focus on preparing more college students for the high-end jobs that are unlikely to move offshore, and on developing a creative workforce that will keep America incubating and developing new processes, new products, and entirely new industries. Offshoring is, after all, mostly about following and copying. Americans need to lead and innovate instead, just as we have in the past. Summary The increase of technology has Americans sending off our jobs overseas. We can compete with foreign countries and computers to keep more jobs in the U.S. One important factor to help us is to improve the way we are educating our future. We need to change the system implementing new ways to educate. We also n eed to change focus of the lesson and focus on new concepts that in the end can make us competitor with computers and foreign countries. Many people don’t know that change is needed and are perfectly fine with the system we have set up now. The ideas that Blinder suggested for us are just ideas that could possibly have us heading in the right direction for the future.Conclusions and Recommendations By using and implementing the information that Blinder has given will help to successfully keep the economy on track and not have it handed over to another country. The educational system we have now hasn’t been changed for many years and as the world is changing we also need to change along with it. Because sometimes it can be hard to adjust to change, and many people don’t like change getting the information publicized and persuading policy holders will speed up the progress for change.