Financial statements are records that provide an indication of an individual’s, organization’s, or business’ financial status. There are four basic types of financial statements: balance sheets, income statements, cash-flow statements, and statements of retained earnings. Typically, financial statements are used in relation to business endeavors.
Balance sheet financial statements are used to provide insight into a company’s assets and debts at a particular point in time. Information about the company’s shareholder equity is included as well. Typically, a company lists its assets on the left side of the balance sheet and its debts and liabilities on the right. Sometimes, however, a balance sheet has assets listed at the top, debts in the middle, and shareholders’ equity at the bottom.
Income financial statements present information concerning the revenue earned by a company in a specified time period. Income statements also show the company’s expenses in attaining the income and shareholder earnings per share. At the bottom of the income statement, a total of the amount earned or lost is included. Often, income statements provide a record of revenue over a year’s time.
Cash-flow financial statements provide a look at the movement of cash in and out of a company. These financial statements include information from operating, investing, and financing activities. The cash-flow statement can be important in determining whether or not a company has enough cash to pay its bills, handle expenses, and acquire assets. At the bottom of a cash-flow statement, the net cash increase or decrease can be found.
Statements of retained earnings show changes in a company's or organization’s retained earnings over a specific period of time. These statements show the beginning and final balance of retained earnings, as well as any adjustments to the balance that occur during the reporting period. This information is sometimes included as part of the balance sheet, or it may be combined with an income statement. However, it is frequently provided as a completely separate statement.
Friday, March 2, 2007
A corporation and a partnership company
A corporation refers to a business started by more than one person that seeks to sell shares to investors. A partnership also has more than one owner and both profits and liability are shared. The main difference between a partnership and a corporation is liability.
The liability of each member is protected in a corporation as personal risk is limited by the investment. A partnership, like a sole proprietorship, does not offer limited liability protection.
The liability of each member is protected in a corporation as personal risk is limited by the investment. A partnership, like a sole proprietorship, does not offer limited liability protection.
LIMITED LIABILITY COMPANY
A limited liability company is very similar in structure to a corporation, except that the number of owners such a company may have is limited -- hence the name. In the United States, a limited liability company is often referred to as an LLC -- many people incorrectly interpret this acronym to mean limited liability corporation. In the United Kingdom, a limited liability company is marked as Limited or Ltd., in contrast to public companies, which are referred to as PLC.
The limited liability company is a relatively new innovation in the United States, intended as a way to help small businesses gain many of the benefits enjoyed by corporations, while allowing them to retain their small business model of ownership.
A traditional corporation requires a number of things that a limited liability company does not need to create. Corporations have shareholders, for example, and must meet a certain number of times per year at shareholder meetings to make decisions. A limited liability company does not have shareholders and does not require meetings. Similarly, a limited liability company does not need to create a set of bylaws, though some states require an operating agreement in order to recognize the company.
The limited liability company model is widely considered to be an alternative to remaining as a sole proprietorship. For small businesses which are owned by one person, the tax benefits of being a sole proprietorship outweigh the liability-reducing benefits of incorporation. By becoming a limited liability company, however, these small businesses retain many of the perks of being unincorporated, while reducing their liability. A limited liability company may in fact choose its own tax status, deciding whether to be treated as a sole proprietorship, or an S or C corporation.
The limited liability company is a relatively new innovation in the United States, intended as a way to help small businesses gain many of the benefits enjoyed by corporations, while allowing them to retain their small business model of ownership.
A traditional corporation requires a number of things that a limited liability company does not need to create. Corporations have shareholders, for example, and must meet a certain number of times per year at shareholder meetings to make decisions. A limited liability company does not have shareholders and does not require meetings. Similarly, a limited liability company does not need to create a set of bylaws, though some states require an operating agreement in order to recognize the company.
The limited liability company model is widely considered to be an alternative to remaining as a sole proprietorship. For small businesses which are owned by one person, the tax benefits of being a sole proprietorship outweigh the liability-reducing benefits of incorporation. By becoming a limited liability company, however, these small businesses retain many of the perks of being unincorporated, while reducing their liability. A limited liability company may in fact choose its own tax status, deciding whether to be treated as a sole proprietorship, or an S or C corporation.
What is a social enterprise?
Social enterprises are businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.
Social enterprises tackle a wide range of social and environmental issues and operate in all parts of the economy. By using business solutions to achieve public good, government believes that social enterprises have a distinct and valuable role to play in helping create a strong, sustainable and socially inclusive economy.
Successful social enterprises can play an important role in helping deliver on many of government's key policy objectives by:
helping to drive up productivity and competitiveness;
contributing to socially inclusive wealth creation;
enabling individuals and communities to work towards regenerating their local neighbourhoods;
showing new ways to deliver public services; and
helping to develop an inclusive society and active citizenship.
Friday, February 2, 2007
Total Quality Management
Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, government, and service industries, as well as NASA space and science programs.
Total Quality provides an umbrella under which everyone in the organization can strive and create customer satisfaction.
TQ is a people focused management system that aims at continual increase in customer satisfaction at continually lower real costs.
TQM is composed of three paradigms:
Total: Organization wide
Quality: With its usual Definitions, with all its complexities
Management: The system of managing with steps like Plan, Organize, Control, Lead, Staff, etc.
As defined by the International Organization for Standards (ISO):
"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."
In Japan, TQM comprises four process steps, namely:
Kaizen – Focuses on Continuous Process Improvement, to make processes visible, repeatable and measurable.
Atarimae Hinshitsu – The idea that things will work as they are supposed to (e.g. a pen will write.).
Kansei – Examining the way the user applies the product leads to improvement in the product itself.
Miryokuteki Hinshitsu – The idea that things should have an aesthetic quality which is different from "atarimae hinshitsu" (e.g. a pen will write in a way that is pleasing to the writer.)
TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.
PHILIP KOTLER
Dr. Philip Kotler (born 27 May 1931 in Chicago) is the S.C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management at Northwestern University. He was selected as the #4 management guru of all time by the Financial Times (behind Jack Welch, Bill Gates, and Peter Drucker), and has been hailed by the Management Centre Europe as "the world's foremost expert on the strategic practice of marketing." Also considered one of the pioneers of social marketing.
Through his consulting firm, the Kotler Marketing Group (KMG), Dr. Kotler has consulted to many major U.S. and foreign companies - including IBM, Michelin, Bank of America, Merck, General Electric, Honeywell, and Motorola - in the areas of marketing strategy and planning, marketing organization, and international marketing.
tit bits
What is capitalism?
Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned. Under capitalism the state is separated from economics (production and trade), just like the state is separated from religion. Capitalism is the system of of laissez faire. It is the system of political freedom.
Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned. Under capitalism the state is separated from economics (production and trade), just like the state is separated from religion. Capitalism is the system of of laissez faire. It is the system of political freedom.
Subscribe to:
Posts (Atom)