Present Value is the current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate‚ and the higher the discount rate‚ the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows‚ whether they be earnings or obligations. Present Value of annuity is a series of equal payments or receipts that occur at evenly spaced intervals
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it needs to be more attractive than its competitors in some way to sway consumers. Porter (1985 pp2) succinctly suggests that "If your product is not cheaper than anyone else’s or doesn’t serve me better or more conveniently than anyone else’s‚ why on earth should I use them?" A business entity needs to develop strategies to enable them to keen this competitive edge down to its sharpest point. This can be summarised as an entities strategic intent‚ the way in which it will apply its internal
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emeraldinsight.com/1755-4179.htm Shareholder and stakeholder theory: after the financial crisis Terence Tse ESCP Europe‚ London‚ UK Abstract Purpose – The recent financial crisis has restarted the debate of the value of both shareholder and stakeholder theories. This paper aims to continue this discussion. Design/methodology/approach – The paper reviews existing literature and examines the benefits and problems associated with these frameworks through the lens of the recent events which have taken place during
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Executive Summary Four Star Industries‚ one of the top local mattress manufacturers in Singapore‚ has been facing operational problems and ineffective inventory management which results in declining of its sales and order fulfillment year by year. Over three decades of its establishment‚ more and more varieties are added to its product range in order to satisfy its customers’ request and to remain competitive in the market. As a result‚ high inventory build-ups and high inventory holding costs occur
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------------------------------------------------- Chapter 1 1. Agency Problems. Who owns a corporation? Describe the process whereby the owners control the firm’s management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context‚ what kinds of problems can arise? R= The owners of a corporation are the Shareholders. They control the firm’s management by controlling the corporation’s direction‚ policies and activities. First‚ they elect a Board of Directors‚ who then
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Rights of Shareholders. Introduction: A shareholder is an individual or company that legally owns one or more shares of stock in that company. Shareholders are the owners of companies. A small business may have just one shareholder‚ the founder‚ while a public company may have thousands of individual and institutional shareholders‚ such as mutual fund companies‚ pension funds and hedge funds. Shareholders play an important role in the financing‚ operations‚ governance and
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Why might a business firm pursue other objectives besides the objective of maximum profits? What objectives other than profit maximisation might a firm pursue? Is this possible in a competitive world? The traditional theory of business behaviour tends to make a general assumption that businesses possess the information‚ market power and motivation to set a price and output that maximises profits. Profits being defined as the difference between the total revenue received by a firm and the total
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service or a company (Johansson‚ 2006). Those markets are not only defined within country boarders‚ but are also defined by buyer preferences that are similar across countries. Recently‚ going global becomes a trend. As Crespy (1986) indicated‚ firms should turn themselves into global corporations otherwise they will lose out to the new wave. Therefore‚ not only big sized business‚ even the smallest businesses have already extended their businesses to foreign markets. One of the best examples is
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Task B Answer the following questions 1. Why is it important to safeguard children and young people? 2. Explain why a person-centred approach is important in safeguarding the well-being of children or young people 3. Explain what is meant by partnership working in the context of safeguarding 4. Complete the following table describing the roles and responsibilities of the different organisations that may be involved when a child or young person has been abused or harmed.
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Toward a knowledge-based theory of the firm ROBERT M. GRANT ‚ 1996‚ SMJ Presentation of the article The different theories of the firm when applied to the field of strategic management help explain firm performance and the determinants of strategic choice from different perspectives. The knowledge-based view‚ through its focus upon knowledge as the most strategically important firm resource‚ is seen here as an extension of the resource-based view. The issues with which the KBV concerns itself
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