Understanding The Concepts

misgiving THE CONCEPTS Page 1. rationality The Concepts Melissa Young Lorna Johnson invent 100 2/26/2012 UNDERSTANDING THE CONCEPTS Page 2. 1. Imagine your be a small play possessor. How will you analyze your transmission line organisation using ratios? comparability it to the financial ratios that are distinguished to a financial motorbus for a large corporation. I am the manager of a residential house cleanup service. The number of the business is called Melissas Home Cleaning. We specialise in cleaning the inside of the home, much(prenominal) as kitchen, bathrooms, bedrooms, dens or family rooms, pleasure rooms, livingrooms, and finished basements. Our services provided dress pop from dusting, sweeping, mopping, running the dish wash uper, cleaning appliances, countertops, sinks, vacuuming, doing laundry, cleaning tubs and toilets, ironing and hanging clothes, wash windows, light fixtures and ceiling fans, and excretion the trash cans. Our unions assets are cash, inventory, accounts receivable, building, hold of furniture and fixtures. My liabilities are notes and accounts payable, item liabilities. The do assets are round $65,000, and my total liabilities are close to $18,000. My total rightfulness is $47,000. This gives my conjunction a 72% equity ratio.

This ratio is important to companies because it is a full indicator of leverage used by a play along. 2. beg off the advantages and disadvantages of debt backing and why a composition would choose to way out stocks rather than bonds to generate funds. wizard advantage of debt financing is that it allows the founders of the company to maintain control and proprietorship of the company. The possessor of the company does not have to answer to any unmatchable, such(prenominal) as; investors or partners. The proprietor of the company is the only one who gets to make all of the decisions. The owner will, also, own, all, the profits that are made. other advantage is that, all, interest the owner pays on a give is tax deductible. Interest is, usually, strand on...If you want to get a full essay, order it on our website: Ordercustompaper.com

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