Understanding the Concepts

Understanding the Concepts

The primary theme of the paper is Understanding the Concepts in which you are required to emphasize its aspects in detail. The cost of the paper starts from $99 and it has been purchased and rated 4.9 points on the scale of 5 points by the students. To gain deeper insights into the paper and achieve fresh information, kindly contact our support.

Understanding the Concepts

INSTRUCTIONS:
Write a 4-5 page paper in which you: 1. Imagine you are a small business owner. Determine the financial ratios that are important to the business. Compare your ratios with those that are important to a manager of a larger corporation. 2. Explain the advantages and disadvantages of debt financing and why an organization would choose to issue stocks rather than bonds to generate funds. 3. Discuss how financial returns are related to risk. 4. Describe the concept of beta and how it is used. 5. Contrast systematic and unsystematic risk. 6. Imagine your manufacturing corporation has just won a patent lawsuit. After attorney and other fees, your corporation will have about $1 million. Explain how you plan to invest the money in order to diversify the risk and receive a good return. Support your decisions with concepts learned in this course. Your assignment must follow these formatting requirements:  Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.  Include a cover page containing the title of the assignment, the student`s name, the professor`s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
CONTENT:
Understanding the Concepts Name: Course: Professor Name: (May 17, 2012)  Understanding the Concepts Introduction In running a business organization, there are various important concepts that need to be put in place by the management. These concepts apply to both small and large business entities. This paper addresses the important financial ratios applied in a small business in comparison to those applied in a larger organization. The paper farther addresses the issue of debt financing, its advantages and disadvantages and the way it is applied in businesses. The concept of beta is also an important factor in a business and for that it is not left behind in this paper. Systematic and unsystematic risks are also important matters that are discussed through the paper and how they are applied in businesses. This paper will seek to analyze the importance of understanding the concepts of running a business. Main Body A financial ratio is a relative amount of two identified and selected numerical values in a given business taken from its financial statements. The ratios are used to indicate the business` performance and financial position. The information provided by the financial statements is majorly used to calculate various ratios (Bragg, 2006). To begin with, the liquidity ratios provide a clear indication of a business` ability to meet the short-term financial requirements. A smaller business contains smaller budgets that run for a short period of time. On the other hand, large organizations have large financial budgets that are basically long-term in nature (Bragg, 2006). The asset turnover ratios in a small business indicate how well it utilize...
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