Firm Essay Samples and Topic Ideas
firm management is responsible for determining whether the firm will distribute dividends or not. Dividends may be paid either in cash or bonus stocks. In the case given the firm has never distributed cash to its shareholders. Distribution of dividend is important to the firm. Payment of dividends has an impact on the stock prices. This is because payment of dividends is an indicator of the financial well-being of the firm. The certainty of the good financial performance of business results in the increase in stock prices. The increase in stock prices results in achievement of shareholders wealth maximization goals. Those investors who are in need of a secure current income require a firm that pays...
- Words: 275
- Pages: 1
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firm applies conservative credit standards for bad and moderate accounts while good accounts receive liberal standards. The importance of this is to ensure that quality of the firm’s customers is not compromised and good clients are not pushed away by a stringent policy (Yang & Birge, 2013). The credit terms available ensure the firm’s clients receive competitive packages in comparison to those prevailing in the market for the benefit of both parties (debtor and creditor). The credit policy in place also ensures that the firm is not faced with liquidity problems and thus is able to meet its short-term obligations when they fall due given that most of its purchases are on credit. Overdrafts...
- Words: 275
- Pages: 1
firm had a current ratio of 1.25 in 2015, and 1.05 in 2016. This indicates the ability of the company to pay its debts from its assets is decreasing and therefore it might need a loan for it sustain itself. It also shows that the company’s liquidity is declining. Secondly, the debt ratio of the company which shows the amount of debts it has compared to the assets on the balance sheet. Starbuck had a debt ratio of 1.87 in 2015, the ratio reduced to 1.68 in 2016. This means that the company’s dependency on borrowed money reduced and therefore it stands a chance to be given a loan. Moreover, lenders want the debt ratio to be too low for them to be able to extend credit. Despite having debts in...
- Words: 275
- Pages: 1
firm or an industry producing a product has no competitor in that given field. This gives an organisation or a firm the power to set its labour prices. In most times, the company takes advantage of this by paying the labours a crippling amount, even when they are receiving a huge profit. Governments find this inappropriate since it is a mode depleting the citizens. This has led to anti-monopoly laws and anti-trust bodies such as to mitigate such...
firm is structured as ownership interests or corporate shares depending on the form of legal entity. Where the firm is a corporation, the ownership is in the form of possession of shares. It is only an ownership interest if the enterprise is a non-stock unit. The two common types of corporate stock possessions are the preferred and common stocks. The common stock refers to the residual ownership in the company. When the stockholders are paid their share, some net asset remains and forms what is referred as residual ownership. The preferred stock represents both the equity and debt. Unlike in the preferred stock, the owners of the common stock share in the corporations profit via the rising share...
- Words: 275
- Pages: 1
firm and the kind of offerings that are made to the customers by the organization. The very common marketing strategy used in UMB is the advertisement strategy On the advertisement strategy organizations have to organize meetings with advertising firms to check out what cost they will face in the ad processes. They would then discuss what kind of advertisement is suitable for that organization. The following plan will show how UMB will meet their set goals and when it will meet...
- Words: 275
- Pages: 1