INTRODUCTION “Every individual necessarily labors to provide the annual revenue of the people as much as he can. He ... neither means to promote the community interest, nor knows how greatly he is promoting it. He means only his own profit, and he is in this, as in various other situations, led by an invisible hand to uphold an end which was no part of his aim. By pursuing his own interest he often promotes that of the public more effectively than when he really plans to promote it. (Smiths 1776: 246) by www.feedbooks.com Adams Smith theory of “Invisible hand” has been criticized and/or applauded by many Economists who came after him, based on the scope of this work, some of these Economists and their theories will be analyzed.
For instance, Carnegie presented his library named Carnegie Library, he considers this “the best kind of philanthropy” (Ernsberger). By this he indicates the correct way a wealthy individual should live,is by giving back to the community. On the contrary, Richard argues this as negative affect to the company due to the loss of income. Richard believes that Carnegie shouldn’t have spent his money on helping the community instead, he should have continued to invest it on the steel industry. Overall, Richard views Carnegie as “little capitalist who urged presidents to do right things in Philippines, Panama and international diplomacy [but] had never done the right or moral thing as a businessman,” (Ernsberger).
Going Concern is one of fundamentals to prepare financial statement so company has to keep that assumption valid to successfully operate the business and to keep shareholder’s confidence alive. Dual Aspect Concept It states that every transaction have two concepts Dr & Cr. Increase in an assets results in the reduction of cash whereas increase in liability result in the increase in
The Younger family has grown up without much and when the father dies, he leaves an inheritance that can get the family into a comfortable living position. The only problem is that they all want to use the money for different reasons. Each character wants to make their own dreams come true. They do not want to sacrifice their own dreams to please the others. Unwilling to make a sacrifice proves to bring more animosity in a family as shown in A Raisin in the Sun by Lorraine Hansberry through conflict involving money and how the characters handle their actions.
It has the lowest priority of claims and comes after any form of debt financing. The return of this type of financing is completely dependent on the success of the post transaction entity to generate enough cash flows to pay a dividend to equity holders. Company management are usually required to provide 2/3 of their wealth as company capital. It is important not to force management to tie too much of their wealth in the LBO target, because they could become too risk averse, but at the same time guarantee they are incentivized to succeed in their role and that their incentives are aligned with those of the fund participants. Sometimes management already own equity in the target company and therefore they only have to roll over their equity into the new entity.
If there is government interference, it means that there is no free market anymore. When government participates in an economy, it will regulate many policies to control privates’ productivities and economic system. Truthfully, there are no others who can respond to consumers’ demand as good as producers, so their decision without any control from government is the best (Economicshelp). Furthermore, the presence of government usually comes together with a fiscal policy. It influences on aggregate demand directly (Fundamentalfinance).
Financial security is a most desired kind of security in life ,right from the very first moment a person begins to know what money is and he/she begins to take financial responsibilities, the person begins to desire a financial security in life. Financial security doesn't just come by wishing ,or because am working or I have a good job sometimes doesn't guarantee financial security.There are lots of factors that must be considered and things to put in place that will give you financial security.Continue reading to find out what will guarantee your financial security in life. What is financial security? Financial security can be best defined as the kind of peace you have when you don't have to worry about how much money that comes into your
Introduction A business cannot be managed without accurate, adequate and up to-date financial information. An accounting department is vital for any business entity in order to provide adequate and reliable information that is much needed to serve various interested parties both inside and outside the organization. Accountants produce financial information that is essential for adequate decision making process (Smith, Keith, & Stephens, 1989). Management relies heavily on the data and financial reports produced by a firm 's accountants in making vital decisions regarding many important aspects such as products and services pricing, inventory costing system, payroll, income distribution and future investment (Smith, Keith, & Stephens, 1989). The work accountants do is sometimes confused with bookkeeping.
CHAPTER 1 1.0 INTRODUCTION Today, managerial accounting plays an important role in many organizations. Managerial accounting is an alternative term for management accounting which defined as the procedure of preparing management accounts that provide precise and timely key financial and statistical information to make day-to-day and short term decisions by the managers in the organizations (BusinessDictionary.com, 2015). A crucial role of managerial accounting is to deliver economic and financial information for managers and other internal users in making decisions as well as add value to an organization. (Siegel, 2015) states that adding value to organization means assisting managers operate the business by providing significant information