Assignment 1: Exploration of a Journal Article in Sociology
Identify the pros and cons of the partnership as a form of ownership.
Owning your own business can be a very rewarding and lucrative experience. This experience
even though rewarding can come at a tremendous cost of personal time and personal financial
investment. Enlisting the efforts and finances of a partner can aide in successfulness of the
business while sharing the financial burden and the responsibilities in starting and operating the
business. With the right partnership relationship the businesses owners could use the combined
abilities and talents in making the business ...view middle of the document...
Small Business loans can be acquired through the Federal Business Administration
which assist business owners in finding Small Business Administration loans.
Another avenue of getting money is to attract investors. Investors can be private, family
members, other business owners, and silent partners. Having investors means that all of the
business decisions are made solely by the primary owner. The profits are shared amongst the
Venture Capital is another avenue of business funding. Venture capital involves selling interest
in your company with other companies or financial groups dedicated to helping small businesses
grow to larger operations. The SBA assists small businesses in securing venture capital and can
help facilitate your introduction to firms who take interest in your type of business.
Determine and discuss how managerial accounting can help managers with product costing,
incremental analysis, and budgeting.
A firm’s management accounting system helps managers with product costing throughout a
company to measure costs and assigns them to the correct products and services. Without
accurate information managers would be operating without a clear direction in setting prices,
determining the right mix of goods.
Incremental analysis evaluates the financial impact of different situations in decision making in
business. Examples of incremental analysis may include whether a firm should; hire janitors or
contract the work out to professional cleaning service companies, Manufacture components or
acquire them from other suppliers, Hire and maintain a full staff and service shop to repair and
perform preventative maintenance on fleet vehicles. To make this determination managers must
analyze each situation would affect the company revenues and cost.
Budgeting is a tool that identifies how a company will acquire and utilize the revenues over a
specific period of time. A budget...