We understand what is a trial balance. But what then is an Adjusted Trial Balance? An adjusted trial balance is a trial balance taken from the general ledger accounts after ADJUSTING JOURNAL ENTRIES but before CLOSING ENTRIES have been posted. Adjusting journal entry is the record made of an accounting transaction giving effect to the … Read more
The advantages of using stock financing are: Common stock does not obligate the firm to make fixed payments to stockholders Carries no fixed maturity date Increases the creditworthiness of the firm thus increasing the future availability of debt at a lower cost Can often be sold more easily than debt if the firm’s prospects look … Read more
Benefits or advantages of decentralization: Easier for senior management to delegate responsibility if the enterprise is split into divisions. By delegating responsibility, the managers might be motivated to work harder Decisions will be made more quickly as the divisional managers will not need to send information up to top management and then wait for instructions … Read more
Role of recruitment consultant: · To perform the staffing function on behalf of the management of the client organization re: filling vacancies with the type and calibre of staff required Tasks of a Recruitment consultant normally includes the following: Analysing, or being informed of, the requirements-the demands of the post, the organization’s preferences for qualifications, … Read more
Potential advantages on labour turnover in an organization might include the following: Opportunities for an organization to inject “ NEW BLOOD ” . New people brings new ideas and outlook, new skills and experience in different situation. ABSENCE of this might create an increasingly AGED workforce; Creation of opportunities for PROMOTION AND SUCCESSION. Absence of … Read more
360-degree feedback: Also known as “multi-rater instruments” and “multi-source assessment” Unlike traditional basis where it recognizes that the employee’s immediate boss is not the only or necessarily the best person to assess his or her performance. Designed to enable all the stake-holders in a person’s performance to comment and give feedback which includes the current … Read more
Common Goals a business organization aim to achieve when seeking strategic alliance: Cost savings Increased market share Financial stability Supply chain improvement Increased productivity Better competencies and skills Technological sophiscation Improved customer services
The following explains what is strategic alliance and the major reasons for seeking it: Strategic Alliance: A long term agreement between two or more firms for a certain period of time to achieve mutual benefits Partners agree to cooperate in carrying out business activities to create new strength and capabilities Some of the major reasons … Read more
Append below a table to briefly explain what is Mercantilism Theory: Mercantilism Theory: A political economy system developed in the 16th century by the European states to enrich their nations Aimed at generating wealth by limiting imports and encouraging exports Under such theory, the economic growth of a country was managed through International Trade to … Read more
In International Trade, there are several level of regional integration which are as follows: 1. Free Trade Area 2. Preferential Trade Agreement 3. Common Market 4. Custom Union 5. Economic Union 6. Political Union FREE TRADE AREA ( FTA): An agreement between two or more countries to remove all trade barriers between themselves. Each country … Read more