Managing Financial Decisions Essay Example | Topics and Well Written Essays - 3000 words

Managing Financial Decisions - Essay Example On the other hand, sole proprietorship and partnerships have unlimited liability for shareholders. Although, it is easier to set up sole proprietorship or partnership as compared to the limited company, but limited companies have better access to external markets for funding and business opportunities. This implies that there is a separation of the business and individuals holding interests in the company. This type also has the advantage of being able to raise large amounts of funds from external sources. Also, the business is managed by a group of professional directors who have the experience and knowledge to operate different affairs of the business (Bendrey, Hussey, & West, 2004). In addition, only those profits, which are taken out from the limited company’s accounts are taxed as compared. Whereas, the entire profit of sole proprietorship is taxed. 1b Types of Source of Finance Types of Finance Definition Advantages Disadvantages Short Term Finance Trade Credit Credit ob tained by business for inventory and receivables management. It is less costly. It is easier to arrange. It does not require security. It is difficult to arrange large amounts. It is only trade related. Factoring Sale of receivables for cash in advance. It allows transfer of risk associated with credit sales. It frees up cash of businesses tied up in receivables. It is highly costly. It is not available to all kinds of industries. It involves complicated legal terms. Bank Overdrafts Short term borrowing from banks. It is not fixed for a specific period of time. It is suitable for businesses requiring finance occasionally. It is less costly for large companies. It is difficult to manage in periods of high interest rate volatility. It requires personal guarantees from owners or directors of the company. Medium Term Finance Loans Medium term borrowing from banks. It is for specific period of time and less fluctuation in interest payments. It allows businesses to ascertain the cost of f inance in advance. It allows businesses to negotiate terms of repayment according to their projections. It is faster to arrange such loans. It is costlier as compared to overdrafts. It can affect creditworthiness of the business if fails to meet loan obligations. Lease Obtaining the right of use of asset without purchasing them. Allows a business or individual to preserve liquid assets. Fixed repayments are required and the lender can not cancel the agreement on its own. It is difficult to arrange. It is difficult to record and report leases. It may not be possible to acquire all types of assets on lease. Long Term Finance Debt Finance Long term borrowing from banks or other finance providing companies. It allows access to larger pool of funds. It allows to upgrade equipment and machinery on regular basis. It requires security. It involves high interest charge due to its long-term nature. It is difficult to obtain loan for assets other than property in some countries. The accessibil ity to this type of finance depends upon assessment of creditworthiness of companies. It is finance against future profits of the business and can therefore restrict utilization of internal funds for business growth. Debentures and Loan Stock By issuing debt instrument in the secondary market.

Syndrome X Essay Example | Topics and Well Written Essays - 6250 words

Syndrome X - Essay Example Metabolic syndrome, clinically termed as "Syndrome X," is in fact a constellation of symptoms leading to hypertension, obesity, and lipid abnormalities. The main factor underlying all these symptoms are traced to a resistance to insulin on the one hand and excessive release of insulin on the other. Syndrome X has a history which is of recent origin. The obesity dimension to the syndrome was added on subsequently in order to reveal the interconnectedness of the symptoms. The main causative factors leading to Syndrome X relate to poor dietary habits and lifestyle related factors. These include diets with high fat content, abnormally rich consumption of refined sugar, sedentary lifestyles with low or no physical exercise and a genetic make up that makes an individual susceptible to Syndrome X. The incidence of Syndrome X in the Western world has assumed alarming proportions. For instance, in USA, data from the National Health Nutritional Survey for the years 1988 to 1994 reports that ne arly 50 million Americans exhibited symptoms of Syndrome X (1). In the year 2006 Syndrome X figures may be well past 75 million. Such a wide prevalence automatically qualifies this syndrome as a topic of research. The emphasis of the research is to develop several approaches towards treating Syndrome X. In fact Syndrome X has been a bane of affluent societies which have afforded a comfortable and luxurious lifestyles to their members with little of no physical exertions. Impact of Syndrome X and the Various Approaches Towards its Treatment Syndrome X has been defined with limited symptoms in its theoretical construct however its physical manifestations are far and wide. Though, invariably, it is associated as a major cause of cardiovascular disease, it is also acknowledged that the syndrome may be a big contributory factor and accessory in morbidity and mortality in other conditions like non-alcoholic fatty-liver, female reproductive disorders, polycystic ovary syndrome, disease, non-alcoholic steatohepatitis, gestational diabetes mellitus. It also seems to contribute to major changes in body eicosanoid profile, apart from having active roles in some other categories of cancer (2). With such far reaching adverse impacts, which also include leading to mortality and disabilities in major diseases the research discussions world wide have focused to obtain a single and comprehensive approach to the syndrome. While pharmacological approaches have