Assignment 1 - EMMA OGRADY BBUS 3201 Assignment 1 March 2...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
EMMA O’GRADY BBUS 3201 Assignment 1 March 2, 2016
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Q. 1: a) I = 4 ; N=10 ; PMT=0 ; FV=600,000 ; PV=405,338.50 b) PV= -500,000 ; N=16 ; i=2.5 ; PMT=0 ; FV=742,253 c) PMT=20,000 ; N=20 ; i=3.8 ; FV=0 ; PV=276,684 Q. 2: WA1-7 Having a two-tiered system in developing the GAAP for public versus private companies has its advantages and disadvantages. Private companies tend to operate in a more local environment and are managed by the owner/investor. Often in private companies the management tends to focus more on long-term profitability which can affect the way decisions are made about money allocation. The investors of private companies are often made up of the owner, internal investors and sometimes a few external parties. Because these investors aren’t publically trading shares on the stock market, private companies are not required to release all their financial information to the public. They are however expected to follow financial standards laid out by the AcSB. The AcSB is primarily responsible for setting standards based on the needs or private companies, not-for-profit entities, and pension plans. This is often helpful for a private company because the AcSB recognizes that the key investors of a private company tend be close to the company and already have knowledge of the practise, and often don’t need or want a complicated set of financial reports to make decisions. AcSB also recognizes that since private companies often operate locally, they don’t have a complex business model compared to public companies that operate on a more international level. If, however, a private company sees itself as potentially expanding into the public they
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern