A company can have investments in other companies in the form of:
1. Ordinary shares,
2. Preference shares and
3. Loan stock.
The investment in ordinary shares leads to ownership and therefore requires further consideration.
TRAINING AND DEVELOPMENT
Training programs are directed towards maintaining and improving current job performance, while development programs
seek to develop skills for future jobs.
Training programs are mainly concerned with the technical aspects of the
Any company will invest finance for the sake of deriving a return which is useful for four main reasons:
To reward the shareholders or owners of the business for staking their money and by foregoing their current
Hire purchase is where there is an option to purchase an asset in instalments.
In this case, the sum of all instalments will finally be higher than the cost price. The difference between the Hire
Purchase price and the Cost Price is known as
Cost Classifications and Estimation
Cost classification may be defined as the arrangement of cost items in a logical sequence having regard to their nature and
purpose to be fulfilled. The term cost must be qualified when in use in order that its precise
Factors That Affect Capital Structure
Availability of securities This influences the companys use of debt finance which means that if a company has
sufficient securities, it can afford to use debt finance in large capacities.
SOURCES OF FUNDS
Bills of exchange
Plastic money Debenture finance
For small companies, this is personal savings (contribution of owners to the company)
DIVIDEND POLICIES AND DECISIONS
Dividend policy determines the division of earnings between payment to stock holders and re-investment in the firm. It
therefore looks at the following aspects:
How much to pay this encompassed in the four major alterna
The Partners may convert their business and trade inform of a company. This may be due to some of the advantages a company
has over a partnership. Eg Limited liability of members and the number of members of a company can be more
IFRS 4: INSURANCE CONTRACTS
Accounts of Insurance Companies
Insurance is a form of contract or agreement under which one party undertakes to indemnify another party the losses
suffered due to specified causes in consideration for a fixed sum of money know
This is an important statistical concept which refers to interrelationship or association
The purpose of studying correlation is for one to be able to establish a relationship, plan
and control the inputs (independe
This is a concept, which refers to the changes which occur in the dependent
variable as a result of changes occurring on the independent variable.
Knowledge of regression is particularly very useful in business statistics where it