Understanding the Concepts Assignment Example | Topics and Well Written Essays - 1000 words

Understanding the Concepts - Assignment Example Understanding the Concepts Quick ratios are the other important ratios for the small business, where the current assets of a business entity, with an exception of the inventories, are compared to the current liabilities to determine how best the business is placed in meeting its current cash payment obligations. Profitability ratios are also vital for a small business, since they help the business determine how much profits it has generated within a specified period of business operation (Bangs, 1992). In so doing, the business understands its performance, ranging from the effectiveness of its operations to how well the business is placed to compete with other businesses of its nature, serving the same market segment. Through the creation of such insights, developed from the analysis of financial ratios, a business makes suitable, tactical and strategic decisions that help it thrive in the market while improving on its operations effectiveness; customer needs satisfaction and profitability (Horcher, 2005). These ratios compares with those applied by large corporations in that, the same ratios are applied by the large corporations for the same reasons, as are for the small businesses. Thus, such ratios are equally important to the managers of large corporations, as they are to the owner managers of small businesses. However, some financial ratios are more appropriate to aid the process of making decisions in large corporations. Such ratios, which are more useful to the managers of large business entities include the debt to asset ratios, which compares the debts that an organization has, to the assets owned by the organization, thus determining how well the organization is placed to meet its debt obligations (Bangs, 1992). Return on asset ratios are the other important ratios for the large corporations. These ratios analyses how the assets of the organization has been generating returns. Such ratios, which are more appropriate for the large corporations, differs from those most suitable for small businesses in that, the financial ratios for larger organizations mostly deals with the assets and the debts owed by the entity, as most of the large organizations owns many assets as well as debt obligations. This is in contrast to the small businesses, which owns fewer assets, and which are mostly financed from the pockets of the owners, making such ratios not very vital for such businesses (Horcher, 2005). Debt financing is mostly applied by business owners who do not have sufficient finances to establish or to finance the operations of their business, yet they prefer to have total control of their business, at the expense of inviting investors into their business, who will take some control. There are various advantages associated with this type of business financing. First, the owner of the business retains the full control of the business, while obtaining the required financing to run the operations of the business (Bangs, 1992). Therefore, the owner of the business reserves the whole privilege of making the business decisions to himself. The other advantage associated with debt financing is the fact that the interest paid by the owner of

Partition of India Essay Example | Topics and Well Written Essays - 2000 words

Partition of India - Essay Example The first major revolt against the British rule occurred in 1857 when the soldiers of the British Indian Army carried out a mutiny and offered their services to the Mughal Emperor. This mutiny quickly spread to other parts of India and it is argued that the uprising, which seriously threatened the British rule in India, was undoubtedly the culmination of mounting Indian resentment toward the social and political policies perpetrated by the British over many decades. The mutiny was eventually thwarted. Nonetheless, all political power was now transferred from the East India Company to the Crown and in 1858, Britain began to directly control most of India. The late nineteenth and early twentieth century would see the growth of new political parties and ideological groups which continually called for the end to direct British rule in India. With the end of the Second World War, the Indian subcontinent witnessed a major political power shift that not only emancipated the country from col onial rule, but also divided the nation into two independent countries, India and Pakistan. The political leaders from these two countries, having fought together for independence from the British, ultimately concocted schemes for the division and partition of the country. The plans for the partition started as early as the end of nineteenth century with the implementation of the British divide and conquer strategy. Under this administrative policy, the British worsened the existing conflicts.... However, the British rule turned increasingly unpopular (Singh 1990). The first major revolt against the British rule occurred in 1857 when the soldiers of the British Indian Army carried out a mutiny and offered their services to the Mughal Emperor. This mutiny quickly spread to other parts of India and it is argued that the uprising, which seriously threatened the British rule in India, was undoubtedly the culmination of mounting Indian resentment toward the social and political policies perpetrated by the British over many decades. The mutiny was eventually thwarted. Nonetheless, all political power was now transferred from the East India Company to the Crown and in 1858, Britain began to directly control most of India. However, the clamour for equal rights and independence mounted. The late nineteenth and early twentieth century would see the growth of new political parties and ideological groups which continually called for the end to direct British rule in India. With the end of the Second World War, the Indian subcontinent witnessed a major political power shift that not only emancipated the country from colonial rule, but also divided the nation into two independent countries, India and Pakistan. The political leaders from these two countries, having fought together for independence from the British, ultimately concocted schemes for the division and partition of the country. The plans for the partition started as early as the end of nineteenth century with the implementation of the British divide and conquer strategy. Under this administrative policy, the British worsened the existing conflicts between the Hindu and the Muslim