Financial Statment Essay Example | Topics and Well Written Essays - 500 words

Financial Statment - Essay Example Aside from liabilities, stockholders’ equity can also be used to finance a business. The accounting equation (assets = liabilities + stockholders’ equity) must always balance. As such, funds for new assets must come from one of liabilities or stockholders’ equity but not both. Unlike the balance sheet, the income statement provides a snapshot of how productive a business is at any given time. An income statement is usually used for a fixed time period, either one month or one year. The income statement contains two main categories: revenues and expenses. Revenues are any funds that come into a business, while expenses are anything that goes out. The key purpose of an income statement is to find out the net income of the business. This is calculated by subtracting expenses from revenues. Investors are concerned with the net income of a company because it can show if a business is profitable or not. The retained earnings statement is linked to the income statement in that the net income is added to the retained earnings statement. From this amount, some of the net income is paid out to shareholders as dividends. However, in most circumstances, a company would retain a significant portion of its net income in order to reinvest it in the business. Investors are interested in the retained earnings statement of a company because it can tell them how committed the company is to its long-term growth. Finally, a statement of cash flows is primarily used to show where cash came from and how it was spent. There are three main activities where cash can be derived from: (1) operating activities, (2) investing activities, and (3) financing activities. Investors are concerned with the statement of cash flows because they want to see how a company chooses to spend its cash. Also, a company that has very little cash on hand is perhaps not a wise one to invest in. Comparative statements can be completed for any of the

Integrated Marketing and Communication Term Paper

Integrated Marketing and Communication - Term Paper Example However, depending on the context and environment in which the business is operating, different interpretations of IMC have evolved. IMC has gained importance from both academic researchers and corporate decision makers. According to academic scholars, the concept of IMC cannot be defined with the help of any rigid definition. An in depth understanding of the various ways of marketing communication would be useful in explaining the huge utility of this term in the present business context and the marketing activities made by companies all over the globe (Drummond & Ensor, 2005). Integrated marketing communications The procedure followed in integrated marketing communications refers to a series of activities made by companies in succession to one another. These activities are â€Å"the strategic analysis, choice, implementation and control of all elements of marketing communications which efficiently, economically and effectively influence transactions between an organization and its existing and potential customers, consumers and clients† (Panda, 2007, p. 524). ... This applies to any category of corporate organization that deals with any kind of product or service. Companies can however, customize each individual process of this entire system according to the marketing objectives and production goals of the organization. For all the years since 1950, companies have used this concept of marketing communications as an all inclusive notion of marketing that acts as an envelope to all the different levels of marketing activities and communication of the companies. However, the technique of integrating these varied functional areas strategically into the functioning of the companies differs from company to company. The approach is unique to the pattern of resource allocation made by the company and also its position and status relative to its competitors (FitzGerald, 2000). In this paper the concept of integrated marketing communications has been critically evaluated and the different elements of this process have been studied in order to device a single strategy for marketing communications. The prime aim of this strategy would be to allow companies to achieve customer satisfaction by following IMC. It would help companies to identify target audiences from the markets and frame the most appropriate strategy to communicate with them. Companies generally use multiple channels of communication. In order to generate best results, the strategy developed through the IMC process should be consistently used while executing each of all the communication functions made by the firm (FitzGerald, 2000). IMC Strategy & Plan Every organization runs its business with a three-fold objective; increasing market share, maintaining competitive advantage over the current rivals of the company and