Friday, December 13, 2019
With the use of Microsoft Outlook Express, it will be easier for business inclined individuals to stay on track oneÃ¢â¬â¢s mail and the schedules for that matter.Ã The E-mail, for instance, plays a major role in bridging people together.Ã In the field of business, it may help individuals share documents and files 24 hours a day, seven days a week with Microsoft Outlook Express features. We will write a custom essay sample on Microsoft Outlook Express or any similar topic only for you Order Now Find files / mails faster: Outlook helps create intellect of all the e-mail received.Ã Search Folders or fundamental folders include views of all e-mails match to the precise exploration measure, aside from that, it lets you speedily split significant messages from those you desire to disregard. Thus, search folders as well ensign precedence messages first, so as not to waste time in deleting and reading messages you do not want / expect. Further, it also separates out most of junk mails to a different folder, un-cluttering the inbox. In addition to that, working offline makes one use an e-mail account through Microsoft Exchange Server; can work offline while away from the office or if net link is too sluggish. Outlook then tries to connect to the server when desired to or when chosen to do so in the Ã¢â¬Å"Send/ReceiveÃ¢â¬ item. Ã Moreover, business contact manager feature integrates with Outlook, turning the address book into a potent gizmo that can create, track, and administer your business associates, sales leads and various opportunities.Ã With all these features, it is evident that Microsoft Outlook makes business easier.Ã Hassle-free and sufficient managing of files through this software benefits any profession, at that. How to cite Microsoft Outlook Express, Essay examples
Thursday, December 5, 2019
Question: 1. Bonza Handtools Ltd. manufactures a popular power drill suitable for the home renovator. Financial and other data for this product for the last twelve months are as follows : Sales 20000 units Selling price $130 per unit Variable manufacturing cost $50 per unit Fixed manufacturing costs $400000 Variable selling and administrative cost $30 per unit Fixed selling and administrative costs $300000. The directors of Bonza Ltd. want to try to increase the profitability of this product and invited senior staff to suggest how this might be done. Three suggestions have been received. The accountant, Jan Rossi, believes that a price increase of $10 per unit is the best way to boost profits. She would spend an additional $125000 on national advertising and contends, that if this is done, sales volume would not drop appreciably from last year. The production manager, Tom Tune, thinks that an improved quality product could increase sales volume by 25% if accompanied by an advertising campaign costing $50000 aimed at tradespeople as well as home renovators. The improved quality would add $5 per unit to the variable cost. Mr Tune believes that the price should not be increased. The sales manager, Mary Watson, wants to undertake a promotion campaign where a $10 rebate is offered on all drills sold during the three months beginning 1 April. Normally 6000 units are sold during that period and Ms Watson believes that this could be boosted to 10000 units if an advertising campaign costing $40000 were launched late in March. You have been asked by the Bonza board to comment on each of these three proposals. Draft a report in response to this request. You are not asked to make an outright choice, but rather to analyse the potential strengths and weaknesses. The sales volumes forecast by each staff member should be treated as estimates only and your report should examine the effects of variations in actual sales from these forecasts. Give figures to support your comments and mention qualitative factors that may also be involved. 2.The Tassie Company estimates that next year it will manufacture and sell 150000 units of its product. On the basis of that level of activity, it has budgeted for the following costs and prices per unit: Direct Material Cost $2.50 Direct Labour Cost 3.00 Variable Factory Overhead 1.50 Fixed Factory Overhead 2.00 Manufacturing Cost 9.00 Variable Selling and Administrative Cost 2.00 Fixed Selling and Administrative Cost 1.50 Total Cost/p 12.50 20% Mark-up 2.50 Selling Price $15.00 The Company has an opportunity to bid for the supply of an additional 40000 units of its product to a government department. No sales commission (variable selling and admin. cost) is involved and no additional fixed costs will be incurred. Give a reasoned opinion on the level of the bid that should be made in each of the following two circumstances: (i) The capacity of the Tassie Company's factory is 200000 units per year. (ii) The capacity of the factory is only 180000 units per year. 3.Critically discuss the following statements: Word limit for Question 3 - 750 words a budget is a forecast of what is expected to happen in a business during the next year budgets are okay but they stifle all initiative. No manager would work for a business that applies control through budgets. any sensible person would start with the sales budget and build up the other budgets from there. a budget trying to be realistic will not motivate best performance. only adverse variances are worth investigating, because favourable variances, by definition, must be good. 4. ABC Ltd makes trailers. It receives a special order to produce 350 trailers for a local retail outlet. The order will take 2,100 kg of material that costs $16.10 per kg and will require 1,400 direct labour hours and 525 machine hours. The following are the expected/budgeted annual costs for ABC Ltd: Direct labour $327,600 Direct labour hours 25,795 Direct materials $193,200 Indirect costs $98,400 Machine hours 9,840 Required: Calculate the overhead allocation rate: note that the process is labour-intensive Calculate the total costs of the special order Calculate the cost of the special order if ABC Ltd uses machine time as the basis for allocating overheads Calculate the minimum price per trailer that ABC Ltd could accept. Explain how segmented overhead cost pools and activity based costing can assist accurate costing for pricing purpose (200 words) 5. Write around 500 words explaining how segmenting the overheads can help in allocating overhead costs to individual jobs or services. You must support your discussion by real world examples and acknowledge the source of your information (referencing). Answer: (1)Proposal 1 Particulars Amount ($) New sales price 140 per unit Total sales 2800000 Old sales Price 130 per unit Total sales 2600000 Profit on old sales price Total sales 2600000 Variable manufacturing cost 1000000 Fixed manufacturing cost 400000 Variable selling and administrative cost 600000 Fixed selling and administrative costs 300000 Total expenses 2300000 profit 300000 Profit % 11.53% Profit on new sales price Total sales 2800000 Variable manufacturing cost 1000000 Fixed manufacturing cost 400000 Variable selling and administrative cost 600000 Fixed selling and administrative costs 300000 Additional advertising expenses 125000 Total expenses 2425000 Profit 375000 Profit % 13.39 Proposal 2 Particulars amount ($) Total sales 2600000 Variable manufacturing cost 1100000 Fixed manufacturing cost 400000 Variable selling and administrative cost 700000 Fixed selling and administrative costs 300000 Advertising campaign 50000 Total expenses 2550000 profit 50000 Profit % 1.923077 Proposal 3 Particulars 3 month period 9 month period Sales (units) 10000 14000 Selling price per unit 120 130 Revenue 1200000 1820000 Variable manufacturing cost 50 50 Total variable manufacturing cost 500000 700000 Fixed manufacturing cost 400000 400000 Variable selling and administrative costs per unit 30 30 Total variable selling and administrative cost 300000 420000 Fixed selling and administrative costs 300000 300000 Profit 400000 Analysis On analyzing the profit percentages in proposal 1 it is seen that on increasing the selling price the company is able to incur 13% profit which more compared to the old selling price. However the expenses of the company are also increasing by 5% due to the additional advertising expenses of 125000. The second proposal however shows a decrease in the profit percentage by10% due to inclusion of advertising campaign expenses by 50000. Hence it is not an advisable option. In case of the third proposal no calculation can be shown because the sales manager makes a budgeted forecast of the sales units to increase by 400units if an advertising campaign is introduced. The adoption of all the three scenarios is possible in this case. The third scenario also focuses on the companys ability to increase the profit by 33% and the company can make sales for the reminder 9months. The suggestion regarding the promotional camping is beneficial for the company although the company will have to make hig h advertising expenses however the correct media exposure will be beneficial. 2. Particulars amount amount Sales units 150000 Selling price / unit 15 Total sales 2250000 Total cost per unit 12.5 Total cost 1875000 Profit 375000 Scenario 1: Particulars Amount Amount Sales units 150000 40000 Selling price / unit 15 15 Total sales 2250000 600000 Total cost per unit 12.5 10.5 Total cost 1875000 420000 Profit 555000 Scenario 2: Particulars Amount Amount Sales units 150000 30000 Selling price / unit 15 15 Total sales 2250000 450000 Total cost per unit 12.5 10.5 Total cost 1875000 315000 Profit 510000 As per both the scenarios it is seen that Tassie Company is able to increase the profit in the first scenario however according to the second scenario the rate of increment of profit is lower than the first scenario. 3. 1. A budget is a forecast of what is expected to happen in a business during the next year The budgets are the financial forecast of the business firms and the mangers in preparation of the budget develops future cash flows, balance sheet and income statement. This helps the companies to forecast and present the amount of assets, liabilities and cash flow the company is expecting to have in the coming 3 to 5years. Tsai (2010) opined that development of good financial budget helps in controlling of cash and make a financial position for the company. Moreover a budget is a plan that generates a vision for the company to achieve the forecasted financial position. 2. Budgets are okay but they stifle all initiative. No manager would work for a business that applies control through budgets The budgets are seen to provide the managers with indications as to the scopes of improvements and motivate them to make their performance better. Howver the managers are required to work and structure their objectives according to the forecasted budgeted figures. Hence Droms and Wright (2010) opined that the managers would not have any scope of showcasing any innovativeness within the business decisions if the works of the company are completely controlled by budgets. 3. Any sensible person would start with the sales budget and build up the other budgets from there According to Kuppapally (2010), the major limiting factor in every business is the sales or the revenue rates. Hence mangers should prepare the sales budget first. The right forecast of the sales budget will make the achievement of the other budgets easily. If the limiting budget factor that is the sales budget can be prepared then the other budgets can be created consistent with the sales budget. 4. A budget trying to be realistic will not motivate best performance The managers aims at establishing realistic budgets which will show the stringent business policies and cost reduction methods that should be incorporated in order to make the budget realistic. However these types of budget dose not encourage or provide motivation for performance because the stringent policies and the low sale rate will de motivate the performance level of the employees. 5. Only adverse variances are worth investigating, because favorable variances, by definition, must be good The favorable variance is the excess amount that the company receives as a surplus over the budgeted amount. Hence when a company incurs favorable variance the investigation is not required. However for a favorable variance over a certain minimum level should be investigated to judge the flexibility of the budget (Tsai, 2010). 4 Case 1: Overhead allocation rate Particulars rate Labor hour rate 12.70014 Material cost 33810 Labor cost 17780.19 Indirect cost 98400 Other cost 6667.5 Overhead allocation rate 5.53 Case 2: Total cost of Special order Particulars Amount Material cost 33810 Labor cost 17780.19 Other cost 6667.5 Total cost 58257.69 Case 3: Total cost with machine hours Particulars Amount Material cost 33810 Labor cost 14000 other cost 5250 total cost 53060 Case 4: Minimum price per trailer Particulars Amount Total cost 58257.69 Total unit 350 Minimum Price per trailer 166.4505429 Case 5: Segmented overhead cost pools The segmentation of the overhead cost pools helps the managers to analyze the total overhead cost and also the source of the cost. In case of ABC analysis the cost pool method is essential for identifying the cost drivers of the indirect and direct material costs. Hence the segmentation of the costs using the cost pool method will help the companies to realize in which segment is the company incurring the higher amounts of cost an d what measures should be taken by the company to reduce the costs in order to make the profit and cash flow high (Kuppapally, 2010). 5. According to Coleman et al. (2010) allocation of overhead costs is important mainly for the firms having more than one product or activity or more than one operating department. The overhead cost allocation allows the manger to calculate the profitability of a product line separately and also determine the economic impacts of the various alternative policies and business plans. Moreover the allocation of overhead also helps the managers to charge the overheads specifically to the areas for which the costs are incurred. The concept of allocating overhead costs to the different departments is known as the departmentalization. For instance in an office the overhead costs are distributed according to the following departments namely service departments, purchasing department, shipping department, receiving department, personnel department and security department. Droms and Wright (2010) opined that different parameters are used for the allocation of the individual overheads. Indirect expense category Basis of distribution Rent Square feet Automotive Managers decision Land insurance Square feet and area Utilities and Machineries Horsepower per hours Managers salary Sales margin, number of employees Water and electricity charges Estimates usage Three different kinds of methods namely direct method, sequential method and reciprocal method may be used for the allocation of the overhead to the different departments. Andriani et al. (2010) opined that the Activity based costing (ABC) costing is used by the majority of the companies to allocate costs by using several cost pools organized according to the same type of activity. The following example shows the overhead cost allocation as per ABC costing. Problem: Particulars Amount ($) Total estimated overhead costs 8,000,000 Major types of departments Purchasing materials Setting up machines Running machines Assembling products Inspecting finished products Cost driver for each activity Purchasing materials Setting up machines Running machines Assembling products Inspecting finished products 10,000 requisitions 2000 setups 90,000hours 250,000 hours 20,000 hours Solution: Activity Cost driver Estimated costs (A) ($) Estimated cost driver activity (B) Predetermined overhead rate (A / B) Purchasing materials Purchase requisitions 1,200,000 10,000 $ 120 per requisition Setting up machines Machine setups 1,600,000 2,000 800 per set up Running machines Machine hours 2,700,000 90,000 30 per machine hour Assembling products Direct labor hours 1,500,000 2,50,000 6 per direct labor hour Inspecting finished products Inspection hours 1,000,000 20,000 50 per inspection hour Reference list Books Droms, W. and Wright, J. (2010).Finance and accounting for nonfinancial managers. New York: Basic Books. Kuppapally, J. (2010).Accounting for managers. India: PHI Learning Journals Andriani, Y., Kober, R. and Ng, J. (2010). Decision Usefulness of Cash and Accrual Information: Public Sector Managers Perceptions.Australian Accounting Review, 20(2), pp.144-153. Coleman, L., Maheswaran, K. and Pinder, S. (2010). Narratives in managers corporate finance decisions.Accounting Finance, 50(3), pp.605-633.. Tsai, H. (2010). Accounting essentials for hospitality managers.Current Issues in Tourism, 13(1), pp.93-95.
Thursday, November 28, 2019
Is Prospero a power obsessed tyrant or an egalitarian? Paper The fact that Miranda says that Prospero, left me to a bootless inquisition, showing that Prospero has complete power over her life as he is the only person who can actually tell her who she is. Bootless, shows that Miranda finds the knowledge completely useless. This shows that Prospero has complete control over what he wants Miranda to know, and is being autocratic in having this power. Prospero manipulates the characters in to doing what he wants. His main method is the use of magic. Prospero conjures the tempest which eventually brings Ferdinand, Mirandas future lover, to the island. He has done this so that he can regain his kingdom by using Ferdinand as a link to the Dukedom. By using Miranda and Ferdinand in this way, Prospero is treating them like slaves, which is similar to how he treats Ariel and Caliban. By gaining complete control this way, Prospero is being autocratic, as he has used neither for nor fair means to gain this control. Prospero longs for his dukedom back, and in my opinion has the right to try and regain power. Prosperos main reason for losing control was that he had to much trust in his brother, Antonio. The fact that Prospero conjured the tempest and brought Antonio to the island, shows that he is obviously hell bent on revenge. This gives the opinion that Prosperos view on just is an eye for an eye. Although this seems equal, as though Prospero wants to overthrow Antonio like Antonio overthrew Prospero, we know that Prosperos view of justice is unbalanced as he in turn, overthrew Caliban. Again, this shows that Prospero is not an egalitarian. The fact that he has used magic to try and regain his kingdom can also prove this. Antonio did not use magic but used Prospero to gain the dukedom. We will write a custom essay sample on Is Prospero a power obsessed tyrant or an egalitarian? specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Is Prospero a power obsessed tyrant or an egalitarian? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Is Prospero a power obsessed tyrant or an egalitarian? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer If Prospero was an egalitarian, he would try to use Antonio to get his dukedom back fairly. All of these points can argue that Prospero is neither an egalitarian, nor a power obsessed tyrant. Prospero may use unethical means such as imprisonment to gain power; however a true tyrant uses force and death to gain control, something Prospero did not use. He manipulates people through magic and mental knowledge to get what he wants. By using magic to gain control this gives Prospero an unfair advantage as he is the only possessor of this power. By using this advantage Prospero is definitely not an egalitarian. Towards the end of the story, it is more apparent that Prospero is more autocratic in his ruling. At the end of The Tempest, Prospero forgives everyone on the island. This obviously shows Prospero to be kinder than we may have thought prior to the event. By forgiving everyone, this rules out whether Prospero is an egalitarian or a tyrant. A tyrant would never forgive an enemy, so therefore Prospero cannot be a tyrant. If he was a tyrant, Prospero would have killed his enemies. An egalitarian would always try to balance the scales of justice. By forgiving, Prospero has given up seeking revenge and cannot be an egalitarian. A true egalitarian would have equalled the injustice put upon him. From these points, it is my opinion that Prospero can be described as an autocrat. He controls with complete power without the use of fear, murder or equality, so is therefore an autocrat. I believe that this term describes Prospero accurately. He does have complete control over the island and all the character and can therefore be described as an autocrat. Prospero says to Miranda, so safely ordered, that there is no soul. Prospero tries to protect Miranda by saying that some situations are more acceptable than they really are. These are his thought and he is trying to make Miranda believe what he thinks. This shows a domineering side to Prospero as he likes everyone to abide by what he believes. He is obviously domineering towards Caliban and Ariel as well. He imprisons them both so that he can have complete control over them. Finally, he is domineering toward all the character he brings to the island as he uses his magic to gain complete control over them. This shows that he is obviously power obsessed and likes to have a complete hold over everyone. Overall, the points explore tend to disprove that Prospero is an egalitarian or a power obsessed tyrant. What I do believe is that Prospero is an autocrat obsessed with keeping everyone under his control. Gary Cummins Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE The Tempest section. Download this essay Print Save Heres what a teacher thought of this essay 4 star(s)
Sunday, November 24, 2019
5 Problems with Parallelism 5 Problems with Parallelism 5 Problems with Parallelism By Mark Nichol 1. Ã¢â¬Å"It was a serious distraction and threat to more meaningful reform efforts.Ã¢â¬ Something is wrong with this sentence. To diagnose the problem, remove one of the noun phrases from the beginning of the sentence and determine whether the remaining statement is still correct, then replace it and remove the other one. Ã¢â¬Å"It was a serious threat to more meaningful reform effortsÃ¢â¬ is correct, but Ã¢â¬Å"It was a serious distraction to more meaningful reform effortsÃ¢â¬ is jarring because the preposition is not idiomatically appropriate. The noun phrases are supported by different prepositions, so they cannot share the word to; assign the correct preposition to each one: Ã¢â¬Å"It was a serious distraction from and threat to more meaningful reform efforts.Ã¢â¬ Should the word threat be preceded by the article a to make it parallel with distraction? No, because serious applies to both nouns, and an additional article would isolate threat from the shared adjective. Also, the phrase Ã¢â¬Å"and threat toÃ¢â¬ appears to be parenthetical, but itÃ¢â¬â¢s not necessarily necessary to set it off by commas, parentheses, or em dashes. However, enclosing it in parentheses suggests a whispering insinuation, and using em dashes would signal a provocative interjection, so the context might merit either parenthetical strategy. In either case, though, threat should be assigned a repetition of serious Ã¢â¬Å"It was a serious distraction from (and a serious threat to) more meaningful reform effortsÃ¢â¬ or a distinct adjective (Ã¢â¬Å"It was a serious distraction from and a grave threat to more meaningful reform efforts.Ã¢â¬ ) 2. Ã¢â¬Å"Elected officials and activists representing forty-five environmental groups attended the event.Ã¢â¬ When two or more nouns or noun phrases follow one or more adjectives (as in the previous example), the assumption is that the modifying word or words applies to each noun. In this case, however, the subject consists of the elements Ã¢â¬Å"elected officialsÃ¢â¬ and Ã¢â¬Å"activists representing forty-five environmental groupsÃ¢â¬ linked by a conjunction, not Ã¢â¬Å"elected officials (representing forty-five environmental groups)Ã¢â¬ and Ã¢â¬Å"(elected) activists representing forty-five environmental groupsÃ¢â¬ joined by and. To clarify this distinction, recast the sentence: Ã¢â¬Å"Activists representing forty-five environmental groups, as well as elected officials, attended the event.Ã¢â¬ 3. Ã¢â¬Å"He has to be, if not the, one of the stupidest people in TV news.Ã¢â¬ The basic statement here is Ã¢â¬Å"He has to be one of the stupidest people in TV news,Ã¢â¬ but the writer has failed in an attempt to suggest the superlative as well, awkwardly implying also that Ã¢â¬Å"he has to be the stupidest person in TV news.Ã¢â¬ (The superlative is the ultimate form of an adjective, more extreme than the basic form stupid, in this case Ã¢â¬â and the comparative, stupider.) But Ã¢â¬Å"if not theÃ¢â¬ collides with Ã¢â¬Å"one of theÃ¢â¬ ; the unstated and incorrect complete thought is, Ã¢â¬Å"He has to be the stupidest people in TV news.Ã¢â¬ To smooth out this disjointed sentence, introduce the superlative first in a complete thought, and then retreat to the milder criticism in a following modifying phrase: Ã¢â¬Å"He has to be if not the stupidest person in TV news, then one of the stupidest.Ã¢â¬ Note that a comma does not follow be, because doing so would imply that two commas are necessary to set Ã¢â¬Å"if not the stupidest person in TV newsÃ¢â¬ off from the basic sentence Ã¢â¬Å"He has to be then one of the stupidest,Ã¢â¬ and thatÃ¢â¬â¢s a faulty grammatical analysis. This sentence is constructed from a simple Ã¢â¬Å"if, thenÃ¢â¬ foundation, so use a single comma to separate the two propositions. 4. Ã¢â¬Å"He kept a house there as well as homes in rural Oxfordshire, England, and Miami.Ã¢â¬ This sentence implies that the subject kept three additional homes: one in Oxfordshire, one in England, and one in Miami. (It also incorrectly suggests that, as in the second example above, a single adjective applies to all nouns that follow.) What the writer meant, as we determine momentarily which is one moment too late is that one additional residence is located in Oxfordshire, England, and another is in Miami. When one or more Ã¢â¬Å"city, stateÃ¢â¬ or Ã¢â¬Å"city, nationÃ¢â¬ constructions are associated with a Ã¢â¬Å"cityÃ¢â¬ reference, the sentence must be revised to clarify the hierarchy of referents. One solution is to distance the two objects with proprietary prepositions: Ã¢â¬Å"He kept a house there as well as homes in rural Oxfordshire, England, and in Miami.Ã¢â¬ Another, clearer choice is to do so but also place the simpler referent first: Ã¢â¬Å"He kept a house there as well as homes in Miami and in rural Oxfordshire, England.Ã¢â¬ 5. Ã¢â¬Å"The company was to be paid between $300 and $400 million.Ã¢â¬ This Ã¢â¬Å"you know what I meantÃ¢â¬ bungle is inoffensive but incorrect, and should be corrected on principle because a similar but more egregiously ambiguous construction would definitely merit revision, so why be inconsistent and excuse one but not the other? The two figures in question are $300 million and $400 million, and for the sake of clarity, the first instance of million should not be elided: Ã¢â¬Å"The company was to be paid between $300 million and $400 million.Ã¢â¬ The same principle applies if the range is separated by the word to: Ã¢â¬Å"The company was to be paid $300 million to $400 million.Ã¢â¬ However, when the sentence does not apply to orders of magnitude Ã¢â¬Å"Compliance ranged from 50 to 75 percentÃ¢â¬ the operative word need not be repeated, because no ambiguity about the relation of the first number to the second one exists. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Style category, check our popular posts, or choose a related post below:15 Terms for Those Who Tell the Future75 Idioms and Expressions That Include Ã¢â¬Å"BreakÃ¢â¬ When to use "an"
Thursday, November 21, 2019
What finance options are open to a fast growing UK Listed Maritime Company that is looking to expand - Assignment Example The market failure mayÃ arise from imperfect information fuelled by volatile economic conditions where lenders become risk averse. #1 Critical evaluation of the difference between debt and equity from the perspective of a UK listed company Listed companies have a broad range of financing options available to them, which include debt and equity (Graham and Smart, 2009, p. 44). Companies utilize a blend of debt and equity funding to finance their operations. Companies bearing high credit ratings can borrow money at low interest, besides selling shares at a premium. Debt refers to money raised from banks and bondholders, while equity refers to money raised from the shareholders. In return for investing their money in a company, shareholders are rewarded with a percentage of the company (a share). Equity financing refers to issuing additional shares of common stock to investors. The issuing of common stock decreases the previous stockholdersÃ¢â¬â¢ percentage of ownership. Debt financ ing is often accompanied by strict conditions or covenants, besides having to pay interest and principal on stipulated dates. Debt Sources of Financing Debt financing incorporates collateralized bonds, leases, bank overdrafts, debentures, lines of credit, and bank loans. A bond refers to a written promise to pay back a certain amount of money on a stipulated date in the future. In the interim, bondholders receive interest payments at fixed rates on stipulated dates. Debt financing typically includes an interest rate of about 3-8% depending on theÃ debt and the arrangement. The face value, maturity date, and coupon rate are evaluated at the time the bond is issued (Morris, McKay and Oates, 2009, p. 328). The shareholders assume all the risks and rewards from debt financing. As a result, debt financing can be relatively less expensive compared to equity finance depending on the expectation of the equity financiers. Equity Sources of Financing Companies usually seek capital from inve stors through the issuance of either common or preferred shares. Equity financing may also incorporate employee stock options. Equity funding does not incur interest or have to be repaid. Debt financing is usually more risky compared to equity financing, although equity financing is more expensive (Gleyberman, 2009, p. 8). Some of the advantages of debt financing include interest payments being tax deductible and that there is no dilution of ownership to the existing equity holders. The disadvantages of debt financing include the fact that the debt holder has priority over the company assets during liquidation. Besides, in cases where the investor doubts the capability of the company to meet interest payments, investors may demand higher interests to compensate for the uncertainty. In addition, there are several covenants associated with debt instruments that may constrain a companyÃ¢â¬â¢s freedom of action (Albrecht, Stice, Stice and Swain, 2011, p. 507). In debt financing, loan repayment should be done on a predetermined date even if the business is in a loss. The cost to the company in debt financing is known beforehand. The cost to the company in debt financing is straightforward to predict, plan, and repay. Equity financing has several advantages such as no current payments due and no preferential rights on the companyÃ¢â¬â¢s assets. The process of raising funds through equity