Define a Company. Explain its features and also explain advantages and disadvantages of forming a public company. Discuss the crucial importance of cash to a business. Is the profit that a business makes a reliable indicator of its cash balances? What is the reason for the existence of Corporate Governance? Discuss some principles of good governance as described by the Corporate Governance Code.

Foundations of Business - Standalone book (MindTap Course List)
4th Edition
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
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Please give me the solution of the following question:

  1. Define a Company. Explain its features and also explain advantages and disadvantages of forming a public company.
  2. Discuss the crucial importance of cash to a business. Is the profit that a business makes a reliable indicator of its cash balances?
  3. What is the reason for the existence of Corporate Governance? Discuss some principles of good governance as described by the Corporate Governance Code.
  4. Define Gearing and explain its advantages and disadvantages. Why might a bank be interested in a company’s level of gearing?

 

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