Nature of Partnerships Essay Example for Free

Nature of Partnerships Essay Nature of Partnerships When starting a business, it can be with a sole proprietorship, a partnership, or as a company. A partnership is the most popular and the easiest to form. Partnerships combine individual talents and skills together for a hopefully successful business enterprise venture. Man has realized that it is easier to do something with the help of others than singly. Partners, also, provide a greater chance of obtaining equity capital for their business venture, while sharing the risks that go along with a rapidly growing business. There are basically three types of partnerships: the general artnership, the limited partnership, and the limited liability partnership. This paper discusses the general partnership. The definition of a partnership is the association of two or more persons to carry on as co-owners of a business for profit . Partnerships may be formed as a formal agreement or informally with a handshake. Either way, a partnership agreement should be written up with all the aspects of the partnership covered. Once the partnership agreement is filled out and agreed on by all partners, each partner will need to sign stating they are in agreement. A artnership agreement helps to alleviate any conflicts that may arise at any future date. When accounting for a partnership, it will depend on the accounting method stated in the partnership agreement. If any noncash assets were contributed, these will need to be assigned a fair value. Any noncash assets brought to the partnership are the property of the partnership . Each partner investing capital will have to be agreed upon by all partners. This investment will determine the ratio or percentage of net profit or loss to be divided between each partner. If there is no ratio or ercentage stated in the partnership agreement, then everything is divided equally. When setting up the accounting for the business, most accounting methods have multiple accounts for each partner. These accounts are the capital account, which shows the initial investment of each partner, the drawing account, showing any withdrawals taken over a years time, and the loan account, where partners can take a loan from the business. The capital account can be maintained in two different ways: the fluctuating capital method or the fixed capital method . The division of net profit equally. To account for this division, say S, T, and U decided to set up a partnership. S contributes $40,000, T contributes $30,000, and U contributes $30,000. This would be a ratio of 4:3:3. The total contributed to the partnership is $100,000. Profit for the first year is $300,000. Because the ratio is 4:3:3, Ss net capital would be $120,000. T and Us net capital would be $90,000 each, for a total of $300,000. If the partnership decides to add a partner, whatever was determined in the partnership agreement will determine what steps to take for adding this new partner. Adding a new partner normally adds profitability. If the partners decide to cease operations, there are two alternatives to help them decide which approach is better for the business: liquidation or dissolution. Liquidation refers to the complete sale of the business assets and dissolution refers to the closure of a business, often on voluntary terms of the business owner. Liquidation means that the business is closing its doors and liquidating all noncash assets and liabilities. Dissolution may mean that the partnership is dissolving and a new partnership, another partnership or business is buying out the business, or the business is dissolving. When considering dissolution, there are two types, a technical dissolution and a general dissolution . A technical dissolution is when there is a change in the composition of the bus iness. A general dissolution is a complete dissolution or winding up of the partnership and the business. The dissolution may result with a mutual agreement of all partners, a partner being served notice, a court order, fraud, misrepresentation, or illegal activity, or where the business is not making a profit. Whether liquidating or winding up a business, transactions to process are the collection of receivables, conversion of oncash assets to cash, payments to creditors, liabilities closed out, and the remaining distribution of net balance to the partners, in cash . When starting a business with a partnership, it is with the intent purpose of longevity.

My Worldview: Answers to the Questions of Origin, Purpose ,and Destiny

A worldview is a personal insight about the reality and meaning of life. We all see ourselves through a particular set of beliefs, attitudes, and values. Each persons worldview develops overtime as he or she experiences new events and interacts with the world that surrounds them. A worldview provides the answers to one’s origin, purpose, and destiny. Religion has a powerful influence on one’s worldview. For the Christian, the filter for which all information is processed is shaped by the truths found in God. The truth of God cannot be ignored as God has revealed himself in many ways. The Scripture is one way that God reveals himself to humankind. The Bible is God’s written revelation to humankind. There is a central theme that flows from the beginning to the end of the Bible. That theme is one of redemption and is key to my worldview. The first chapter of the Bible tells us, â€Å" In the beginning God created the heavens and the earth† (Genesis 1:1 New International Version). Let us start here, in the beginning, as we start to form a worldview based on Biblical facts. The universe did not simply appear out of nothing. God is the Creator of the universe and all that exists in the universe; including humankind. Because God is the creator, he is self-existent and is therefore greater than anything that was created. God has a Creator-creature relationship with humankind. Through creation God revealed his divine nature to humankind. He is infallible, truthful, just, holy, omnipresence, omniscience, and omnipotent. The will of God speaks to the sovereign authority God has over creation. God is in control of everything that happens. God formed a covenant with creation in which all creation was promised eternal life in exchange for obedien... ...s from our sins and to save us from going to hell. Because God also gave us free will, we have to make the decision to spend eternity in heaven and we need to make that decision before it is too late. My worldview has been a long and personal journey. I have not always lived with the Spirit in my heart. I have always believed in God but have not always had a strong relationship with God. A walk through the Word of God has shown me that God has always had a plan and has always taken the first steps in having a relationship with me. I see through my worldview that the Bible lays out God’s plan for my redemption. Through God’s redemption I now have a worldview that supplies the answers to the questions of origin, purpose ,and destiny. Works Cited Zondervan NIV Study Bible. Fully rev. ed. Kenneth L. Barker, gen. ed. Grand Rapids, MI: Zondervan, 2008. Print. My Worldview: Answers to the Questions of Origin, Purpose ,and Destiny A worldview is a personal insight about the reality and meaning of life. We all see ourselves through a particular set of beliefs, attitudes, and values. Each persons worldview develops overtime as he or she experiences new events and interacts with the world that surrounds them. A worldview provides the answers to one’s origin, purpose, and destiny. Religion has a powerful influence on one’s worldview. For the Christian, the filter for which all information is processed is shaped by the truths found in God. The truth of God cannot be ignored as God has revealed himself in many ways. The Scripture is one way that God reveals himself to humankind. The Bible is God’s written revelation to humankind. There is a central theme that flows from the beginning to the end of the Bible. That theme is one of redemption and is key to my worldview. The first chapter of the Bible tells us, â€Å" In the beginning God created the heavens and the earth† (Genesis 1:1 New International Version). Let us start here, in the beginning, as we start to form a worldview based on Biblical facts. The universe did not simply appear out of nothing. God is the Creator of the universe and all that exists in the universe; including humankind. Because God is the creator, he is self-existent and is therefore greater than anything that was created. God has a Creator-creature relationship with humankind. Through creation God revealed his divine nature to humankind. He is infallible, truthful, just, holy, omnipresence, omniscience, and omnipotent. The will of God speaks to the sovereign authority God has over creation. God is in control of everything that happens. God formed a covenant with creation in which all creation was promised eternal life in exchange for obedien... ...s from our sins and to save us from going to hell. Because God also gave us free will, we have to make the decision to spend eternity in heaven and we need to make that decision before it is too late. My worldview has been a long and personal journey. I have not always lived with the Spirit in my heart. I have always believed in God but have not always had a strong relationship with God. A walk through the Word of God has shown me that God has always had a plan and has always taken the first steps in having a relationship with me. I see through my worldview that the Bible lays out God’s plan for my redemption. Through God’s redemption I now have a worldview that supplies the answers to the questions of origin, purpose ,and destiny. Works Cited Zondervan NIV Study Bible. Fully rev. ed. Kenneth L. Barker, gen. ed. Grand Rapids, MI: Zondervan, 2008. Print.

Demand and Supply for Money

DEMAND AND SUPPLY FOR MONEY – MACROECONOMICS REPORT DEMAND FOR MONEY * What is Demand for Money? The demand for money represents the desire of households and businesses to hold assets in a form that can be easily exchanged for goods and services. Spendability, or liquidity, is the key aspect of money that distinguishes it from other types of assets. For this reason, the demand for money is sometimes called the demand for liquidity. * Many factors influence our total demand for money balances. The four main factors are 1. the level of prices 2. the level of interest rates . the level of real national output (real GDP) 4. the pace of financial innovation * Three Reasons or Motives for a Large Demand of Money Economists have identified three primary motives for holding money: †¢ To settle transactions, since money is the medium of exchange. †¢ As a precautionary store of liquidity, in the event of unexpected need. †¢ To reduce the riskiness of a portfolio of assets by including some money in the portfolio, since the value of money is very stable compared with that of stocks, bonds, or real estate. * Transaction Motives Money is an essential element in order to have a purchasing power. * This is money used for the purchase of goods and services. The transactions demand for money is positively related to real incomes and inflation. As an individual's income rises or as prices in the shops increase, he will have to hold more cash to carry out his everyday transactions. The quantity of nominal money demand is therefore proportional to the price level in the economy. * The  transactions motive  for demanding money arises from the fact that most transactions involve an exchange of money.Because it is necessary to have money available for transactions, money will be demanded. The total number of transactions made in an economy tends to increase over time as income rises. Hence, as income or GDP rises, the  transactions demand  for money also rises. * The transactions motive for money demand results from the need for liquidity for day-to-day transactions in the near future. This need arises when income is received only occasionally (say once per month) in discrete amounts but expenditures occur continuously. Example: Households and firms hold money or demand money in order to conduct regular payments of goods and services they purchase from the market. * The households and firms hold money to pay for daily expenses such as food, clothing, transportation, and rentals. * In other words, people hold money for transactions purposes – hence the motive is for transaction. * Precautionary Motive * This is money held to cover unexpected  items of expenditure. As with the transactions demand for money, it is positively correlated with real incomes and inflation. People often demand money as a  precaution  against an uncertain future. Unexpected expenses, such as medical or car repair bills, often require  immediat e payment. The need to have money available in such situations is referred to as the  precautionary motive  for demanding money * People need to be financially secure in the future, especially in financing or paying for unforeseen events. * Example: Money is used for emergency expenses such as hospitalization, accidents, contingency funds for unidentified household or business expenses. * Speculative Motives This is money not held for transaction purposes but in place of other financial assets, usually because they are expected to fall in price. * People want to earn the highest possible income from their different investments. Hence, they hold money to invest into assets or business prospects that have a promising steady flow of returns or income. * It depends on the decisions of households and firms to hold other assets that are liquid and free risks of depreciation in terms of money. * People hold money to make profits or avoid possible losses when the opportunity in the fina ncial market comes. Example: If the bank interest rate is low, the amount of money held for speculative purposes is higher while it is lower if the interest rate is high since the interest rate is the ‘opportunity cost’ of holding cash. QUANTITY THEORY OF MONEY (QTM) It states that the level of prices in the economy is dependent on the amount or level of money circulating in the economy. * The level of prices in the economy is basically the inflation rate. It is the rate at which prices are increasing. * Inflation – refers to the increase in the general level of prices and therefore is the result of too much money circulating in the economy.What would happen if there is an increase in the supply of or too much money circulating in the economy? * There is a possibility that every actor in the economy has so much money and it is natural for them to purchase goods or even services in the economy. An increase in the demand of goods and services without accompanying i ncrease in the available supply will cause the equilibrium price in the economy increase. This premise can be clearly explained if we discuss the quantity theory of money. The Quantity Theory of Money can be expressed by the equation: MV=PYWhere: M= quantity of money or money supply V= velocity of money P= price level Y= aggregate output * PY can be interpreted as the market value of output of the economy or the national income or the GNP. * PY refers to the total income or expenditure for the economy’s final goods. Since it is the value of all final goods and services produced in the economy. It is simply regarded as the nation’s GDP. * From the given equation, velocity of money or V can be expressed as the ration of GNP and money supply. Let us take a look at this equation: V=PYM= GNPM For instance, GNP is equal to P300 B while the amount of money supply in the economy is P50 B then the velocity of money is equal to 6. V= GNPM= 30050=6 * This means that a peso was us ed six times that year to purchase goods and services. * It also being interpreted as the speed of money per year in the circulation. * The QTM assumes that the velocity of money (V) and aggregate output (Y) are fixed, or at least for simplicity purposes, we assume that these factors do not change (or do not change much) MV=PY As a result of the assumptions we made, changes in prices level (or the inflation level in the economy) is directly proportional to changes in money supply * It means that a percentage increase in the money supply will cause an equal percentage increase in the price level or will lead to inflation. THE COMPONENTS OF THE MONETARY STOCK There is a wide range of financial assets in any economy. * Money in the economy is not confined to be circulating paper, bills and coins and the reserved money in the vaults of banks. * Money has many forms which comprises the monetary stock or the money supply in the economy.However, the question is, which part of these is call ed as or being considered as money? * The following table shows the classification of the monetary stock or the money supply. Definition of Money| Components| M1| Currency + Checking Deposits + traveler’s Check + other checkable deposits such as NOW and ATS| M2| M1 + Savings and Small Denomination Time Deposits + Money – Market Mutual Funds| M3| M2 + Large Denomination time Deposits + Repurchase Agreements| L| M3 + liquid assets such as securities (i. e. Treasury Bills), Bankers? Acceptances, Commercial Paper| M1 comprises claims that are liquid. This refers to claims that can be used directly, instantly, and without restrictions to make payments. It consists of items used as medium of exchange. * M2 includes in addition, claims that are not instantly liquid, those that may require notice to depository institution or banks. * M3 includes items that are held primarily by large corporations and wealthy individuals. * L consists of several liquid assets that are close sub stitutes for money. MAIN FEATURES OF THE COMPONENTS OF THE MONETARY STOCK Liquid Low interest earnings Less Liquid High interest earnings It should be noted that from M1 to L, the monetary stock is becoming liquid. M1 is directly used for transactions and L is less liquid and cannot be directly used for transactions purposes. * However, the trade-off is that if the individual hold more M1 than L, the individual is forgoing potential interest earnings from L. the L is being offered at a higher interest rate as compared to the M1. * In general, if you hold more M1, you are very liquid yet you earn little. On the other hand, if you hold more L, you find it very difficult to conduct day-to-day transactions yet you are earning much.Basic Concepts in Definitions * Currency * It refers to coins and bills (paper money) in circulation. * Checking Deposits * Accounts that grant a depositor the right to write checks to individuals, firms, or the government. This component is used in order to a void carrying large amount of money. * This particular component can be considered as money because checks are accepted as for of payments or exchange. * Traveler? s Check * It includes checks issued by non-banks such as American Express 8checks issued by banks are not checking deposits).It is usually used by travelers and tourists, since personal checks are not acceptable in other territories. Therefore, traveler? s check is generally accepted as payment in different territories. Negotiable Order of Withdrawals * A check is invented by thrift institutions as a way getting around the prohibitions of having checking accounts. It is almost same function as travelers check. * Automatic Transfers from Savings Accounts (ATS) * When deposit holders keep money in savings account, the bank automatically transfers from the savings account to the checking account when payment has to be made.This method is usually for bank to bank or institutional transactions. All commercial banks offer this service where savings account can be transferred to other forms of financial assets such as checks or current account (e. g. Land Bank ATS and Metro Bank ATS) * Savings Deposits * Deposits at banks that are not transferable by checks and are often recorded in a separate passbook or ATM (Automated Teller Machine) card kept by the depositor. * Time Deposits * These are the accounts in a bank which require certain maturity date. * Money Market Mutual Funds Interest-earning checkable deposits in financial intermediaries that raise funds by selling shares to individual savers and invest in short-term assets. In addition, these are built-in in all commercial banks such as the BPI Mutual Funds and PNB Mutual Funds * Repurchase Agreements * These are transactions in which bank borrows from a non-bank customer * The bank sells a security today and promise to buy it back at a fixed price tomorrow (that is why it is repurchase) * In that way, the bank gets to use the amount borrowed for a day * Liquid Assets These are assets that can be easily converted into cash such as stocks, cash on hand, cash in banks and accounts receivable- * Treasury Bills * Securities that are issued by the government that have certain maturity date. For instance, the Philippine Government treasury bills (such as the Centennial Treasury Bills). * Banker? s Acceptance * These are orders to pay specific amount at a specific time. This concept usually arises from future date and guaranteed by a bank that stamps it as accepted. * Commercial Paper * It refers to a liquid short term debt instrument issued by private corporations.

Comparison of Genesis I and Exodus 20 Essay - 672 Words

The purpose of the creation story is not central to the Bible but serves as a prologue to the historical drama, which are the central concerns of the Bible. The narrative focus in the Bible is on the story that begins with Noah and is centered on the exodus from Egypt. The central event in the Bible is the creation of the covenant and the giving of laws and commandments. Although the creation of the world in Genesis I and the pronouncement of the Ten Commandments in Exodus 20 are two completely different accounts in the Bible, there lies a similar theme between them: God creates an orderly and hierarchical universe, both natural and moral. In Genesis I, God creates an orderly natural universe. He separates and categorizes everything he†¦show more content†¦In conclusion, we human beings can rely on the order of nature to attain our ends. nbsp;nbsp;nbsp;nbsp;nbsp;In Exodus 20, God creates moral order. God’s way of separation and categorization is a model for human morality. Morality divides up actions into right and wrong, good and bad. To be moral is to categorize actions and circumstances appropriately and follow the correct rules in each case. The Ten Commandments serve as a guide for human beings to be moral. In disobeying these laws, God is well known to punish, starting with Adam and Eve. God punishes because punishment is necessary in order to create human beings who can be morally responsible for themselves. To be morally responsible, we must be able to do the following things: 1.nbsp;nbsp;nbsp;nbsp;nbsp;Recognize that we can choose to act one way or another. (Given the simplicity of life in the Garden of Eden, Adam and Eve were barely aware of this.) 2.nbsp;nbsp;nbsp;nbsp;nbsp;Be self conscious and self-aware. We must be capable of looking at our actions or interpreting our own actions. 3.nbsp;nbsp;nbsp;nbsp;nbsp;We must be able to compare our actions to some ideal or standard of morality. 4.nbsp;nbsp;nbsp;nbsp;nbsp;We must be able to stop and think before we act. Recognition of a failure to follow God’s commands brings about new capabilities. In violating God’s commandments, Adam and Eve come to learn that they can choose to liveShow MoreRelatedWhat Did I Learn About The Nature And Activity Of God? Essay2336 Words   |  10 PagesBOT 525 Week # 5 Reading Question 1: What did I learn about the nature and activity of God? God has continually sought out man throughout history, and He continues to draw them out today. The Israelites were called out to be a witness to what God had done for them during the Old Testament time period. 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