Explain the term Depreciation, and state why it is considered to be a 'notional' type of expenditure.
Depreciation is a method of reallocating the cost of a tangible asset over its useful life span of it being in motion. Businesses depreciate long-term assets for both tax and accounting purposes. The former affects the balance sheet of a business or entity, and the latter affects the net income that they report. Generally the cost is allocated, as depreciation expense, among the periods in which the asset is expected to be used. This expense is recognized by businesses for financial reporting and tax purposes. Methods of computing depreciation, and the periods over which assets are depreciated, may vary between asset types within the same business and may vary for tax purposes. These may be specified by law or accounting standards, which may vary by country. There are several standard methods of computing depreciation expense, including fixed percentage, straight line, and declining balance methods. Depreciation is considered to be a notional type of expenditure because it does not actually result in a cash outflow for the business, but is rather charged in order to reflect the deterioration in the working condition of an asset.
What are the different styles of management according to Blake and Mouton? Give a brief explanation to each one.
According to Blake and Mouton, there are four management styles that can be adopted, and these are outline below alongside a brief explanation for each. Impoverished Management – Low Results/Low People The Impoverished or "indifferent" manager is mostly ineffective. With a low regard for creating systems that get the job done, and with little interest in creating a satisfying or motivating team environment, his results are inevitably disorganization, dissatisfaction and disharmony. Produce-or-Perish Management – High Results/Low People Also known as "authoritarian" or "authority-compliance" managers, people in this category believe that their team members are simply a means to an end. The team's needs are always secondary to its productivity. This type of manager is autocratic, has strict work rules, policies and procedures, and can view punishment as an effective way of motivating team members. This approach can drive impressive production results at first, but low team morale and motivation will ultimately affect people's performance, and this type of leader will struggle to retain high performers. Middle-of-the-Road Management – Medium Results/Medium People A Middle-of-the-Road or "status quo" manager tries to balance results and people, but this strategy is not as effective as it may sound. Through continual compromise, he fails to inspire high performance and also fails to meet people's needs fully. The result is that his team will likely deliver only mediocre performance. Country Club Management – High People/Low Results The Country Club or "accommodating" style of manager is most concerned about her team members' needs and feelings. She assumes that, as long as they are happy and secure, they will work hard. What tends to be the result is a work environment that is very relaxed and fun, but where productivity suffers because there is a lack of direction and control. Team Management – High Production/High People According to the Blake Mouton model, Team management is the most effective leadership style. It reflects a leader who is passionate about his work and who does the best he can for the people he works with. Team or "sound" managers commit to their organization's goals and mission, motivate the people who report to them, and work hard to get people to stretch themselves to deliver great results. But, at the same time, they're inspiring figures who look after their teams. Someone led by a Team manager feels respected and empowered, and is committed to achieving their goals.
List the different types of business entities.
The different types of business entity are as follows: public limited company (UK, Ireland and the Commonwealth) Ltd. (UK, Ireland and the Commonwealth) limited partnership unlimited partnership chartered company statutory company holding company subsidiary company one man company (sole proprietor) NGOs