Opening Cinema Business Plan Essays and Term Papers

Topics: Balance sheet, Accounts receivable, Generally Accepted Accounting Principles Pages: 1 (404 words) Published: December 16, 2012
Principles of Management, WT12/13


PoM: Exercise 3

1. Use the following criteria to characterize a single‐person enterprise, a general partnership  (OHG) , and a limited liability company (GmbH):  a) b) c) d) e) f) Minimum capital requirements  Number of founders/partners  Liability risk  Right of participation  Property Rights  Foundation of the enterprise 

  2. In  the  context  of  partnerships,  explain  what  is  meant  when  speaking  of  personal,  primary,  unlimited, and illimitable liability?   

3. Pear Inc. is one of the leading producers of consumer electronics. In the following you can see  the balance sheet at the beginning of the year 2011.    Pear Inc.  Balance sheet  For the year beginning January 01, 2011  (in  millions of U.S. dollar)    Resources                                                Sources  Cash                                                     450 Accounts payable                   300    Accounts receivable                            50 Notes payable                         400  Inventory (finished goods)              520  Contributed capital                250  Property, plant and equipment      380 Retained earnings                   500  Other assets                                         50                              1.450                       1.450 

  Over the course of the year the following activities occur:   

1. Pear Inc. pays out $60 million in cash as dividends to its shareholders.  2. Pear Inc. sells half of its inventory for $400 million on credit.  3. Two weeks before buying new machines, Pear Inc. takes out a loan of $150 million  from a bank to finance the next transaction (4.).   4. To produce the latest version of its mePad, Pear Inc. purchases the new machines for  $150 million in cash.   5. Pear Inc. pays out $90 million in cash as wages to its workers.  6. One of the managers of Pear Inc. buys himself a private jet worth $25 million, paying  in cash with his own money.  7....
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