* An essential task of budgeting is to estimate the degree of resources or funds that will be required in the future to help crafted by set up offices, projects, and exercises. Another significant difficulty of budgeting is to recognize and evaluate elective ways that funds could be used all the more successfully to achieve a given set of strategy objectives or goals. The individuals who are liable for budgeting and appropriating funds will never make some easy time with both of these tasks.
* For strategy and program territories in which the processes fundamental spending requests are justifiable and moderately steady, gradual methods frequently get the job done to create sensibly exact evaluations of budget necessities.
* Since the spending process is protracted and spending requests are portrayed by vulnerability, offices think that its difficult to precisely estimate their budget needs when financial plans are drafted.
Answer: Business calculation is mathematics used by industrial companies to record and maintain enterprise operations. Profit-making organizations use mathematics in accounting, catalog management, retailing, deals forecasting, and monetary analysis.
Places minimum operating constraints on the firm. - Common stock does not have to be paid dividends so place no obligations on the firm.
Last to receive distribution of assets in the event of bankruptcy and liquidation. - CS is paid last when assets are liquidated as debt and preferred stockholders are paid off first.
Preferred Stock (PS)
May have cumulative and participating features. - Can be cumulative which means that if dividends are not paid in one year, the dividend will be accrued and eventually paid or they can be Participating which means that they can receive more dividends than they are entitled to.
May be convertible into another type of security. - Preference shares can be converted into other securities such as Common stock.
