Firms with cyclical sales should employ a high degree of leverage.  True or False?
399507
False.  Leverage means debt.  Debt means ability to generate payments.  If sales are cyclical, there will be some periods where income can easily service payments, but there will also be periods where it will be tough, which leads to the downfall of a business.
584340
Yes, it is possible.  You generally have to apply through your brokerage and state your occupation and salary just in case so they know.  \n\nBuying on Margin is more risky since you are borrowing. Be sure to check your brokerage's interest rates and their margin requirements and when they might do a margin call.\n\nIf you do get into trouble, I would advise selling your stock before raising more cash for your account.
426382
No, that led to all kinds of perversions of market forces in the past. Liquidity is also an issue. \n\nIf it ain't broke, don't fix it.
308898
Well whatever you do, don't ask an accountant.  Ask a financial advisor.\n\nBut in general, the selling price of a business is usually based on the amount of income or cashflow it generates.  A buyer will typically pay a multiple of that amount.  Whether that multiple is 5, 10 or 20 times depends a bit on what kind of business it is.  \n\nIf it's a great business with high profit margins and is growing at a fast pace and you're selling a product or service that's in high demand, a buyer may pay 20 times your earnings or cashflow.  (Ex., if it generates $100,000 per year in net income, the buyer may pay $2 million for it)\n\nIf it's a much slower growing business or is in any financial distress or is not as attractive, than the multiple will obviously be a lot less.\n\nThese multiples may be somewhat arbitrary, but keep this in mind:  Buying a business is like any other investment.  The buyer needs to earn an adequate return on that investment (with adequate being a different measure for different people).  If I require at least a 10% return per year on my investments, than I may not pay more than $1 million for your business that generates $100,000 in income.  And if there's risk that your business may not last more than a few years, than I certainly will not want to pay you more than the total cummulative amount of income it will generate over its remaining life.  So if your $100,000 annual income business will only be around for another 5 years, than I certainly won't pay more than $500,000 for it (although it will probably be much less than $500,000 after I adjust for the time value of money).\n\nAll of these factors combined are what go into this decision.  Again, it's all a bit arbitrary and there's no exact science for it, but hopefully this will at least serve as a guide.
926750
Yes, I have been in sales for almost 10 years and it does get trying sometimes. One thing you have to do is sell something you like and that will help tremendously. You also have to take a vacation every 3 months even if you don't go anywhere you just need to take some time for yourself to reset. I try to take a long weekend once a quarter (Friday-Monday) and do nothing it helps not thinking about anything for a few days.\n\nI have even thought of leaving sales business a few times but I can go back to working for the $ that people want to pay for hourly workers. That is the good and bad thing about sales you get paid more but with the $ comes stress.
1081421
Yes, returns are high ON ACCOUNTS THAT PERFORM.  And not all accounts do.
237664
In general, no. Maybe a few companies are paying an amout that is not in their best interest of the company, but oh well, companies make bad decisions all the time. Take executives pay into account before investing in the long term.
252125
entrepenuership (the selling of items)
330608
As an accountant, you could take it a number of ways.\n\nfrom a basic trend analysis, 2, 3, ? = 4\n\nWhat about the sales push (advertising)? Or return customers? Word of mouth sales? \n\nThen what about new products? product obsolescence? \n\nExpansion efforts? New or better trained staff? New equipment available to increase production and therefore sales?\n\nThere are other factors beyond the simple data above that should be considered.\n\nCheers, L
361100
That would depend on the business type. Can you clarify?
80751
Buyer bargaining power is HIGH when the purchase makes up a BIG percentage of the buyer's budget.  In other words, if the products represent a significant share of the buyer's total costs or total income, the buyer becomes extremely price-sensitive.  Additionally, when purchases are large, small concessions in price produce large benefits for the buyer.  \n\nThere are two types of buyer power. The first is related to the "customer’s price sensitivity". If each brand of a product is similar to all the others, then the buyer will base the purchase decision mainly on price. This will increase the competitive rivalry, resulting in lower prices, and lower profitability. \n\nThe other type of buyer power relates to "negotiating power". Larger buyers tend to have more leverage with the firm, and can negotiate lower prices. When there are many small buyers of a product, all other things remaining equal, the company supplying the product will have higher prices and higher margins. Conversely, if a company sells to a few large buyers, those buyers will have significant leverage to negotiate better pricing.\n\nHope it helps! :)
295566
Financial leverage:  "The degree to which an investor or business is utilizing borrowed money."\n\nIt is spelled leverage, like lever ("a type of simple machine; consists of a rigid bar that pivots about a fulcrum, used to transmit and enhance power or motion"). \n\nUsing borrowed money enhances the purchasing power of the investor's or business' money.
32976
The most important question that I would ask, and this would be true for any business that operates substantially on cash:\nQ: How much cash are you skimming off and not reporting?\n\nI have seen businesses sold, where instantly at the time of sale, the reported taxable income from the business jumps $5K or $10K a month.  Or I have seen businesses sold where on the basis of the reported assets and income of the business, they sold for way more money that they probably should have.
837941
nope cause the competitors also will use IT but not doing so spells disaster\n\nthe problem is deciding HOW MUCH to invest and where the company that gets the formula correct will be ahead in five years ( if the rest of the business model is correct )
449020
If you look at the marketing mix in ICT age you will find out that in win-win busineses some activities doesn't have a clear relationship with gain the capital or customer! Keep contact if you would like!
459344
False. If this was how GDP was calculated, 2 firms could infinitely trade products, spending the money they make to buy their products back, and be increasing the GDP. Doesn't matter if you don't understand that, but just remember, FALSE
835885
When it comes to commercial properties used to generate income, it is all about the cash flow of the property. The debt to income ratio becomes a factor only in evalauting the owner/investors as a guarantor.  So long as the cash flow can support a debt service coverage ratio of 1.2x (some lenders will do 1.1x but typically most look for 1.25x) all is good.\n\nThere are many ways to structure CRE loans...some are done as guidance lines of credit which offer an interest only component and there are also term loans but with an interest only carry fixed for a certain period and then the loan is either amortized fully at preferred fixed/floating rate or termed out. \n\nIn any event, the attitude of both the borrower and the lender is that the properties are to be held for a short term and eventually sold....very few of these deals are long term ventures so every one hopes to cash in when the property is sold.