Small Business Appraisal Essay Example | Topics and Well Written Essays - 3000 words

Small Business Appraisal - Essay Example However, there have been a number of Indian start ups in the domain, with quite a few bigger Indian business houses too throwing their hat in the fray. One of the most prominent start ups in foods and services retailing domain is Lite Bite Foods (LBF). LBF operates in the high growth segment of Quick Dining Restaurants (QDR) and Quick Restaurants (QR). It was founded by a group of High Networth Individuals and industry professionals, and has been funded by an Institutional Venture Capital firm. The firm has entered into strategic tie ups with a number of well known food brands, and is presently in the roll out phase. As per the company website, it already about half million square feet of retailing space under is management and is aggressively looking at adding more space. This small business was started to cater the need for fast food in Indian population. In the given project, the business as well as management of the business will be discussed after undertaking the theory of small business and entrepreneurship. ... ble for developing small businesses which were started by a single person, later on other family members like sons, relatives and friends might join with the owner which results in increase in the size of business. Many famous multinational business of today had started as a small business by a single owner. These examples act as motivations for millions of people to start their own small business. Even today the small business plays a vital role in gross domestic production in developed countries like US. As per a report published in September 2010, the multinational companies in US buy goods and services from more than 6,000 American small businesses that amount to $3 billion. This represents approximately 24 percent of the total buying done in US. Thus, these small enterprises are important partners of the US multinational companies. The government policies of US are also concerned for development of small business in America. As for example, the resent agreement of $ 1 billion fo r increasing new export by US firms will boost demand for goods and services and this will benefit the SMEs. As per the data, the small businesses are responsible for 99.7 percent that is $29.6 million business in US during 2008. Almost 49.6 percent of total payroll employment done in US is offered by small business. The young small business are important for creating new jobs as small business within the age of two years are accounted for creating 25 percent of new jobs in last few years (Business Roundtable, 2010, p.1-2). Not just in developed nations, even in emerging nations, the small businesses are important for the economy like China and India. There are several factors that influence small business growth in these markets. Among these factors, socio-economic condition, availability

FINANCIAL STATEMENT RATIO ANALYSIS CASE Study Example | Topics and Well Written Essays - 1750 words

FINANCIAL STATEMENT RATIO ANALYSIS - Case Study Example Financial ratio analysis is the calculation of harmonized relationship of figures that appear in the financial statements. These relationships are known as ratios and they are very useful in analyzing the financial performance and financial position of a business. The financial ratios enhance the comparison of different companies in the same industry since the financial statements alone cannot play this role due to the difference in size of businesses. These ratios measure the ability of a firm to make profit to its owners. They indicate the financial performance of a firm. The main profitability ratios are net profit margin, operating profit margin and gross profit margin. The calculation of net profit margin is (net profit/ sales) * 100%. The calculation of operating profit margin is: (operating profit margin/sales) * 100%. The calculation of the gross profit margin is (gross profit margin/ sales) * 100% (Bragg 54). These ratios indicate the level of efficiency in a business. The main management ratios are return on equity, return on assets and the inventory turnover. The calculation of return on equity is (net profit/ total equity) * 100%. The calculation of return in assets is (net profit / total assets * 100%). The calculation of inventory turnover is (inventory/ sales) * 100% (Bull 87). These ratios indicate the ability of a firm to finance its current debts using its current assets. The main liquidity ratios include; quick ratio, current ratio and the net working capital. The calculation of the current ratio is current assets/ current liabilities. The calculation of the quick ratio is (current assets - inventory) / current liabilities. The calculation of the net working capital is current assets – current liabilities. These ratios measure the going concern or the viability of a firm and its ability to meet its long-term debts. The main