chapter 4 financial instruments

Long term company finance can be classified as share capital and loan captial

Ordinary shares - most common type not fixed dividend

Preference shares - payed fixed dividend

convertiable preference shares - can change to ordinary shares

Debentures - loans are secured on some or all assets of the company, regulated by a trust deed which is overseen by a trustee, may secured by a fixed charge on specified assets or by a floating charge across a class of assets

unsecured loan stock is no security for the loan convertible unsecured loan stock give the holder the right to convert into ordinary shares

Eurobond is a form of unsecured laon captial that is issued outside the legal and tax jurisdiction of any county

A warrant ....(wor lun) is a call option written by a company on its own stock

RISK

secure level

Denbentures-Eurobonds and unsecured loans- preference share and equity-convertible shares or loan stock

Return

Highest to lowest -equity-preference-unsecured loans-eurobonds-denbentures

Marketability

Equity-othes depends on the size of the issue

chapter 3 Taxation

personal taxation - income both earned and unearned (investment and rent), captial gains, inheritance, wealth, profit from operating as a sole-trader or partner

a personal's taxable income for a certain year will be reduced by any allowances to which they are entitled

corporation tax - a companys accounting profit has to be adjusted to taxable profit by

adding back on any business expenses or potential expenditure that are not allowable

adding back depreciation and deducting the captial allowance

deducting any special relifs

captial gain tax

double taxation relief

One more week exam is coming

just type notes here first subject

CT2 Finance and Financial Reporting

This is a thing accounting also need to learn during year 3 but we doing it this year

its just talking about finance but complex = =

also we learned how to do basic accounting inside

the most inportant thing in the subject I think it is accounting and how to issuing shares

ok lets start

Chapter 1 Key principles of finance

should know what is Capital budgeting decision and financing decison

main parties involved in financing decisiocs are the treasurer the controller the CFO and board of directors

Captial budgeting decision is important since the cost of mistake is high

In a company there are many groups of shareholders, each with its own objectives these objectives may conflicts causes problems, when 1 group is taking decisions on behalf of others

Agency theory considers issues such as the nature of the agence costs, confilts of interest, and how to avoid them and how agents may be motivated and incentivised.

Chapter 2 Company ownership

Types of business entity

Sole trader  -  business is owned by one person which is not a ltd ,it have umlimited liability for their business debts 

Partnership - business is owned by more than one person is not a ltd, all the partners are jointly and severally liable for any business debts

Limited company - a business set up under companies act legislation which has an legal identity separate from the owners of the business .company is owned by share holders, their liability is limited to the fully paid value of their shares. there are public ltd and private ltd ,public ltd can apply for a listing on the stock exchange, private ltd can not.

Limited liability partnership (LLP) - owned by its members but has a separate legal identity the members benefit from limited liability.

pros and cons of limited companies

limited liability makes it easier to rasie captial but if the company is wound up the creditors may not get their money back

Medium-and short-term company finance

Hire purchase agreement - hire a good for a period of time then buy the good at the end of the rental period

credit sale - instalments

bank loan -  a loan is paid into the borrower's account the borrower undertakes to make intreest payments and capital repayments on the full amount of the loan

overdraft - account becomes nfgative

trade credit - agreement between a company and iits suppliers

non-recourse factoring - factor takes responsibilitys to collect the debts

a bill of exchange - a negotiable instrument

commercial paper -  a type of bearer document for short term borrowing

God

I still love her honestly

Just I do not know how should I love her

I hope here to be the last memory with her

Honestly I really do not want break up with josephine

but there are so many problems with me n her

I ll tell my story how I meet her here

I still remember that was a summer I got nothing to do

My parents suggested me to join a tirp to practise my english

we planed to go UK or somewhere else but my passport was expiled

so I just take a course to china I meet josephine in my class

honestly she wears quite hot XD btw she is so quite

one of the meal she helped me get a bowl of rice n I think she treat people quite nice

I think she is a good girl and I remember one of the football match she got a goal

she was so happy and jump with her friend but she did not notice I was looking 

its so funny I think

but two weeks is so quick the camp was end

when I get down the bus I was a little bit rush since I need get back home to have lunch with my parents

when I look her at last time I saw her n her friend are take the lagguge down the bus

I did not mention anything I thought they are fine since I am far away from the bus

but after that she told me actually she want me help her and tell her how to go back home

after back home I can swear I opened a new ICQ and MSN for contact her (its the msn I m using today)

but she did not trust me the email I gave her is true

after 1 year later during the summer holiday the hkcee was over I try to contact her and date her

but a little accident happened she blocked me on msn I dont know what could I do

when I know she is also going to england I even choose a school closer to her (queens) but I think on one else know this in queens

but she still treat me as a stranger even I told her I lost my lagugge once she did not trust me at all

I do not know how can I start with her thus I tried going out with other girls but in my heart I did not tell any one

she is best

once day I recieveed a christmas card hand made by her i was so happy I still remember how do I feel

I still keep that card in my room (sorry take a break try to stop my tears)

but once when i say her at airport she treat me as a stranger I was really angry since talked to her but she blank me = =

after all during year 13 easter I date her out I dont know how can I face her since after i saw her at airport

I told myself she was so mean n do not put her in a high position in ur heart

but i can not when I saw her she completely changed she likes talking n gave me her no even when she was going back home she looked to me (but I blank her for revenge)of course I told her later on

after going back queens I find I miss her I wana phone her so I toped up n finally I rang her

we start chat everyday after 1 week I discuss with my friend nelson he suggest me if I really want go out with the girl i should tell her than I finally said ho do I feel to her 

After I waitted for 1 week she finally agreed going out with me I was so so so happy I can give everything to her

but .......I feel completely different. when I started going out with her she treat me so badly

she think I have to spend few hours talk to her everyday I dont mind to do that but honsetly its A level coming I could do that but I think even I did not she could understand me and she said break up to me after 3 days we going out.I said to my self do not break up with her do as her wish.

Finally I can stand it till going back to HK I remembered once I gave her a long distance call but she did not answer me but actually she promise she will pick on the phone at that time N i run back home when it was raining heavly. I started to think whats my position in her heart.When she comes back HK I really wana see her so that day I feel really sad I walked verylate down her home I just cheat myslef may be she ll go back home at that time may be i ll see her.but no.

And the first time we meet it was so late she only spend 1 hour with me but half day with her friends and when I saw her her friend just stay behind her I really do not feel any respect.after that we started a normal dating n I bought her a lots of presents.but b4 I went back bejing she said break up to me again. I still remember that night she was so stranged we watched a film but she was so quite n when she was going back home she said we should break up since she think we wont study together during university and I need go back beijing and that was the first time I cried in front of her.after i bug like a dog she finally agreed if i promised if I call her 3 times a day and not less than 10 mins she wont break up with me.I sent her a lots of message n ring her very expensive everyday finally my family can not stand it and blamed me badly..I even slaped by grandmother.but I said to myself she will change when I went back to hong kong its time to know which university we are going but she called me and told me her father said hope her to concentrate on her study and she said could we try do not talk for a week.tell u who are those friend saw me that week I hope u still remember how do I like.I am really been hurt.My mother saw me cried n she treat me really nice.I just wana josephine treat me nice once when I am not happy.but till now...anyway after one week she said she was free on monday to me then i thought we are fine but she said since I did something wrong so she wana break up with me again but that night she said she miss me and we could go out till the summer hoilday ends.= =

 during uni year 1 I did not go much lecture every friends in uni knows that since I was really tired in this relationship to much pressure even I thought I did one thing wrong it will gone just once i did not push myself to appologized it will be gone.but honestly josephine changed a lot after half year with me she started to buy present for me and started to respect me I feel she treat me really nice apart from arguing. she never say sorry to me apart from I force her.but i believe she will change.to be honest I can stand all those till today but i really have a limit

Till now its 21 months I went out with her her parents still do not know she is going out with me.I am really sad n I dont know how to face my family my friends n myself.This time I said break up since I wana test if she will say once I do not want u leave me but she didnt. she broke my heart.since there is no faith for me to maintain this relationship at all.

I just wana her to learn how to keep our relationships once.

just show me she can do that for me once.