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The value of college education.

Every year millions of students graduate from high school. The decisions they make will affect the rest of their lives. Some will choose to go to college; some will want to get full-time jobs; others will decide to obtain technical job training. In every case, economic reasoning will help students make better choices.

Everybody decide to consider the costs and trade-offs connected with a decision to go to college. And the main questions in this situation: Is a college education worth the expense in terms of immediate and future personal growth and economic well-being?

The opportunity costs of going to college involve a loss of income and a loss of practical job experience while attending college. Lets consider two mans: The Education Level of the first one is less than 12 years and his Projected Lifetime Earnings is $850.000; The Education Level of the second one is 5 years college and his Projected Lifetime Earnings is $1.500.000. We see a big difference between them.

The trade-offs involved in going to college include using time and money now to gain greater advantages in the future. But somebody think that if you could invest $ 30.000 now, for instance, forego a college education, and with your investment returns still have the same lifetime earning power as acollege. It’s of course can be true bat where do you get $30.000 if you don’t have education. Besides nobody give you a job if you haven’t got education and knowledge. And I am sure that my further education is worth the time and money involved.

¹ 14 Annual report of a company.

Just as teachers send out report cards to the Dean’s office each term, corporations issue annual reports summarizing the progress made last year. Stockholders and potential investors use the annual report to evaluate the performance of corporation.

The annual report is a message to the stockholders-the owners-of a corporation from the corporate management. The report tells the stockholders the company’s financial status at the end of the fiscal year and what the management sees for the future. Also, the annual report fulfils a legal requirement. The Securities and Exchange Commission a federal agency in the USA requires corporations to publish financial information about their firm. With such information, investors can make educated decisions.

Annual reports of company generally are divided into two sections. The first section contains a letter to the stockholders from the chief executive officer of a company. Accompanying this letter summarising the company’s performance is a chart of financial highlights. Also frequently included in the first section is an overview of the company’s organization. The second section includes statistics on the company’s performance. Most of the information appears in charts and graphs.

For example, the balance sheet is a chart that includes the assets (items of value the company owns) and it’s liabilities (debts or claims against the assets of the company). The balance sheet represents the financial picture of the firm at the instant in time. The income statement shows the profit or loss of the company for the year. This chart reports the income the company received from sales, interest, and other sources. The operating costs – salaries, advertising, maintenance – deducted from income total the profit or loss. The statement of stockholders’ investment, or equity includes information on the company’s stock such as number of shares outstanding and issued.



Various parts of the annual report can be used to determine whether a company is profitable. In addition to reporting on this current year, most companies include in their annual reports comparisons of the current year and the prior year’s financial information. Also important to stockholders and investors is the company’s return on sales. For example, if a firm sold $1 mln. worth of its products and its profit was $100,000; return on sales would be 10%.

So we can say that annual reports help us to understand financial status of the firm in the end of the fiscal year and to make educated decisions- invest in company our capital or not.

 


Date: 2016-03-03; view: 787


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