Posts by admin
26
Apr
both the entities have different lines of businesses. While BEP is engaged in the design and distribution of toys and children games merchandises but KFun is involved in the broadcasting and advertising business. It will turned out to be a new challenge for BEP to get acquainted with new ways of doing things and entering into new field which it does not acquire the relevant skill or specialized knowledge of running the affairs of the business. Broadcasting companies also have to follow certain laws prescribed by the regulatory authorities and non-compliance with them can result in severe repercussions. Moreover
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admin
since both organizations have diversified workforce. This diversity can cause conflicts among the work peers because of different metho...
26
Apr
000 due to fears of downturn in the economy. However
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as we can see the breakeven sales turned out to be £ 365
26
Apr
we can clearly see that at 30% sale of stock is a loss for the company amounting to £ 39
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000 and negative profit margin ratio of 7%. Therefore
26
Apr
the opportunity cost of the production foregone of BEPs other regular products has not been accounted while accepting the proposal of SEI. Moreover
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since the SEI has already tendered breach of deal for buying lesser quantity of stock. It is also not sure whether SEI would buy BEP’s ...
26
Apr
the annual average increase in revenue by 17% is not justified keeping in view the current economic situation. It is not feasible if we keep the previous track record of actual versus budgeted of the year 2008 where the advertising actual sales were 7% less than budgeted. Since advertising is considered to be the discretionary expense of companies and it is most likely to be curtailed during recessionary periods. The rebroadcast/content sales on average of 2-3% are a valid ground because previously it was 9% more than the budgeted. In contract the increase in employee costs in accordance with average number of staff isn’t seem reasonable because in recessionary period usually the entities either resort to lay-offs or redundancies or retain the same employees by enhancing their efficiencies. Furthermore
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the significant increase in capital expenditure (CAPEX) on intangible assets is also not consistent with amortisation charge. It shows ...