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    Business Capital investment proposal

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    You are working in the finance department of Space Sky Flight Ltd (SSF). The Company has spent $5.5million in research and development over the past 12 months developing a drone capable to fix satellitesto compete in the space industry. SSF’s directors now need to choose between three options for bringingthis product to the market. These options are:Option A: Manufacturing the product “in-house” and selling directly to the marketOption B: Licensing another company to manufacture and sell the product in return for a royaltyOption C: Sell the patent rights outright to the compa...

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    This finding report to the Board members of Space Sky Flight Ltd (SSF) is prepared with the objective to highlight some essential information relenting to financial aspects which will helps the Management in taking sound business decisions in the areas of selection of future action plans. Our company has spent nearly 5.5 million over the period of last 12 month with the objective to innovate a drone which can be fixed in satellites to compete in the space industry. This innovation has given an opportunity to business to exploit the earing capacity and enhance the overall profitability of the company. With this earning opportunity our corporation has three alternative option for exploiting the earning opportunity. The first option with us to start the production and introduce in market to gain the market experience and exploit the business opportunities.  While our second option would be sales our innovation and empower through licence to Aero Jett Inc.  And gain the Royalty income. While the third alternative option with us would be Sales the patent Right and earning income with three equal instalment of negotiated price. Method and Finding during analysis of option In order to analysis each of the alternative options we had selected the Net Assets Value method, which consider the essential tool of financial management that is time value of money. Other analysis tool of financial management has its own strength and limitation but NPV method was highly recommended for the analysis of investment options and perdition of expected income from the alternative investment plans. So keeping in mind the popularity as well as ability to generate the positive result we had selected a NPV method for analysis of three alternative investment options.  While analysis the given situation of our innovation, it was observed that the prosperity of business will be for the initial 5 years only, and year after year due to awareness in market and innovation of technologies, new market players will be emerged which will give a challenging competition and share our market share. So this facts invited us to be more Conesus while adopting an option for starting of manufacturing plan as this situation indicates the option of Licence agreement or Patent would be more favourable.         

    This report aimed to develop a critical understating of the various accounting software by evaluating the cloud-based accounting software in regards to businesses and then suggest the most appropriate accounting software to a chosen company such as Woolworth. The findings of the current report reflected that the company has key activities like manage, organize, maintain its store staff, develop various strategies for the business, billing for their products, maintain their transactions, and records them and handle their conflicts, etc. Similarly, its other activities related to revenue and expenditure cycle also includes sales and purchase related practices. Moreover, some internal controls are found weak in Woolworth due to which company has risks like segregation of duties, major frauds, poor corporate governance, improper monitoring of managerial opportunistic behavior.

    This report aimed to develop a critical understating of the various accounting software by evaluating the cloud-based accounting software in regards to businesses and then suggest the most appropriate accounting software to a chosen company such as Woolworth. The findings of the current report reflected that the company has key activities like manage, organize, maintain its store staff, develop various strategies for the business, billing for their products, maintain their transactions, and records them and handle their conflicts, etc. Similarly, its other activities related to revenue and expenditure cycle also includes sales and purchase related practices. Moreover, some internal controls are found weak in Woolworth due to which company has risks like segregation of duties, major frauds, poor corporate governance, improper monitoring of managerial opportunistic behavior.

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