Venture Capital - A Growing Option
Article Abstract:
The present economic environment has highlighted the need for new business and the need to fund these ventures. The accountant's role in the situation of a proposed expansion of a client or start-up of a new business is to evaluate the project and assess the needs. He can help design a funding package balancing loan and equity financing. Loan financing is not designed to cover risk, therefore equity funding is necessary to financing growth. In the United Kingdom, the government has designed schemes to encourage such funding with the Loan Guarantee Scheme, Regional Development Grants and others. Both active and passive venture capitalists exist in the private sector. The trend is pro-active venture capitalists who take an active, long-term part in managing growth of the target business. These investors choose fewer targets which have a potential for very large gains instead of the traditional pattern of passive investors who spread smaller investments over a larger variety of ventures. Within the part four years (since 1980), venture capital sources have multiplied from fewer than ten to over sixty. International links are necessary as the United Kingdom market is not large enough. The diversity of European markets causes difficulties. Experienced venture capitalists are virtually non-existent in the United Kingdom, so entrepreneurs, technical experts and consultants are depended upon.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1984
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Capital investment appraisal techniques - IRR versus NPV
Article Abstract:
The relative merits of the internal rate of return (IRR) and net present value (NPV) methods of discounted cash flow appraisal are assessed. The two main discounted cash flow methods of appraisal are compared with regard to relative ranking of projects, ease of calculation, and projects with no unique rate of return. Although there are practical advantages to using the IRR method, there are certain situations in which the method is particularly difficult, or even impossible (if the project does not have a unique rate of return) to apply; in addition, the IRR method is more capable of misuse. Despite certain theoretical advantages, however, the case for NPV is overstated. Whichever technique is used, pitfalls may occur in the use of the technique, in the poor quality of the information used in the appraisal, or in the failure to achieve other necessary requirements for effective decision making.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1985
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The Macintosh option
Article Abstract:
The Apple Macintosh (Mac) has never been widely popular as a general business tool despite the ease with which it can be used and networked. One reason for this is the sheer number of available IBM PCs and IBM compatibles that offer a wider array of business applications and are more affordable than the Mac. Recent modifications, however, have increased the Mac's usefulness in the business setting. Aside from lowered prices, Macs now have a wider software range and offer new capabilities including the ability to translate DOS files into Mac format. Its more extensive business applications of the Mac has made it worth reconsidering as a serious business tool.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1992
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