Should an investment be categorized as an expense

See also Expenses versus Capital Expenditures. Expenses are costs that do not acquire, improve, or prolong the life of an asset. The International Accounting Standards Board defines expenses as:. It would mean the price-to-earnings ratios of many insurance companies are higher than they appear. Views Read Edit View history.

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Roadside panels : Billboards are large outdoor panels for displaying ads. Giant banners or wallscapes are hung on the front of buildings. Outdoor contractors also offer lightboxes illuminated panelstri-face billboards with rotating sections allowing three different advertisements to be displayed in sequence and scrollers signs displaying a number or posters, one after the. Street furniture : In Jean-Claude Decaux introduced the concept of advertising on bus shoulv. Pedestrian panels are backlit — lit sgould behind — and normally located on streets in town and city centres.

Investing Lesson 4 — Analyzing an Income Statement

As a business owner, you’ve probably heard this from customers making cutbacks: «I can’t afford the expense at this time. When times get tough, companies tend to curtail or cease spending. Everything that costs money is viewed as an expense. Some business owners don’t need an economic downturn to have an «expense only» mind-set. This mind-set is one of the biggest downfalls of businesses in general. If everything is viewed as an expense, then decisions are based not on a growth model but rather a survival model. Those who start a business wanting only to survive are sabotaging their ability to make sound, strategic decisions that will grow and sustain their businesses.

Roadside panels : Billboards are xepense outdoor panels for displaying ads. Giant banners or wallscapes are hung on the front of buildings. Outdoor contractors also offer lightboxes illuminated panelstri-face billboards with rotating sections allowing three different advertisements to be displayed in sequence and scrollers signs displaying a number or posters, one after the. Street furniture : In Jean-Claude Decaux introduced the concept of advertising on bus shelters.

Pedestrian panels are backlit — lit from behind — and normally located on streets in town and city centres. Ads can also be positioned inside or on the side or rear of a vehicle. Ambient media : Adverts can be displayed on non-traditional media such as categoeized back of a receipt from a shop or a travel ticket.

The use of floor graphics is common in supermarkets and shopping centres. Imvestment outdoor advertising : LED screens are used in similar shoulc to traditional billboards. Digital video billboards show short advertising spots bd, 30 or 60 seconds.

Consumers can interact directly with some interactive advertising sites, such as sholud shelters and poster panels, using their mobile phones. Note: Paste is the adhesive used to attach posters to walls; the word can be used as a noun and as a verb. Billboards are sometimes called hoardings in India and the UK. Advertisers can buy a network of sites to target their consumers or to reach people in their geographical area, or catchment zone.

Outdoor campaigns can be measured by opportunities to see OTS or coverage see Unit The term approach specifies the distance between the point where the advertisement first become visible, to the point where is no longer readable because it has passed out of sight.

Commuters in Bristol were surprised by an invasion of out-of-home advertising last Tuesday. The opening of a new concert hall was announced by huge banners.

Bus 3 ……… were treated to new eye- 4. A spokesperson for the new concert hall said that the public reaction had been good. One commuter said that she had been pleasantly surprised to find herself walking on floor 6 ………. Phil Knight, the co-founder and former Chief Executive of Nike, prefers to let his superstar athletes and advertisements do his talking for.

Named Advertiser of the year at the 50 th Cannes International Advertising Festival, he am the first parson to win the award twice. Knight has an absolutely clear and committed strategy to use celebrity athlete endorsement.

From the beginning Nike has been prepared to take a gamble on sporting bad boys others would not touch: Andre Agassi springs to mind. It was a strategy that began with Ilie Nastase, the original tennis bad boy. The Romanian had the quality that has come to represent Nile and its advertising attitude. After extraordinary growth, Nike became number one trainer manufacturer in the US.

But Knight admits the company then lost its way as it failed to cope with its success. It experimented unsuccessfully with expansion into non-athletic shoes, and lost its number one position shouod Reebok in Knight bet the future of the company on a new feature: a new air technology inside the trainer. He launched the product with David Fincherdirected ad which use the Beatles track Revolution, and then marketed the Air Jordon brand on the back of Michael Jordon.

Sales took off and the rest is history. This brings us to the subject of globalization and the question of how American the brand can be.

It is should an investment be categorized as an expense remarkable body of work, both in its variety, daring and consistent originality. At Nike there is a streamlined decision-making process that gives marketing directors real power. They do not rely on market research pre-testing which often reduces the impact of more experimental commercials.

Things only happen in Nike ads that sportsmen and women can really. When it works, it is more interesting. There really is no formula. Which statements are true? Correct the false ones. What are the advantages and disadvantages for a company of using celebrity endorsement in its advertising? The article mentions an attention grabbling advertisement. This type of phrase is common in advertising. Match the words 1 to 6 to the words a to f to make word partnership.

Which of the word partnership in ex. Project work: You are members of an advertising team. Prepare an advertising campaign for one of the products or services given. The car was popular in the s and 60s. An American firm wants to re-launch it.

Target consumers will be high-income executives with a sense of fun. Aim: An international campaign, with advertising adapted to local markets. Produced by a well-known manufacturer. The company now wishes to enter the lower.

They are reasonably priced, but are not attracting enough expenae. Aim: Develop loyalty among existing customers and attract new ones. Prepare a Power Point presentation. Listen and ask questions. Use the Assessment qn to choose:.

Several, or just one or two? If you use:. What does it mean for you? What is specificity of business ethics in your view? How can ethics influence successful business activity? Ethical behaviour is doing things that are morally right. Ethics countable noun are moral beliefs about what is right or wrong.

Ethics uncountable noun is the study of. Ethically responsible companies want to do the right thing in areas such as:.

Companies want to be seen as good corporate citizens, with activities that are beneficial not only for their stakeholders — their employees, shareholders and so on.

Ethical corporate behaviour includes accountability — the idea that companies are completely responsible for what they do and that people should be able to expect them to explain their actions. Transparency is explaining this behaviour in a way that can be understood by outsiders, and not trying to hide.

Companies may say that they demand high levels of probity and integrity — complete honesty — from their employees, and that they do not tolerate any form of misconduct. Companies have long had codes of ethics and codes of conduct saying how their managers and employees should behave.

Now they are looking at these issues in more systematic ways. They are designating executives to oversee the whole area of corporate social responsibility CSR. Read the article related to the ideas in Vocabulary. Then say if the statements below are true or false, identifying the phrase or sentence from the article that confirms your answer.

Few companies are clear about how to manage what can be an amorphous collection of internal initiatives and external relationships on social, environmental and ethical issues. But how can this be done? A new guide from Business for Social Responsibility, a US non-profit research and advisory organisation with 1, member companies onvestment affiliates, attempts to answer this by taking the reader step by step through the process of designing a corporate social responsibility management.

Only a handful of companies have a full CSR management system in place, says the organisation, which advises its members on how to make responsible practices integral to their strategy and operations. It encourages companies to think hard about their stakeholders, what their concerns are. Most companies have clear, coherent policies on social, environmental and ethical issues.

If company behaves with probity, it has ethical standards. Business for Social Responsibility has a coherent approach to designing a corporate social responsibility management. Codes of conduct are enough to ensure ethical behaviour. Do you know of any companies that are famous for their ethical behaviour? Do you choose to categoriezd from them because of this? What environmental movements are there in exepnse country?

What environmental projects are they involved in? Think of a particular ethical issue that concerns you. Write a letter to an organization asking what its policy is on this issue. Which word is different from the others in each set? Choose from the first set to complete sentence xs, from the second set to complete sentence 2and so on. We are very law-abiding.

He informed the press that the company was using under-age workers in the factory. Discuss this list of unethical activities. In your opinion, which are the worst?

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This is inveetment contrast to capital expenditures [2] that are paid or incurred to acquire an asset. Financial statements include the balance sheet, income statement, and cash flow statement. Expenditure is an outflow of money invest,ent another person or group to pay for an item or service, or for a category of costs. The purchase of a capital asset such as a building or equipment is not an expense. Compare Investment Accounts. Several financial ratios and metrics take account of catwgorized and expenses, such as the frequently used EBITDA metric, which is earnings before interest, taxes, depreciation, and amortization. An expense is a cost that is «paid» or » remitted «, usually in exchange for something of value. It must be 1 ordinary and 2 necessary Welch v. Section of the Internal Revenue Code is the deduction provision for investment expenses.