Essays on Financial Accounting or Practice and Principles Case Study

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The paper 'Financial Accounting or Practice and Principles' is a great example of a Business Case Study. Bunzl plc was formed and incorporated in 1940; in 1957 the company was listed on the London stock exchange. With time, the business has grown and become an international distribution company. Bunzl plc started as a small haberdashery in the capital of Slovakia. The company has expanded its markets to South America acquiring Brazil; it has further grown to acquire Chile, Argentina, Colombia, and Peru (Connolly 2010). The organization is active in more than 25 countries that are divided into four businesses namely, the UK, Europe, North America, and the other parts of the world.

The organization strategy is based on some areas of focus that are, commitment to grow organically, in acquisitions, and the improvements of its operating model. Bunzl detailed share price Bunzl. com, (2015) How Stock Markets Work and How They Relate To Public Limited Companies In stock markets, a share of stock is a small fraction representing ownership of a company. When the Bunzl plc share of stock is bought, then the buyer is entitled to some amount of earnings and assets of the company.

For instance, assets can fall into the following category, that is trademarks, buildings, and equipment the company listing the shares owns (Becket 2012). Earnings will include all the money the listing company makes from the trade of its products and services. Bunzl plc will share its assets and earnings to the public with the aim of raising capital. The organization has several options of raising money for development this can be done by debt financing or by equity financing. The advantage in the sale of stocks is that Bunzl plc will acquire more capital for expansion purposes with fewer obligations.

Debt financing is borrowing money from financial institutions, however, this form of borrowing is considered expensive due to the fact that the company incurs huge cost while repaying the loan due to interest payment. However, while the company raises money through equity, it’ s cheaper since no interest payments are made. Stocks help to distribute the risks of running the organization to a large number of stockholders. The founders of a public limited company will not lose all their money if the company goes bankrupt but a little amount together with the other stockholder's little money (Becket 2012). In a stock market, among other companies Bunzl plc gives out its shares to the general public, the organization pays a fee for the listing and an obligation to provide crucial information to the markets.

The organization then lists its shares on the stock market board and then people can buy these shares as they are in the stock market. When issuing shares to the public for the first time, the company is said to be making an initial public offer, company shares will now be bought and sold in the stock market board.

Buying and selling shares are facilitated by the stockbrokers they are the ones who connect the buyers with the sellers. Most of these stockbrokers are appointed by the exchanges to ease the work of dealing with individuals (Becket 2012).

References

Bebbington, J., Gray, R., & Laughlin, R. 2001. Financial accounting: practice and principles. London, Thomson Learning.

Becket, M. 2012. How the stock market operates a beginner's guide to investment. London, Kogan Page.

Bunzl.com, 2015. Detailed share price. [online] Available at: http://www.bunzl.com/investors/share-price/detailed-share-price.aspx [Accessed 16 Oct. 2015].

Bunzl.com., 2015. Dividend information. [online] Available at: http://www.bunzl.com/investors/other-shareholder-information/dividend-information.aspx [Accessed 16 Oct. 2015].

Bunzl.com, 2015. Highlights. [online] Available at: http://www.bunzl.com/investors/financial-information/highlights.aspx [Accessed 16 Oct. 2015].

Connolly, D. 2010. The UK trader's bible: a complete guide to trading the UK stock market.

Fryer, G. H., 2002. Stock Exchange official yearbook. [S.l.], MacMillan.

Lexisnexis, F. 2003. LexisNexis corporate affiliations. Volume 8, Volume 8. New Providence, N.J., LexisNexis Group.

Whiteside, R. M., Wilson, A.2002. Major Companies of Europe 2002/03 Volume 2 Major Companies of United Kingdom. Dordrecht, Springer Netherlands.

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