The paper "Real Estate Agency Finance - Queensland Australia" is a good example of a management assignment. A number of insurance covers will be required in operating a real estate business. First, a building and contents cover will be required. This insurance cover helps in compensating the building and other property in case there is an accident or incident. Another insurance cover needed is the workers' compensation insurance cover that caters for the compensation of workers in cases of accidents. Legal liability insurance cover is also required in order to cover the business in cases legal charges that might occur.
Finally, a professional indemnity insurance cover is required. This insurance covers the professional people in the business against being held liable for damages arising from the advice they give to the customers. 2 Your real estate business will be operating both a general account and a trust account. Outline the process for opening these accounts. Your answer must incorporate the requirements of opening a trust account as per the provisions of your appropriate Act. In order to open a trust account, the applicant must inform an approved deposit-taking institution in writing that he intends to open a trust account.
He then obtains a license or proof that he is a licensed real state agent and presents to the institution. If the trust account belongs to a corporation, it shall bear the name of the corporation. Otherwise, it shall bear the name of the applicant or firm of applicants. The applicant goes to an approved deposit-taking institution and fills an application form (in triplicate) the original copy is filed by the institution, one copy is sent to the Fair Trading and the third copy is for the applicant.
All copies are signed by the institution (Sonnenberg and Sonnenberg, 2008). A general account is usually opened with a deposit-taking institution that is approved. The applicant presents his wish to open a general account with an institution of wish and one that is approved. He fills application forms (Duplicate). The financial institution sign both forms retain the original and the business retains the other copy. 3 In the review of an existing business what are the benefits of financial ratio analysis?
Comment briefly on the purpose of two common ratios. There are various benefits to conducting a financial ratio analysis. First, financial ratio analysis helps to simplify the comprehension of the financial statements. This is because the ratios are capable of revealing the whole business condition. Secondly, financial ratio analysis helps managers to perform the inter-business comparison with the aim of outlining weak and strong firms. Financial ratio analysis also helps business managers to plan and forecast. Finally, financial ratio analysis helps business managers to make proper decisions about investment.
An example of a ratio is the current ratio that is used to reveal the liquidity of the business. Another common ratio is the quick ratio. This is also used to reveal the liquidity of the firm (Brigham & Houston, 2000).