Sunday, March 20, 2016

Week 10 Reading Reflection

1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?
I think the biggest surprise for me again would be the actual business and financial/managerial accounting aspects of entrepreneurship showing up as I usually think of entrepreneurship as what comes to mind is Apple being created in a garage by the boot straps of 2 extremely talented individuals.  I know they didn't have accountants and business management experts in their corner at the inception point of their business but now Apple would be nowhere without either. 
2) Identify at least one part of the reading that was confusing to you.
I've always had questions regarding the different components and what comprises the different financial statements.  So these will always be a bit of a puzzle to me.  The other aspect was capital budgeting which I have seen in NPV, payback method and internal rate of return but recall the calculations being a bit involved and not the easiest to figure out.  I guess I would need to spend a little more time on them to familiarize myself with them again and become proficient in their calculations. 
3) If you were able to ask two questions to the author, what would you ask? Why?
I would ask at what point do you want to involve or hire employees in this capacity, either internal or external?
I would also ask what financial ratios they've used in the past and what methods have proven most valuable in guiding them with planning looking back at results? 
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

Again, no, they were not wrong about anything.  These are tried and proven financial ratio formulas and concepts that are currently in use that provide a solid foundation for any serious business/organization that wants to remain in business. 

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