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UNIVERSITY OF THE PEOPLE Unit 6 Bus 1102 Written Assignments

The document discusses written assignments for a business course. It describes a hypothetical situation where a school has found itself in financial difficulty. It asks what steps could be taken and discusses alternatives to taking on more debt, such as cost-cutting measures and finding new sources of revenue. The positives and negatives of issuing a promissory note are also outlined. Specifically, positives include accessing needed funds for investment, while negatives are taking on interest and the risk of default. References are provided to describe promissory notes and accounting principles.

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329 views

UNIVERSITY OF THE PEOPLE Unit 6 Bus 1102 Written Assignments

The document discusses written assignments for a business course. It describes a hypothetical situation where a school has found itself in financial difficulty. It asks what steps could be taken and discusses alternatives to taking on more debt, such as cost-cutting measures and finding new sources of revenue. The positives and negatives of issuing a promissory note are also outlined. Specifically, positives include accessing needed funds for investment, while negatives are taking on interest and the risk of default. References are provided to describe promissory notes and accounting principles.

Uploaded by

fabtos ntumsi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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WRITTEN ASSIGNMENTS UNIT16

UNIVERSITY OF THE PEOPLE

BUS 1102, UNIT 6

WRITTEN ASSIGNMENTS

ARMEN SHAHINYAN(INSTRUCTOR)

26TH JULY 2021


WRITTEN ASSIGNMENTS UNIT26

What would you do if you found your school in this situation?

A promissory note is a written promise that one party will pay the other within a

specified time.(N.d, Bankrate).

In this situation which is however quite difficult, I will think of focusing on minimizing

the cost of a lesser debt. Minimizing futile expenses has to be the first step which should be

mandatory, however, it is very important to focus on cutting cost while maintaining the high

quality of services, it maybe worth having to go in to debt meanwhile waiting for the better

moments while exploring better solutions to increase earnings, therefore only in case where

by the cuts affects the quality of services will I consider this possibility.

Would you issue more debt? Explain;

I will not issue more debt at all, I am focusing on cutting costs and making as little debt

as possible for the following reasons;

The reputation of the school is at stake if I issue more debt because the school will be in

a precarious financial situation, Equally maintaining a credible image in the face of the

financial institutions.

Secondly, is also the issue of interest rates, it will double of the debts increase and

subsequently put more load on the school.


WRITTEN ASSIGNMENTS UNIT36

Are there any Alternatives?

Some of the initiatives partly mentioned are;

The effective cutting unnecessary costs; an important cost cut allows the school to get

less and less debt, with substantial savings especially if evaluated in the long term. The

important thing, however, is that these cuts do not affect the quality of services offered by the

school, otherwise other problems could arise.

Finding new sources of revenue, if cutting cost is not sufficient to cover the deficits,

raising the school’s entrance channels could be a great solution. The are so many possibilities

in this aspect.

What are some positives and negatives to the promissory note practice?

Positives;

Promissory notes will let money borrowing when you don’t have enough of it.

Promissory notes permits businesses have money to invest to generate more substantial

revenues in the future.

Negatives;

There is heavy interest to be paid.

You risk ending up in a default if you don’t have funds available when the payments to

the note holder is due.

Word Count: 429


WRITTEN ASSIGNMENTS UNIT46

References:

Franklin, M. Graybeal, P. & Cooper, D. (2020). Principles of accounting, volume 1:

Financial accounting. Open Stax Rice

University. https://openstax.org/details/books/principles-financial-accounting

Bankrate, (n,d), PromissoryNotes; retrieved from;

https://www.bankrate.com/glossary/p/promissory-note/
WRITTEN ASSIGNMENTS UNIT56

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