Finance Questions

Archive for November, 2009

Question: What would this person be guilty of by law and what sentence should they get (in UK)?

A Finance Director (millionnaire) of a large charitable organisation has been raking in money through running an employment agency and making sure that temporary staff are only supplied through his company (little known to the charity that he is the director of it). on top of this he created multiple invoices and fabricated the amount of hours worked for these staff, thereby ensuring that he can enjoy a penthouse apartment in London and one in Edinburgh through his enterprise.

What terminology would a lawyer use to classify this and what penalties should this person be dealt?

Answer: Top of the shop is fraud but you can add to that criminal liabilities for his breach of fiduciary duty as a director of a charity. His failure to source staff on the most economically advantageous terms for the company for which he was a director is a breach of the position of trust which he holds and the charity would be compelled by statute to assess and recover any economic loss from the director personally.

Invoice factoring UK. How a factoring facility can improve your cashflow.

Calculating Economic Order Quantity or EOQ is easy with the Economic Order Quantity formula. Below is an Economic Order Quantity calculation you can use as an example in learning how to calculate the Economic Order Quantity.

Example of Economic Order Quantity calculation

Whenever you have to calculate the Economic Order Quantity, remember the Economic Order Quantity formula:

Where:

• C = cost of carrying a unit of stock for one year
• O = cost of placing an order for stock
• D = annual demand in units

Suppose you are calculating the Economic Order Quantity of computers for a ma and pa store. If each year, 10,000 units are demanded and the cost of replacing an order is $5000 whereas the cost of carrying is $50 per unit, then:

The cost of carrying for 10,000 units is $500,000 and the Economic Order Quantity is: