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INVESTMENT IN PRINTING BUSINESS ACCOUNTABILITY AND PROFITABILITY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Investment and the business idea. Having come out with a business idea, it is worth while to conduct investment in printing business. It is very important that when it is time to make a decision an individual or group should examine series of factor before arriving at a final decision. Business or investment decisions are very delicate to deal with. This is because the continued existence of any business depends on how careful these running it affair are. One bad investment decision may result in a catastrophic situation for the company, the consequence of which may be liquidation. An investment decision read a careful analysis of all dark portion surrounding the investment. By so doing, it is easy to know if the company should pump funds into the area of not.
However, a number of criteria may help in determining how viable the company into which and individual or group intends to invest. An investor will always good always be at hand to pump money into any strong company. This write-up intend to go into the rutting-gritty of ratio analysis to confirm the impact as a tool for investment decision making. This will be achieve through the use of various financial ratio to compete the viability or otherwise of a business sheet, profit and loss account, et. Using a specific company as a case.
Adequate consideration should be given to the product selected if the business is to make return of investment. Some of the importance criteria for product selection include market need, cost and availability of raw materials. Other are technology, personnel and legal frame work. A positive match between the idea and the entrepreneur is very important. Some investment project are not good for certain entrepreneur and vice versa. There is need to explore all area of generating venture ideas. The world today is in clear need of printing press establishment. This is as a result of past improvement in technology, information technology and increase in people’s guest for knowledge. Through printing, information and knowledge are passed from one person to another, one state to another and from one country to another printing encourage circulation of knowledge, presentation of vital information and spread of important information.
Printing business is a very common business in Nigeria. Today, Nigeria has so many printing establishment. Some of the establishment are into large scale etc. So many of the printing business we have today in Lagos are done on small scale level. Examples are those found at Ketu, Fadeyi, Somolu and Mushin areas of Lagos. The setting up of a printing business requires a through investment, the reason for carrying on the investment report are stated below:
i. It ensures that on commencement of a project the expected revenue would be more than the project expenditure etc.
ii. It assist to determine if the business will be profitable, viable and possible.
iii. It will project and indicate the source of funds.
iv. It will project the gestation period of the project after which the project starts to yield.
Apart from investment, starting the printing business. All necessary factors must be provided for proper implementation it, is very important in the printing business. All necessary factors must be provided for proper implementation. Every business establishment needs to have a proper cash flow analysis. Sources and use of funds is very important in the printing business. Conclusion, proper record keeping is also important respect of printing business. All forms of records showing the record. For asset acquisition, current assets, stock and inventors etc. You never can tell, your hobbies could be a way of making you a successful business man and business woman if only can turn he hobby to full time investment rather than spare time non-profit activity. There is need to use present market growth potential cost and risk as yardstick for evaluating product ideas. For evaluating product ideas. Many businesses fail because there is proper is no proper investigation in conducted before venturing into the business. The wrong nation is that “if Mr. Adedoyin market make it, I can also make it. This may not be true unless proper investigation is aviducted on such proposal. For entrepreneur to succeed, it is import to look inwards into all the resources, be it men, materials, machine and even money.
1.2 STATEMENT OF PROBLEMS
During the course of the research work, the following statement of problem will be properly analysed:
i. Is the government policies on importation not a constraint on the importation of printing materials and parts.
ii. What are the necessary books of account to be kept for this type of business.
iii. What are the type of finance available to finance this type of business.
iv. How viable is the printing business putting into consideration of the counting.
v. Are the necessary information available to encourage the growth and development of printing business in Nigeria.
vi. How viable is the printing business putting into consideration the present information technology system in the world that makes people download information from the internet instead of going to the printing press.
1.3 OBJECTIVE OF THE RESEARCHER
The research objectives are:
i. To make necessary recommendation
ii. To give a proper cost analysis on how to setup a printing business.
iii. To prepare the investment of a printing business
iv. To give a proper record on how to carry out implementation of setting up a printing business.
1.4 RESEARCH HYPOTHESIS
H0: Printing business is not a viable business and added to economic growth in Nigeria.
H1: Printing business is a viable business and added to economic growth in Nigeria.
1.5 METHOD OF RESEARCH WORK
The research work will involve visitation and administration of well prepared questionnaire to some selected printing press in locality chosen.
1.6 SCOPE OF THE RESEARCH WORK
Our scope of work will be limited to printing company in Onipanu, the type of records kept the administrative aspect and the production aspect of the printing work.
1.7 DEFINITION OF TERMS
Investment: Is an act of putting certain amount into a project, activity or business that is capable of yielding some benefits in the future.
Business: An undertaking which involves the investment of capital, risk, profit and loss.
Accountability: A function performed by a business owner which involves being responsible for decisions and actions taken in the course of the business.
Profitability: Is to run a business in an organisation to achieve the aim and the purpose of the organisation.
Liabilities: Liabilities are the financial objective of a business that must be settled within a specific period of time.
Economic: The relationship between investment saving, production, trading and the supply of money a country.
Employee: A person who has agreed to render services for is an organisation in an organisation in return for either wages or salary.
Expenses: Total amount incurred by a business in the course of running the business activities.
Decision Making: An act of selecting the best course of action for aching the objectives of a business among alternative course of action.
