Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Question
Chapter 1, Problem 1DQ
To determine
Identify the signs of financial troubles in a construction company.
Expert Solution & Answer
Explanation of Solution
Corporation: A business concern where there is a separate legal entity and are owned by shareholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.
The reasons for financial troubles in a construction company:
- Inefficient
financial management system. - Improper management of the projects.
- Excessive line of credits and borrowings.
- Improper estimation or poor reporting of
job cost . - Uncomprehensive or restricted business plan.
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Chapter 1 Solutions
Construction Accounting And Financial Management (4th Edition)
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