TASK: This is an individual assignment in which each individual is required to form a New Hotel business with 100 room capacity and answer some accounting related questions. Assessment Criteria: This...

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TASK: This is an individual assignment in which each individual is required to form a New Hotel business with 100 room capacity and answer some accounting related questions. Assessment Criteria: This task will generally be assessed in terms of the following criteria: 1. Effectiveness of communication: readability, grammar, spelling, neatness, completeness and presentation. 2. Demonstrated competency and understanding: This will be evidenced by the student's ability to be dialectical in the discussion of contentious issues. The marker will pay attention to the accuracy of the content, coverage of relevant issues, structure of argument, English expressions, and absence of plagiarism, concise writing style, and referencing style. 3. Evidence of research - This will be evidenced by the references used and the inclusion of a bibliography. Assignment Requirements: 1. The assignment requires you to form a Hotel business and to write a brief introduction about it (name, services or products, legal form, merchandising or manufacturing, retail or wholesale, size, industry, etc…) (3 marks) 2. In deciding on the legal form for your Hotel business, discuss the reasons for your choice. (3 marks) 3. Discuss the different financing options to set up your Hotel business and the reasons for your choice (s). (3 marks) 4. Briefly define the role of accounting as it relates to your Hotel business (your answer should include accounting information, users of information, accounting process, financial accounting and management accounting, etc...) (3 marks) 5. Discuss whether financial statement analysis would be useful for the management of the business (include in your answer the types of analysis that can be used and how they are useful). (3 marks) 6. Name examples of the Property Plant and Equipment assets that are used in your business, and discuss the depreciation method that is suitable for these assets and the reasons for your choice. (3 marks) 3 7. Give ONE example of unearned revenue and ONE example of prepaid expense that may occur in your business. (3 marks) 8. Provide a list of items (statements, accounts, ratios, etc…) that a bank would be interested in, in making a decision to grant your business a loan. (3 marks) 9. Discuss the considerations that the management of your business would take into account in deciding on whether to distribute profits or to retain them in the business. (3 marks) 10. Prepare a hypothetical cash flow statement of your business and give examples of operating activities, investment activities and financing activities. (3 marks) Please note that you will need to address these questions in a way that is specific, appropriate, and directly relevant to the business chosen. (You will need to be specific and your answers should be relevant and suitable to the characteristics of the Hotel business you have chosen)
Answered Same DayJun 26, 2021

Answer To: TASK: This is an individual assignment in which each individual is required to form a New Hotel...

Harshit answered on Jun 28 2021
137 Votes
HOTEL BUSINESS
1. The whole assignment is based on forming a hotel business. The name of the hotel business that is selected is the Two Column Hotel.This hotel business is generally a full-service hotel that provides services such as wedding and banquet facilities, restaurants and lounges, arrangements for meetings, swimming pools, and other services. The products may be the hotel rooms, facility for online reservations,free newspape
rs, and magazines for travelers, etc. These are the products given to support business services. The size of the hotel that is to be established will be mainly on a large scale and will capture large markets through extensive marketing strategies.
The legal form of the hotel business selected shall be Limited Liability Corporation.The hotel industry will belong to the hospitality industry which is part of the large service industry and is important in today's time. The business of the hotel established shall be that of a retailer as they will directly provide various services and products to the customers. Merchandising will be followed by the hotels which will purchase products and then resell them to their customers. Products will include those which are required to support their main business, i.e. providing services as are listed above.
2. The legal for that is selected for the hotel “Two Column Hotel”is the Limited Liability Corporation. This is the best suited legal form for any business as it has many benefits. It is the legal structure that is a mixture of a corporation and partnerships. The business is a separate and independent entity.This results in the limited personal liabilities of the owners. The owners shall not be liable to pay more than the capital invested by them. This type of legal form is most suited for large businesses.
Therefore, the reasons stated above gives a clear idea of why the legal form as mentioned above is selected for the hotel. Here, there is less record-keeping and paperwork. There is no such restriction on profit sharing. Members can share the profits as they want to. We can conclude that it will be the best legal form for the Hotel Two Column.
3. For the establishment of a hotel business, there should first be a proper business plan. We need to classify the cost that is likely to be incurred initially to estimate the total cost. These costs may include initial registration fees, marketing, business consultants, store equipment, operational costs for initial months, Startup expenses, insurances, developing websites to support online bookings, etc. (Burns, P.) After the total cost has been identified, the hotel owners need to think about the various ways in which the funds can be raised. Some of the ways of raising finance for a hotel industry are as follows:
· Own Savings: Risk-taking is always beneficial in any business. The higher the risk, the higher the returns for such investments. The owners of the business should take a risk so that it will instill a sense of commitment among other people too and help in raising more finance.
· Getting a commercial mortgage for the hotel: raising finance through this method, will need a proper business plan. The business plan needs to be made in such a way that it helps to build confidence among the lenders. A proper analysis of all the financial aspects shall be done in the plan so that it gives a clear idea of the future growth plans of the hotel business.
· Crowdfunding:This is one of the most modern methods of raising finance. It helps in connecting to investors of all sizes all over the world. Through this method, finance can be raised easily for a hotel. Since the hotel industry is spread throughout, investors may be interested in investing in such businesses.
· Angel Investors: They can be a very useful way through which the funds can be raised for the hotel. They have huge expert knowledge. The only thing is they will want a stake in the hotel but it will be very easy to persuade them on business ideas.
· Secured Loans: It is another way of finance for the hotel as they have low-interest rates, but it may be difficult to raise funds through this method as it will require a valuable asset against which a loan will be raised.
· Unsecured loan: Another way of raising finance is through unsecured loans. But these loans have high-interest rates.It will also require a personal...
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