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    Management - Increasing Value of an Organization

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    I need at least 150 words for each question.

    1. Proven Ways to Increase Share Value describes several ways to increase the value of an organization. Which of these might be applicable to your organization and why?

    2. Which is a better indicator of the financial state of an organization: the balance sheet or the income statement? Why?

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    Solution Preview

    A. I work for a sports magazine company and there are several ways to increase share value:

    1. Increasing the price/earnings ratio
    2. Increasing the company's book value
    3. Increasing the company's goodwill

    The way to increase the company's price/earning's ratio is to focus on increasing the company's net income/earnings versus the stocks sold. Because we are a magazine company, we make our money through online and physical ads in the magazine and online and physical sales of the magazines. Also, we have t-shirts and other paraphernalia with our company logo to sell. We increase our bottom line when we attend conferences and sports events promoting ...

    Solution Summary

    The following posting helps with problems involving the value of an organization and the financial state of an organization.