420003263900880008851265Kiril Dobrevski Student Number 125426189professor peter forint due date 30. NOVEMBER.2018450000Kiril Dobrevski Student Number 125426189professor peter forint due date 30. NOVEMBER.2018420003263900175001760220Business Research ReportBAM 101 – NCC450000Business Research ReportBAM 101 – NCC
Table of Contents
TOC o “1-3” h z u Article One PAGEREF _Toc531536535 h 3Summary PAGEREF _Toc531536536 h 3Business Topic Analysis PAGEREF _Toc531536537 h 3Business Term PAGEREF _Toc531536538 h 3Article Two PAGEREF _Toc531536539 h 4Summary PAGEREF _Toc531536540 h 4Business Topic Analysis PAGEREF _Toc531536541 h 4Business Term PAGEREF _Toc531536542 h 4Personal Impact PAGEREF _Toc531536543 h 5Appendices PAGEREF _Toc531536544 h 6Appendix 1 (Operating small business is no small task) PAGEREF _Toc531536545 h 6Operating small business is no small task PAGEREF _Toc531536546 h 6Appendix 2 (Bank profits expected to be in billions: Four of Big 5 report earnings this week) PAGEREF _Toc531536547 h 8Bank profits expected to be in billions: Four of Big 5 report earnings this week PAGEREF _Toc531536548 h 8Works Cited1 PAGEREF _Toc531536549 h 0
Article OneSummaryThe first article for this research report is titled Operating small business is no small task written by James Risdon and published May 8th, 2018 to the Chronicle Herald. The article is about how hard managing your own business can be and all the risks involved when you decide to create a firm. In the biggest provinces of Canada (Ontario, Quebec and British Columbia), there are government programs that can help the beginners entrepreneurs, and accelerate their process. Besides the long hours working and the risks involved, starting a new company could be a good solution for flexibility and rewards based on your performance, plus a bonus, as you decided what work with, and type of market, the chance of doing what you really love or have passion about it is huge, so this could be a payoff for your hard working.
The article gives two examples, one of failure and one of success in creating a small business, as for the success one, Abraham Roy, the founder of Prince Edward Island-based Contracts-DB, for him one of the big obstacles that he found was working for long hours and receiving phone calls early in the morning because some of the his employees were working in different countries. The failure example, is Michael Sanderson, his business started in 1998 was called Sandman Videos, a small business that drove Sanderson to bankruptcy, because of his lack of knowhow in the business market.
Business Topic AnalysisThe article relates to chapter four of the textbook titled Entrepreneurship, Small Business, and New Venture Creation. In the textbook we learned what defines an small business can be tricky, depending on the numbers of employees, amount of revenue, size of initial investment, or the type of ownership, in summary we could classified a small business as an owner-managed business which has less than a hundred employees. The article relates to the chapter as examples in real life for the success and failure of a small firm. People start new businesses because they want to control their own destiny and prefer to take a chance rather than looking for a secure job. Entrepreneurs are people who recognize and seize these opportunities in a marketplace and capitalize on it.
Through the textbook we also studied what makes a successful business. The factors that we learned that go into success are a lot of hard work, which we can relate to the article as the long hours working and for Abraham Roy having to wake up earlier just to receive some calls. Another factor from the text was finding the right marketplace, which we can relate back to the article because Michael Sanderson did not have the expertise neither the knowhow for his marketplace, and as a result he failed. Another factor for success from the textbook is experience and ability to run a business. We can relate this to the article as well, as Abraham Roy had a bachelor`s degree in engineering and a post-graduate diploma in business administration training and knowledge on how to run the business. We can relate all these factors from the text to the success or failure of their business.
Business TermOne relevant business term from the textbook that we can relate to this article would be Small Business which is defined in the textbook as An independently owned and managed business that does not dominate its market. CITATION Ron17 p 76 l 1033 (Ronald J. Ebert 2017, 76) We can relate this term to the text, as these two examples of business was owned for self-employed people and did not dominate its market, actually they received help from the government.
Article TwoSummaryThe second article for this report is titled Bank profits expected to be in billions: Four of Big 5 report earning this week written by Josh Rublin and published November 26th, 2018 to the Toronto Star. The article is about how much money banks in Canada are making, basically four of the top five biggest banks in Canada (Scotiabank, RBC, CIBC and TD) had already reported their quarterly earnings, which shows that profits are in billions and the expectations about the last bank (BMO) is $1.47 billion. Canada`s Big 5 banks are among the most consistently profitable companies in the country. Macro matters: Company executives and their decisions can affect a firm’s financial health. But when those firms are as wide-ranging and reflective of the country’s economy as the banks are, there’s a limit to the impact those decisions can have on the bottom line, says Eric Compton, a research analyst at Morningstar Inc. Simply put, broader “macro” factors such as Bank of Canada decisions on interest rates, or the health of the overall economy, have a much bigger impact.
The mortgage business drives a chunk of bank earnings. With the Bank of Canada considering another rise in interest rates, profits could be affected, fewer people borrowing money means lower profits. The article analyzes that the future it is not so amazing as nowadays, because the real estate market is showing signs of cooling off making the expectations of earning money to the next quarters will decrease in comparison from now.
Business Topic AnalysisThe chapter of the textbook which this article relates to is chapter fourteen titled Money and Banking. This can be related to the text, as we can argue that these type of banks are Chartered banks the fact that if . In chapter fourteen we reviewed how .. Chartered banks are the largest and most important financial institutions in Canada, they offer chequing and savings accounts, make loans, and provide many services to their customers. They are the main source of short-term loans for business firms. The five largest Canadian banks account for about 90 percent of total bank assets (page 349)
This can be related back to the article, as it seems banks are privately owned and profit-seeking financial intermediary that server individuals. Their profits can influences more than just themselves once the investors are also The Canada Pension Plan Investment Board owns shares in all of the five, having an important decisions making into their hands and reflective of the country`s economy. So, yes Canada`s government pension is investing in the banks, with you have a no-risk investment could be probably an blue-chip mutual fund in your RRSP, could be some major bank shares in there.
Business TermOne relevant term which would relate to this article would be profit which is described as What remains (if anything) after a business`s expenses are subtracted from its sales revenues.CITATION Ron17 p 5 l 1033 (Ronald J. Ebert 2017, 5) We can relate this term to the article as what the banks most seek for, and its fits well because banks are the most consistently profitable companies in the country.
Personal ImpactThrough completing this research report, I have personally learned a lot about how … I have also learned that even if I ., there is still many factors that go into ..decision. Another thing I have learned, is that there are many opportunities for starting a business and being successful, you just need to know how to look for the right opportunities and how to capitalize on them when they appear.
During the research component of the assignment I really enjoyed being able to learn how to use professional library databases as I have never used one before. I really liked how easy it was to be able to find exactly what I was looking for and being able to sort through all the articles through different filters. I enjoyed this approach to researching articles instead of having to read through a bunch of articles through a search engine site such as google and try and pick out which ones are actual facts or not.
I selected the topics of small business and Banking profits, as I have an interest in those topics. I really enjoy how … I also have an interest in small business entrepreneurship as I have a great deal of respect for people who are able to start up a company from just an idea and build it into an empire, as I am willing to try to be a decamilionaire. I chose the articles that I did, because I think that they perfectly outlined the topics I chose and complimented them very well and gave me a lot of good points to connect with the textbook.
AppendicesAppendix 1 (Operating small business is no small task)Operating small business is no small taskRisdon, James. Chronicle – Herald; Halifax, N.S. [Halifax, N.S] 08 May 2018: CapeBreton_B4.
ProQuest document linkFULL TEXT
Entrepreneurship can be a boon for those struggling to pay the bills by providing an extra revenue stream, but it clearly isn’t for everyone because it often means long hours and financial risk.
“The first year, I used to take calls at 5 a.m. because some members of my team are in a different country,” said Abraham Roy, the software programmer who founded Prince Edward Island-based Contacts-DB, in an interview.
Even though he already had a bachelor’s degree in engineering and a post-graduate diploma in business administration, Roy put himself through Atlantic Canadian startup accelerator Propel ICT’s 12-week entrepreneurship program.
“It’s really tough,” he said. “It’s like a crash MBA.”
Although self-employment, including part-time gigs, is up in Canada’s big provinces of Ontario, Quebec and British Columbia, it’s down as a percentage of the labour force in Atlantic Canada and has been dwindling for decades.
Provincial government programs provide financial and other support for would-be entrepreneurs. There are business accelerators to foster entrepreneurship.
But running a small business is no mean feat.
When he was still in his 20s, Michael Sanderson, now the acting director of the Saint Mary’s University Entrepreneurship Centre, set up one such business. It was 1998. The business was called Sandman Video. And it drove Sanderson to bankruptcy.
“It took me four years to drive it into the ground,” he said in an interview. “I took out a lot of loans I didn’t know what I didn’t know.”
The video industry was then already in a steep decline. The young entrepreneur tried to be innovative, luring in customers from nearby office buildings with a weekend rental deal for movies.
“That worked – but it worked too well and wiped out my store of movies on Fridays and so there were no movies for my walk-in traffic,” he said. “If I had someone in distribution with me, it might have worked.”
Sanderson later started up a side venture, Chimeriam Productions, which made a short film for the Atlantic Film Festival.
In addition to the business risks that come with entrepreneurship, being self-employed can also result in a feast-or-famine rollercoaster of an income.
In a study published last year by financial software company Intuit Canada and the Emergent Research consulting firm, 59 per cent of the self-employed reported they didn’t have enough predictable income.
There are, though, up sides to self-employment. Starting a small business can provide a great deal of flexibility for the entrepreneur, rewards him or her based on performance, and allows the self-employed person to follow his or her passions.
“Life is too short to spend 40 years or 30 years of it – or whatever – doing something you don’t love,” said Sanderson.
Besides, being self-employed also comes with tax breaks.
The best bit of advice for those looking to go out on their own is to plan carefully before making the jump.
“You need to build a sustainable revenue model so that you can take home a salary and have retained earnings so that you can reinvest them in the business and grow it in scale,” said Sanderson.
Credit: James Risdon Saltwire Network
Word count: 521
Copyright CEDROM-SNi INC. May 8, 2018. CITATION Jam18 l 1033 (Risdon 2018)Appendix 2 (Bank profits expected to be in billions: Four of Big 5 report earnings this week)Bank profits expected to be in billions: Four of Big 5 report earnings this weekRubin, Josh. Toronto Star; Toronto, Ont. [Toronto, Ont] 26 Nov 2018: B.1.
ProQuest document linkFULL TEXT
Get ready for the grumbling.
It’s peak season for one of Canada’s favourite pastimes: complaining about how much money banks are making.
This week, four of the country’s Big 5 banks report their quarterly earnings, and profits are again expected to be in the billions.
On Tuesday, Scotiabank reports its earnings, with RBC coming Wednesday, and Thursday seeing CIBC and TD both reporting. (BMO reports Dec. 4.)
Here’s a look at what’s likely to be coming down the pipe and why you should care, even if you’re not rubbing shoulders with any bank CEOs.
What kind of quarter has it been? A pretty good one, according to a Nov. 21 report by Canaccord Genuity analyst Scott Chan, who predicts Scotiabank will kick off the earnings parade by announcing it had a $2.22 billion profit, a 6.6 per cent rise over the same time last year. Chan also foresees a $1.31 billion quarter from CIBC, $3.12 billion from RBC, $3.01 billion from TD and $1.47 billion from BMO.
It’s a big deal: Canada’s Big 5 banks are among the most consistently profitable companies in the country. RBC is also the largest, at least by market cap – as of last week, it was worth roughly $136.14 billion.
Still don’t care about the earnings? Guess what – you probably own a chunk of them. The Canada Pension Plan Investment Board owns shares in all of the five, including, at last count, roughly 5.1 million shares of RBC. Yup, your government pension is investing in the banks. If you’ve got any kind of blue-chip mutual fund in your RRSP, odds are you’ve got some major bank shares in there, too.
Macro matters: Company executives and their decisions can affect a firm’s financial health. But when those firms are as wide-ranging and reflective of the country’s economy as the banks are, there’s a limit to the impact those decisions can have on the bottom line, says Eric Compton, a research analyst at Morningstar Inc. Simply put, broader “macro” factors such as Bank of Canada decisions on interest rates, or the health of the overall economy, have a much bigger impact.
“A lot of it is driven by the macro level. At the ground level, some individual company decisions can make a smaller difference, but it’s really driven by the macro level,” said Compton, who covers the financial industry for Morningstar.
A matter of interest: The mortgage business drives a big chunk of bank earnings. With the Bank of Canada considering another rise in interest rates, profits could be affected, but not in the way that you might think.
While Canadians have been known to fume when opening their credit card statements or looking at their mortgage rates, banks actually make a broadly similar profit margin when rates are higher as they do when they’re relatively low, Compton explained.
But a dramatic rise in interest rates (or even, sometimes, a relatively modest one), can make people reluctant to take on a major expense like a mortgage. Fewer people borrowing money – or having people borrowing less money – means lower profits.
The future’s (not) so bright: With the real estate market showing signs of cooling off (whether because of interest rates or other factors such as a slowing economy), earnings in future quarters won’t be quite as rosy, according to several analysts.
Less-reliable mortgage earnings have a knock-on effect on other lending, including home equity lines of credit (HELOC).
“We believe that a softer housing market will adversely impact the growth rate of other higher-margin consumer lending such as auto loans … and HELOC,” suggested Macquarie Capital Markets banking analyst Mike Rizvanovic.
CREDIT: Josh Rubin Toronto Star
Word count: 613
Copyright 2018 Toronto Star Newspapers Limited. All Rights Reserved. CITATION Jos18 l 1033 (Rubin 2018)Works Cited BIBLIOGRAPHY Risdon, James. The Chronicle Herald, “Operating small business is no small task”. May 08, 2018. (accessed November 26, 2018).
Ronald J. Ebert, et al. Business Essentials, Eight Canadian Edition. Toronto: Pearson Education Inc., 2017.
Rubin, Josh. Toronto Star, “Bank profits expected to be in billions: Four of Big 5 report earnings this week”. November 26, 2018. (accessed November 27, 2018).