Accounting Theories and current issues (SM15)

Introduction

Profit maximization and wealth maximization are the two major objectives that have to achieve by the business organisations to run their business activity successfully for a long period of time. The achievement of these two objectives depends on the accountability of the organisations. Tn other words the business organisations have to do different business activities to achieve those objectives and the accounting activity is the most important activity that help the organisations to achieve the objectives. The main function of the accounting activity is to calculate the cost of production and revenue of the organizations (Zadek, Evans & Pruzan, 2013 ). Accounting activity also provide some important information about the areas in which the company invest their financial resources and provide a transparent view about the flow of financial resources in the organisations. Based on these information organisations prepare different financial statements such as profit and loss account, income statement, balance sheet, cash and fund flow statement. These statements help the organisations to acquire a brief knowledge about the expenditure and revenues of the company. The following study discusses about the relevant theories and standards of accounting that help the organisations to prepare the financial statements in a legal manner. The financial statement should be prepared in legal manner because the users of the financial statements such as investors, shareholders and government to calculate their earnings.          

Summary of the article

The main focus of the study is to provide some information about the relevant theories of accounting and the implementation of such theories in the accounting process. The advantages of the application of such theories in the accounting process also will be mentioned in the study (Brusca et al. 2016). This study uses the positive research accounting to explain the relevant theories of accounting. This study uses the ontological and epistemological assumptions to explain the positive accounting theories. The positive accounting research is a well established social system for contributing to the scientific research project. The positive accounting research also provide some solutions to solve different puzzles in the theories.  The study also discuss about the  every aspects of the background of the positive accounting theories and criticise the theories to provide a clear picture about the loopholes in such theories.     

Research question

1.What are the main rudiments of accounting theory?

2.What is the main issue in current terms of accounting based on this assignment?

3.What are the business risks associated with the same?

4.What is the specific audit risk associated with the business risks?

Theoretical Framework

In the theoretical framework of this study is tried to analyze the independent issues of the auditor in the modern business organisations. The auditors play a vital role in the accounting process because the report provided by the integrity and reliability of the financial statements of the organisations depend on the certificate and report provided by the auditor (Krahel & Titera, 2015). The audited financial statements help the stakeholders to get a clear picture about the income of the company. Therefore, the auditors have to prepare the financial statements unbiasedly to maintain the trust of the stakeholders on the auditor's.

Assignment question 1   

First Situation

The assignment question 1 provides a situation to identify the issues associated with the auditor independence in the selected company. The auditor of the company tries to meet different accountant of the company to get some relevant information about the expenditure, revenue and profit of the company. The study will analyze the situation provided in the assignment question to  identify the relevant threats associated with the independence of the auditor. According to the scenario the Luxury Travel Holiday ltd appoint a new auditor in their company to prepare a financial report for the financial year 2015 by auditing the financial statements in the previous year. The auditor also have an audit partner who provide all relevant information such as Ceo of the company, the name of the accountants of the company and the organisational culture of the company (Macve, 2015). The partner also provides the informations about the standards used in the preparation of the financial statements. Geoff also suggest the new auditor to meet the relevant people of the company to get some important information about the financial performance of the company.

The study analyze the scenario according to the situation provided in the scenario. In the first situation the auditor meet the CEO of the Luxury Travel Holidays ltd as per the suggestion of the Geoff to acquire some knowledge about the satisfaction of the board of directors about the financial performance of the company. According to the Chris CEO of the Luxury travel Holidays ltd the board of directors is happy with the last year financial report of the company audited by the Geoff (Lee, 2013). For this reason the boards of directors wants to invite Geoff in the annual general meeting to provide a speech about the financial performance of the company. Board of directors influences Geoff to appreciate the integrity and reliability of the financial statements prepared by the company to the investors. The board of directors also influenced Geoff to motivate the investors to increase their investment in the company and generate new investors for the company.

The independence issues of the auditor associated with the first situation:

The issues arise in the first situation can be threats for the independence of auditor. The major threats to the independence of the auditor are as follows:

A) As motivate the investors of the company to increase the investment is against the ethic of the auditors. The law associate with the auditing process does not permit the auditors to motivate the investors or promote the company’s financial performance to the investors. Therefore, Geoff can refuse the offer of the board of directors of the Luxury Travel Holidays Ltd because it is threates to the ethical independence of the auditor (Lehman, 2014).  

B) As the Luxury Travel Holidays ltd is the client of the Clarke & Johnson auditing company and Geoff is a normal employee of the Clarke & Johnson. Therefore, the board of directors can influence the Clerk and Johnson to push Geoff for the speech in the annual general meeting. This situation can be a threat to the job of the Geoff in the auditing firm.  

C) The board of directors also can influence Geoff to conceal the negative issues of the financial statements such decrease the liability, decrease the losses etc from the investors and measure all the positive issues in the speech such increment in the assets, decrement in the liabilities, decrement in the losses and expenditure to increase the goodwill of the company among the investors. This situation can be a threat to the honesty of the auditor (Mohammadi, 2015). 

Such pressure decreases the independency of the auditor in the organisation and manipulates the auditor to audit the financial statements based on the requirements of the company. This factors damage the integrity and reliability of the financial statements.   

The following measures can help the auditors to protect their independency from such situation: 

A) The auditors can refuse the offer of the board of directors of the company.

B) The auditor can prepare some own policies to maintain the morality in the preparation of the financial report. Therefore, the Clarke and Johnson cannot force the auditors to provide an speech in the seminar of the luxury Travel Holidays ltd.

C) The Clarke and Johnson also conduct some rules and regulations for the auditors and the clients  of the auditing firm. Therefore, the clients cannot offer such opportunity for the auditors and the auditors can not accept such offers of the clients (Anders, 2015).

D)  The auditors can also take legal help if the board of directors of the Luxury Travel Holidays limited force them for providing speech in the seminar because motivate the investors to invest  in the company by the auditors is a illegal activity for the company.

E) Auditors also can be a whistleblower for the company by providing all relevant information about the illegal activities in the financial statements of the company.

The all above measures help the auditors to avoid such offers of the company during the auditing job (Ramesh, 2013).    

Second situation

In the second situation Chris the CEO of the Luxury Travel Holidays Ltd try to provide a family holiday package for both the new auditor and Geoff as a gift for the good auditing job. As Luxury Travel Holidays ltd is just a client of the Clarke & Johnson therefore, the new auditor and Geoff  cannot accept such gift. Such gifts are like a bribe to the auditors. The auditors should refuse such gifts from the Chris because it increases the liability to the company of the auditors and this can be a major threat to the independency of the auditor. The other threats associated with such gifts are as follows:

A) Such gifts increase the biases during the auditing process of the financial statements and the company can influence the auditor's to do window dressing in the financial statements to motivate the investors to invest in the company. This is a major threat to the independency of the auditors in the company (Watts, & Zuo, 2016).

B) The acceptance Such gifts also increase the greed of the auditors. The increment of the greed decreases the independent of the morality of the auditors. Therefore, the auditor cannot audit the financial statements of the company with the morality.
C) It also decrease the room of the auditor to provide some independent opinion about the financial performance of the company. Therefore, the auditors cannot provide a clear picture about the actual financial performance of the company to the investors.

The following effective measures can save the independency of the auditor:

A) Provide the information about such offers of the company to the Clarke and Johnson to influence them to take some effective measures about such offers of the company.

B) The auditing firm can prepare some rules, regulations and policies for the company and the auditors to prevent such situation in the company (Appelbaum, Kogan & Vasarhelyi, 2016).

C) The auditing firm can include such issues in the contract with the company to prevent the arising of such issues during the auditing process.

The all above effective measures have to follow by the auditor to be prepared and aware about the process to avoid such situation. The avoidance of such situation can protect the independency of the auditors.

Third situation

According to the third situation of the scenario the first year accountant of the Luxury Travel Holidays ltd Michael is very excited to be a part of the auditing team and his father is the financial controller of the company. Therefore, the auditors can get some assistance in the process of auditing of the financial statements. Michael can provide some relevant information about the sources of income of the company and the factors of the expenditure of the company as his father is the financial controllers of the company (Hopper, Lassou & Soobaroyen, 2017). The auditors can get all the relevant financial statements of the company through the help of Michael. However, this situation also reduce the room of independency of the auditors. As Michael is the employee of the of the Luxury Travel Holidays ltd and his father is the financial controller of the company. Therefore, the auditors cannot maintain the secrecy in the auditing job. There is a probability of the leakage of some relevant information about the auditing job in the company. For this reason the company gets some time to conceals the relevant information that reveal the actual financial status of the company as the father of Michael is the financial controller of the company (Hayne & Salterio, 2014).

The effective measures to protect the independency in the third situation

The auditors can provide some limitations of the inclusion of Michael to protect the secrecy of the auditing job.  The auditor also request the company not to include the employees of the company with the auditing team. In this way the auditors can protect the secrecy of auditing job.      

Fourth situation

According to the fourth situation Annette who is the employee of the company also be included in the auditing team. As Annette is the accountant of Clarke and Johnson in the tax advisory department. Therefore, Annette can provide some important information about the tax obligations of the company. The relevant information helps the auditor to include the tax obligations of the company in the audited financial statements and report (Knechel & Salterio, 2016). The inclusion of the relevant information about the tax obligations of the company in the financial statements increases the trust of the government about the reliability of the company. However, the request of Annette also reduces the independency of the auditors in the auditing job. Annette can conceal or overlap some relevant information about the tax obligations of the company. This situation can damage the integrity and reliability of the audited financial statements of the company to the stakeholders. The low quality of the auditing job also reduces the goodwill of the Clarke and Johnson auditing firm. Therefore, the auditors have to be careful about such situation during the auditing job.

The auditor can take some effective measures to avoid the inclusion of such situation during the auditing of the financial statements of the company. The following measures can be effective for the auditors to protect the independency:

A) The auditors can refuse the request of Annette about the access of the information related with the tax obligations of the company. 

B) Auditors can force Annette to disclose all relevant information about the tax obligations of the company (Miller & Power, 2013).

C) Auditors can analyze the previous year’s tax obligation statements of the company to ensure about the accuracy of the present tax obligations of the company.           

In this way auditors can protect their independency in the auditing job. The independency of the auditors is very relevant for the company also because the integrity and reliability of the financial statements prepared by the company depend on the financial report provided by the auditors. While, the information about the reduction of the independence of the auditors leaked among the stakeholders that will decrease the trust of the stakeholders from the company. Therefore, it is very important to the organisations to maintain the independency of the auditors during the preparations of the financial report of the company.       

Assignment question(2)

(a)Description of two business risks to MSL(Mining and Supplies Limited) that Crampton and Hasaad will consider in the context of purchasing of equipment and spare parts while preparation of audit of 2015.

The business risks associated with MSL can be identified in terms of the purchasing and selling based terms and conditions related to mining and spare parts based products which are made available to the customer at  two years tenure of labour and spare parts warranty along with a one year free maintenance service period (Bromiley et al. 2015).  Business risk is something that affects the results, evaluations and processes and activities of operations management. In our case business risks are associated in terms of purchase and sale to and fro from Mining and Supplies Limited in and across different nations like that of Australia mainly to companies of Perth,  New Castle and Mount Isa in the varied and proportional manner in different intensities in different scenarios. Business risks are primarily caused by certain causal factors of business which are namely economic factor, technological factors, geographical factors, market-based competitive factors and business volatility based changes in business conditions. Business risks are factors that prevent organizational process based programs and policy implementations in terms of business policy formulations and auditing methodologies (Collier, 2015).  

Business Risk: Two important business risks associated with this auditing methodology are:

Loss of customers and reduction of customer base because of increase in production costs and freight charges of business. These two business risks must transform into audit risks for the future period of time as gauged from the top down approach or analysis respectively in terms of its understanding or comprehensive abilities and relevant environmental abilities judged in terms of risk evaluation and business policy appraisal and estimation procedures.Both of these business risks finally transforms into financial statement based error risks. Both of these business risks are strategical based risks and financial risks or finance based risks respectively.

Strategy based risks are that which arise from shifts in customer based preference pattern in business due to some economic and socio-cultural business oriented conditions judged in terms of market-based perturbations or disturbances created in the market which may be met in form of externalities affecting market procedures and programs respectively. Either the production technology may become obsolete or the there may be the operation of certain market forces which may affect the business climate in terms of certain modus operandi based circumstances and situations respectively. These two risks may put the auditing company under threat due to a multiple no. of reasons, hence loss of customers due to brand unpopularity or faulty production procedures are the main strategic risks associated with this type of auditing business based activities of purchase and sale of spare parts and mining equipment to and fro from MSL to different regions of Australia in general terms and conditions (Spence & Carter, 2014).

Financial risks are encountered in form of increase in production costs which may affect the financial infrastructure based base of the company and may led the company in a number of financial lags and loopholes in business based cash flow generation process in terms of inflows and outflows of money through sale and purchase of spare parts and mining equipment to and fro from MSL respectively.

 (b) Description of specific audit risk associated with each and every identified business risk.500

Specific audit risk is the type of risk associated with the two different varieties of business risks to MSL-associated with its business of spare parts and mining equipment with the leading mining companies in Australia like that located in Perth, New Castle, and Mount Isa respectively. Audit risk is based on preparation of auditing procedures and balances statements in terms of income flow and cash flow respectively in varied intensities and manners (Wu, Chen & Olson, 2014).  Hence misstatement in balance sheets or lags in data of revenues, costs and inventories and cash flows are the main types of business risks associated with the plans and procedures of auditing based business preparations and policy implementation procedures cum methods. Identification of business risks for instance loss in consumer demand and the increase in production costs may lead to indirectly to the identification of specific audit risks indirectly from various grounds and objectives respectively which may be seen or witnessed from different facets cum scenarios of business respectively. For instance, a specific type of audit risk is a disagreement of auditing business with the accounting principles of the audit which brings disagreement of the audit . It deals with the basic terms and conditions of audit based accounting norms and varied principles of business policy formulations. The specific audit risk may come from different facets and angles of business such as mentioned as follows:

1.Mis cooperation in dealing with the reports of financial reporting based problems and propagandas of business policy formulations and misunderstanding in terms of business disagreements and other misconceptions.

2. Misidentification in dealing with complex accounting plans and policies

3. Lower commitment in terms of implementation and use of effective business procedures and plans regarding preparation balance sheets and financial statements respectively.

4. Incomplete cognition levels and know how of finances in relation to business procedures and business agreements in respective terms and conditions.

5. Lack of approach and attitude to deal with accounting based business and related procedures and programs in terms of accounting and auditing measures and lack of transparency and conspicuousness related with the same (Siegel, 2016).  

Audit risk can increase or decrease as per the degree or magnitude of credits and liabilities in the net amount being outstanding in business based procedures and propositions respectively.

Similarly choice of improper sources for data collection methodologies may also lead to audit based risks and challenges in business based accounting procedures in terms of assessment of business risks and challenges arising in business from each and every ground or criterion finance and accounting as per the discussed issues of MSL which carries out the business of sale and purchase of spare parts and mining equipment across different Australian markets in some important business destinations of Australia like that of Perth , New Castle And Mount Isa relevant to certain terms and conditions of business development procedures and programmes of business accounting based financial management and related procedures of business accounting processes.

Significance and limitation of the article

Literature Review:

The availability of the literature related to the auditing are not enough for explaining the role of the auditing in the modern organisations.  The theories provided in that literature are not relevant with the implementation of the auditing practice in the organisation culture of the company. The literatures also did not mention some relevant areas of the audit which make a huge gap between the practical audit and theoretical audit. The following study tries to cover all the gap in those literature about the audit and try to make the theories of the audit more practical for the implementation in the modern organisations.

The researcher of the study tries to use some methods to interpret and explain the audit in a proper manner. The researcher use the post positivist approach to interpret the models, background and theories associated with the audit (Knechel & Salterio, 2016). The researcher also uses the deductive approach to analyze the theories, models and background to provide some detail information about the audit in the study.    

Significance of the study in the auditing process

The study will play a vital role in the implementation of the audit in the modern organisations in a proper manner. As audit is an important activity for the organisations to maintain the integrity and reliability in the preparation of financial statements. The study provides some relevant information about the issues faced by the auditors in the preparation of the audited financial statements in the organisation. The study provides some relevant suggestions to the auditors about the process to avoid such issues during the auditing job. The study also provides a process for the modern organisations about the availability of the financial statements to help the auditors in the preparation of the financial report. As the income of the investors depends on the financial performance of the business organisations and the financial statement reveal the financial performance of the company. Therefore, auditing of the financial statements is very relevant because the reliability of the financial statements depend on the financial report provided by the auditors.

Limitation of the study

The scope of audit in the modern business organisations is very wide but the above study can not provide enough information about the advantages of the implementation of the auditing practice in the organisation. The study cannot provide enough information about the issues faced by the auditors in the preparation of the financial report. The study can include the following problems in the study such as:

A) Lack of the documents: Sometime organisations can not provide proper documents such as bills, invoices, cheques etc as the evidences of the transactions. The absence of such documents increases the complexity of the auditors in the preparation of the financial report.

B) Lack of support of the company: Sometime the auditors have to take some interviews of some employees such as accountant, financial manager, financial controller of the company to get some relevant information about the financial status of the company.

C) Force of the company: Sometime the company forces the auditor to prepare the financial report according to their requirements. This situation creates some complexity to the auditors in the preparation of an unbiased and independent financial report (Watts, & Zuo, 2016).

The above study can provide some recommendations to solve such problems of the auditors. The study also can provide some relevant rules, regulations and standards that can be used by the auditors to prepare a proper financial report. 

Conclusion

After the analysis of the auditing practice throughout the entire study it is clear that the inclusion auditing practice in the organisational culture is very relevant for the modern organisations. The retention of the existing investors and the generation of the new investors in the company depend on the financial report provided by the auditor. Therefore, it is mandatory for the modern organisations to implement the auditing process in the financial statements for maintain the trust of the investors. The organisations and the auditors can use the recommendations provided by the study to prepare the financial report with proficiency.

ACCOUNTING THEORY AND CURRENT ISSUES (SM14)

Introduction:

Positive accounting theory is most popular and worldwide accepted theory of accounting. It is a scientific accounting theory shows the empirical relationship. Due to its most concrete scientific approach, it is accepted by everyone. The main focus of criticism in this theory is the acceptance and its implications. The theory is based on certain assumptions. This accounting theory is developed by Watt and Zimmerman on some specific assumptions. Therefore, the theory is having some positive aspects and some negative aspects. Both the areas, based on the article are explained in the study. ‘Qualitative' and ‘Quantitative' research areas of positive accounting theory are assessed on the basis of the article. The process of alteration of a specific accounting theory and the potential role of measurement is also evaluated in the study. In order to make a judgment of positive accounting research, the main areas of the article are focused correctly and make a reason based justification.  

Summary:

The article has discussed the positive accounting theory and its successful implementation. Due to its scientific application, it is currently in the practice. It is used for getting the accurate result. The logical factors which are essential for accounting theory are considered properly. But it is having some limitations.  The theory has become unable to fulfill all scientific objectives as the applicability is wide range. The main aim of the study is to make a comprehensive discussion of the article in which research work is framed and limitations are discussed regarding positive theory of accounting. In the article, hypothesis testing has been made and how analysis is made through testing that is highlighted. On the contrary qualitative analysis, areas are also focused. The right side and the drawbacks of the article are made in the study in order to evaluate the overall outcome. Qualitative techniques can give good result that is highlighted in the article and in quantitative approach, emphasis is made on measurement. The existing assumptions can be changed by new one. As per article, the ultimate contribution is Kuhn's normal science approach is more acceptable than the Zimmerman's theory. Whether it is correct or not, that interpretation is made here.

Research Question:

The researcher has classified the world into two categories. The one side does not follow researcher’s imagination and the other side follows their imagination. Only normal people can get the true and fair information about the events of the world. Maximum experts believe that quantitative interventions can only give the proper result regarding the research project. But, qualitative methods are also acceptable. So, quantitative as well as qualitative both the techniques are explained in the article. Popper's approach in the statistical hypothesis testing is followed. A quantitative model is explained to judge the competency of the management. Numerical figure can give an absolute result only. So, the quantitative technique which is mentioned in the article is having limitation for assessing the management strength of the organization.

Comparison of different model is also needed for identifying the relative performance. The management issues regarding the payment of audit fees have been identified with the quantitative model. But quantitative model can give good outcome for proper judgment. It is more logical. The constraints of the analysis have been already highlighted in the article. The real world event is completely different from some mathematical model. So, the numerical test cannot give the proper outcome. There are different statistical methods which are normally applied in the research work to get concrete result. Optimization is the essential work of any research work (Balakrishnan, Watts & Zuo, 2016). In positive accounting theory, efficient market hypothesis and CAPM model are also considered. The researcher is absolutely correct that only quantitative technique cannot give full result. 

The main focus of hypothesis is to calculate the numeric value i.e. measurement is more essential than the testing. On the contrary, it must be considered that capital asset pricing model is worldwide accepted model of computing the cost of equity because it considers some important factors (Gaffikin & Aitken, 2014). So, positive accounting theory is really having a remarkable contribution towards the accounting. There is no way of evaluating any result whether it is true or false except replication of the work. The testing which is used in the research process that must be worldwide accepted. The statistical model gives concrete result on the basis of variance and the sample size. The article has made a study of current practice of research in respect to the accounting. So, different models are highlighted to show the positive and negative parts. The research work has focused on the main area by literature review accurately. Kuhn's explanation of normal science has been highlighted in the article. Watt and Zimmerman have claimed their accounting theory as ‘Positive’. Research work in respect to make a theory is very much comprehensive which is shown correctly as per review of literature. The qualitative research work is also explained in the paper. Qualitative work can give most valuable result than the quantitative research if it is done with proper logic. For forming theory, qualitative work is most essential. Accounting theory formulation and positive accounting theory are having a slight difference. The theory of accounting provides specific guidelines in respect to the practice. So, qualitative experiment can give correct result in formulating accounting theory.

Theoretical Framework:

The positive theory is largely accepted. The research has been done on this positive theory to make a normal explanation of behavior of human beings for accounting rules and regulations settings. Different statistical techniques are used for making a standard level of theory. But, sometimes quantitative methods cannot give the actual result. Statistical methods can provide proper result if information is collected accurately (Miller & Power, 2013). Different shortfalls of current accounting practices are mentioned in the article considering the epistemology and ontology of the positive research. Every theory is having some drawbacks and on the basis of the shortfalls new theories are formed. Positive accounting theory is really a good concept for accounting practices but due to worldwide access to the positive theory, it is has faced some limitations (Christensen, Nikolaev & Wittenberg-Moerman, 2016).

In this respect, normal science approach has been highlighted in the article. As per research paper, normal science approach is having a vital impact in positive accounting research. The main objective of the positive accounting theory is to supply a ready solution to solve the puzzle with fewer barriers. The successful research can be made by developing the existing model properly and unnecessary or irrelevant assumptions must be avoided. The positive accounting research only makes the emphasis on scientific efforts. The logical factors are considered properly in scientific theory. If there is no empirical relationship, the theory cannot be accepted. This is a continuous process which can be maintained by developing different assumptions (Beattie, 2014). Management strength and weakness measurement regarding audit work are shown in the article with a mathematical model. The positive and negative effects of the model have been shown. Sometimes different assumptions may not be accurate. So, some models cannot interpret properly. In order to get right result, correct assumptions are needed. Positive concept of accounting which is running all over the world is having some issues. These can be eliminated by making change in the framework of the theory. For this reason more and more research work is needed.

Only current issues of accounting practices are exerted in the article. In accounting, the research work is having a specific structure. The author will first develop a model regarding accounting practices and then he will gather information for testing purpose. So, the analytical model needs some specialized activities. If testing is not accurate, then it is difficult to frame a theory correctly. In accounting research work, measurement is treated as vital part. Replacement of past study is the normal thing of any research work. In accounting research, for determining the actual result and exploring the constraints of applicability of findings of previous research replication is done. The research work actually reveals the requirements of positive accounting theory for making the effective contribution towards the respective field. Highly vulnerable models are to be considered for proper testing. Ad hoc quantitative models are main drawbacks of positive research of accounting. This problem must be overcome by adopting remedial steps. Functional characteristics are important for social system of positive accounting research. Instability of social system does not hamper the strategy of betterment (Baxter, 2014).

Significance and Limitations:

The current scenario regarding positive accounting theory is really important to know for getting an overview in respect to the world wide acceptance of the theory. A specific qualitative and quantitative model of formulating any decisions is needed to be modified. In dynamic business, world demand is always changing (Hunton, Neidermeyer & Wier, 2015). As per present demand different model must be established. So, development of any theory is a continuous process. In order to eradicate the limitations, up gradation is essential. A positive theory of accounting is having the remarkable contribution. It can give concrete outcome regarding any problem. However, evaluation is essential in order to moderate any system. Improvement needed to cope with the changing environment.  Positive accounting concept follows observation process. So, hypothesis testing is most important part of positive accounting research work (Easton & Monahan, 2016). Different positive and weak points of accounting research work are highlighted in the topic which helps in identifying the negative areas. The article is really helpful for making further research work with respect to the positive accounting theory. Basically, system changing indication is given in article which is needed to be considered very seriously. Presentation of the actual issues in respect to the accounting theory is really helpful for making modification.

From the literature review of the article, it can be said that different experts model are discussed in the paper to show how techniques are used in evaluation or decision-making process and what is the main limitation of a specific model. The author has used ‘Quantitative' and ‘Qualitative' both the interventions to make this analysis. The importance of qualitative analysis is needed to be explained more that the quantitative technique. In case of accounting theory formulation, qualitative methods adoption is a vital area.

For providing guidelines in different practical issues theory is essential. For specific rules and regulations, different practical issues are essential to identify. Accounting practices cannot be done properly if there is no appropriate theory. For solving new issues new framework is required to be made. The positive accounting theory drawbacks are acknowledged by the author properly but if the article is prepared on the basis of comparison of the normative theory of accounting, it becomes most effective research work. The author has made right theoretical conclusion from the research work, but the main limitation i.e. lack of comparative study with normative theory reduces the significance the article. In this respect, it can be said that, the normative approach is also essential for accounting practices. Both the theory must be taken into the consideration properly, so that it can be helpful to construct new areas of accounting (Chatfield & Vangermeersch, 2014). If a set of framework does not maintained, it is too difficult to face practical accounting issues. The researcher has made the analysis of hypothesis testing and has highlighted the proper areas of limitations. If research models cannot be developed properly then it cannot give fruitful results in research activity.

Conclusion:

Every research work is done to identify some problems and solutions are given regarding limitations. In the article, the shortfalls of models to conduct the research work are shown in a systematic manner. So, in this respect it is very good research work. But this project can be modified in a different manner. Positive accounting theory is really well accepted and it is required to be improved effectively. The article says about numerous problems of current accounting issues. The importance of normative theory must be considered here because it is very much helpful for making standards of accounting correctly. So, further study can be made in respect to positive accounting research work to get a more useful result.

CASE STUDY ANALYSIS (SM13)

Introduction

COPD stands for Chronic Pulmonary Obstructive Disease. COPD is generally found to be occurring in patients of 40 years age or more. This is a kind of disease accompanied by chronic bronchitis, shortening of breath, wheezing, pus and mucus in sputum. Some patients suffer from some of these symptoms and some people have all of them. The patient here is of 65 years and has a history of smoking. He has been suffering from bronchitis infections for a long time. Patients like these who have chronic symptoms; they generally face an early relapse even if treated. So, even after treatment patient needs to be cautious at home. Apart from this, the medical needs, dietary requirements, at home care and daily habits to follow are provided here.

Pathophysiological factors of COPD

COPD is a complex disease which is usually unrecognizable by symptoms at an early stage. People, who are diagnosed with COPD, generally face certain symptoms which are chronic and prolonged. There are three main changes associated with COPD. These are inflammation of the airways, structural changes in the airways and mucus gland dysfunction.

The inflammation of the airways is generally caused due to some irritants like air pollutants, active or passive smoke and so on. These pollutants cause inflammatory cells like B cells, neutrophils to accumulate. Here, Bill, the patient has a smoking history for a long time. Long-term smoking has triggered the accumulation of inflammatory cells in case of Bill and worsened the air flow. The structural changes in the airways are caused due to the inflammatory process. The accumulation of inflammatory cells narrows the airways. Abnormal multiplication of epithelial cells, deposition of damaged tissues and peribronchiolar fibrosis are also responsible for narrowing of airways and collapses during exhalation. This also reduces lung capacity causing breathlessness as Bill is suffering.

Mucociliary dysfunction causes the mucus glands to accumulate in the air tracts and prevents air flow. Here the patient is suffering from a cough associated with pus and mucus in sputum. Excess deposition of mucus glands in the airways is responsible for a chronic cough with mucus in it.

Symptoms

As per Sirey, Raue & Alexopoulos (2016), the general symptoms include Cough, mucus with sputum, shortness of breath, wheezing and lethargy. Three main symptoms include chronic bronchitis which generally includes a persistent cough with mucus filled sputum, Asthma which is caused due to allergens which trigger inflammation of airways and Emphysema which literally means shortness of breath. The patient here, named Bill, suffers from all of these.

Figure 1: Symptoms of COPD

(Source: Lipson & Dibble, 2010)

Risk factors contributing the symptoms

As stated by Agusti, Hurd, Fabbri et al. (2013), the main and primary risk factor for developing this disease is smoking. According to survey reports, smoke has been found as the main factor in about 39% of the cases reported.  As mentioned in the case of Bill, he has a long and persistent smoking history.

Air pollution is the next important risk factor according to reports. Any kind of pollution like gases released from automobiles, chemical factory gases, and even the gases produced in an unclean environment are responsible. According to Gibson, Loddenkemper, Lundback et al. (2013), findings suggest that burning of mosquito coils can also lead to this disease as it releases the same amount of smoke produced from a pack of cigarettes if burnt for 8 hours or more.

We are generally exposed to air pollution on a daily basis which cannot be avoided fully. Here Bill has been exposed to the environment pollution and smoking both which played as contributing factors of developing COPD in Bill.

Management needed for patients with acute COPD

Medical management

As mentioned by Lipson & Dibble (2010), medicinal measures that can be taken for people like Bill with chronic bronchitis may be, use of bronchodilators and inhalers. Bronchodilators help in the relaxation of airway muscles and promote healthy breathing. Corticosteroids are sometimes found beneficial in case of people with acute exacerbation of this disease like in the case of Bill McDonald.

According to Fischer, Scharloo, Abbink  et al. (2013), use of mucolytic medications is found to be beneficial in case of people who suffers from an acute cough with mucus in sputum. These medicines help to break the mucus deposition and allow the mucus to get cleared. As specified in case of Bill, he suffers from a persistent cough and purulent sputum. Patient like him can be treated by these mucolytic medications.

As per Halpin, Reilly, Connellan et al. (2014), antibiotic therapy is generally used for patients with acute exacerbating COPD and purulent sputum. Here, Bill McDonald qualifies for taking this treatment as he suffers from these symptoms.

As per the opinion of Hurd (2013), Oxygen therapy is generally referred for those patients, who has PaO2 less than 55 mmHg or patients with O2 saturation 88% or less and PaO2 within 55-59 mmHg. As mentioned in the case of Bill McDonald, he has PaO2 less than 55 mmHg and O2 saturation less than 88%. Patients like Bill must be referred to take oxygen therapy.

Nursing management

Nurses play the most important role in the management of COPD patients. As opened by Vrijhoef, Diederiks & Spreeuwenberg (2014), they are the one who stays in direct contact with patients for a most of the time. If they take alert in case of these patients, they can prevent the patient from getting into a worse situation.

Nurses in the rehab centres can advise the patients to quit smoking and help them getting rid of the nicotine addiction. Patients like Bill, who has a long history of smoking, find it difficult to quit smoking and thus enter into a severe COPD stage. Experienced healthcare people in the rehabs and nurses help the patient stay away from smoking.

Nurses are also in charge of the nutrition need of the patients. As specified by Cruz, Brooks & Marques (2014), in this disease condition, people tend to lose weight gradually. So, nurses must take care of their proper and healthy diet.  In the case of Bill, as specified here, he even feels shortness of breath and has a wheezing problem at rest. This often occurs due to less amount of energy. For this condition, a proper diet must be maintained and observed by a nurse.

Nurses are also responsible for taking care of patients who need continuous oxygen supply. As stated here in Bill McDonald’s case, he needs to take oxygen on a daily basis. A nurse is responsible for keeping track of the oxygen flow and must check the reading and check patient’s condition on an hourly basis.

Explaining the measures that need to be taken for Bill before discharging

There are no remedies for the disease of Chronic Obstructive Pulmonary Disease (COPD) but some precautions can be taken by proper exercising, using therapy and regular meditations. Extra care for the lungs and maintain a healthy life. Smoking should be stopped as it because breathing problem. Breathing rate gets reduced due to the presence of smoke in lungs. Nutrition food is required which will give them energy and active. Chemicals should be avoided while cleaning such as hairspray or strong smells scents Smith et al. (2016). Scent-free, the natural product should be used so that the fragrance does not affect their breathing. Need fresh air to breath and stay away from the pollution. Harmful lingers present in the air will cause breathing problem.  The person who is affected by lungs infection needs to take vaccination every year which will prevent them from influenza and different respiration problems Prescot et al. (2014). Apart from this, the measures which are very important for this disease are:

Exercise: Mr. Bill uses to have one pack of cigarettes in a day. This makes his respiratory system weak and causes COPD. Such that he required a routine exercise or it will become more difficult to breathe properly. Therefore a regular exercise is a needed to strengthen his muscles which will improve and maintain the lungs in proper condition. He will feel confident and independent to do his own work completely. It is important for the person to do daily exercise but there is no need to maintain proper steps. He applies his own steps like walking, dancing, and yoga without using any types of equipment.

Therapy of oxygen:  The volume of the oxygen get reduced therefore supplement of oxygen is needed to them. This will increase the amount of pure oxygen and make them active without any problem. Mr. Bill has been provided with the supplement as he is unable to breathe properly. His lungs and rest of the body need more oxygen for absorption. Therefore, by this therapy, his body will get most possible oxygen and can perform actively without any fail to breathe.       

Medication therapy: It prescribed with three types of COPD Viegi et al. (2014); first one is bronchodilators, which normally designed for the patients of airways for breathing properly. The second one is steroids in flights to reduce swelling. Lastly, for the treatment of infections, some antibiotics are also available. Most of the patients of COPD have medications on daily basis to make their breathing easier Halbert et al. (2016). This reduces infection on lungs and stays healthy.

As a result, as time goes the disease become worse, therefore he needs to monitor by time and date. Keeping the list of their symptoms will help to monitor them and manage COPD on control.  

Identification of the resources to developing and education plan for disease and discharge process:

Chronic obstructive pulmonary disease (COPD) can be managed properly by taking effective and in a safe manner. The entire community can encourage them to develop the services to provide care and provide them a traditional by the hospital. For some patients this care is appropriate but who are in the danger condition they need proper guidance from the hospital. The current symptoms are to be analyzed and specialized treatment is to followed by them. Awareness regarding smoking in community and make the others to avoid it Lusurdi, et al. (2016). They to maintain pollution free environment so that they can breathe easily. Toxic gasses need to be stopped as this also causes the respiratory problem. Firstly, the patients need to be tested frequently. Breathing rate needs to count regularly as diagnoses of them regularly required. This required clinical experience that depends on the different test. Radiographs of a chest for analyzing the rate of the lungs, this test are to done on the routine basis Farrero (2014).   

Unlike homecare, community cares for the patients for stabling the diseases. Trained staff is required for the safe and manageable care. Increasing the facilities of medicines and staff for the community to advice them. If proper facilities are not given and proper care not done this will be widespread. For developing generic, different schemes are to be managing the mental and discover the problem Bourbean et al. (2016). Around the world, this needs to be changed in a significant way. Training, experiences of staff that are properly trained by the nursing proper health care. They remind the management technique and a proper plan to help the patients with high health care. The department of health says the community would able to be interpreted by managing, necessary skilled Halpin (2013). Apart from this, the coordination between the primary and secondary planning need to operate to produce similar symptoms. The diet of the patient should also be taken care. Good food makes them healthy as well as gives energy. Their energy gets reduced as they behave more forceful breath. They need to maintain a diet chart where all the healthy components are required for their health.   

As a result, Mr. Bill needs full attention for that his condition does not get degraded. The hospital and the nursing community need to be saturated in which it provided on the regular basis. As he getting the discharge, therefore, he needs a follow-up care for the home care.

Conclusion

Patients dealing with COPD suffer severe health problems like asthma, wheezing, shortage of energy, extreme weight loss and so on. In the case of Bill McDonald, he is suffering from all these things and is in a vulnerable condition. In his case, the main role for developing this disease was smoking and it is also considered as the main cause of COPD. To prevent this disease, one should stay away from smoke or allergens present in the air. People diagnosed with this disease should quit smoking, wear masks on exposure to pollutants, take healthy diet and should be given proper emotional, medical, domestic support. People should also be provided with adequate education regarding the disease.  

SKILLS FOR TRAVEL AND TOURISM START-UPS (SM10)

Introduction

The concept of travel and tourism is very ancient from middle age. Human being wants to travel from one place to another. Some of the travel and tourism are for refreshment or fun while another can be profession or business trips. For normal people it is for fun but for the travel agent or tour guide it is for earning. The government of respective countries have focused towards the development for tourism and its destination. According to the world tourism tourism is something where people move from usual environment to a new location normally for fun. Tourism has various categories such as local, domestic, national or international. A recent report of 2016 says that tourism has become major source of income for many countries and thus it affects the economic condition of host countries. Breakout of influenza virus most of the countries’ tourism department suffered a huge loss. The topics deal with the travel and tourism for Start-up Company. Along with this it will have details discussion about skill and characteristic required to become successful enterprise and also their strength and weakness. The other two tasks will say about development of tourism and steps required for a start-up business in context with travel and tourism.

Overview of the company

As the essay is all about a start-up company of travel and tourism so let's select an arbitrary company based on own choice. The name of that travel and tourism company will be “Let's go” and this is a fictitious company. This company will provide tourism facilities for national and international tour. The organization main motto would be to keep satisfy all the tourist will our quality of service. Of Course it's another objective will be to earn profit but at the same time will focus on service and satisfaction of customers. The company will try to give quality service will less price. It will also focus on giving respect and keeping good relation with the tourist. This arbitrary company will also pay attention towards health and safety of the tourist. The company will also try to preserve the cultural art and dignity of the country such as handicrafts, monuments and natural resources. It will even try to raise or donate funds for the welfare and development of the tourist destination. This organization will try to offer air tickets for LCC and offline carriers. For tourist guidance this arbitrary company will also pay attention towards health and safety of the tourist. The company will also try to preserve the cultural art and dignity of the country such as handicrafts, monuments and natural resources. And help it will have a 24/7 helpline number. If possible it will have connection with the tourism ministry of respective countries.

Figure 1: Logo of let’s go

(Source: Ibrahim and Lucky, 2014, p.125)

Task 1.  Skills and characteristic of travel and tourism

1.1 Skills required for entrepreneurship

Every human being requires some skill to continue their individual life smoothly. When the matter is related to entrepreneur, then they require a special type of skills. But this skill varies from organization to organization (Ibrahim and Lucky, 2014, p.125). A start-up or establishing company of travel and tourism requires skills which could help the company to improve its position and also to earn more profit. Other objectives of this entrepreneur is to keep the customer satisfy and also to give tough competition to competitors. Some the skills are as follows:

●     Discipline: One of the most important skills required for entrepreneurship. This skill helps to overcome hurdle, set plans and to design strategy to achieve those plans. A successful entrepreneur is always disciplined and focus towards their goals.

●     Confidence: For making organization successful it is very important to have confidence to achieve that objective and to make organization a successful one. The confidence helps to increase the efficiency in business (Mohammed and Obeleagu-Nzelibe, 2014, p.25). This skill is basically for the knowledge of the business.

●     Competitive: Skill to compete other business as no one can do job better than them. Participation in business should always for giving tough competition to the competitors. An entrepreneur competitive skill to improve business help to have competition in the market.

●     Creative: It is very necessary for an entrepreneur to be creative and to adopt strategy to make organization successful. This skill helps to have good relation with unconnected events.

●     Time management: An entrepreneur should know the value of time. One should always fix to one job at a time until the job meet its goal. A start-up business requires minimum 8 hours of work per day.

●     Sales: Entrepreneur should have the quality to increase the sale of an organisation. As ultimate motto of a company is to increase sale.

●     Leadership: The most important skill is leadership as this help organization to manage and control all the staffs. These skills even help in production and service.

1.2 Strength and weakness along with strategies for development of entrepreneur

Strength of an entrepreneur is as follows:

●     Risk taker: Entrepreneur is the person who takes all the risk of an enterprise. He personally bears all the financial, management and production risk. If company fails he is the only person who will bear all the loss. So it's a big courage to take all this risk.

●     Business oriented: An entrepreneur is always focused on business and growth of organization. His full attention is on goals, objective, profits and production of the enterprise (Grant, 2016, p.45).

●     Determination: The strength to be determined or focus upon certain thing is very important. The entrepreneur is fully determine about his goals and objective and also tries to achieve them.

●     Creative thinking: The biggest of all strength is this particular point as this help the person to be creative minded and always try to do something new and unique. This thinking always brings profit to the organization.

Weakness of an entrepreneur is as follow:

●     Depend on other: Most an entrepreneur is the master of an organization so he depends on other for the outcome. He only gives order and hopes to achieve target with the help of others. The real contribution is not provided by the entrepreneur (Phillips and Pittman, 2014, p.124).

●     Poor administration skills: Most of the entrepreneur does not possess administrative skill so an organization needs to have a good administrative department. As entrepreneur is the master so he does not focus on these areas.

●     Lack of time management: Entrepreneur does not have quality to manage time according to the requirement so he ends up in wasting time doing useless things. Hence enterprise faces all the loss.

A personal action plan is something which is related to the objectives of business that is solid. There are various strategies which would help to be successful entrepreneur can be through above mentioned skills and strength (Ibrahim and Lucky, 2014, p.125). All the required steps and process are to be obtained and complete them, division of work according to the capability and lastly work according to the goals of the organization. 

Task 2. Enterprises development in the travel and tourism

2.1 Development of an entrepreneurial enterprise

This task needs to take two travel and Tourism Company of UK. The selected two enterprises are Thomas cook and Travel stop. Bothe the company deals with holiday package, flight tickets, cruise and vacation. The details development of the selected two companies is as follows:

Thomas cook: This is a British company founded by Thomas Cook. He was born in the year 1808. The person is very famous because he founded the first travel agency named as Thomas cook & son. According to Lall et al. (2016, p.56), the first trip begins with the 500 people from Leicester Campbell to Loughborough. After few years Thomas cook arrange a party and travel from Leicester to Liverpool. In the very next year he took 350 people from Leicester to Scotland. Thus gradually his travel agency business grew up. In the year 1851 he took 150,000 people to London for exhibition. The office of Thomas cook also contain a shop where essential travel related accessories were been sold. By 1888 the organization had opened its own office all around the world.

Travel stop: The agency was established in the year 1991, aims to provide travel agency service to tourist. The agency hopes to fulfil the expectation of the customers and to go beyond that expectation. This agency started with a small school trips but gradually it enlarged. Presently company have a strong connection all around the globe. It even have own office in most of the countries. It always thinks about the customers and select right trips for them. Agency believes in caring, independency and honesty (E. Dobbs, 2014, p.68). The company have potential to give information beyond Google. Above mentioned points are the main factors for the development of the enterprise.

Porter’s five forces would help to get the answer more clearly:

●     Fear from new entrants: every business organization has competition in the market. Thomas cook and Travel stop also have fear from entry of new travel agency in the market. This entrant would affect their business and customers would be diverted.

●     Threat of substitutes: The service or product that are been provided by Thomas cook and Travel stop could be provided by some other company (Shaul and Tauber, 2013, p.80). This would be a big threat for the enterprise. Price of product can bring threat from substitute.

●     Supplier’s bargaining power: When there is many service provider then bargaining power of supplier increases. Presence of single supplier could also increase bargaining power.

●     Bargaining power of buyer or customer: Entry of substitutes bring bargaining power in customers. As they will have many option so they will bargain with price of the service.

●     Competitors: Tough competition among the present competitors brings rivalry among the enterprise. Thus this will affect sale of product.

Figure 2: Porter’s five force

(Source: Shaul and Tauber, 2013, p.80)

2.2 Factor for success of an enterprise

There are various factors which are responsible for the success of an enterprise. But sometimes it varies from enterprise to enterprise. Some important factors are as follows:

●     Growth:  As per Armenski et al. (2015, p.60), growth of an enterprise has a deep relationship with the success. Expansion or growth gives success to the organization. If we look at the above mentioned enterprise Thomas cook or Travel stop then we could understand the real meaning of growth. The enterprise expanded or grew from local to national and then to international. Growth of an enterprise is unstable procedure with no problem.

●     Competitors: Competition has its own advantage along with some disadvantage. Giving best for the competition brings ultimate success to the enterprise. Day by day travel competition among the travel agency is increasing.

●     Opportunities: Opportunities always gives chance to compete with the competitors. This competition would give a positive outcome in form of success. Report says that chance or opportunities always gave success to travel and tourism enterprise.

●     Trends: Travel agencies need to adopt the current trends as most of the people wish to take short vacation rather than taking a long one. Enterprise needs to change their strategy and planning according to the trends (E. Dobbs, 2014, p.68). This would help to attract more customers and thus enterprise would get success. Hence proved that trends could give success to enterprise.

●     New technology: An enterprise needs to keep itself updated with the current technology. Travel enterprise needs to keep itself attached to the social networking site and application. This would help to gain attention of customers. Advertisement in Facebook, twitter and YouTube would be much benefited to the enterprise. Thus increase in customer would give more sales. Hence enterprise will achieve its success.

Task 3. Business start-up plan

3.1 Finance and support for travel and tourism sector

Every enterprise needs financial support for smooth functioning and operation. Travel and tourism enterprise needs huge amount of financial help. Support can come from any direction and in any form. Smooth operation of this enterprise is possible only with the support of following sources. The sources are as follows:

●     Ministry of Tourism: All most every country possesses this ministry department. The primary aim of this ministry is to develop the tourism industry and to attract more tourists to the host country. Ministry of tourism (MOT) do not supply funds for tourism but have a scheme named as tourism demand subsidy scheme (Roberts et al. 2014, p.87). Main aim is to motivate the small industries to invest funds for development of infrastructure. MOT is providing $28 million for 4 year aims at developing and overcoming barrier of tourism. Each new project related to tourism will be helped by government up to 50% of total expenditure.

●     Private funding: Tourism industry gets financial help from seed capital, venture capital, private equity, loans and leasing. When industry is started then it get help from seed capital. Venture capital provides funds for long term. When individual or private enterprise invests funds for the development are related to private equity. Loans are been provided from banks to the tourism enterprise for the purpose of development and establishing the business. Leasing is something where a company signs contract to provide all necessary equipment at affordable price.

●     International agency: Agencies like IBRD, IDA, IFC, TFCI provides funds for the development of tourism industry. International bank for reconstruction and development supply funds to the developing nation for purpose of development (Frank, 2014, p.105). International development association provides funds to the poorest countries for improvement. All this funding are been used by the tourism industry for the development.

3.2 Develop and justify the concept for an enterprise

As the selected company let’s go is on its starting stage so it needs to give good service in the field of tourism. The company’s main focus is on the low scale people and hopes to fulfil their dream. The company will have various problem related to finance, management and competition but still it need to focus on its goals. Some goals of the company are as follows:

1.    Attract a equity revenue of $300,00.

2.    Have its own website and web service.

3.    Good quality of service.

4.    24/7 helpline customer service

5.    Satisfy the customer.

6.    Earn profit from end of 2018.

Market analysis states that current generation people like to travel from one place to another. Most of the people focus on short trips rather than long trips once in a year (Rachet, 2014, p.147). Company will even focus on the strategy of its competitors along with the process to overcome them. SWOT analysis helps to understand the market.

●     Strength: The selected company let’s go understand the travel and sector very nicely. It have own contact with the people of attractive location. Experience team is a part of the company.

●     Weakness: As it is a start-up company so its weak point is that customer won’t trust the company. It has lack of financial support.

●     Opportunities: As the company is providing same quality of service with fewer prices so it has big opportunities to attract more customers. The current market support tourism industry very much (McKeever, 2016, p.110). 

●     Threats: As this is a armature company so it will face problem to compete other. Tourism is a very tough industry and has many competitors.

Figure 3: SWOT analysis

(Source: Burgess et al. 2015, p.123)

 Target customers will be basically people who love to travel. The primary age group will be the youths and the retired people. These two groups have leisure time so they can go for trips and tours. Next target will be the customers who have low income and low living standard.

3.3 Business start-up plan

A business plan is something which has full description of business. In details it will deal with product service, market, price, finance, human resource and infrastructure. In another word it deals about the past and present condition of the company and this also help to determine the future of the company. There are various reason for preparing business plans and plans are been read by commercial bank, private investment funds, development funds and private investors (Burgess et al. 2015, p.123). Business plans is been prepared by the chief executive officer, marketing and sales managers, development managers and financial managers. The business plans for selected enterprise “Let’s go” needs to have following steps. They are as follows:

●     Assessing the situation of the market: This will deals others opinion on the chosen enterprise. This will help to know the current position of the company.

●     Develop a mission: Before going in further details with the business plans a clear mission is to be identified. This will motivate the shareholders, employee and the customers.

●     Getting ready: After selecting a mission it is needed to get ready to achieve that mission. The mission of let’s go is to promote tourism wit5h good quality of service in low price. Collect all the required members who will help to achieve those goals.

●      Setting goals: Goals will help the company to have a good future in the field of travel and tourism. The goals will be time bound and measurable (E. Dobbs, 2014, p.68).

●     Working for plans: Main focus would be on the sale, development and service. Let’s go will pay attention towards this entire factor so that it can have a smooth functioning.

●     Employee roles: The whole task of company needs to be divided among all the employees. This will help to complete the task in less time. Sales and production manager will give details about individual roles.

●     Monitoring process: The last stage of business plan is to monitor and notice whether all the steps are in proper operation or not.  

Conclusion

The entire requirement are been fulfilled with full details. Improvement or development in tourism industry is at high peak. People desired for travelling is increasing. The start up company let’s go would be a very successful one if it follows above mentioned plans and strategy. According to the world tourism tourism is something where people move from usual environment to a new location normally for fun. Tourism has various categories such as local, domestic, national or international. A recent report of 2016 says that tourism has become major source of income for many countries and thus it affects the economic condition of host countries. This arbitrary company will also pay attention towards health and safety of the tourist. The company will also try to preserve the cultural art and dignity of the country such as handicrafts, monuments and natural resources. It will even try to raise or donate funds for the welfare and development of the tourist destination.