Capital Investment

Capital Investment questions and answers

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Q: Is there a company in your country called capital investment solutions?
If there is a company in your country called capital investment solutions, do you know if it is legit? I was offered a loan from them, i don't have to pay any mony for the loan, but i do have to provide my bank account details for a bank to bank transfer of the funds.

A: never provide your bank account details to anyone if you don't know who they are!!! By the way, this has been asked before - http://answers.yahoo.com/question/index?qid=20070503062610AANXPLU

Q: what is the definition of capital investment?what are the advantages and disadvatages?
Assume you are to write a project on capital investment, what are the full content of what you will be writing?

A: I'm not writing your essay for you, but capital investment is, in business terms, investing in equipment that will make your company run more efficiently. For example, a car manufacturer would make a capital investment in a robotic assembly line. The obvious advantages would be increased speed of production (and presumably increased profits). A possible disadvantage would be faster mistakes if it was programmed incorrectly, or the need to get personnel that could program it. I hope this helps.

Q: Has anyone ever heard of Nelson Capital Investment?
I'm from Montreal, Canada. I'm about to get a loan from Nelson Capital Investment. Their adress is Vernon House, 40 Shaftesbury Ave: London W1D 7ER UNITED KINGDOM. Does anyone know if this is a legit company or am i getting into a scam?

A: I am not familiar with this company. They could be private. I don't follow private UK companies. I searched for them, and found no website. Most finance businesses will have a website by now. http://www.google.com/search?hl=en&q=Nelson+Capital+Investment&btnG=Google+Search&aq=f&oq=

Q: I'm putting together a start-up LLC and need to know if capital investment is taxed.?
I'm putting together a start-up LLC and need to find out if investment capital is taxed.? This question is prior to capital gains, but regarding the first year of putting the cash into the company. This is important because if capital investment is taxed, then I'll have to recalculate and add more money. If not, my current estimates are correct. Please note that this is for a U.S. LLC. If you have a reference for where to find this answer, I'd also appreciate that. Thanks.

A: An investment of your capital in any company is not taxed. The taxes have already been paid on any capital you may have accumulated. Your investment becomes your cost basis. If you plunk down $100,000 into a company and later sell your interest for $250,000 you will have either a long-term or short-term capital gain of $150,000 and be taxed accordingly. If your share of the company's earnings are $30,000 you will be taxed on this whether or not you withdraw it from the company. Your cost basis is now $130,000. Later on if the company writes you a check on for $20,000 this is considered a return of capital and is not taxed. Your cost basis would now drop to $110,000.

Q: Capital investment and cash flow for a business for sale - what do these mean?
Saw an ad for a business for sale, one of the things mentioned was "no capital investment required" - does this mean that in order to take over the business, from a financial point of view, one would only need the means to purchase the business (not including insurance, permit and license fees, etc). And, when cash flow is listed, I'm not sure what that means exactly - I assume this means the amount of money the business has on hand to cover operating costs ; but what I'm not sure of is how this would benefit the buyer - except to demonstrate that the business has been a successful and financially viable operation?

A: I think what this mean is you will be a mediator or a resource who'll manage the organization. The funding will be done by some venture capitalists. They may or may not give you freedom to decide on the idea of business. I am not a finance guy to know more about this. This is my view about this. I have known a Financial consultant who might be able to help you better. David Barnitt of Attract Capital is one of the pioneers in this field.

Q: I'm putting together a start-up LLC and need to find out if investment capital is taxed.?
This question is prior to capital gains, but regarding the first year of putting the cash into the company. This is important because if capital investment is taxed, then I'll have to recalculate and add more money. If not, my current estimates are correct. Please note that this is for a U.S. LLC. If you have a reference for where to find this answer, I'd also appreciate that. Thanks.

A: Did you pay taxes on the capital before you put it into the companies? LLCs pass profits and losses through to their members, and are not taxed themselves.

Q: In relation to capital investment appraisal, what are the non-financial criteria of choosing two projects?
in relation to capital investment appraisal, waht are the non - financial criteria that may be used to choose between projects

A: I'm sure there are many Is the project within your area of expertise? Will the project take resources from other areas? Does it involve working with people you don't know or understand? Are there cultural problems that have to be considered?

Q: If a US company (LLC) wants to make capital investment overseas; does owner gets to write it off as expense?
I plan to start a business overseas (India) that will ultimately bring profits back to US. However, I would like to take tax advantages, if any available, while making this investment. Is there any way I can get write off investment made in this manner? Indian company can be upto 50% owned by US registered company.

A: On your financial statements, you have to show your overseas investments on the asset side of the balance sheet, and these entries don't enter into taxable calculations. It's like buying a car. It's not income and it's not a deduction, all you did is spend your money. Income generation overseas is "foreign earned income" and it is certainly taxable. Foreign earned income falls under a different set of rules and I've never studied them in depth, but they are taxable for both companies and people. Any taxes that you pay in India are deductible, naturally. Since you're running a company, everything you spend in day-to-day operations is deductible from revenues. That's the easy part, now the hard part. The way you account for your overseas investments depends on percentage of ownership. If you own 0-20%, the only taxable amounts are the cash that you actually receive, like dividends. Your asset is accounted for at "fair value" with a seperate "fair value adjustment" below, and you simply carry the market value of the investment on your books. If you own 20-50%, you are presumed to have an influential interest and you're required to use the "equity method". This means that every year, you record as subsidiary income your portion of income and losses whether you actually receive it in cash or not. You would also do this if you had less than 20% but for some reason had significant influence over the company anyway. If you own 50-100%, you are presumed to have controlling interest and you're required to consolidate the company's financial statements with your own (and on the balance sheet you would still use the "equity method"). As an added bonus, you may have a gain or loss on the fluctuation of currency between the countries, but you would only record this if the fluctuation adds value or devalues your investment significantly. What I've given you here are Generally Accepted Accounting Principles as of 2006. If your LLC is privately held, meaning you're not publicly traded, you can probably get away with ditching GAAP and never hear a peep from anyone. Your responsibility is to your stockholders and creditors, and if you don't have any or if they don't care, why should you? Nevertheless, the SEC and FASB both recommend all companies apply GAAP to their operations.

Q: Hello guys, can anyone tell me about how authentic is the American River Capital investment? Can i Join?
I'm Abbey i so nuch longe for a reliable Investmet online until i stumbled on the American River Capital Investment. i. e. Profit.gateway.com. How reliable are they? are they registered as they claim? and after reading their FAQ I discovered on the last sentence, an error wether typological or an overlooked, i.e "No. If we find that one member has more (that )one account, the entire funds will be frozen." the error is the one i put in bracket.

A: If it souds to good to be true, then it is. You will notice at their site, they say they are publicly traded. If so, why is it one can not find a listing of the company on any stock market? Last year there was a flood of questions on Yahoo Answers about a company, which I forget the name of, that offered fabulous returns. All of a sudden it dissappeared and everyones money with it.

Q: How much capital investment is needed to start an airline business?


A: Depends. Is it a puddle hopper service in a third world country? Or an international airline in a big city.

Q: How do private capital investment companies, such as Cerberus, select companies to invest in?
Cerberus buys nearly bankrupt/struggling companies and then turns them around. I'd like to know.. 1 - How do such companies identify companies? 2 - How do they change the fortunes of the company around? Do they have set models for such work? Thanks

A: One of the main things they look for is low debt on the balance sheet. They load up the target company with debt, and use this cash to purchase the target. There are various ways to profit from the transactioin. The company can be broken up and the various parts sold (the parts are more valuable then the whole). or if they decide to operate the company, a hard nosed administration is installed, and cost are cut to the bone to maximise profits. The name of the game is to get the greatest ROI possible.

Q: how to start a company with small capital investment ??
how to start a company in India with small capital investment ??

A: If your business is to be directly in India and you are planning on offering a service, try starting from home. Writing, tutoring, seminars on a topic of interest or personal growth are all good business ideas in any country. Having a web presence is one of the best ways to get started. It is global (worldwide) so your customers can either come from India or anywhere else. Guts and dedication are all you need in addition to your small capital. Besides, sometimes a small amount of capital is best, because you learn to use the little money you have wisely. Too much money sometimes can lead to bad decisions and bad spending habits. If you are strating a web business, a good reliable webspace provider is www.akinghost.com. You can register your domain name and get free hosting $7.49 which is for a whole year, no scams. After a year, you pay $3.99 per month for hosting. You only have to pay for two months at a time if you are unable to afford the annual fees. The difference between their annual and monthly fees is minimal. You also get help with building the site, free software, 24 hour support. So far, I am building seven websites of my own. I paid $56 (inc. tax) for all of them and I am very pleased with their service so far. You get lots of space too and there is an auto website builder that can help you put five pages together. Here are some highlights from their site: Domain Names .COMs starting at $7.49!* FREE with every domain for a year: • FREE! Blog • FREE! Hosting • FREE! Complete Email • FREE! Forwarding / Masking • FREE! Change of Registration • FREE! Starter Web Page • FREE! "For Sale"/ Parked Page • FREE! Domain Name Locking • FREE! Total DNS Control *(.net is $9.99 and .tv is $19.99)

Q: Why do capital investment decisions receive so much management time and attention?
Why do capital investment decisions receive so much management time and attention?

A: Since a capital investment is a major outlay of money in one form or another, Cash, Loans, etc, it is the responsibility of the management team involved to select the best avenue for their ROI. They will have to deal with current value vs future value, current usage and integration with current needs. For example will the plot of land to build the new office be a drain on their resource or in actuality bring them to a new level of sales due to the location. Will the return warrant the expense. Another question they need to ask is how will current production be affected -down time to convert to the new machinery, will the current work flow be interrupted to a damaging extent. Will the new equipment increase the production with out creating a bottleneck in production from other areas and if is does create the bottleneck what other costs are involved. Simple as it may sound their are so many variable involved that management must spend a lot of time in considering all aspects. I have give only a couple but this could translate into many others. Factors concerned are time, cost, implementation, learning curve, depreciation, resalibility, why a capital investment is even being considered. Ford just closed some plants and laid off a great many people but they did so at a cost that was exhorbitant. Like the capital investment the decision to close a plant is both time consuming and expensive. The same questions were covered but with a different take. Do the costs warrant the expense? Consideration being given to all aspects of the proposed investment.

Q: Capital Investment Solution is offering me a loan but they are in the UK. Has anyone in SA received any money?
I have to pay a certain percentage of the loan amount as a deposit because I am residing in SA and the deposit acts as a non-collateral requirement because I don't have a property to put up as security. Has anyone received any money from them or is this just a scam to get me to pay money over to them? Please urgently let me know what you think.

A: NO NO NO ... any demand for an 'upfront payments' is a SCAM 1) Complete SCAMS - run by criminals = see 419 Advanced Fee Fraud 2) Agent SCAMS - run by 'Loan Arrangers', 'Consultants', 'Agents' & 'Adviser' etc. Theses companies do NOT lend money - they take a fee to "find you a loan" .. sometimes they succeed but often the 'loan' is not worth having - the annual Interest rate is astronomical (it's usually expressed 'per month' (eg 3%) or per week (eg 1%), since most applicants are too stupid to work out the annual rate) - and they will typically take another fee (added to the loan) if you go ahead with the loan .. They are not illegal, because (check the small print, there is NEVER any 'time-scale' attached to the 'promise'), in theory, they could still be 'arranging' your loan when Hell Freezes Over :-)

Q: Is it possible to start a limited company with just £5,000 capital investment?


A: You can gain guidance and information on these matters through your local commerce department.