Qn 1
A capital expense item is any item in the company that is useful for a long period without wearing out. For example a computer hardware of software is a capital expense because it stays and does various services in the company. The term capital expense is common in any business environment and it is beneficial for the company to engage in having more capital expenses to increase on the profit of the company. Depreciation applies to the capital expense according to the arrangements made by the company, the depreciation procedure of the assets of the company follow a well defined framework to maintain a proper paper work of the company. It is important to learn how depreciation occurs through looking at the company’s regulations and studying the gray areas of the capital expense.
Vendor evaluation and matrix is a method that is important in determining the way products are bought and sold in the market. The matrix provides the pros and cons of purchasing items to the company and selling g the finished products from the market. Any company that wants success through vendor system must address all the problems that come with leasing items. When the company leases the item it must use it effectively to regain the money spent on the item without getting into a loss because any item leased has it expiry time and must go back to the owner. The IT company that leases products must keep a good record of the product to avoid losses.
Qn 3
Technology changes in a rapid speed forcing most of the companies and firms to be alert of the innovation and to be flexible while adopting new innovations. As technology advances the processing speed increases resulting to increase of the amount of data processed by companies. In this case companies need large storage capacities that can keep and secure the data processed. Technology changes lenders the old generation machines useless and the companies must engage in buying new machines that are compatible with the new technology. Adoption of the advance technology must be done in the best and quick way possible for the company to avoid running into losses and to shun competition.
Most Information technology personnel do not start with enough capital because they are students. Once they feel that they have garnered enough knowledge from the institution of higher learning they enter into the field with the expectation of getting capital from utilizing their services to the people.
