RADIOTERAPIA EXTERNA EN EL CANCER CUTANEO NO MELANOMA

Opportunity Cost/Loss

Any decision that involves a choice between two or more mutually exclusive alternatives has an opportunity cost or loss involved.

Opportunity Cost

Opportunity Cost is the value or utility that is foregone by taking up a particular alternative. It is the value of the utility that would have been derived had the best of threst of the alternatives been chosen.

Opportunity Loss

Opportunity Loss is the value or utility that is foregone by taking up a particular alternative. It is the difference between the value of the utility and its opportunity cost.

Partners in a Firm » Opportunity Loss

The contributions made by partners to the firm take various forms like contribution of assets (cash, Motor Vehicles, Buildings etc) towards capital, their time and energy by working in the firm, their personal contacts by generating sales through them, their selling abilities etc.,

In contributing these assets or services to the firm, the partners personally incur an opportunity cost/loss which they will consider before employing them for the firm.

 where the partner is investing capital he/she would be thinking of the earnings they might get if that capital is employed elsewhere;

 where he/she is employing his/her time as a working partner, he/she would be thinking of his/her earning if he/she employs the same time elsewhere.

Each and every contribution of the partner has an opportunity cost loss attached to it unless they are sitting idle.

Need for Guarantee

In situations of the sort mentioned here, partners may ask for a guarantee from one or more other partners so that they would not be at loss by employing their resources for the firm.

 Where a partner is participating in a partnership firm, he/she needs to be compensated at the minimum, to the extent of his/her opportunity loss for the contribution made to the firm. Otherwise he/she may be desisted from contributing to the firm.

 Where a partner is very much sure that he can employ what he/she is contributing to the firm elsewhere in a more profitable manner, why should he/she invest them for the firm, unless there is some sort of assurance for the returns they get by contributing to the firm?

 When a person is getting into a partnership agreement, he/she will be conscious of his/her own abilities as well as the limitations of his/her other partners. Moreover, he/she would be measuring his/her opportunity cost/loss in becoming a partner.

All Partners Cannot be the Guaranteed

In the context of a particular guarantee, one or more partners can be given the guarantee. Since, there should be at least one partner who is giving the guarantee, not all the partners can be the guaranteed.

All Partners Cannot be the Guarantors

In the context of a particular guarantee, one or more partners can give the guarantee. Since, there should be at least one partner who is being guaranteed, not all the partners can be the guarantors.

There should be at least one who is giving and one who is guaranteed, thus eliminating the chance of all the partners being either guarantors or the guaranteed in such cases.

A Partner can be a guarantor and a guaranteed

One or more partners can be both the guarantor and guaranteed at the same time. A partner may guarantee one or more other partners and at the same time get a guarantee from one or more other partners

Guarantee to Partners Guarantee to One Partner

A, B and C are partners in a firm sharing profits and losses in the ratio 5 : 3 : 2. They now decide to admit Mr. M as a partner giving him 110th share and taking among

themselves 510th,310thand110th respectively. Mr. M was willing to join as a partner only if he is guaranteed that his annual share of profits would be not less than 20,000.

Effect of the Guarantee

If Mr. M is to get his guaranteed annual share, the firm would have to make an annual profit of at least 2,00,000 ( 110th of 2,00,000 = 20,000). If the profit is lesser, then the existing partners should forego their share to ensure that Mr. M gets his guaranteed share of profits. If the profit is more than 2,00,000, the guarantee does not affect the share of other partners.

The guarantee may be given by one or more partners.

 Guarantee by one Partner

On admitting Mr. M, the firm would benefit in a number of ways. Specifically Mr. A would be getting a major relief on Mr. M sharing some of his responsibilities.

Mr. B and Mr. C were reluctant to agree to the guarantee proposal put forward by Mr. M.

Mr. A, since he would be benefiting directly and being confident that the firm would make enough profits to ensure the minimum share asked for by Mr. M, has agreed to guarantee Mr. M on his own.

Thus Mr. A guarantees Mr. M's minimum share. The burden of guarantee has to be borne by Mr. A.

 Guarantee by two Partners

Mr. B is reluctant to agree to the guarantee proposal put forward by Mr. M. Mr. A and Mr.

C being confident that Mr. M's admission is beneficial to the firm in every way, together agree to guarantee Mr. M.

The burden of guarantee has to be borne by Mr. A and Mr. B together.

 Guarantee by the Firm

Since all partners feel that admitting Mr. M would be benefiting the firm in all ways, they all agree to the minimum guarantee asked for by Mr. M.

The burden of guarantee has to be borne by all the partners together. In such a situation, Mr. M is said to have been guaranteed by the firm.

Guarantee to two or more Partners

Guarantee to two or more partners would have be viewed similarly. The guarantee may be given by

 only one partner

 two or more partners

 the firm, i.e. all the partners together.

Appropriation Guarantee - Shortfall

All appropriations as we see in partnership accounting are arrangements made to ensure an equitable distribution of profits based on the various contributions made by partners to the firm.

As such the amount guaranteed may relate to

 Distributable Profits only

 Distributable Profits and other Appropriations

The guaranteed amount, apart from share of profits, may consist of other profit appropriations like salary to partner, commission to partner etc.

Shortfall

The difference between the amount guaranteed and the amount that a guaranteed partner would get if the guarantee is not brought into force, is what we call the shortfall.

The terms of guarantee enable us to understand what constitutes the guaranteed amount and thereby calculate the guaranteed amount and the shortfall that has to be made good if any.

Who bears the shortfall and in what proportion?

Who bears the burden of shortfall is dependent on who has given the guarantee.

Where there is only one partner who has given the guarantee, the total burden inevitably has to be borne by that partner only.

Where two are more partners have given the guarantee or the firm has given the guarantee, the proportion in which the burden of shortfall is borne by the partners is dependent on the

agreement between them. In problem solving, where there is no mention of the proportion, we assume that they share the burden in proportion to the profit sharing ratio inter se between them.

REFERENCES:

(1) http://www.futureaccountant.com/partnership-accounts/study-notes/#.Vg649NKqqkr.