...Cash Management FIN/486 Cash Management Cash Management is a vital tool for the success of any company. In today’s worlds it is important that companies pay close attention to the cash they are spending and receiving. Effective cash management can offer businesses stability, and it could make them more competitive. Big companies use these techniques and have demonstrated that they can be successful. One company that good with cash management techniques is Wal-Mart. Wal-Mart is one of the biggest retail companies in the world with more than 8,500 stores in 15 countries and sales of $258billion in 2009. In the following paragraphs the different cash management techniques of Wal-Mart will be analyzed and explained. Also with support of examples the effectiveness of the different techniques will be examine, which will help determine ways to improve the company. Techniques The significance of cash management consists of taking the essential procedures to keep up sufficient levels of cash to congregate operational and capital requirements and to gain the greatest yield on short-term investments of pooled, inactive cash. The most important goal of a superior cash management method is to maintain sufficient money to meet the daily cash necessities of the company at the same time as increasing the amount accessible for investment. Also it is helpful to receive the greatest earnings on invested funds while make sure their safety. One cash management technique that Wal-Mart...
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...Global Finance Environment Paper FIN/403 May 4, 2008 Globalization refers to the merging of national markets into one huge global marketplace. In today’s market, selling internationally is much easier due to falling barriers in cross-border trade. Now businesses don’t have to be industry giants to operate and succeed in global markets. Although it can be beneficial to offer a standard product that can be used worldwide, significant differences still exist between national markets such as cultural differences, consumer taste differences, product preferences and legal regulations. It is important to define and understand these differences when merging into national markets. Globalization is inevitable and it’s happening at an astonishing speed in nearly every market possible. The technology era that we are in has enabled businesses to join forces like never before and we are seeing significant changes in the global marketplace. There are main drivers in globalization and this paper will define three of them, as well as describe the risks associated with financial investing, and explain the importance of cultural sensitivity and ethics in global finance. Drivers of Globalization Market drivers Domestic markets are saturated and growth opportunities are often times limited. Expanding globally opens up many new opportunities allowing for real growth within a business. The following lists in detail the specific market drivers that play a key role...
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...Chapter 1 An Overview of Corporate Finance and The Financial Environment MINI CASE Assume that you recently graduated with a degree in finance and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle Dellatorre, a professional tennis player who has just come to the United States from Chile. Dellatorre is a highly ranked tennis player who would like to start a company to produce and market apparel that she designs. She also expects to invest substantial amounts of money through Balik and Kiefer. Dellatorre is also very bright, and, therefore, she would like to understand, in general terms, what will happen to her money. Your boss has developed the following set of questions which you must ask and answer to explain the U.S. financial system to Dellatorre. a. Why is corporate finance important to all managers? Answer: Corporate finance provides the skills managers need to: (1) identify and select the corporate strategies and individual projects that add value to their firm; and (2) forecast the funding requirements of their company, and devise strategies for acquiring those funds. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Answer: The three main forms of business organization are (1) sole proprietorships, (2) partnerships, and (3) corporations. In...
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...Chapter 1 An Overview of Financial Management ANSWERS TO END-OF-CHAPTER QUESTIONS 1-1 a. A proprietorship, or sole proprietorship, is a business owned by one individual. A partnership exists when two or more persons associate to conduct a business. I contrast, a corporation is a legal entity n created by a state. The corporation is separate and distinct from its owners and managers. b. In a limited partnership, limited partners’ liabilities, investment returns and control are limited, while general partners have unlimited liability and control. A limited liability partnership (LLP), sometimes called a limited liability company (LLC), combines the limited liability advantage of a corporation with the tax advantages of a partnership. A professional corporation (PC), known in some states as a professional association (PA), has most of the benefits of incorporation but the participants are not relieved of professional (malpractice) liability. c. Stockholder wealth maximization is the appropriate goal for management decisions. The risk and timing associated with expected earnings per share and cash flows are considered in order to maximize the price of the firm’s common stock. d. Social responsibility is the concept that businesses should be partly responsible for, and thus bear the costs of, the welfare of society at large. Business ethics can be thought of as a company’s attitude and conduct toward its employees, customers, community, and stockholders. A firm’s commitment...
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...the Global Environment Assignment 1/1 Assignment contribution: 20% of module grade Assignment title: Finance Law and the Moroccan Enterprise The process of starting up and developing a business is not just an adventure, but also a real challenge. In order to help entrepreneurs with this, it is essential to create a favorable business environment. Ensuring easier access to funding, making legislation clearer and more effective and developing an entrepreneurial culture and support networks for businesses are all instrumental as far as the setting up and growth of businesses are concerned. However, creating a favorable business environment does not mean simply improving the growth potential of businesses. It also means turning Morocco into a place in which it is advantageous to invest and work... The size of “small and medium size companies “(SME) makes them very sensitive to changes in the industry and environment in which they operate. It is therefore vital for their well-being to be a focus of political attention. In this regard, the finance bill of 2011 came up with many changes especially In terms of VAT and IS (impot sur societé or Taxes on profits) that probably can have an impact on the Moroccan Enterprise. In an essay of 2500 discuss the following Your discussion should include the following points. 1. Describe the business environment in which a SME company operates in Morocco ( provide a sectorial case) 2. The impact of finance bill 2011...
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...Unit 2 Business resources P4 What is financial resources? Companies often need finance for starting or continuing business operations. Small businesses typically need start-up finance, while medium and larger companies may need finance to expand operations. Different types of financial resources are usually available based on the company’s size and needs. Each financial resource offers different advantages or disadvantages to companies. Financial resources are the money that are available to a business for spending in the form of cash, liquid securities and credit lines. Before going into business, an entrepreneur needs to secure sufficient financial resources in order to be able to operate efficiently and sufficiently well to promote success. Short definition of internal and external finance. To provide internal and external finance means to engage in business activities using either monies from within a company or funds from outside. This is the key and most important difference between these two funding options. When a company uses internal finance, it takes advantage of existing supplies of capital from profits and other sources. External finance involves the use of money new to the company, from outside sources, to fund planned activities. Consequence of not managing your financial finance. By not managing your financial resources things can go wrong quickly for your company. Your company will be at risk and I’m speaking about financial risk. Financial risks are...
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...3.0 Political Environment and Risk The political environment is vital to monitor for any company planning to do business, especially in a foreign country. Political risks are associated with government actions which deny or restrict the right of an investor or owner. These actions include war, insurrection and political violence. They are also able to devalue the firm by creating legislation that can increase taxes and tariffs, seize their property or restrict use of his/her assets which would then reduce the value of the firm (Howell, 2014). 3.1 Political Environment and Risk in Japan Japans political environment is among the most stable in the world based upon the fact that the World Bank has ranked Japan in the top quartile in all areas of governance as can be seen in figure *INSERT FIGURE NUMBER*. Graph retrieved from Finance for Australian Exporters Graph retrieved from Finance for Australian Exporters Figure 1- Governance Indicators in Japan Sourced from Finance for Australian Exporters, 2015 Additionally, the World Bank has also rated Japan 29th out of 189 economies in ease of doing business. Australia has a major foreign trade incentive with Japan as the free trade agreement between Australia and Japan which came into effect in January 2015 allows 97% of Australian exports preferential treatment or duty free access into Japanese markets (Export Credit Agency, 2015). Japans stable political environment and Australia’s positive relationship positions...
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...See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/235266981 International business and finance scholarship ARTICLE in RESEARCH IN GLOBAL STRATEGIC MANAGEMENT · JUNE 2008 DOI: 10.1016/S1064-4857(08)00001-6 CITATION READS 1 11 1 AUTHOR: Raj Aggarwal University of Akron 203 PUBLICATIONS 1,943 CITATIONS SEE PROFILE Available from: Raj Aggarwal Retrieved on: 23 February 2016 INTERNATIONAL BUSINESS AND FINANCE SCHOLARSHIP Raj Aggarwal ABSTRACT This chapter explores how scholarly work in the fields of Finance and International Business (IB) can be mutually supportive. First, it is clear that technology has been a major driver of modern developments in both Finance and IB. Second, Finance can provide many insights into IB scholarship since it has much to say about firm operations and strategy. Third, IB scholarship with its focus on culture also provides significant opportunities for a better understanding of the global aspects of Finance. Finally, it is contended that transaction-costs economics provides an excellent theoretical and fundamental basis for bringing together IB concepts and Finance scholarship. However, while the potential for Finance and IB scholarship to contribute to each other is great, such advances must await the removal of cultural barriers between the two disciplines. INTRODUCTION The field of IB generally focuses on inter-national business, that is, business across national boundaries and...
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...International Project Finance Globalization, large scale production and chains of multinationals have become very common in today’s world. Due to this, any business that has to survive and compete with others on a global level has to come up with new and innovative projects to give it an edge above its competitors. Here, we are not talking about projects on a small or medium scale. We are talking about huge multimillion dollar investments in a large scale project as only then can a business make its mark on the world economy. The main cause of people hesitating to do such huge projects is that they do not have enough financial back up to go through with plans involving such huge investments. Since, in the end, every brilliant project plan is dependent on the finance required to carry it through, financing of such a project becomes the primary concern of any planner. The financing must be done prudently so that the best of the financial instrument can be used while the negatives avoided as far as possible. Every financial instrument is applicable for certain projects. Choosing such instrument should be the focus of any project since the project will only remain on paper and never be carried out unless there is financial aid. In the present day, there are many unique financial law solutions for funding large scale projects. Following are some of them described in brief: * Project Finance Loans: Project Finance is a kind of loan structure wherein the repayment is dependent...
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...FINANCIAL SYSTEMS FU TURE CHALLENGES IN GROWING COMPLEX E NVIRONMENT DISSERTATION Roszak Sabrina Msc BC & IS Management 1 MSC IS&BCFinancial SYSTEMS FUTURE Challenges in growing complex environment DISS Acknowledgements It is not an easy task going back to school after seven years of work experience. And it is much harder going back to school being a young mum. For this reason, my deepest gratitude goes to my family who has always supported me and helped me in this initiative. Especially, I would like to thank my parents who always believed in me, my husband who encourages me and over all, my son, whose love gave me all necessary energy and strength. I would also like take the opportunity to thank all the teachers from the MSc, especially Ms. Hirzmann who encourages me in my professional choices and future carrier and my professor Mr. Parmantier who helped me complete this dissertation. F inally, I would like to express my gratitude to Mrs. Jalabert, SBM MONACO Finance Director for her time spent answering my questionnaire. 2 MSC IS&BCFinancial SYSTEMS FUTURE Challenges in growing complex environment DISS Glossary BI: Business Intelligence BSC: Balanced Scorecard CFO: Chief Financial Officer CPI: Cost Performance Indicator CPM: Corporate Performance Management CR: Corporate Reporting CRM: Customer Relationship Management EPM: Enterprise Performance Management ERP: Enterprise Resource Planning FASB: Financial...
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...sure it is appropriately done in a competitive environment. It is hard to allocate these resources; business will acquire all the resources that are needed. What are examples of organizational resources? Technology, people, and finances are some examples of organizational resource. These organizations play a vital role in the accomplishment and progress of a business. A technology resource is very important organization it come in several different forms such as; equipment, programs, and devices. A technology organizational resource helps to improve the value and production in a business if incorporated properly. People are another important organizational resource people play an important role in the organization, hardworking and conservative employees who shall not be overlooked. Conservative people can be very distinctive when distinguishing the different between the success and failure of an organization, as well as allocating in a competitive environment. Finance also plays an important role in organizational resources; finance arrives from; investors, stakeholders, and the business as well. Finance is not easy to allocate when the economy is going through rough times and companies must honor their promise to provide value to acquire financial resource in business. How should organizations allocate scarce resource in a competitive environment? Organization must allocate scarce resources in a limited but competitive environment and be very careful when entering. An...
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...Principles of Managerial Finance Solution Lawrence J. Gitman PART 1 Introduction to Managerial Finance CHAPTERS IN THIS PART 1 2 3 The Role and Environment of Managerial Finance Financial Statements and Analysis Cash Flow and Financial Planning INTEGRATIVE CASE 1: TRACK SOFTWARE, INC. CHAPTER 1 The Role and Environment of Managerial Finance INSTRUCTOR’S RESOURCES Overview This chapter introduces the student to the field of finance and explores career opportunities in both financial services and managerial finance. The three basic legal forms of business organization (sole proprietorship, partnership, and corporation) and their strengths and weaknesses are described, as well as the relationship between major parties in a corporation. The managerial finance function is defined and differentiated from economics and accounting. The chapter then summarizes the three key activities of the financial manager: financial analysis and planning, investment decisions, and financing decisions. A discussion of the financial manager's goals – maximizing shareholder wealth and preserving stakeholder wealth – and the role of ethics in meeting these goals is presented. The chapter includes discussion of the agency problem – the conflict that exists between managers and owners in a large corporation. Money and capital markets and their major components are introduced in this chapter. The final section covers a discussion of the impact of taxation on the firm's financial...
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...changing dynamics of markets and economies, which will present opportunities to build a more robust rigorous system and institutions. I believe this backdrop provides for a great opportunity to further my academic studies in the area of finance. My interest in finance started from a young age when I was given the opportunity to shadow a broker for a week. I was able to gain a firsthand experience in the markets. It was the fast-paced environment, the ability to analyse large amounts of information that first sparked my interest in finance. It was from this experience that I felt studying finance at an undergraduate level would satisfy my interests and provide me with a solid foundation for my future career. My desire to pursue further academic studies is fueled by the enriching experience I have had at Cass Business School. Being surrounded by intellectually engaging individuals from diverse backgrounds and an academically rigorous course has stimulated a passion of finance as an academic study. Further studies in finance especially one that is more mathematical will deepen by understanding of the financial markets, which I believe is going to be crucial to succeed in the financial services industry going forward. Within the field of Finance, I am most interested in topics ranging from valuation, security analysis, and portfolio management. I am particular interested in...
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...sequentially through time. FG provides a decisionmaking setting similar in many respects to the financial management requirements of an actual company. The manager of an FG company has the operating control of an entire company. The manager is the chief financial officer (CFO) who also controls major decisions normally managed by the chief executive officer (CEO) and chief operating officer (COO). The FG decision environment is much more complex than the environment found in standard texts and case courses for two primary reasons. First, decisions are entered in many interrelated areas in each period of play. Tools and techniques previously examined, analyzed, and employed in only single-decision problems now must be applied in the presence of interrelationships with many other simultaneously derived decisions. Second, decisions must be entered over several periods of play. The consequences of prior decisions impact the range of decisions available in later periods. To be successful, an adopted strategy must be flexible enough to adjust to a changing environment over time. Avoiding decisions that eliminate a large set of future company options is key to this flexibility. Additionally and most importantly, FG managers receive direct feedback every period of play on the consequences, good or bad, of their prior decisions. They then commonly need to revise their strategy and plan to adapt to changes in their FG world. This adaptation in strategizing and planning is a primary...
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...Working Capital Management in a Post-Recession Environment: The View from Europe A report prepared by CFO Research Services in collaboration with The Royal Bank of Scotland TM Working Capital Management in a Post-Recession Environment: The View from Europe A report prepared by CFO Research Services in collaboration with The Royal Bank of Scotland TM Working Capital Management in a Post-Recession Environment: The View from Europe Contents Executive summary Cash, liquidity and credit during an uncertain recovery Pursuing improvements in working capital An opportunity to expand the toolkit Investing in working capital improvements Conclusion Sponsor’s perspective 2 3 5 7 11 12 13 © 2010 CFO PUBLISHING LLC SEPTEMBER 2010 1 Working Capital Management in a Post-Recession Environment: The View from Europe Executive summary In June and July of 2010, CFO Research Services (a unit of CFO Publishing LLC) conducted an electronic survey among senior finance executives representing mid-size to large companies in Europe. Our goal was to understand finance executives’ concerns with working capital management in the wake of global recession, as well as their plans for improving working capital performance. We asked finance executives a series of questions about the impact that the recession had on their working capital management, which areas of working capital their companies would focus on during the course of economic recovery and whom their companies worked...
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