...Managing Financial Resources And Decisions INTRODUCTION 1.1 The sources of finance available to Phan 3 1.2 The implications of the different sources of finance to Phan 4 1.3 Appropriate sources of finance for Phan 6 2.1 The costs of different sources of finance for Phan 7 2.2 The importance of financial planning to Phan 9 2.3 The information needs of different decision makers 10 2.4 The impact of finance on the financial statements to Phan 12 CONCLUSION REFERENCES INTRODUCTION Finance is one of the essential elements for the existence of every business. It is not only associated with the activities but also the resource for business to implement functions. Therefore, for a started business enterprise, effectively understanding the sources of finance will help Phan perform well and develop sustainably in the market today. This report is performed to evaluate the different sources of finance as well as providing information on the implication of finance as a resource in the business. 1.1 THE SOURCES OF FINANCE AVAILABLE TO PHAN In the current market mechanism with the increasingly fierce competitions, enterprises must continuously improve plant and equipment as well as modernizing technology. In order to achieve all these factors, the enterprises must have a large enough financial resources and use them effectively. It is believed that source of finance is a significantly important prerequisite for business process of the enterprise in general and of Phan in particular...
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...Chapter One – Using Objectives and Strategies Key Terms Corporate Objectives – The long-term goals of an organization. Corporate Strategies – The medium to long-term plans to achieve the corporate objectives of a business. Corporate Tactics – The short-term actions taken in a response to opportunities or threats and with the ultimate aim of achieving corporate objectives. Functional Objectives – The targets of each functional area of a business based around the corporate objectives. SMART Targets – Establishing objectives that are specific, measurable, agreed, realistic and time bound. Exam Advice Everything you do in Unit 3 needs to think about the impact that it will have upon the corporate objectives and the other functional areas of the business. You must get used to thinking about the impact of decisions upon the entire business. Corporate Objectives These are the overall goals of an organization and will vary between businesses depending on their size and available resources. Objectives might include: • Growth • Diversification • Maximisation of profits • Survival Functional Objectives These are the goals held by individual functional areas of a business that are ultimately trying to fulfill the corporate objectives. The four functional areas that you need to consider in your exam are: • Marketing • Finance and Accounting • Human Resources • Operations Corporate Objectives, Functional Objectives and Functional Strategies are medium to long-term...
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...between for-profit businesses and not-for-profits including governments is that businesses have profit as their main motive whereas the others have service. A primary purpose of financial reporting is to report on an entity’s accomplishments — how well it achieved its objectives. Accordingly, the financial statements of businesses measure profitability, their key objective. Financial reports of governments and other not-for-profits should not focus on profitability, since it is not a relevant objective. Ideally, therefore, they should focus on other performance objectives, such as how well the organizations met their service goals. In reality, however, the goal of reporting on how well they have achieved such goals has proven difficult to attain and the financial reports have focused mainly on financially-related data. 2. Governments and not-for-profits are “governed” by the budget, whereas businesses are governed by the marketplace. The budget is the key political and fiscal document of governments and not-for-profits. It determines how an entity obtains its resources and how it allocates them. It encapsulates most key decisions of consequence made by the organization. In a government the budget is not merely a managerial document; it is the law. 3. Owing to the significance of the budget, constituents want assurance that the entity achieves its revenue estimates and complies with its spending mandates. They expect the financial statements to report on how the budget was...
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...range of human, physical, technological and financial resources required in an organisation, and how the management of these resources can impact on business performance. Unit introduction At the core of every organisation are the human, physical, technological and financial resources that enable it to function. This unit will give learners a broad understanding of the importance organisations place on managing their resources efficiently in order to achieve their objectives. It is important that learners are able to relate their understanding of resource management to a real organisation. This will provide an essential link between theory and practice. Understanding how these resources are managed is one of the keys to assessing how well the organisation is performing. The first part of this unit explores the range of human, physical and technological resources for a selected organisation. Learners will investigate the importance of managing these resources efficiently. The contribution that recruiting and retaining suitable staff can make to the organisation’s performance is examined. The importance of managing the organisation’s physical and technological resources efficiently is also explored. For an organisation to survive its finances need to be sound and secure. The second part of the unit explores the sources of financial resources available to organisations. The level of an organisation’s performance can be seen in its financial statements. The unit aims to develop knowledge...
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...Introduction The purpose of this report is to present different sources of finances to a business and the different implications of various finances in a business. It is divided into 6 parts. The first part will identify the sources of finance currently available to a business. The second part will assess the implications of the different source. The third part will evaluate appropriate sources of finance and analyze the costs of different sources of finance for the new solar power business project. The fourth parts will analyses the costs of different sources of finance for the new solar power business project. The fifth parts will explain the importance of financial planning. The sixth parts will assess the information needs of different decision makers. The seventh parts will explain the impact of finance may put out on the financial statements. 1. Identify the sources of finance available to a business. Liability is including bank loans, issuing bonds and notes payable, accounts payable, etc., and the latter mainly refers to the equity financing. Equity constitute liability, the enterprise to repay on schedule agreed by the principal and interest, the creditors generally don't participate in the enterprise the management decision, also does not have decision-making authority for the management of funds. Equity financing is to point to other investors to sell the company’s ownership, the equity of the owners to exchange funds. This...
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...Business Administration Business Participants: Owners, Employees, Customers Functional Areas of Business Management Operations Marketing Accounting Finance Management- planning, organizing, staffing, directing, and controlling a company’s resources so it can achieve its goals Operations- converts resources into goods or services to ensure products are high quality Marketing- everything that a company does to identify customers’ needs and design products to meet those needs Accounting- measures, summarizes, and communicates financial and managerial information and advise other managers on financial matters Fields of Accounting Financial Accountants -Prepare financial statements -Assess financial strength Managerial Accountants- Prepare internal reports Finance- planning for, obtaining, and managing a company’s funds Economics- study of the production, distribution, and consumption of goods and services Economists’ Questions What goods & services should be produced? How should goods & services be produced? Who receives the goods & services produced? Mix Market Economy- a mixed market economy relies on both markets and the government to allocate resources Privatization- converting previously government-owned businesses to private ownership Gross Domestic Product- market value of all goods and services produced by economy in a given year includes only goods and services produced domestically ...
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...Unit No.12 (Financial Management) Unit Code: AA/012/P013 Assignment Title: Expected Knowledge and Skills-- Finance Manager Assignment No. 12- AA/012/P013-IND Contents Acknowledgement 2 Task 1 3 What are the financial management and why it is necessary for an organization? 3 What are the financial objectives of the firm and how they are related to corporate strategy? 4 Corporate strategy is about the choices complete controls create regarding problems like the particular organization the company is in, whether new marketplaces would be joined or whether to take out from current marketplaces. These kinds of choices can commonly have substantial financial effects. If, for example, a decision is taken to enter a new manufacturing company, and current organization in that industry could be bought, or a new organization be started from the beginning (Van Horne, & Wachowicz, 2008). 5 How financial objective can be different in case of non for profit organization. 5 The financial objectives of the not-for-profit organization must agree with the objective of the organization and financial constraints. For example, if the not-for-profit organization is particularly pleased to be an organization, an organization increase national could cause you to lose its appeal. Compose a record of objectives that fit the objective of the not-for-profit organization and are possible objectives (Saunders, et. al. 2006). 6 Define the types of stakeholder a company have and...
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...Corporate Objectives It is important that these goals are communicated across all levels of the organisation so that everyone is aware of what the business is trying to achieve. Common Corporate Objectives include… * Maximise Profit * Survival * Growth Once Corporate Objectives have been set, each functional area of a business will then set their own targets which reflect the overall Corporate Objectives of the business. Functional Objectives These are goals for each functional department of a business which should contribute to the achievement of the overall Corporate Objectives. These targets should make sure that… * Each part of the business is working towards the same long-term goals * Objectives for business functions (eg: operations) should not be separate from other functional areas * All functional objectives should be co-ordinate and not contradict each other For example, Marketing may set a functional objective to increase sales by 25% over a three-year period. A Functional Strategy is the way in which the Functional Objective will be carried out. Marketing Objectives These are the foals of a Marketing function which are designed to help achieve Corporate Objectives. They are usually set a senior level of the hierarchy, and are likely to include the following… * Maintain or increase Market Share * Target a new segment of an existing or new market * Develop new products from Market Research Marketing Objectives must be realistically...
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...always require capital. There are a number of alternative methods to fund growth. These include the owner or proprietor’s own capital, arranging debt finance, or seeking an equity partner, as is the case with private equity and venture capital. Private equity is a broad term that refers to any type of non-public ownership equity securities that are not listed on a public exchange. Private equity encompasses both early stage (venture capital) and later stage (buy-out, expansion) investing. In the broadest sense, it can also include mezzanine, fund of funds and secondary investing. Venture capital is a means of equity financing for rapidly-growing private companies. Finance may be required for the start-up, development/expansion or purchase of a company. Venture Capital firms invest funds on a professional basis, often focusing on a limited sector of specialization (eg. IT, infrastructure, health/life sciences, clean technology, etc.). The goal of venture capital is to build companies so that the shares become liquid (through IPO or acquisition) and provide a rate of return to the investors (in the form of cash or shares) that is consistent with the level of risk taken. With venture capital financing, the venture capitalist acquires an agreed proportion of the equity of the company in return for the funding. Equity finance offers the significant advantage of having no interest charges. It is "patient" capital that seeks a return through long-term capital gain rather than...
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...TR= pxq e.g. Selling price= £8; Items sold= 5; Total revenue= £40 Similarly, if the total revenue is £48 and the selling price (sp) is £4 the quantity sold (qs) is £48/£4= 12 units QS= tr/sp Also if TR is £60 and QS is 10 units, the selling price is £6 (£60/10) SP= tr/qs Profit Profit is the prime objective of most firms. There are two ways of improving profit: • Increase sales revenue • Decrease costs A combination of both would be the ideal way of achieving additional profit. Costs Some functional areas of a business (e.g. production or administration) can help to achieve rising profits by reducing costs. A business can increase profit by using different methods like: • cutting down on staff • reducing the amount of wastage on the production line However businesses have to be careful because these savings should not compromise the quality of their products or service. If this happens, the total revenue may be affected as customers will be less likely to buy the products. Costs are a major factor in determining the overall success of a firm, as measured by its profit. Classifying Costs There are two reasons for classifying costs: • To assess the impact of changes in output on the costs of production: a business can compare its...
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...Kingston 5, Jamaica Telephone Number: + 1 (876) 630-5200 Facsimile Number: + 1 (876) 967-4972 E-mail Address: cxcwzo@cxc.org Website: www.cxc.org Copyright © 2013 by Caribbean Examinations Council The Garrison, St Michael BB14038, Barbados CXC A27/U2/13 CXC A24/U2/12 Contents INTRODUCTION .................................................................................................................................. i RATIONALE ......................................................................................................................................... 1 AIMS .................................................................................................................................................. 1 SKILLS AND ABILITIES TO BE ASSESSED .............................................................................................. 2 STRUCTURE OF THE SYLLABUS .......................................................................................................... 3 UNIT 1: MANAGEMENT PRINCIPLES AND PROCESSES MODULE 1: BUSINESS AND ITS ENVIRONMENT .............................................................. 4 MODULE 2: THE MANAGEMENT OF PEOPLE ................................................................... 9 MODULE 3:...
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...Business (7132). AS exams May/June 2016 onwards. A-level exams May/June 2017 onwards. Version 1.0 Contents 1 Introduction 5 1.1 Why choose AQA for AS and A-level Business 1.2 Support and resources to help you teach 2 Specification at a glance 2.1 Subject content 2.2 AS 2.3 A-level 5 6 8 8 8 9 3 Subject content 10 Strategic decision making (A-level only) 3.1 What is business? 3.2 Managers, leadership and decision making 3.3 Decision making to improve marketing performance 3.4 Decision making to improve operational performance 3.5 Decision making to improve financial performance 3.6 Decision making to improve human resource performance 3.7 Analysing the strategic position of a business (A-level only) 3.8 Choosing strategic direction (A-level only) 3.9 Strategic methods: how to pursue strategies...
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...------------------------------------------------- Generally governments provide goods and services to the public regardless of whether the costs incurred will be recovered through charges for the goods and services or whether those paying for the goods and services will benefit from them. Also, some services cannot be provided by public entities, like infrastructure projects. ------------------------------------------------- ------------------------------------------------- The similarities of government and nonprofit (or not-for-profit) organizations and profit-seeking (or for-profit) organizations: a. ------------------------------------------------- Both types of entities operate in the same economy and use the same financial, human and capital resources to accomplish their goals. b. ------------------------------------------------- Both must get and convert scarce resources to produce goods and services. c. ------------------------------------------------- Both use information systems that will make their jobs easier through evaluating, planning, directing and controlling the resources and their uses. d. ------------------------------------------------- Both aim to effectively, efficiently, and...
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...A Proposal to Introduce Value Based Management in NGOs of Bangladesh Munima Siddika1 Abstract: Presently the rapid growth and diversification of the gigantic NGO sector of Bangladesh has given rise to questions and concerns, about their trade-offs between sustainability and pro-poor orientation; the impact and quality of services; corporate governance; management and accountability. The paper is based on a proposal to introduce a modern management system viz. value based management (VBM) in the NGOs of Bangladesh. Value-based management can be defined as an integrated management control system that measures, encourages and supports the creation of net worth. The report of Transparency International Bangladesh ‘Problems of Governance in the NGO Sector: The Way Out’ (TIB) 2007 is used here as an information source of finding out the flaws of existing management techniques. Finally the paper recommended implementation techniques of VBM in order to regain the image of the NGOs as a pioneer of social welfare in Bangladesh. Keywords: NGO, Transparency, Governance, Management, Strategies, Value Addition, Value Based Management etc. 1. Introduction Bangladesh has largely failed to assist the poor or reduce poverty because of limited resources and faulty planning, while Non Government Organizations (NGOs) have grown dramatically and ostensibly to fill up this gap. There are more and bigger NGOs here than in any other country of equivalent size. Bangladesh’s NGO sector is remarkable for...
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...accounting department and reviewed by a public accounting firm. Small businesses often have significantly less financial information recorded during the accounting process. However, business owners often review this financial information to determine how well their business is operating. Accounting information can also provide insight on growing or expanding current business operations. A common use of accounting information is measuring the performance of various business operations. While financial statements are the classic accounting information tool used to assess business operations, business owners may conduct a more thorough analysis of this information when reviewing business operations. Financial ratios use the accounting information reported on financial statements and break it down into leading indicators. These indicators can be compared to other companies in the business environment or an industry standard. This helps business owners understand how well their companies operate compared to other established businesses. Business owners often use accounting information to create budgets for their companies. Historical financial accounting information provides business owners with a detailed analysis of how their companies have spent money on certain business functions. Business owners often take this accounting information and develop future budgets to ensure they have a financial road map for their businesses. These budgets can also be adjusted based on current accounting...
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