...2 ABSTRACT This essay will cover a list of issues facing the start of a new business and the funding of one. I will talk about the 4 terms investment banker, the stock market, financial management, risk financing, and how each one of them works. I will also discuss 1 of 3 ways that you can use when funding your business. Finally I will identify, describe, and explain everything else that deals with making a funding decision. FUNDING A BUSINESS VENTURE Unit 2-IP 3 Investment Banker Investment bankers are: They are critical figures in financial markets. They are involved in virtually all large financial transactions including mergers and acquisitions, initial public offering, and other securities offerings. An investment banker is someone who also helps companies raise capital by trading in securities and other investments. They function as: Investigation, Analysis and Research (Origination), Underwriting (Public cash offering) and Distribution. Most of the time a single investor banker performs all functions, however some investment bankers are specialized in certain functional areas only. The importance of an investment banker is actually the importance of what they do. They hold importance because of the services they provide to the economy and government. They provide advisory services for financial transactions such as mergers and acquisitions for companies...
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...Billie Warren OMM 692: Organizational Management Strategy Adrienne Osborne January 14, 2013 Executive Summary- Ford Motor Company (Ford) has been a leader in the auto industry, however, over the past few decades has continued to lose market share to foreign competition. The current weak United States economy combined with rising fuel prices and increased political pressures regarding global warming, presents several challenges to Ford and the entire auto industry. These current challenges provide exciting opportunities for the auto company who must reduce cost, get fresh capital, and quickly develop and produce, new efficient, economic autos, and alternative fuelled vehicles. The global auto industry will continue to grow with 80% of the global auto industry’s growth from now until 2014 is expected to come from emerging markets. However, for Ford to succeed they will need to address several internal issues regarding legacy costs, unions in the United States, and the development of a wide range of new vehicles that consumers consider the new “must have” vehicles instead of the large trucks and SUVs (Scribd.com). Looking to the future Ford will have a global presence in these critical emerging markets like China and India, and have the knowledge and expertise in efficient and alternative vehicle technologies required to move the company forward. For Ford to achieve the vision of being synonymous with alternative vehicles (low fuel consumption, fuel...
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... The importance of an investment banker is what they do. They are important due to the fact that they are of services that offer to the economy. They offer advice for economic dealings, for example, acquisitions and mergers for businesses. When a business retails new securities in order to increase funds, the representative has the responsibility to the actual buyer for these securities. The investment banker in turn would purchase securities from business and arrange a speedy resell of the securities to the investor’s bankers in order to, investigate research, analyze, distribute and underwrite. Typically, an investment banker will perform all of these functions, although some investment bankers are experts in certain areas. Investment banking assist in businesses with raising monies. It offers investment opportunities to the person or group of people. Most of the businesses develop consultative services from the investment banker in regards to mergers, divestiture and acquisitions. Additionally, due to the importance of the roles that are played of investment banker, the commercial banks do not execute these roles. (Morrison A. 1997). A stock market is an open market that trades the businesses stock or shares. The stock markets function is where the businesses can raise monies for their business by allotting shares to the investor. Furthermore, whereas the investor can buy or sell these shares. Business in turn will benefit from this due to the value of the market for their...
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...sell products it means to care about your customers and sell them the best products. When managers are trying to market a certain product to their customer, they first want to make sure they know everything about that product. Managers want to make sure that they are selling the best product to their customers. Marketing is very important in organizations and without marketing; the company cannot make money, promote new products or be successful in their business. Marketing is always used every day in an organization. Marketing is the key in making organization be successful. When managers are trying to make money and make their company stand out this is where marketing comes in. The purpose of this paper is to explain the importance of marketing in organizational success. One will provide at least three examples from the business world to support their explanation. The importance of Marketing in organizational success The importance of marketing in organizational success is very important. Everyday organizations always want their business to achieve the best in their sales or try to sell and market a certain product. When the manager or the CEO that is over the biggest bank industry such as Bank of America they are always trying find a way to sell a new product to their customers. Marketing is very important to big organizations in how they make money and how...
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...Introduction It is not easy to fully describe these words (finance and accounting) as both have very wide meanings and applications in the business world. Most business has an aim to make profit and to remain solvent and the above two concepts play an important role in achieving this objective. This paper aims to answer the above questions and further goes on to say why both should and are considered a vital part of business and their importance in the whole business set up. Literature Review Accounting has been defined as the soul of the business (Collin P, 2004). Accounting is described as the means by which information is communicated in a firm, and is thus known as the language of business. Accounting is described as a vital function in preventing fraud and corporate corruptions in organisations (Glautier, M.W.E. and B. Underdown, Accounting theory and practice). Accounting is important as it provides information to external parties (stakeholders) by providing a true picture on the business financial position. Finance is described as an administrative function aimed at raising funds for the business (B.B Howard. Introduction to Business Finance). Finance is aimed to maximise the value of the firm and attain the main objectives of the firm; I. Shareholders wealth maximisation II. Profit maximisation This is achieved by determining the optimum capital structure and the efficient utilisation of resources by analysing risk and return (B. B Howard. Introduction to Business...
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...Funding a Business Kimberly Waite AIU Online Abstract This paper will describe the different types of funding available to begin a business. These include borrowing money, selling stock, and technology licensing. This paper will discuss the meaning, function and importance of the stock market, investment banking, financial management, and risk financing. This paper continues with a scenario with a future business owner and the decision making of how to fund his business. This paper concludes with a decision on what type of funding he should chose for his business and the advantages and disadvantages behind that decision. Funding a Business Every business needs cash to function (Ebert & Griffin, 2011). Deciding how to raise that cash can be a difficult decision. There are many options to raising money; borrowing from a bank, selling bonds, or soliciting cash from outside investors (Ebert & Griffin, 2011). For every option, there multiple platforms. Each option should be carefully considered based on needs. For our entrepaneur in the scenario, I recommend that he consider selling stock to raise capital for his funding needs. Stocks, bonds, and mutual funds are otherwise known as securities. They represent secured, or a financial claim on the part of investors (Ebert & Griffin, 2011). Our businessman could consult with an Investment Banker on this idea. The role of the investment bank(er) is to help issue and sell new securities. They advise...
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...northern England. However, the company turned a loss in the previous biennial; which is resulted from declining sales and market share in the prior half decade. Factory workers' morale fell as they felt underpaid and treated unfairly. They objected to the management's decision to expand production, which will impair the quality of the cars, resulting in the escalation of malfunctioning automobiles in the last few months. Solutions available to curb the situation include tolerating lower profit margins, updating the plant, increasing manufacturing significantly, introducing in the United States, undertaking with a South East Asia engine manufacturer, devising green vehicles and obtaining capital plus skills from a European manufacturer. Step 2 Mind Map of Problems 1. Declining sales and profit Change in consumer preferences Insufficient advertising Low demand 1. Decreased reliability Increase in number of broken cars Substantial increase in production 2. O utdated design Change in demographics Younger generation Market wants more modern models 2. Losing mar ket share Rising competition Declining brand loyalty Uncompetitive prices 3. Insufficient mar ket Only 60 million people in United Kingdom Small market of English sports car collectors Only sold locally 3. No service after sales Consumers need to fork over their own money after buying Higher overall cost for consumers Consumers are not educated on the protection...
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...page listed below. There is not substitute for reading the assigned chapters!!! Chapter 1- The Power of Markets Market allocation 3 Assume rational utility-maximizers 6 Opportunity costs 9 Profit max 11 Prices allocate resources 12 Barriers to entry 14 Market price, pricing decision & price discrimination 15 Lessons of markets 18 Chapter 2 – Incentives Matter Wrong incentives lead to undesirable outcomes 23 Principal-agent problem 30 Prisoners dilemma 34 Creative destruction 36 Tax & govt program disincentives 38 Chapter 3 – Government and the Economy Externalities 43 Govt solutions to externalities 48 Govt makes market economy possible – rights, laws, regulations 51 Public goods 57 Redistribution 59 Chapter 4 – Government and the Economy II Govt inefficiency 63 Govt allocation vs private allocation 67 Effects of regulation 69 Effects of taxation 74 Summary 78 Chapter 5 – Economics of Information Adverse selection 81 Firm screening 89 Branding provides information 90 Branding versus commodities 92 Signaling mechanisms 93 Chapter 6 – Productivity and Human Capital Human capital 98 Job creation 103 Effects of human capital on standard of living 105 Productivity 107 Income inequality 111 Chapter 7 – Financial Markets Purposes of financial instruments 118 Efficient markets & index funds 126 Investment guidelines 132 Chapter 8 – The Power of Organized Interests Interest...
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...SCOTT BROWN ABSTRACT: The financial decision in this person’s opinion is the best one that would work for your invention and without all the risks there is a lot to profit from it. The meaning, function, and importance of the four terms provided are as follows. First there is the investment banker, the investment banker is the one that will put the money to fund your project and is very important since you are trying to get your idea up and running with no money and they are the ones that will fund everything from the manufacturing to the advertising. There function is to back your idea and get it made and out to the public. The next is the stock market, this is where if your invention gets made and is successful it would make it to here for others to be able to buy stocks in your product and to be able to profit from all the hard work and great idea you had to make a product better. The importance of this is without the stock market not many people could support your invention and reap the rewards of it. The third one is financial management, this is where you need to see your profits and not spend more than you’re actually making. The function of it is to know how much it takes to make and advertise and how much everyone makes off your idea. The importance of this is that without it you could end up going into debt because you’re not managing your finances properly and could end up going bankrupt if you’re not careful. Last there is the financial risk, the meaning...
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...Defining Financial Terms 1. Finance: Finance is the science of the management of money and other assets. This is essential for businesses with importance to capital and holdings. (Titman, Keown, & Martin, 2011) 2. Efficient Market: Efficient market is defined as a price where the holdings show both current as well as relevant figures; the assets fundamentally have their actual prices. The affiliation to finance is that the statement of information efficiency is operating in asset management with respect to their assessments. 3. Primary Market: Primary market is defined as a market relating to new securities where the securities are sold first (Titman, Keown, & Martin, 2011) . The securities are directly purchased from the issuer. This is important in finance ability as an importance of the fact that the growth of long-term capital through the issuance of securities is a necessary issue in finance. 4. Secondary Market: Secondary market is defined as where securities are traded that has earlier been issued within the primary market (Titman, Keown, & Martin, 2011). Usually, the securities are issued in either public offering or private. This is necessary within finance because these markets provide liquidity to stake holders. 5. Risk: Risk is defined as a possibility when the investment might potentially be unsuccessful to receive the expected returns, which may result in the loss of the original investment. It is very important within finance to assess...
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...The Importance Of Marketing In Your Business By Carael Knight Ads by Google Small order business www.hktdc.com Meet quality suppliers in Hong Kong Int'l Lighting Fair 2012. 6-9 Apr Create More Value www.thepartnershipmodel.com Develop stronger relationships with your customers and suppliers What do customers want? ey.com/global-insurance-survey-2012 How insurers can meet evolving customer needs. The true definition of marketing is setting up automatic, repeatable systems that create an environment where people want to buy from you instead of you having to sell them. Just as a bee is lured to the nectar of a flower, business people are lured to money. Entrepreneurs are the honeybees of our economy. Ultimately the goal of an entrepreneur is to extend the life of his or her enterprise for a lifetime. As a business owner, your ultimate product is a satisfied customer. Some facts about the Internet and search engines: Over 80 percent of Internet users use search engines to find information A typical search can often generate thousands if not millions of results Only those websites listed in the top 100 will ever see any significant traffic Each day, millions of online businesses are competing for those top 100 spots The best marketing advice I can give you is find the right audience, ask people what they what, and after that, simply give it to them. Marketing is the science behind encouraging interested people to buy. The success of any business basically comes down to...
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...Running Head: THE IMPORTANCE OF ECONOMICS AND THE The Importance of Economics and the Understanding of the Circular Flow Model and its Place in Society ******* *************** Abstract Economics as a whole is a tool for understanding and studying production, distribution, and consumption of goods and services. Economics is concerned with the resourcefulness of scares resources with an optimum contentment of economic wants. Human beings are not only impacted by economics, but they are also considered to be a scarce resource in the way of labor power. Because humans are both the moving force of Economics and a resource behind Economics, the impact to society that Economics has is inevitably strong. With economics we, as a people, function in a trade system that is self sustaining and self regulation with minimal government interference. The intent of this paper is to show how Economics impacts society through the cyclical system that is designed by nature to evolve with the changes in demands of the time. Introduction No matter where you are from or where you go, Economics is a factor that will impact you and your well being. Economics is from the Greek word οίκος [oikos], meaning 'family, household, estate', and the word νομος [nomos], meaning 'custom, law', hence "household management" and "management of the state". Economics is a social science that typically studies the production, distribution, and consumption of goods and services. Economics is a social...
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...Assignment 2 Marketing Essay Assignment 2 MKT 202 Marketing Communication The heart of any business success lies in its marketing. Most aspects of any business depend on successful marketing. The overall marketing umbrella covers advertising, public relations, promotions and sales. Marketing is a process by which a product or service is introduced and promoted to potential customers. Without marketing, the business may offer the best products or services in your industry, but none of the business’s potential customers would know about it. Without marketing, sales may crash and companies may have to close. 1 Marketing communications is a management process through which an organisation engages with its various audiences. 2A new era is unfolding in the field of advertise, promotions, and marketing communication. All organisations – large and small, commercial, government, charities, educational and other not-for-profit organisations all need to communicate with a range of stakeholders. This may be in order to get materials and services to undertake their business activities, or to collaborate and coordinate with others to secure suitable distribution of their goods and services. In addition, there are consumers – you and me – people who are free to choose among the many hundreds and thousands of product offerings. At this Marketing communications provides a core activity so that all interested parties can understand the intentions of others and appreciate the value...
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...________________________________________________________________ MARKETING MANAGEMENT CONCEPT MAPPING: 1. Market, Consumer, Seller / Marketer – meaning 2. Marketing – meaning, Features – Role 3. Marketing Management – Measuring Nature and Objectives 4. Difference between marketing and selling 5. Marketing Functions 6. Marketing Mix – product, price, place and promotion 7. Advertising – meaning, features, merits and limitations. 8. Various media of Advertising and Media selection. 9. Objections to advertising 10. Sales promotion and Trade promotion – meaning and variety of Tools / methods used. 11. Personal selling – measuring features and steps in sales process 12. Publicity and Public Relations – meaning and methods used. LEARNING OBJECTIVES Market, Customer, Seller / Marketer – meaning Meaning Functions and Role of Marketing Marketing Management – meaning Nature and objectives Difference between marketing and selling Marketing Functions Marketing mix – concept and elements Meaning Role and Limitations of Advertising Media for Advertising, Media Selection Objections to Advertising. Sales promotions / Trade promotion – meaning and variety of Tools / Methods used Personnal selling – meaning, Features and steps in sales process. Publicity and public relations – meaning and methods used. KEY CONCEPTS IN NUTSHELL: MARKET : It refers to a place where the buyers and sellers meet each other for sale and purchase of the commodity...
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...Theme4. THE COMPONENCE AND FUNCTIONALITY OF ATTRACTED RESOURCES OF A BANK 1. The structure of attracted resources, and their importance for the conducting banking activities; 2. The characteristics and typology of a bank deposit; 3. Non-deposit bank resources: types and means of attracting; 4. Banking resources acquired through the issuance of securities: bank certificates, bills (drafts), long-term bonds; 5. Banking resources acquired on the interbank market; -1- The structure of attracted resources, and their importance for the conducting banking activities; In the world of banking practice, the attracted resources of a bank can be: 1) Deposit - are formed on the initiative of clients who come to deposit money in the banks, 2) Non-deposit: - Resources arising from the issue of equity (bank certificates, bills of exchange, and bond); - Resources purchased from other banks (centralized bank credit (from National Bank) and decentralized (from other commercial banks)); In the total amount of banking resources attracted resources occupy the dominant position. Their share of different banks varies between 85 - 90%. -2- The characteristics and typology of a bank deposit; Deposit – the amount of money placed into a banking institution for safekeeping, through depositing money in a bank account. Deposits are classified according to: * Depositor’s category: 1. Individuals; 2. Legal entities; * The terms of the contract, which stipulates...
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