Justify actions a business might take when experiencing cash flow problems (D1) Possessing a favourable cash flow is important for the existence of a company, since without the capacity to defray purveyors and employees then the company will immediately have to leave off dealing. This problem, which is very strong, is made by the case that companies frequently have to defray many expenses in many weeks or even months before any cash effectively many into the company. Therefore, there are several movements that a company might take when it is experiencing different types of problems. It might provide price reductions boost sales and sales revenue, vending off fixed assets, follow debtor for the cash owed to the company or vending off stocks. Thence, my fundamental objective is to find and propose solution that my uncle might utilise to settle his company’s issues, known as Capelo Design.
Another challenge to look at would be the financial risk involved. With financial risk a person is taking a risk usually by using their savings or credit cards to finance their new business. The thing about that is there is no definite return in an investment. So there is always financial risk involved in starting something new. Time and commitment is another challenge in creating a business.
Summary of the case: Covington provides machine parts and services to the domestic corrugated box and paperboard industry. Covington has quarterly earnings of $10 million, lead owner, Larisa Harrison, then thinks that the company is doing well and ready for continuous growth. There is roughly 150 employees from the local community at Covington. Most of these employees are a little bit older and more than likely coming to the age of retirement. Due to the unstable economy and rapid competition from other businesses has the company facing a rough time.
There is a large difference between initially making an error and failing to report the error. When you first make an error this can be considered a mistake and things can continue on as usual. When you realize you have made a mistake and failed to rectify the situation is where the ethical dilemma comes into to action. As an individual being trusted with the well being of a companies’ financial growth estimates you should want to make sure the jobs of others and yourself are stable. In addition, how can your superiors trust you if you can not admit when you are wrong before any real actions have take place.
Many times there aren’t enough personal resources, like savings, or credit cards, and it may be necessary to seek help from family or friends. If they can’t help, a bank may be able to; however, getting a loan may be tough. Often, you cannot get a loan for 100% and you will be forced to find other ways to acquire funds for remaining start-up costs. (Introduction to Business, 2010) A second challenge is developing a great and unique idea that fills a certain need in the market. The idea needs to entice the buyer to want to buy it or a service that the public finds is a necessity.
If the customer service is bad it is more likely that in the future customers will not come back therefore there will be no repeat purchase and when no repeat purchase the income of the business would vary and would be unstable, unstable finance would mean that the business would not be able to operate normally eventually this will lead to close down of the business. This shows that customer service is very important within the business that is why many businesses set customer service as one of their objectives as there cannot be a successful business with poor customer service. This also includes Boots as they state that “our customers are the heart of our business” which shows that they are fully aware that customer service is important to all businesses, but do they really do as they say. Pre- Transactional The Pre- transactional service that Boots gives is
Fraud There are many reasons that someone would commit fraud and only those people will ever know what pushed them to do so. The three main factors that contribute to fraud are opportunity, financial pressure, and rationalization. If the workplace does not have proper controls in place to deter people from wanting to commit fraud, it makes it easier to do so. The financial pressure portion of this can sometime be fueled by nothing more than greed. Mostly this occurs because an employee has financial issues and believes that the company would not miss even a little bit of money.
This can be very expensive and they will have to compensate by increasing the prices of the products. Another disadvantage is that if they promise too much, they could disappoint customers if they don't manage to accomplish them. This could bring very bad reputation onto the business, and co-op could see a drop in sales due to customers not wanting to purchase anything from co-op as they aren’t reliable. Overall I think co-op benefits from being ethical to a large extent. However it depends
Who should lead the way for Pan-Europa? One of the biggest issues Pan-Europa is facing is their debt to equity ratio and the unwillingness of their creditors to supply additional credit. Debt is not always a bad thing but when it becomes too large, something needs to be done. Pan Europa needs to choose one of the proposed projects and run with it to gain revenue and lower their debt to equity ratio. In doing
When Planning for financial security, many people make the mistakes of putting money they may need in the short-term in a long term account. When investing money, it is wise to make sure that the investment matches up with the need and the timeframe to avoid unnecessary fees. Also be sure to do research on the investment prior to investing. Diversifying investments will help to avoid all of the investment going to waste in a market suddenly turns for the worst. Wise stock investing can be a tricky way to save for retirement because of the way stocks rise and fall.