Your boss has developed the following set of questions you must answer to explain the U.S. financial system to DellaTorre. a. Why is corporate finance important to all managers? b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation.
WESTERN GOVERNORS UNIVERSITY Financial Analysis RJET Task 1 Executive Summary An extremely crucial element to any business entity is the financial analysis process. So what exactly is financial analysis? The actual definition is The assessment of the (1) effectiveness with which funds (investment and debt) are employed in a firm, (2) efficiency and profitability of its operations, and (3) value and safety of debtors' claims against the firm's assets. It employs techniques such as 'funds flow analysis' and financial ratios to understand the problems and opportunities inherent in an investment or financing decision. (WebFinance, Inc, 2013) Simplified it is the process of evaluating the current business, let’s say their effectiveness, and their future in their industry.
Business Resources Task 3 What are financial sources? In order to be successful businesses, no matter how big or small they are, need finance. It’s the key element in business. Finance is the money for a business. And so wellbeing and growth of business depends on how much of financial sources businesses obtain.
However, the problem of funding constraints has prevented small and medium size companies to develop production and to increase benefits. So, it is necessary that SMEs should use different methods of fundraising, such as private financing, bank financing and government financing. Therefore, it is important to analyze the merits and demerits of different financial methods for SMEs. 2.2
Economics Economic conditions can affect businesses in many ways. The basic concept of economics is how a country takes it resources, makes something, and distributes it to others for consumption. Global economics and politics play a vital role in today’s market because so many companies participate in free trade. It is very important to stay informed of global and national economics to be competitive (Nickels, 2012, p.30). Business is not only for the business owner, it also contributes to the economic growth of the community in which it operates.
Explain why change happens in a business environment. You should include at least three reasons in your answer. An impact of external and internal factors implements respectively reactive and proactive changes in a business environment. In the area of change management it is indicated by the PEST acronym which summarises the four main influences causing changes. • Political • Economical • Social • Technology ”The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business.
In this task, I will be describing how political, legal and social factors are impacting upon the selected business activities. The two businesses which I have chosen are, Oxfam and also Tesco. Political factors for Tesco Taxation Large business such as Tesco is largely affected by the government taxes, such as income taxes and business rates. Tesco is a large business which means that a lot of corporation tax taken away from their profits. Corporation Tax is a tax on the taxable profits of limited companies and other organisations.
1 1. Describe, the Concept of “Corporate Social Responsibility” (CSR). Introduction: Social Responsibility of Business or Corporate Social Responsibility (CSR) refers to management decisions & actions taken for reasons at least partially beyond the organizations’ direct economic or technical interest. The Concept of Corporate Social Responsibility is merely in growing stage towards social effectiveness of business. It is the philosophy which justifies business involvement in its social community.
By using the companies managerial technology which consists of an advantage described by Ajami et. Al (2006) as “an advantage held by a firm whose employees possess a superior business knowledge”. In this regard the company uses the experience of its employees to get the process from drawing board to the consumers hands. With the emergence of large international corporations the first stage of innovation which used to occur
It pays salaries and wages to its employees, and this way, makes the whole business world go round. They spend the money they earn buying all kinds of goods and favour further development of business ventures. Forth , business contributes to national well-being. It does it in several ways: by means of taxes it pays which make it possible for the government to maintain all kinds of public and social institutions and services; by investing money in developing science and technology and constructing new enterprises. Fifth , business helps enlighten and educate people and encourages their further personal growth.