...1. Primary objective of the corporation Management has one basic, overriding goal – to create value for stockholders. Stockholders own the firm - it legally belongs to them. That ownership position gives stockholders the right to elect the directors, who then hire the executives who actually run the company. The directors, as representatives of the stockholders, determine managers’ compensation, presumably rewarding them if performance is superior or replacing them if performance is poor. Of course, there are some constraints on what management can do when working to create value for stockholders. Management can’t engage in illegal employment practices, create monopolies to exploit consumers, violate anti-pollution laws, or engage in prohibited activities. For most companies and at most times, managers do focus on shareholder value maximization, because in the long run stockholders do remove directors and managers who fail in their fiduciary duty. There are events that refocus managers’ attention on the interests of stockholders. First, stock ownership has become increasingly concentrated in the hands of institutional investors, and their holdings are so large they would depress a stock’s price if they simply dumped it. Therefore, institutional investors are now using proxy fights and takeovers to force changes in poorly performing companies. Second, the penalties for executives who violate their responsibility to shareholders have increased. Good managers...
Words: 6573 - Pages: 27
...Importance of excel in financial mathematics Institution Date When preparing financial records it is important to know how to make them professional for people and organizations. Most time is spent in the ledger and report preparation, it cannot be done without the good knowledge of preparing business records manually, however it is more simple to do it in Excel (Reeve, Warren, & Duchac, 2012). Most people use simple Excel functions such as add, multiply, divide and subtract to do simple financial mathematics; Excel has more advanced formulas and functions that can be used to do more in the preparation of financial accounting records. Advanced functions and formulas in excel are reliable in preparing spreadsheets and data manipulation, one is VLOOKUP it aids in information search about product information by use of a unique product id, HLOOKUP also helps to find product information, it does so vertically. Many people think that proper thinking and planning is not only what makes a business successful, but business accounting records are important. Business accounting records are used in a business to identify cash flow in a business. These Business accounting records are prepared in Excel. There are a few simple steps involved in preparing business accounting records in Excel, first is the preparation of a ledger book, then entering the records in a spreadsheet and ensuring they are well balanced. In preparation of business reports there...
Words: 631 - Pages: 3
...additional questions about the content of the test, please feel free to contact us at bat@bloomberginstitute.com. Table of Contents Introduction Test Overview Sample Questions Scoring Test Overview The BAT aids employers in identifying and screening students who wish to pursue a career in business and finance. Test takers should have a general understanding of and familiarity with current events in business, finance, and economics. However, we are not assessing knowledge: we are assessing a person’s aptitude to be successful in these fields, regardless of background. 2 Hours 8 Sections 100 Questions Chart and Graph Analysis 12% News Analysis 12% Global Markets 14% Economics 12% Investment Banking 12% Math 14% Financial Statements Analysis 12% Analytical Reasoning 12% The following pages outline the different sections of the BAT and the types of questions you can expect to see. Test Overview Exam Sections News Analysis (12 questions) This section of the BAT is designed to assess your ability to use information from news...
Words: 4975 - Pages: 20
...in literally every possible organization one can think of. An accountant’s main task includes the preparation and examination of financial records and every business needs their finances to be managed and monitored. Also, depending on their specific role to the company, they may also provide financial advice, auditing services, and develop, maintain and analyze budgets. They ensure that the overall financial health of the organization, the company or the individual they are regulating is intact. Therefore, it is evident that accountants have an understanding of all aspects of the business and they are able to identify any possible act of fraud or misrepresentation of figures in a business financial balance. Accountants...
Words: 1112 - Pages: 5
...in identifying and screening students who wish to pursue a career in the business world. Test takers should have a general understanding of and familiarity with current events in business, finance, and economics; however, much of what is being assessed is a person’s aptitude and skills to be successful in business. 3 hours 10 sections 150 questions The following pages discuss the different sections of the BAT and the concepts you can expect to see. Test Overview Career Skills Verbal Skills (15 questions) This section of the BAT is designed to assess reading comprehension. You are asked to read a series of brief news articles on topics that impact the financial world and to answer questions that assess your critical and inferential comprehension of the information presented in the passage. Math Skills (15 questions) This section of the BAT is...
Words: 6515 - Pages: 27
... Career Project Section 1: Job Description/Duties The role of a financial planner is to help groups or individuals with the use of their investments, income, taxes, or savings. This includes helping people with their immediate or long term financial goals such as a small investment or retirement. This job comes with immense responsibility because a financial planner is entrusted with another person’s money, and just one wrong investment could lead to the loss of a client. Trust could take ten years to gain, and one second to lose it, and having the trust of your clients is a crucial factor in being successful in this career. I would like to be in this profession because I would be able to work with people one on one to help them build better lives for themselves. In my interview with Dan Rosen, head financial planner at Edward Jones financial, he said “One of the most rewarding aspects of my job is that I help people have a happy life, and not only am I helping them, I am also helping their family.” It is important to be in this profession for the right reasons. Once in a while there will be a client that is stubborn and doesn’t appreciate the time and effort a financial planner puts in, which would prevent me from wanting to start a career in this profession. Section 2: Personal Characteristics Needed Some of the important qualities that are needed to be happy and successful as a financial advisor include considerable experience, successful performance back round...
Words: 998 - Pages: 4
...Article 8 1-2-2014 Review of Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers by Karen Berman and Joe Knight, with John Case. H. L. Vacher University of South Florida, vacher@usf.edu Recommended Citation Vacher, H. L. (2014) "Review of Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers by Karen Berman and Joe Knight, with John Case.," Numeracy: Vol. 7: Iss. 1, Article 8. DOI: http://dx.doi.org/10.5038/1936-4660.7.1.8 Available at: http://scholarcommons.usf.edu/numeracy/vol7/iss1/art8 Authors retain copyright of their material under a Creative Commons Non-Commercial Attribution 4.0 License. Review of Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers by Karen Berman and Joe Knight, with John Case. Abstract Berman, Karen and Knight, Joe, with John Case. Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers, (Boston MA: Harvard Business Press, 2008). 285 pp. ISBN 978-1-4221-1915-0. From “The art of finance (and why it matters)” (Part One) through “Creating a financially intelligent company” (Part Eight), Financial Intelligence for Entrepreneurs is an engaging explanation and appreciation of financial statements and financial ratios. Short, easily digested chapters; just-in-time boxes to introduce terminology; easy, direct, in-text calculations from bare-bones, hypothetical financial statements to illustrate concepts;...
Words: 4002 - Pages: 17
... All rights reserved. Course Description This course covers the fundamentals of financial accounting as well as the identification, measurement, and reporting of the financial effects of economic events on an enterprise. Students will learn to examine financial information from the perspective of management. Other topics include decision-making, planning, and controlling from the perspective of a practicing manager. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons. All electronic materials are available on the student website. Week One: Basic Accounting Principles and Concepts Details Due Points Objectives 1.1 Identify the four basic financial statements. 1.2 Classify transactions using the rules of debit and credit. Course Preparation...
Words: 2112 - Pages: 9
...thinking I’m in over my head with this class. Then he starting slowing his explanation down and brought it down to the basic by explaining the basic account equation (Assets = Liabilities + Stockholders’ Equity). By the end of the class hour, he made us feel confident we would be able to understand and explain Accounting 101. I will explain the four basic financial statements and their purpose. Also, how each financial statement would be useful for internal and external users. If you are not good at math, well that’s ok, because the only math you need to know is basic adding and subtracting. If you want to know the financial strength of a company, then you would want to look over the company’s financial reports. Every quarter publically traded company has to release their Quarterly Earnings Report. They also have to release their Annual Report. In these reports are the financial records of the company. In the each of these reports are the four basic financial statements; Balance Sheet, Income Statement, Retained Earnings Statement and Statement of Cash Flows statement. The balance sheet reports the complete financial picture at a given period of time and represent the basic accounting equation (Assets = Liabilities –Stockholders’ Equity). The Balance sheet name comes from the relationship amongst the accounts within the report because the report has to balance. Examples of assets are cash, equipment, supplies, real estate, ect. Assets are essentially anything of monetary...
Words: 999 - Pages: 4
...Career Comparison for Accountants and Financial Analysts Prepared for Sara Ray Prepared by Career Consultant June 16, 2013 LETTER OF TRANSMITTAL Sara Ray 123 Brookside Dr. Holbrook, NJ 75486-1256 June 21, 2013 Dear Sara, Here is the report you requested on June 1st for a comparison between of a career as an accountant and a financial analyst. Based off our conversation, we took your interests and previous work experience into consideration as we compared specific criteria between these two careers. While working for your previous employer as a junior accountant, you show your ability for detail and organization. An accountant must possess these skills as well as the ability to work independently. I also gathered from our conversation that you are not one to handle a tremendous amount of pressure well. As a financial analyst, this is a skill that is required. You could be faced with many deadlines that could be very stressful. Your education course of study was also included to compare to the education requirements of each career and even though there are many similarities between the two, there are many differences. For example, both careers require good written and oral comprehension but an accountant needs to have excellent mathematic skills and be able to choose the right formula to solve a problem. This skill is not as important as a financial analyst as is the ability to develop solutions to complex problems that need to be solved....
Words: 2422 - Pages: 10
...Materials and Supplies Permits, Licences and Registration * Importation of Tabacco Products, Application for Registration Real Property * Real Property Tax Exemption Application for Tax Concession * Real Property, Assessment of Social Welfare Services * Emergency Relief Guarantee Programme Travel and Transportation * Customs Duty Exemption for the importation of a New Vehicle to be used within the transportation industry eServices * Real Property Tax, Payment of * Vendor Inquiry There are many jobs that you can obtain in the Ministry of Finance but I will give you an example of three of these jobs along with their duties and the requirements needed to obtain these jobs. These jobs are: Financial Managers The duties for this job is that they must be knowledgeable about the rules and regulations governing their line of work. They must also...
Words: 595 - Pages: 3
... | |Sr. No. |Core Areas |Percentage | |1. |Finance |10% | |2. |Accounting |10% | |3. |Marketing |15% | |4. |Management |15% | |5. |Business Maths |10% | |6. |Business Statistic |10% | |7. |HRM |10% | |8. |Business Communication and Report Writing |10% | |9. |Micro Economics |5% | |10. |Macro Economics ...
Words: 825 - Pages: 4
...Accounting I 280 Solution to Quick Quiz State the four most common forms of business enterprises and briefly describe them. Answer: 1. Sole Proprietorship is an unincorporated business owned by one person. 2. Partnership is an unincorporated business owned by two or more persons. 3. Corporation is a type of business organization recognized under the law as an entity separate from its owners. It provides certain legal protection for the owners against lawsuits brought against the company. They are allowed to do many of the same things any person would be able to do: own land and other property; enter into contracts; sue and be sued in court; pay taxes; conduct business, and so forth. 4. Limited Liability Company (LLC) is a type of business organization recognized under the law as an entity separate from its owners. It has features of both a Corporation and Partnership. It provides certain legal protection for the owners against lawsuits brought against the company. LLCs provide certain tax benefits to the company and the owners. The Sole Proprietorship and Partnership forms are often considered "natural" business forms, because they can be created with only the actions of the owners. The mere conduct of business by an individual creates a Sole Proprietorship automatically. Two or more individuals conducing business together automatically creates a Partnership, although that may not have been the intention of the people originally. Corporations and LLCs are...
Words: 4363 - Pages: 18
... Research on internet http://www.totaljobs.com/careers-advice/job-profile/finance-jobs/trainee-stockbroker-job-description | * What I need to become stock broker is the ability to understand and analyse complex information good communication skills, good mathematics skills, good mathematics skills and ict. Calmness under pressure, the ability to work both as part of a team and on your own initiative, drive and determination, good judgement of risks, honest and a trustworthy attitude. Furthermore, I would need Certificates in Investment Management, Securities or Financial Derivatives * CFA Society Investment Management Certificate (IMC)With more experience (usually around three years'), could take more advanced professional qualifications, such as: * SII Diploma * Chartered financial analyst (CFA) qualificationRelevant training, such as the diploma in financial Planning.During my career I need to have continuous training to keep up with update procedures and...
Words: 2026 - Pages: 9
...than 2 million jobs in 2004. Some of the job descriptions include creating financial transactions and creating financial reports for that information. This also includes posting information to accounting journals. A bookkeeper also reconciles accounts to ensure accuracy. To become a bookkeeper a person should have an associate's degree in accounting or business administration, but some can acquire this position with work experience. A financial analyst is another career option for someone with an education in accounting. A financial analyst guides businesses and individuals investment decisions. They assess a company's performance on their stocks, bonds, and other investments. To become a financial analyst one must have a bachelor's degree, or higher if seeking advancement. Some of their duties include evaluating current and historical data, studying the company's financial statements to determine their value, prepare written reports and also have the ability to use software packages to analyze financial data. In May of 2012, the median annual wage for financial analyst was about 76,950. The accountant field is one that doesn't seem to be going away. In fact, it's one of the careers that most of the time does no take a hit during the bad time in the economy because company need them more to ensure the make the best possible financial decisions. Accountants have the responsibility of examining financial statements to ensure they are...
Words: 510 - Pages: 3
