...Why is Finance so Important to a business? Finance is a crucial part of a start-up business; it is the cornerstone to determine whether or not your business will jump over the first hurdle. Without sufficient finance, a business has a very low risk of surviving the first stage of development. Finance can be important for various activities throughout the business starting with the purchasing of stock. If you are providing a product you will most likely need raw materials, if not then you will need general stock. Having more expensive, higher quality stock will push you to a competitive advantage. (Chron, 2013, Electronic Source.) Finance allows you to buy in order to sell and hopefully make a profit on those goods. If you are providing a service then finance will allow you to buy tools or equipment to improve your service. Start- up businesses might not necessarily have anyone other than the entrepreneur working, however if you have employees then finance will help pay their wages. In U.K. you pay business tax on your business profits, the amount of tax you pay depends on how much profit you generate. Finance is important to be able to pay these and calculate how much you owe to the government. Not having the sufficient finance will reduce the chances of the business accepting negotiations, therefore restricting the business in terms of growth (Chron, 2013, Electronic Source). Business finance is spent on two types of expenditure, capital and revenue. Capital expenditure is when...
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...Name: Hany Samuel William Why do I study Managerial Finance? MBA in Finance Telecom Egypt Company It gives me much pleasure to give a snapshot on the benefit of studying this course, Managerial finance. I can get the best use of this course not only on my career path but also on my personal life. First, regarding my career path, I am working in the payroll department in Telecom Egypt and actually I cannot find my passion in this field but really I adore the field of finance and investment so I studied a post-graduate diploma in investment and Finance Management also I am studying MBA now and I will specialize in finance to be qualified to change my career, inside Telecom Egypt or outside it, into the field of investment and finance specially the financial analysis. Secondly, regarding my personal life I would like to enter the field of stock market but not as an employee but as an investor so managerial finance course taught me how to analyze the securities, how to calculate the return of each security, how to calculate the expected return, how to maximize my wealth and how to minimize the risk. This course gave me the knowledge of how to depend on myself in making the decision of buying and selling in the stock market not just depending on the advices of brokers who may cheat me for a certain reason specially in the atmosphere of speculation happening nowadays in the Egyptian stock market...
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...Ukraine resistance proves problem for Russia The mood is changing in Crimea. On Friday the Russians took over, largely unopposed by their Ukrainian counterparts. Perhaps in the confused aftermath of events in Kiev, the Ukrainians were still wondering whose orders they were supposed to follow. But today there are large groups of Ukrainian soldiers who resist the new authority in Crimea, who refuse to surrender their bases and their ships, and who are slowly starting to create problems for the Russians. Perhaps a decision has been taken to fight back? So far it has been done peacefully, but each time the troops are pushing the boundaries, hoping to show the world that Ukrainians are being bullied by their Russian masters. The international community may have given up on Crimea. It is clear the new government in Kiev has not. Which brings us to the events of today. 'Insults and obscenities' Russian troops fired into air as Ukrainians marched on a Crimean air base The Russian guard at the airfield in Sevastopol must have considered the prospect of a confrontation like this. Marching towards them was a column of 300 unarmed Ukrainian soldiers, with their flag proudly displayed. The Russians fired over their heads but on went the Ukrainians, marching in line, singing their anthem, in defiance. One volley after the other went over their head and, as they neared the barriers, the rifles of the Russian soldiers were lowered. This airfield at Sevastopol is home to the MiG fighters...
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...Six Sigma, Lean, and Kaizen J. Paul Seiberlich Siena Heights University Prof. Anderson February 5, 2015 Kaizen and Six Sigma are associated with the Quality Model for achieving success in business. The term Kaizen has many different uses ranging from referring to a principle of personal conduct to a company wide strategy for achieving business success (Imai, 1986). In the United States, one of its most common uses is as the name of a lean enterprise tool for improving work processes. In this use, it refers to a systematic and specialized application of problem solving to uncover and extract waste from a work process. Kaizen as a company wide strategy for achieving business success is derived from the writings of W. Edwards Deming although the completeness of that connection seems to be unrecognized. It abstracts from Deming’s work the ideas that improvements must benefit customers; that they must occur every day, everywhere, and be implemented by everyone; that management must lead the implementation and that managers must be models and agents of its adoption; and that management and non-management employees must operate cooperatively. (Vitalo, R. 2013) The term “Kaizen” has two uses. One use refers to the principle of continuous improvement and describes a fundamental element in the Quality Model and in Lean thinking. The second use refers to methods that either suggest (e.g., Teian Kaizen) or generate and implement improvement ideas. Of the methods...
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...“Creating Lean Suppliers” a Consider that the new corporate procurement strategy in support of your manufacturing business includes securing purchased critical parts and subassemblies from “lean” practicing suppliers. Your supply chain management in previous years has practiced the strategy of single sourcing as well as long-term partnering for critical purchased material. Prepare a list of bullets showing the advantages and disadvantages of staying with current suppliers (i.e. not switching) that currently do not have a “lean” in place and also define in the response your plan to achieve the new “lean” supplier requirement. I Advantage: * Better relationship – further involved in new production process * Better reputation (ethics) * Knowing the supplier better – its problems, cost-structure, and technology * Supplier may be more responsive * Creating “trust” II Disadvantage: * Cost of the BP team * Require extensive capital investment or extra personnel for suppliers * Time consuming (for the suppler to be lean) * Difficulty to change and sustain In order to achieve the new “lean” supplier requirement, I would want suppliers that have substantial responsibility during product development; the ability to accommodate and respond to the request of changes in product or manufacturing process; extensive capital investment or extra human resources. Also the suppliers that is reliable, and “self-reliant.” b Analyze Honda’s...
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...Final Case Submission: Avion Inc. 1. What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material? Procurement and Contracts: Should be responsible to amend the agreement that clearly defines what the service level requirements are, sets out the change control mechanism, the communication protocol and representative of both parties and review the agreement in conjunction with the supplier to remove any ambiguity. Category Management: Should be responsible for developing a SQM that will allow provide both parties with a forum to work in partnership and set targets and KPIs. Material Management: Should be responsible to understand the required and forecast inventory stocks and coordinate accordingly. Logistics: Should be responsible for transporting the product through the supply chain. 2. What initially appears to be the problem? What really is the problem(s) in this case? The problem initially appears to be that the vendor is not meeting the expected performance level required by the customer. However the problem is not with the vendor rather within Avion. It appears that the company does not have appropriate cross function engagement, rather working in silos. There is no obvious communication structure whereby the SCM understands the scope requirements and can translate this to the vendor. Also following contract award it is not clear what...
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...1. What is Islamic Finance? Islamic Finance Definition Islamic Finance is differs from conventional finance in that Islam prohibits charging interest on loans. It involves the provision of financial products and services by institution offering Islamic Financial Services (IIFS) for Shariah approved underlying transaction and economic activities, based on contract that comply with Shariah law. Shariah is the factor that distinguish Islamic Finance from Conventional Finance. . Islamic finance is a form of finance that is based on Shariah, or the body of Islamic law. Shariah, “the way to the source of life” is filled with moral purpose and lessons on the truth, and is more than just a set of legal rules. Shariah represents the idea that all human beings and governments are subject to justice under the law. It is common to use the term “Shariah-complaint” to describe anything that is permissible under Islamic law. Shariah prohibits the acceptance of a specific interest or fees (Riba) for loans of money. Islamic finance involves structuring financial instruments and financial transactions to satisfy traditional Muslim strictures against the payment of interest and against engaging in gambling. It is a field of growing importance for conservative Muslims, especially in the Middle East, who are uncomfortable with Western-style bonds and banking that involve explicit payments of interest Shariah, the law of Islam, originates from two principal sources: the Quran, the Holy Book...
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...Principles of Managerial Finance The Prentice Hall Series in Finance Adelman/Marks Entrepreneurial Finance Andersen Global Derivatives: A Strategic Risk Management Perspective Bekaert/Hodrick International Financial Management Berk/DeMarzo Corporate Finance* Berk/DeMarzo Corporate Finance: The Core* Berk/DeMarzo/Harford Fundamentals of Corporate Finance* Boakes Reading and Understanding the Financial Times Brooks Financial Management: Core Concepts* Copeland/Weston/Shastri Financial Theory and Corporate Policy Dorfman/Cather Introduction to Risk Management and Insurance Eiteman/Stonehill/Moffett Multinational Business Finance Fabozzi Bond Markets: Analysis and Strategies Fabozzi/Modigliani Capital Markets: Institutions and Instruments Fabozzi/Modigliani/Jones/Ferri Foundations of Financial Markets and Institutions Finkler Financial Management for Public, Health, and Not-for-Profit Organizations Frasca Personal Finance Gitman/Joehnk/Smart Fundamentals of Investing* Gitman/Zutter Principles of Managerial Finance* * denotes Gitman/Zutter Principles of Managerial Finance— Brief Edition* Goldsmith Consumer Economics: Issues and Behaviors Haugen The Inefficient Stock Market: What Pays Off and Why Haugen The New Finance: Overreaction, Complexity, and Uniqueness Holden Excel Modeling and Estimation in Corporate Finance Holden Excel Modeling and Estimation in Investments Hughes/MacDonald International Banking:...
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...------------------------------------------------- B: Background – Story – secondary research 1. History of the company: When? How? Why? “Cash cow” marketing matrix 2. Research the market of the industry 3. Value proposition of the company? Why should they choose Avant? Success rate very important 4. Financing issues. How do they finance their company? We already know that look up the last interview we had with them. 5. Look at porter strategy then decide what strategy they implement in their company. It is a small company. 6. Write briefly down what you already know about the risk of the company. Also present in the previous interview we had with them. Risk of an vof 7. Write down the organisational culture. Write down an experience you’ve had with a driving school. 8. Leadership style – Porter leadership and management style use that definition to get 9. Use Porter’s value chain definition to define the startegy: http://www.mindtools.com/pages/article/newSTR_66.htm 10. Leadership style pret-a-porter http://leadersyndrome.wordpress.com/2012/08/09/leadership-and-management-styles-the-pret-a-porter-collection/ 11. ------------------------------------------------- Ambition on future developments on financing option. Also look at the interview summary at the back of the report of block 1. 12. ------------------------------------------------- We have to find out why or why not they use alternative financing. ------------------------------------------------- ------------------------------------------------- ...
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...Chapter 2: Review Questions 3. Compare and contrast direct finance and indirect finance. Which is more likely to have a larger share of the total financial market in a mature economy? In a young economy? Why? The financial system proposes two ways to finance. The first is direct finance through financial markets and the second is indirect finance through financial intermediaries, like banks finance companies and mutual funds. They both use financial securities and are managed in financial markets. Indirect finance is used more when the financial system is young then when the economy gradually increases it grows to indirect finance, this is so because when the financial system is young it depends on intermediaries. There is less of a risk with indirect finance because the intermediary usually has a firmly set line of credit. Both can cause risks though and they both face different problems with borrowers in difficulty of finance. 4. 5. What is the relationship between the efficiency of a financial system and the rate of economic growth? Financial systems play a huge role in industrializing many in making it easier by the mobilization of capital. “Matching those who have savings with those who want to borrow is the essential purpose of the financial system” (Croushore, 13). The activities consists of money flowing from savers to borrowers and in return borrowers give savers financial securities declaring their repayment. These financial systems encourage...
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...foreign investment. The project consists of three key components -Production of heavy oil from a new field in Venezuela’s interior -Transportation of the oil to coast via pipeline -Transportation of oil to refineries along the US Gulf Coast Once refined, the syncrude would be sold at market prices to Conoco under a DuPont-guaranteed off-take agreement. At the end of this 35-year purchasing agreement, Conoco will transfer its shares to Maraven at no cost. The sponsors agreed to use 40% of equity (40%) and 60% of debt to finance the project’s $2.425 billion total cost. The financial advisors, Citicorp and Credit Suisse First Boston, used a multi-pronged financing strategy to raise debt from commercial banks, development agencies, and bond investors. In the end, the sponsors raised $450 million in bank finance and $1 billion in Rule 144A bonds, all of which was non-recourse to the sponsors following completion of the project. The decision to finance this deal on a project basis was actually a dual decision regarding both financial and organizational structure. Risks analysis The purpose of this paper is to analyze how the sponsors allocated both contractual and residual risk in the Petrozuata deal. There are four general categories of risk: precompletion risks, operating risks, sovereign risks, and financing risks, but in this paper I will talk just about the last two risks, as being principal part of my contribution to the group case analysis, so here I am going to...
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...intermediaries account for approximately ________ of the total. A) 6% B) 40% C) 56% D) 60% Answer: C Ques Status: Previous Edition 3) Of the sources of external funds for nonfinancial businesses in the United States, corporate bonds and commercial paper account for approximately ________ of the total. A) 5% B) 10% C) 32% D) 50% Answer: C Ques Status: Previous Edition 4) Of the following sources of external finance for American nonfinancial businesses, the least important is A) loans from banks. B) stocks. C) bonds and commercial paper. D) loans from other financial intermediaries. Answer: B Ques Status: Previous Edition 5) Of the sources of external funds for nonfinancial businesses in the United States, stocks account for approximately ________ of the total. A) 2% B) 11% C) 20% D) 40% Answer: B Ques Status: Previous Edition 6) Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are true? A) Stocks are a far more important source of finance than are bonds. B) Stocks and bonds, combined, supply less than one-half of the external funds. C) Financial intermediaries are the least important source of external funds for businesses. D) Since 1970, more than half of the new issues of stock have been sold...
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...This document of STR 581 Week 5 Discussion Questions shows the solutions to the following problems: DQ 1: Although objectives, functional tactics, and action items are included in many implementation plans, why do some organizations have a difficult time reflecting the plans they create? DQ 2: Consider an organization you have worked for or are familiar with. What are the most important metrics used in the strategic control process? Why? DQ 3: Refer to Ch. 8 of Gaining and Sustaining Competitive Advantage and advice what flexibilities companies have in today's business environment. For each response, research a corporation, identify which options the company faced against challenges and what type of flexibility it exercises (please provide source for your research). General Questions - General General Questions Review the sample final exam and compare the answers from 34 through 77 as a team Select one topic per person from Finance and Accounting sections. Subtopics can be found in the sample exam. The remaining sections should be reviewed individually or used as discussions within the team. Finance Accounting · Corporate finance · Investments · Financial markets and institutions · Relevant cost · Resource planning and analysis · Cost-volume-profit (CVP) analysis · Product costing · Financial reporting and analysis Submit one slide per person that...
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...Victoria Flanders Thursday September 25, 2014 Case Study #1 Bowden Brake Service Problem/Issue Statement Should local finance institutions lend the money to Jim to expand his business? The owner, Jim Bowden, has been denied by the local finance institutions for loan in order to expand his business. Executive Summary *Assumptions were made and are presented in Appendix A* The owner, Jim Bowden owns a brake service shop. His business specialized in fixing car brakes and possible other repairs. Jim is seeking to expand his business, the owner had fill out financial form in the local finance institutions. Jim appeared to be very furious at the local finance institutions. As it turns out, all the finance institutions turned down his request for loan. Since his requests were turned down, Jim is unable to expand his business. The local finance institutions had recommended for the owner to look into ratio analysis. The problem is, both the bookkeeper and accountant are on vacation during the time of need. Jim is clueless about ratio analysis and is frustrated. There is a Human Resource Manager who was hired several months ago. This HR Manager had some training in managerial finance. The HR Manager offered to help the owner figure out the finance. At first, the owner felt skeptical because he did not think HR would know anything about finance. When the HR Manger discovered Jim needed a ratio analysis, both the owner and HR discussed agreements. An agreement was made...
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...as to accomplish the objectives of the organization. Financial Management is the Operational Activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation (Joseph Massie, 2015). Vinod Verma (2015) explained that Finance Management is not only for business but also for every expenses. Like it’s for the home base expenses or the government expenses. The government also need to manage the finance for the develop of the counter and the household also need to manage their expenses properly. Citing an example in our former year being a finance student way back 2nd year semester, there are new block mates that shifts to BSBA – FM from the other course and this example show what can be the possible factors in shifting or enrolling in Finance major. This analysis purpose is to know what different factors affecting why students choose Financial Management courses than other courses offered in UE – Caloocan and lastly and most important is to find new strategies improve and to put up the course of finance society here in our university to encourage them to choose finance courses in order to grow the number of finance students in the UE – Caloocan....
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