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Faculty of Business and Law Avoiding Plagiarism Checklist and Business organisations sole trading enterprises, partnerships and companies limited by shares.

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Complete the following checklist before submitting your assignment. This will help to ensure that you have avoided plagiarism. Please Download the attached file....

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Question Preview:

Complete the following checklist before submitting your assignment. This will help to ensure that you have avoided plagiarism. Please Download the attached file.

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In the contemporary world, most of the corporate work for a profit. Every corporate business invests and utilizes its funds to generate more funds. So it’s important that business houses consider the different types of business organizations like sole proprietorship, partnership, and corporation and select the best out of them. The selection of organization depends on the investment the proprietor wants. The organizational forms are mostly influenced by the tax issues, legal issues, monetary concerns and the individual concerns etc. so to understand the basic difference between the different types of organizations its necessary that an overall understanding of these organizations is done. In this scenario, finance assumes an important role. Finance has also been referred to as the lifeline of any business entity. In order to succeed, a business has to manage its finances effectively. In layman’s language, financial management is the management of financial activity of a business. It involves application of common management principles to financial resources of a business. So, it may involve planning, organizing, directing, coordinating, managing and restructuring of the financial resources of the business. Depending on the structure of the organization there are financial managers. In a sole proprietorship there is one financial manager only whereas in partnership and corporation there is more than one. But the main duty of a financial manger is same in all the organizations. The financial manager  involves procuring funds at the least cost to the company and utilizing the same in an effective manner so as to generate maximum returns, To produce financial reports, direct investment activities, and develop strategies and plans for long term financial goals of their organization. Financial managers supervise the research of financial reports, implement strategies of cash management and also guide a company’s investment methodology. He should also project the role of a good leader by giving cost-effective uses of company’s resources. He should also help in maximizing the shareholder value. Their job also involves executing the long-term goals of an enterprise. The major goal of the Finance Manager should be to maximize the value per share of the existing stock, through “maximizing shareholder wealth” or “maximizing stock price”. This goal also motivates capital budgeting decision rules. Moreover Firm will only accept projects if they add value to the firm. His roles include ensuring that the resources are not wasted especially the newer ones (Rodeck, 2001)

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