Corporate Finance: Corporate finance is concerned with the financing and investment decisions made by the management of companies in pursuit of corporate goals. As a subject, corporate finance has a theoretical base which has evolved over many years and which continues to evolve. It has a practical side too, concerned with the study of how companies actually make financing and investment decisions, and it is often the case that theory and practice disagree. The fundamental problem that faces financial managers is how to secure the greatest possible return in exchange for accepting the smallest amount of risk. This necessarily requires that financial managers have available to them (and are able to use) a range of appropriate tools and techniques.
An independent business owners have the ability to launch innovative products or products that are protected by copyrights or patents or trademarks, which can help the owner of an independent firm to adjudicate on the market. The owner of an independent company can start a business in a fast tempo or slow depending on the financial resources and business goals. There is no need for a mandatory initial investment. Independent business owners are also free to choose a company according to their choice of products and services that will sell and make decisions regarding the
The outcomes of the study show that the financial ratio affects management decisions about the earning strategies of firm. However, it has significant relationship with the discretionary accruals. The study suggest that the use of the financial ratio for the firms which has diverse segments. It is difficult to identify the factors that mainly influence the sales volume. Perhaps the information provided in the disclosures would enable to have greater insight to the issues pertaining to the segments (Barton, 2001).
THE INTERACTION BETWEEN OWNERSHIP STRUCTURE AND CAPITAL STRUCTURE IN FINANCE SECTOR Chapter 1: Introduction 1. Background of the study Capital structure is how a firm manages a large amount of money, particularly by governments or large companies from overall operations and growth by using different type sources of funds. Distribution of equity defined the ownership structure as relating to votes and capital and also identifies of the equity owners. According to Jensen and Meckling (1976), who discussed the nature of agency costs associated with outside claims on the firm - both debt and equity. Institutional ownership that is outside ownership does refer to the ownership stake in a company that is held by large financial organizations, pension
Since this type of business involves family members, it is essential for the elders in the family to prepare the next generation for taking over the business. Some of the ways of preparing next generation are, Firstly, starting at an early age to be confidante they learn the leadership skill from its beginning stages like working part time
In a best practice, external recruitment is used for entry-level positions or higher-level positions which cannot be filled with the help of internal recruitment methods (Chang & Madera, 2012, p. 188). This process carries advantages and disadvantages that are directly counter to those of the internal recruiting process. For example, external recruiting fosters new perspectives, new ways of doing things and new ideas. Through external recruiting methods, the company enhances its creativity, validity and innovation. This recruiting method avoids the ripple effect.
This perspective can help manager to see how well their business is running and wether its day-to-day activities support the organization’s key goals. Apart from that, internal business process refers to the satisfaction of both shareholders and customers (Biden, Mziu and Suhaimi, 2014). This perspective is important because the firm could analyze their current internal ability and react based on the market needs. The Balanced scorecard helps the organization to identify type of internal business process that can satisfy clients and shareholders. The strategy to improve the process could have an effect on the
Accounting as a job serves as the financial backbone of a business for it deals with money and its primary task is to record and analyze financial information. It includes the keeping of financial records and assurance that the records are accurate which makes it as a detail- oriented work. Gibson, Hutchinson, Homrigh and Leung (2011) claims that corporate scandals are widely known in the name of the business in which it cause extensive damages in the economy and society. These question the morality of businessmen in general and accountants in particular. With these duties and accountabilities, the concept of ethics is highly needed to be given emphasis in this field.
This study will be very important for Mogadishu merchandise and services enterprises to get them the concept that related the effect of financial management practices on financial performance. This study will be beneficial for the possibility researchers to get as literature, which is interesting to carry out for extra study in this field. 1.8 Operational definitions of the study Financial management refers to the process of managing financial resources, including management decisions concerning accounting and financial reporting, financial planning, investment accounting information system and financial performance, forecasting, and budgeting, as well as capital budgeting decisions, which include decisions whether to lease or buy, and whether