6 Step Financial Management Process

United kingdom is a typical example of mixed economy where in which there is a balance between market forces and state intervention. The advantages of having mixed economy in the country are that these types of market allow competition amongst providers with regulations in place to protect society as a whole. With the government being present in the economy it brings a sense of security to sellers and buyers and it helps to bring stability in the economy. Whereas the disadvantages of mixed economy are unsuccessfully regulations may paralyze features of production. Lack of price control management can cause shortages in goods and can result in a recession. In mixed economy the resources are allocated on the basis of the private sector where goods and services are allocated on the market mechanism and the public sector where the government provides goods and services funded through tax revenue for the most part of the general public as a whole.

Although every country will answer the what, how and for whom questions differently, every country will be confronted with the same fundamental problems: resource allocation and scarcity.

In today’s world, we are faced with the everyday question of what the best way to run an economy is. There have been many different attempts to create the perfect economic system that adjusts to the needs of each citizen, while maintaining a strong market system in which the people create ideas and product and keep control. However, there has yet to be the perfect system that comes with less risk than potential, and it is most likely that there will never be a system where cons are not attached to the pros. Command, Market, and occasionally Traditional are the three main types of economies we see today, and each one offers a different set of positives that the others can’t. An idea that has always been represented in the world has been a command economy. This is an economic system in which a central power holds control of the economy, and regulates it. Countries like Cuba, China, and North Korea practice this economy in forms of communism. Socialism can fall under this category as well, however as it requires a government

John has difficulties with money management because his mother dealt with finances when she was alive, and when he was homeless he only had to manage a few dollars at one time. For John, his values impact his ability save and manage money. When John was homeless he did not value saving his money because he did not have any money to save. Learning how to put money into a savings account, writing checks, paying bills and making a budget will be important when he gets a job.

As one can see, a mixed market economy gives citizens freedom but with the protection of the government. There are many advantages to this type

Since the development of civilization, more than 5000 years ago, some type of economic system has always been applied. Resources have been scarce and people always have had to decide how to allocate their resources in the best manner. To this day, people have tried many different systems. However, systems as feudalism and mercantilism belong to the past. During more recent times there have been two competing systems, the capitalist system of the west and the communist system of the east. But with the collapse of the communist regimes in Eastern Europe in the late 1980’s and early 1990’s there now is only one system still standing.

The of goal cash management is to minimize the amount of cash the business must hold to conduct its normal activities while having sufficient cash on hand to support operations (Gapenski, L. C., Reiter, K. L., 2016, p 601). Short term investments may offer minimal returns but cash offers zero. The point is to get the most return on funds and have only the minimum cash on hand.

This unit will give learners a foundation in financial principles and techniques relevant to the strategic management process. It encourages learners to explore the nature of cost-based financial data and information, the impact of the budgeting process on the organisation, and the development of cost reduction and management procedures and processes. It also focuses on the management of these costs through the use of forecasting, appraisal and financial reporting procedures. One of the main objectives of this unit is for learners to develop the confidence to apply, analyse and evaluate financial and cost information.

Long-term liabilities and equity are investments made by investors in the company, either in the form of a loan or ownership. Return on investment is intended to measure the return the company earned from these investments. Return on investment will be higher than the return on assets for a company with current liabilities. To see this, realize that total assets must equal total debt and equity,

The purpose of this assignment is to study the finance sources available to a company. Here according to the assignment requirement, we have to select a British public company to study the available sources of finance from where the firm collects its capital requirement. Following the guidelines we have to analyze various sources with their potentiality and then we make viable analysis of Cash and sales budget. Here some salient financial ratios are employed for the purpose of analyzing the financial statement of the company.

Economics is a system that attempts to acquire a balance between the available resources and demands. Currently, three types of economies are recognised in the world; command market, mix market and the free market. Each of these types has different systems. While in the command economy, the central authorities make all the economic decisions, in the free economy, the households and firms are responsible for all economic policies (Sloman and Garratt. 2010, P.17). On the other hand, the mixed economy is a combination of both the command and free market, which means the economic decision are collectively taken by both the government and the market.

Companies will hire financial managers to help with the decision making process and continue to keep profits on the rise and keeping cost at a minimum. Financial managers essentially control an organization’s assets, any investments and cash flow. They are also hired to analyze sales, investment activities and long term financial strategies. These roles are critical and ultimately the people in these roles are working for the company’s shareholders. Financial managers are the key decision makers in an organization, so their actions and daily decision making will hold a huge impact on how the company grows.

Economics are a complex matter which alters in time. Economics can be also defined as “the science which studies human behavoir as a relation between ends and scarce means which have alternative uses” (L.Robbins,1935,p.495) In other words economics are a study of how to allocate, product, and distribute goods among the people. Economics as any other “science” faces problems which need to be viewed in depth in order to be resolved. Some of the main issues faced are the scarce of resources and when is the government intervention required.

The definition used by the Indian authorities is based on the level of investment in plant, machinery or other fixed assets whether held on an ownership, lease or hire purchase

The first advantages as noted by Terrence (2004) is that in a well-structured mixed economy, customers’ needs are well meet because the government combines with individuals and business to carter for all the needs of people in the society. While the combination of government with individuals for the purpose of production in an economy has been earlier discussed as a limitation to this form of economy system, it must be noted that such limitations occur only in cases where these combination are not well structured in terms of what the business will have to invest in and what the individuals will have to invest