Writing Accounting and Financial Management Assignment needs in-depth knowledge of the subject. Finance and Accountancy subjects also present policies related to Working capital management as well as on treasury management policies. This benefits and helps management to make decisions related to capital investment, municipal tax, and the effects of inflation. This also replies to risk and uncertainty in business and analysis of the same, which an organization faces due to continual changes in the economic environment. This also responds to the risk management procedures to cure such risks when faced. It guides the citizens in creating a sound capital structure so that that management can decide on gearing and leasing business decisions.
Financial objectives: The standard financial objectives of company A&W restaurants are concerned with arranging business funds, the amount of money collected from investors make arrangements of a loan at a reasonable interest, working capital management, dividend, etc. Multiple routes of funds arrangement for business houses comprising internal sources and external sources.
Internal sources are – earnings, reserve funds, and surplus.
External sources: loan, small business loans, invoice and factoring, angel investing, which is the vital financial decision of business related to finance and capital market places.
Earnings and reserves & surplus are not sufficient to complete the business requirement. So, the company should have funding plans both extended as well as short term.
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Fast food restaurant business needs a large number of working capital and can be governed as:
- Trade Credits.
- Short Term Bank Loans
For the management of working capital, managers can take a view of these three policies:
One should keep in mind while applying these policies, that there should be a minimal financial risk or inventory problems, and adverse effect on profitability is expected and needs are to be avoided. The firm should take into consideration the anticipated inflation and corporate taxes applicable to it. Corporation taxation affects the return on investment.
These features of the tax system focus on the successful management of treasury and working capital management procedures followed by the business houses in the country. Accordingly, taxation, rate of inflation, and other macro and microeconomic elements contribute towards the management of the working capital of the business and lay the importance of treasury management through long term profitability.
The future of a business depends on risk and uncertainty. It comprises unseen factors that make probable negative results. The rise in the price of food items, or lowering of disposable income is a typical example of risk assessment may be faced by fast-food eateries.
Finest Accounting and Financial Management Assignment For MBA Students
Multiple types of risks which may be faced by business such as political, economical, and industrial or market risk. It comprises threats of substitution of products or services, competitions, the entrance of new entrepreneurs in the market, power bargaining of suppliers, and consumers, etc.
It is evident that such risk impact on economic growth and economic development as well. So, while taking decisions by management to assess the economic environment, data collection, analyze and reveal more results, exercising and managing business situations, receive advice from technical experts, and share of responsibility while making decisions.
The financing decision of the firm includes selecting the sources of capital investment, which include equity, banks, venture capital, financial institutions, and angel investors. The company may also go for debt capital issuance. Debentures are superior to share the wealth that is beneficial for a company.
Asset valuation – Based on cash flows and valuation metrics. It can be valued as book value and market value of assets. Liquid assets are easy for business purpose in the market, so have market value.
Business valuation – The valuation method is dependent on kinds of business, whether it is in running condition or under liquidation. Valuation methods are based on significant assets, price and earnings ratio, cost of entry, discounted cash flow, established standard formula.
The risk management procedures used in the business comprise methods, can be applied to control, prevent, or mitigate the risks of the company.
Students who need help in writing Accounting Theory Assignment may contact through our website: No 1 Assignment Help. It can be concluded that outlines of effective financial management should be provided prior to asset valuation comprising valuation, of the related factors also.