Forecasting allows a company to make good decisions regarding its business model. It allows the management to resolve the dilemma of greater shareholder expectations and demanding customer requirements Palmatier, n.d ()
. Any company that is striving to achieve operational excellence, and gain competitive advantage will need to perform continuous forecasting in order for it to satisfy its customers and manage its resources.
Current conditions of fixed income and common stock securities
Fixed income is a type of investment where the borrower has to pay a fixed amount at a specific time Dwyer & Tkac, 2009.
Fixed income has to be paid whether the company is making a profit or not because there is an agreed payment schedule. If the borrower is misses to make a single payment on the fixed income, the payees can use the relevant law to force the issuer to pay or declare bankruptcy.
Fixed income securities are usually considered to have lower returns or profits on the investment because they have lower risks. This is because the borrower is obligated to pay the fixed income even when the company is making a loss. They have lower risks because the repayments are scheduled and there is a specific number of payments the payees can expect. Fixed income securities have to be planned for to ensure that no payment is missed. This would mean a company will have to direct its finances to paying the fixed income first before it can consider making other financial obligations.
Common stock securities refer to ownership of a company through shares. Commons stock securities do not have to receive any payment at a specific time. Payment is dependent on the company making high profits. This payment referred to as dividend will be made after fixed income securities have been paid and preferred shareholders paid too. If the company makes minimal profits or none, then the common stockholders will not receive any dividend. This security is considered to have high risks and high returns. This is because there is no guarantee of a dividend been issued but when a dividend is issued it usually has high returns on the investment made.
In financial management common stock securities have no major impact because they are dependent on the company making...
Financial Management of Not-For-Profit Organizations: Generally, financial management of not-for-profit organizations is similar to the process of financial management in the profit making sector in several aspects. Nonetheless, there are several major differences that contribute to a different focus of a not-for-profit financial manager. In the commercial sector, the for-profit enterprises mainly focus on capitalizing shareholder value and overall profitability. On the contrary, not-for-profit organizations have the basic aim of providing
Financial Scandals and Management Financial Management Management Financial Actions, Controls, and Decisions Financial Scandals and Management Following the rise of financial scandals in the recent past, external and internal audits are carried out to review the management's financial controls and actions, and keep tab of the outside and internal auditors. However, despite the best efforts, accounting scandals like the Cendant Corporation's $300 million bogus revenue indicate that external auditors and managers are not doing
The financial information these directors and managers require is often highly specific to their functional departments' goals and objectives. The director or senior manager of the operations and production departments will require variance analysis of costing, thorough analysis of supply chain costs and the cost of quality management and compliance management (Kivijarvi, Saarinen, 1995). These costs are critical to each of these directors ensuring a consistent level of conformance
"A balanced fund seeks to provide long-term growth through its equity component as well as income to be generated by the portfolio's debt securities" (Galvin). 3. Factors Generating Changes in the U.S. Secondary Market for Common Stock The exchange of financial products expanded significantly since the 1960s as a direct consequence of the growing interest in stocks, bonds and other types of investments. Trading financial products is no longer destined only
Aside the attraction of customers, the money invested in marketing have created the desired outcome of a strong and reputable brand. Another pivotal element in the financial strategies has been that of maximizing the efficiency of managing inventories. This was necessary in order to continually strengthen the brand as well as achieve the profitability goals. Alongside with operating principles, supply-chain renovation and inventory management, financial management represents the pillar
Risk Management The objective of this study is to discuss the role and nature of organizational risk management in justice and security organizations and why it is so important. The following will be addressed in the assessment; (1) risk planning and resource identification; (2) management of risk in justice and security organizations; (3) costs associated in managing risk; (4) consequences of failing to manage risk; and benefits; and (5) benefits a
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now