A discussion on the crucial concepts of managerial finance Managerial finance is often described as a hybrid approach that combines the concepts of managerial accounting with those adopted from corporate finance. Sound knowledge of financial management helps in the creation of organizational value while promoting agility by efficiently allocating scarce resources between the competing opportunities for business. Thus it is essential to understand its key concepts, some of which are discussed below. Essential concepts discussed in the chapter Incremental cash flow The term refers to the flow of cash in an organization as a result of undertaking a new project. It enables the organizational leaders to compare multiple opportunities and decide on the most fruitful investment option in hand. Financing cost: The cost of finances is described as the costs in addition to the interest and various other charges that are associated with lending money for building or purchasing assets. Sunk cost: It refers to the costs incurred by the entity which cannot be recovered any longer. These costs must be considered during the investment decision-making process. Incremental cost: It…
Social costs in transport economics Transport economics majorly entail matters related to the economics of transport systems such as environmental implications of transport supply, role economics plays in enhancing transport logistics and the financing of transport infrastructure. Modern transport is characterized by the intensive support of roads, rails ports, air control systems, and bridges among others. The intensity and modernity of contemporary transport systems have led to the growth of the study of transport economics beyond the elements of repair or build. Part of the new discussions relating to transport economics is transported systems associated costs. According to elementary economics theory, the supply of anything is an appositive function of its price. Part of transport economics price is external costs which refer to the uncompensated effects. Instead, costs, transport system, and its users have on the society and or part of it which are the social costs (Button, 2010). Social values refer to the cost of externalities to the community that comes with a business or an economic sector. The transport sector is highly characterized by social costs and more…
Managerial finance – In-depth analysis of concepts and differences between concepts In Managerial Finance, the consequences of certain financial techniques, methods, and concepts are explored. The technical aspects of finance can be amalgamated with management studies so that the decision-making process goes smoothly. Investors can make buying or purchasing decisions based on market demand and supply. Reasons for an investor behind purchasing an option instead of shares of the underlying stock An investor would be interested in purchasing options rather than shares because options have a range of advantages. In case an underlying stock price reduces and results in put options’ strike price, the investor can easily buy the share available on strike price instead of purchasing the share by paying high prices (Black, 1975). The investor can make a choice regarding the types of put options to sell. The investor can also select the best strike price and can even control the price he/she will pay for a stock. Stock options have added advantages. The premium that the investor would receive in case of puts is likely to offer…
Case study of Frontier Agriculture Limited and the Red Cross Company, United Kingdom. Introduction. Frontier Agriculture Limited is the largest for profit agricultural company in the United Kingdom. At first, it was dealing with primary agriculture whereby they used to plant crops and rear animals hence getting their returns from the sale of these agricultural products. Due to the increase in the demand of such products as a result of demographic adjustments, Frontier Agriculture Limited was gained a lot of popularity and hence their sale per unit value increased accordingly. Demographic adjustments lead to the faster growth of the company from offering low value products to a multicompany having customers from many corners of United Kingdom. Currently, Frontier Agriculture Limited has majored in crop and animal research where they study the anatomy of these organisms hence aiming at bringing more grades of them to the market. The company has a management of over one thousand people and very many subordinate employees. It has a large customer base which has made it very popular. The reason as to why Frontier Agriculture…
In what ways and to what extent have the EU’s core interests in the Maghreb changed as a result of the Arab Spring? Introduction The union of the Arab Maghreb, also known as Arab Maghreb Union was established in the year 1989 with its founding members including Algeria, Tunisia, Libya, Morocco and Mauritania. Due to closer relationships among these countries, there was an agreement which lead to the signing of the Treaty of Marrakesh which was aimed at increasing the welfare of the native citizens of these founder countries. The treaty had a main goal of assisting in the ending of the book famine which was faced by the people who were visually impaired, including the blind and the disabled as well. The treaty required the member countries to have an exemption to the domestic patent law to govern the visually impaired and the print disabled people. These groups where therefore entitled to the rights of education as a call was made to produce more books for them after the patent rights had been granted. In order to support their…
Potential questionnaire design and administration problems Bias through wording and ordering of questions Since the population under research is large, there is possibility of biased questions to the respondents. For instance, a series of questions querying the respondent on the food usage patterns in different areas and their preferences on food in question may result to a biased assessment. The use of open ended questions Since a large sample size is involved, the use of open ended questions when designing questionnaire may result to a varied range of answers making the comparison meaningless. This is because the topic on food usage patterns and preferences is wide and may require a detailed information. For instance, the study of senior citizens in USA may demand clear understanding on statistical characteristics of the population (Fraser et al, 2015). Other information that may be required include; understanding the current market and future trends. This may result to complications. Questions in which respondents may have incomplete knowledge When designing a questionnaire, there is a possibility of asking questions that some senior citizens of USA food…
Public Budgeting and Finance n order to fully examine the functions of the OMB, develop a paper that analyzes the powers of this office. Then, be sure to include the following: Identify the mandates of the OMB. Compare and contrast the procedures and responsibilities of the OMB with the CBO. Determine, in your evaluation, how these federal offices affect your US Healthcare Support your paper with a minimum of five resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Length: 5-7 pages, not including title and reference pages[unique_solution] Public Budgeting and Finance n order to fully examine the functions of the OMB, develop a paper that analyzes the powers of this office. Then, be sure to include the following: Identify the mandates of the OMB. Compare and contrast the procedures and responsibilities of the OMB with the CBO. Determine, in your evaluation, how these federal offices affect your US Healthcare Support your paper with a minimum of five resources. In addition to these specified resources, other appropriate scholarly resources, including older articles,…
Israel’s Money Laundering and Terror Financing Prohibition Authority (IMPA) Israel’s Money Laundering and Terror Financing Prohibition Authority (IMPA) has published a draft guide listing potential ‘Red flags’ to facilitate private sector in forming policies regarding money laundering using digital assets on December 31st 2019. The draft titled, “Red Flags in the Virtual Assets Field is now open to review for public and has formed after consultations with financial advisors and members of the community. It has received backlash for targeting privacy-protecting tools like the VPN and tor users. The authority has claimed that although digital assets promote economic innovation, it poses newer and stricter challenges in conducting financial investigations, seizing property originating from questionable sources and combating crime. Thus, the objective of the draft is to identify “problematic” economic activities and help finance bodies act on it. The Israel Money Laundering and Terror Financing Prohibition Authority, which founded in 2002, is an independent financial intelligence unit that works following the Financial Action Task Force (FATF). Many from the Israeli crypto community have already criticized it for having excessive “red flags”…
Turkish Economic Crisis Introduction Turkey’s economy is still adjusting since the 2018 economic crisis. Turkey’s being the 7th largest growing economy in Europe as of 2017 is fast growing. The country has a population of 81.4 million people, according to the World Bank (2019). In 2018, the country’s economy changed due to a financial crisis. The financial and economic crisis was mainly as a result of foreign debt and excessive current account deficit. The Turkish Lira lost more than 35% of its value against the US Dollar each day, and it leads to inflation and increased cost of living. The textile industries, which are the leading in Turkey together with the banks, went down, and they are still struggling to contain the fallout. The Turkish financial and economic crisis affected most businesses both globally and nationally despite the monetary and fiscal policies put in place and challenges still in the country. However, we cannot ignore the fact that the country is trying to come back to its former state. Discussion Turkey’s economy was hurt by the 2018 economic…
Global economy strategy Location Matters The urban economist Enrico Moretti discusses the aspect of location in relation to globalization. The world has changed a lot over the years. Thanks to the advancement in technology, location is determined as the main aspect holding the economic lifeline of major corporations in the globe (Hill, 2015). Location determines how a company performs both at its local base and internationally. Moretti argues that the low-skilled jobs that are moved out of the United States allow the large tech corporations to hire the highly skilled workforce while lowering prices of goods (Moretti, 2012). Innovation hubs have pulled large corporations to their locations owing to the benefits that come with situating a firm in an innovation hub. (Moretti, 2012)Argues that smart, innovative workers and companies, like to be surrounded by other smart and innovative firms because ideas that help the company/worker perform well are hatched within that ecosystem. For instance, a company located in an innovation hub like Silicon Valley and has the entire tech ecosystem surrounding it will perform exceptionally well compared to that outside.…