INTRO TO BUSINESS 105
JUNE 19, 2011
Through risks management one can limit the possible financial losses caused by unsuccessful normal business operations. It is essential to contemplate the things which could go wrong within your business and to evaluate the financial cost to you if these events happen.
Financial Management is the process of managing the financial resources, including accounting and financial reporting, budgeting, and risk management, for a business. The financial management system for a small business includes how well the funds are financed and how one manages the money in the business. In setting up a financial management system the first decision is whether one will manage the financial records personally or whether someone else will do it for you. There are many alternative ways one can handle this. All management can be done by you personally; one can hire an employee who manages it for you, and keep your records in-house. Clearly, financial management involves a number of crucial areas of one’s business. If the time is taken to set them up right it will make a significant difference in the stress levels and in the bottom line for the business. (www.Bankingforsmallbusiness.com, fall, 2010)
The first thing that comes to one’s mind when they think of investing is the stock market. A bond is a debt security, where the issuer owes the holders a debt and, is obliged to pay interest to use and/or to repay the principal at a later date, called maturity. A bond is a contract to repay borrowed money with interest at set intervals. Bonds and stocks are both securities, but the major difference between the two is stockholders have an equity stake in the business, where bondholders have a creditor stake in the company. Another variance is that bonds normally have a defined term, or maturity, after the bond is redeemed, where stocks may be remaining forever.... [continues]
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