MANAGING FINANCIAL RESOURCES AND DECISIONS Essay - 1

MANAGING FINANCIAL RESOURCES AND DECISIONS - Essay Example ems the most secured form of raising enough money to start the business, but in case the price of the assets suddenly drops, it may be practically impossible to get enough capital for the organization. Banks, on the other hand, expects that some strict requirements are fulfilled before they could award any loans (Mentre 1984). It is not always possible to secure a loan from banks because the requirements are often many. Therefore, it is better to rely on the sale of assets to raise the needed capital for the commencement of the organization. The assets that would be sold to obtain this capital include a block of flat and a six-month-old salon car. The organization has a limited number of daily operations being a trading one and small-scale in nature. The major activities involve purchasing, stockpiling and distributing orders to customers. The organization is not involved in price control and does not engage in market manipulation as would a big trading company. Therefore, choosing to finance the organization using the capital raised through the sale of personal assets appears to be safe and would not threaten business continuity (Doughty 2000). The fact is that whenever banks refuse to grant loan applications, the business activities at the organization would be slow down. No entrepreneur that is profit-oriented would want his/her business enter a phase of financial dryness: a critical condition when it would be seriously difficult to obtain the necessary funds to keep operating. Relying on the capital raised from personal assets would solve this unique problem. Task 4 (The Cost of Finance): The cost of finance for the sales of my asset is, in principle, the total expenses made in the course of selling them. Below is the exact cost of finance that came up during the selling processes: The cost of finance shown above is moderate compared with the cost I would have paid to obtain similar amount of loan from a bank or other financial institutions. Even though the

The influence of senior management involvement on the effectiveness of Essay

The influence of senior management involvement on the effectiveness of management training in selected Saudi Arabia (KSA) SMEs - Essay Example pany programs in order to ensure a higher level of success for the organization as a whole, as well as develop the attitudes and behaviours of the staff members (Alliger et al., 1997). However, previous researchers have only focused on the process of achieving organizational success, without emphasizing on the participation levels of the employees, let alone the participation and involvement of the senior management. This study is of significance because first and foremost, the labour force in Saudi Arabia is comprised of 55 percent of small and medium enterprises (or SMEs). What is even more significant is that for such companies, the involvement of senior managers in development activities and programs is more as compared to larger companies and companies in the public sector. However, due to the company’s size, organizational structures and developmental programs are not as formal as they should be, hence the need for senior management intervention (Storrey, 2004). This stu dy has shown that there are a number of benefits to be achieved from a higher level of involvement of senior managers in training programs. According to Mazzorol (2003), when employees observe the active participation of their managers, they are more empowered and motivated to be open to change. At the same time, the managers themselves are also able to have the opportunity to communicate more with their subordinates and gain feedback which would be beneficial for the company’s overall development. Isaac et al. (2001) further states that by being involved, senior managers have the chance to encourage and motivate their employees to improve their attitudes and behaviours with regards to work and accomplishing tasks. One problem with training programs is that there is a risk that the trainees will not learn anything. When this happens, the company would have wasted its finances, time and effort in order to implement such programs. Thus, by being actively involved in these progr ams, managers