The dominant economic theories of the firm do not lead to something else, denying the fundamental differences between contract and organization and reformulating the firm as a nexus of contracts (Jensen and Meckling, 1976). The firm as a legal fiction In previous essay of this course we described theory of the firm presented by Coase (1937), which demonstrated that the incentive for the firm to procure in the market or to produce for their own requirements is premised on the comparative trans...
The corporate governance in UK is governed by the Combined Code (1998) which encapsulates the Cadbury, Greenbury and Hample codes. The corporate governance evaluation for Burberry Category Cadbury and Greenbury Combined Code Compliance by Burberry Directors Roles of CEO and Chairman should be separated John Peace (Chairman) and Angela Ahrendts(CEO) have duties that clearly defined in the report. Directors A senior independent Non executive director should be identified in the annual report. P...
The purpose of this paper is to evaluate the issues and challenges of implementing a balanced scorecard in public sector organizations. In recent years the need of the public sector organizations to show and measure their performance drives them into the need of implementing the BSC. Although the BSC is originally designed for the privet sector (it was designed by Kaplan and Norton and its main perspective where created to fit the privet sector organizations), it is now used by the public sec...
Working capital is the life blood and nerve centre of a business. Just as circulation of blood is essential in the human body for maintaining life, working capital is essential to maintain the smooth running of a business. Adequate working capital and working capital management is critical in the survival and success of small and medium-sized enterprise (SMEs). Working capital management is of prime importance in the short-term as it ensures going concern and the fulfillment of any business l...
Globalization of Indian Economy: The Exim Policy 1997-02 proposed with a plan to plan a schema for globalizations of Indian economy. This is obvious from the precise first goal of the approach, which states. "To quicken the economy from flat level of financial exercises to-abnormal amount of financial exercises by making it an universally turned vibrant economy and to infer most extreme profits from growing worldwide business sector chances." (b)Impact on the Indian Industry: In the EXIM arra...
As Bhimany et al. stated in 2008 "A budget is a quantitative expression of proposed plan of action by management for a future time period and is an aid to the coordination and implementation of the plan. It can cover both financial and non-financial aspects of these plans and acts as a blue-print for the company to follow in the forthcoming period". The budgeting system is a conventional way of handling and directing companies. Financial departments use the budgeting method to plan and organi...
Working capital management defines the management in the short term of the relationship between a company's current assets and liabilities. The most common elements of working capital will include inventory, receivables and payables which represent the operating working capital (OWC) held by a company usually within a year. Fig.1 below shows the interaction between these elements of OWC. The goal of OWC management is to ensure that a company has enough cash flow, measure in terms of liquidity...
Financial management is related with the money matters. It is all about the managing money. Managing money is very important part of an individuals life or for a business organization. Personal financial management will help a man budgeting the income of his own or family. The person will be achieve the goal of his life similarly, managing money is same important for business organization. In our report we are going to discuss about the managing fund for a consultancy firm. I am recruited as ...
This eassy mainly introduced the information about the International Accounting standards of Inventory(IAS 2). First, we introduced the background of the IAS 2; then we discussed the major requirements of the standards and the importance of these requirements; after that we critically evaluate the IAS 2. Background The IASs, International Accounting Standards, which issued with the IASC setting up in 1973, are the common standards followed by accountancy bodies. Then, the IASB with new accoun...
Industrial sickness is defined in India as "an industrial company (being a company registered for not less than seven years) which has, at the end of any financial year, accumulated losses equal to, or exceeding, its entire net worth and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year". Under the repealed Sick Industrial Companies (Special Provisions) Act, 1985 (the SICA), a moratorium period of five years was given before ...
