The Baron Finance Company - Coursework Example

? The Baron Finance Company Client inserts his/ her of Case Law The law in this case involves the aspects of negligence from both parties. The law that applies to this circumstance involves contributory negligence as outlined in the case law Brown v. Kendall. Application Its application points to the fact that negligence was committed by the two parties. In regards to the staff capacity of a building, both the seller and the buyer were required to ascertain before making any decision. Like in the case Brown v. Kendall the court ruled that both parties were to suffer the losses. Advice For the company to overcome the capacity constraint in future and achieve efficiency in operations without the indication of space constraints, the manager should begin by carrying out proper building analysis to ensure that the space is ample for its operations. On the other hand, the company can obtain funds from various sources that are appropriate and obtain a building with enough space for all the workers. With the losses incurred in mind, everybody within the organization should direct their efforts towards restoring the finances lost during the transition period. Moreover, costs may be cut by minimizing trivial expenses as a way of reinstating the company’s financial position. All departments under finance should be given a role in the activity to ensure that high interconnectedness between the departments is achieved. In this way, it will be easy to eliminate the constraints bit by bit until the system is realigned as desired (Khan& Jain, 2007). 2. Case law The law in this case involves intentional deception or ‘Antitrust’ business law, which highlights that the finance department needs to be entrusted with honest personalities. In this case both parties are involved in fraud because they cohere to personal motives mired with dishonesty. Application This law is applicable in that the company employs somebody who refused the job previously hence mistrust arises like in the case McNally v. United State. According to (Clemency, 2002), it is notable how fraud leads to losses in the hands of a ‘competent manager.’ Additionally, the investor is known to be deceitful and an irredeemable social climber who uses any tactic for selfish gains consequently, the company experiences losses that may be avoided. Advice The company should carry out employment procedures appropriately to obtain an employee who is experienced and has adequate expertise to commit to the job. The person should be trustworthy, honest and selfless in order to strive towards achieving organization objectives. In this manner, the person in charge will be able to manage the organization appropriately especially in following up any small inconsistence especially in the finance department. This is for the sole reason that the losses involved are greatest and thus the need to control and prevent fraud as soon as any suspicions are made. Before making any legal move, a fraud examiner should be involved to follow up the inconsistencies keenly in order to establish a strong basis of evidence in regards to the nature of fraud in question. The little indicators identified may lead to greater realizations of fraud masterminds within the organization that may have operated for a long period without suspicion. Therefore, a small indicator should not be ignored because it is a guideline to more evidence when closely examined (Dyson & McKenzie, 1996). 3. Case The case presented is poor human resource management. The scenario is between Casati and the Gosia’s business strategy analyst. Law The law applicable is such a circumstance is ‘Foreign Workers & Employee Eligibility’ law. The analyst in this case is careless. This circumstance is likened with the case of Brown v. Kendall. Application The law relates to the organization since negligence is observed in the situation where the business strategic analyst fails to read the entire report hence leaving out the conclusion and forecast that has indications on the impeding decline in profits. Most importantly, worker competence is overlooked since they get away with slackness that puts the entire company in an awkward financial position. Advice It is very important for the company to employ people who are qualified for particular jobs to avoid unnecessary laxity in matters that are supposed to be addressed with much seriousness. Every document containing information about the company should be read seriously and counterchecked by various people concerned to ensure that the correct interpretation is made. This is significant in financial planning as well as forecasting where need be (Dyson& McKenzie, 1996). 4. Case Law The law that applies in this case is the ‘Financial Regulation’ business law. The law indicates that the financial assistance sought is not appropriate due to negligence as depicted in the case of Brown v. Kendall. Application A subsidiary of baron suffers loses due to poor decision-making. Releasing bonds to make finances to cover the losses that are already experienced in the company may not be the best option since it will intensify the financial crisis. Advice In this regard, financial decisions should be made by a team of members who should analyze numerous assumptions and possible outcomes before arriving at any conclusion on particular circumstances. According to Khan & Jain (2007), proper future financial planning to avoid decline in case of economic crisis is very necessary as a safety measure. Knowledge of what to expect elicits safe prior financial planning strategies that will keep the company running smoothly at the verge of any disaster. This will eliminate frantic recourses in case of unexpected losses. 5. Case Law The ‘Fraud deterrence’ business law is applicable in this case. Both Ophelia and Irine insurance are involved in fraud as in Brown v. Kendall. Application The theft insurance plan puts the company at a risk. Either, it is critical that the loss of 1500 pounds was treated as negligible hence not reported. This later led to embezzlement of 2.6 million pounds. This circumstance is likened with the case of Brown v. Kendall. Advice It is prudent for any organization to carry out auditing regularly to monitor any activities that may lead to fraud. From the above incident, the main operations of a company should not be left in the hands of an individual. To reduce chances of fraud, a team of workers who should be monitored constantly should be bestowed with such responsibilities especially in the financial department, which is susceptible to fraud. Moreover, a technological system should be applied such that the owner or someone trustworthy monitors all the significant operations from a central position, which should be mandated. Stored data security devices should be put in place although they are costly. Being a long-term solution to fraud prevention and control, the organization is bound to companies invest in such systems in steps (Khan & Jain, 2007). 6. Case Law The ‘Trusts & Estates’ business law will be relevant in this situation. The law will determine the value of the building hence solve the crisis. Application Buying a building that is listed at a high price puts the company at the verge of failure due to high losses. Advice To counter the situation, a team of advisors should be sought first such that they look into the immediate financial needs. Every aspect of the revival plan should point at operational and financial advice since this is the worst part of the company presently. Moreover, if the company intends to buy any building in future, proper investigations should be carried out to determine whether the building is listed or not. In this regard, it is possible to curtail unnecessary loss of finances (Brigham, & Houston, 2007). Conclusion Conclusively, it is notable that the organizations presented in the case studies lack adequate financial management skills such as financial organization, directing, planning and controlling. This engulfs all the financial activities in an organization. Managing financial resources, especially expenditure is very necessary to eliminate fraud, poor financial decision-making, theft and negligence. The finance managers need to be advised on the options available for short term funding. If the organization had been insured, an insurance claim will be appropriate as a source of funds to avoid bad debts at the point of revival. It is also appropriate to negotiate for a bank loan to supplement insurance funding. Proper forecasting is necessary such that the expected financial changes are anticipated. When the economy slows down, the company will have adequate reserves in terms of cash to allow for continuation of operations until the economy picks again. References Brigham, E. & Houston, J. 2007, Fundamentals of Financial Management Cengage Learning. Clemency, J. 2002, Corporate Fraud: Where Should the Buck Really Stop? American Bankruptcy Institute Journal. Dyson, C. & McKenzie, D. 1996, Guidelines to Fraud Prevention, New South Wales Police Service, Fraud Enforcement Agency, Sydney. Khan, Y. & Jain, K. 2007, Financial Management. Tata McGraw-Hill Education. Read More