StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Budjetary challenges - Essay Example

Cite this document
Summary
Budgetary Challenges Professor Date Introduction Opening a business is easy when all that is needed to start the business is present; like the starting capital, staff members, and premises. However, in order for the business to be successful and make a mark in this hard global economy, effective measures have to be taken regarding the decisions being made, assets, staff and a crucial aspect in any type of business; the customer…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
Budjetary challenges
Read Text Preview

Extract of sample "Budjetary challenges"

Budgetary Challenges Introduction Opening a business is easy when all that is needed to start the business is present; like the starting capital, staff members, and premises. However, in order for the business to be successful and make a mark in this hard global economy, effective measures have to be taken regarding the decisions being made, assets, staff and a crucial aspect in any type of business; the customer. In order for a business be successful, the manager, staff and customers have to have a relation that exists between them.

Customer satisfaction is mandatory to any type of business, but then again the financial capability of the business has to be considered (Pride, Hughes & Kapoor, 2012). The capital to run a business is crucial, and in order to obtain profit, the money channeled out should be less than the money that comes in. Budgetary challenges occur due to lack of effective control practices and enough monitoring of the business capital. A business that does not have policies that help to govern the spending of money could have serious financial challenges that might more often than not lead to collapse of the business.

In this essay, a certain company, Money Cares Investment Corporation has some budgetary challenges that if left unattended will lead to financial ruin for the company. For a start, possible risks would include financial difficulties, colossal debt and thus it will be forced to declare itself bankrupt (Weygandt, Kieso & Kimmel, 2010).  When there is an overspending, there is bound to be risks involved. In this business, it is comprised of; CEO, Financier, a manager, 3 investment specialists, and 2 clerical assistants.

If the business fails to make profits, there will not be enough capital to run the business and at the same time pay off debts. The most logical thing to follow will be to cut back on the business spending in terms of salaries. This will mean that some employees might lose their jobs (Wood & Sangster, 2008). This will lead to more workload thus the business will not be able to run its affairs smoothly. The result is that there will be a lack in coordination in the business between the staff, manager and the customers.

The customer service will be affected thus customer base falls. This leads to more loses, and eventually the business is declared bankrupt. In order for this company to succeed, certain steps and policies have to be established that will govern the possible misuse of capital (Weygandt, Kieso & Kimmel, 2010). Regulation of money in any business is essential for the business to stay afloat and make an economic break through. Most of the time, money in a business is spent without the proper follow-ups, and this leads to a decrease in business capital, and a decrease in profits.

For proper regulation of business capital, priorities have to be set and followed. The most valuable thing to start with is to look for the major users of the business capital. For this businesses’ case, most of the money is channeled towards market supplies, transportation, and the hospitality of customers, probably to make sure that they are retained. To ensure that the company does not end up in ruins, there needs to be a reduction in terms of spending for the company (Garrett, Graddy & Jackson, 2008).

Certain cutbacks have to be made, though they are mostly about which aspect is crucial. Employees should be retained, and a more strategic spending procedure be outlined. The companies’ assets, which include current assets, liquid assets and absolute liquid assets can be channeled towards providing a positive economic feedback to the company (Zenios & Ziemba, 2007). Tangible assets for such a company may include buildings, business vehicles and the equipment used in the office by the staff.

Ability to be converted is into cash whenever needed is an advantage, and thus make up a considerable part of the company’s source of alternate income. Other forms like intangible assets which may include the professional experience and knowledge of how the business is run, or the reputation of the business may not add any financial help to the business, but what they add are the value and enable the company to stay afloat (Anson & American Bar Association, 2007). One of the most vulnerable places that are vulnerable in the business is its finances, and the royalty of customers (Zenios & Ziemba, 2007).

References Anson, W., & American Bar Association. (2007). The intangible assets handbook: Maximizing value from intangible assets. Chicago, Ill: ABA Section of Business Law. Garrett, E., Graddy, E., & Jackson, H. E. (2008). Fiscal challenges: An interdisciplinary approach to budget policy. Cambridge: Cambridge University Press. Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2012). Business. Mason, OH: South-Western Cengage Learning. Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2010). Managerial accounting: Tools for business decision making.

Hoboken, NJ: Wiley. Wood, F., & Sangster, A. (2008). Frank Wood's business accounting UK GAAP. Harlow, England: FT Prentice Hall. Zenios, S. A., & Ziemba, W. T. (2007). Applications and case studies. Amsterdam: Elsevier.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Budjetary challenges Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Budjetary challenges Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/business/1464642-budjetary-challenges
(Budjetary Challenges Essay Example | Topics and Well Written Essays - 750 Words)
Budjetary Challenges Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/business/1464642-budjetary-challenges.
“Budjetary Challenges Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/business/1464642-budjetary-challenges.
  • Cited: 0 times

CHECK THESE SAMPLES OF Budjetary challenges

The Sequestration

This paper discusses some challenges that I have encountered as a government employee as a result of sequestration policies.... ne of the challenges that I have had to deal with is the introduction of unpaid off days as one way of reducing budgetary allocations at my work place.... ervicing mortgages, car loans, and other loans have become real challenges since the introduction of the sequestration strategy of dealing with budgetary deficits....
2 Pages (500 words) Essay

Budgetary Control and Performance Management

Recently, there has been an upsurge in the number of business managers using estimates of income and expenditures for a defined period to set targets.... These business managers use the budgets to financially explain the objectives of the business over a period, generally given as… Budgetary control is therefore an important element in organizational control especially concerning performance management....
7 Pages (1750 words) Essay

Russian gas industry and its effects on people environment and business

Schwarts (2012) asserts that Water pollution is the leading environmental challenge that leaves only less than half of Russia's population with… The other challenge is air quality that has seen more than 200 cities exceeding Russian pollution limit because of the increased number of vehicles and industrial air pollution (Henderson & Ferguson 2014, pp....
4 Pages (1000 words) Research Paper

Communication Challenge in Emergency Management

The writer of this paper states that Secondary data has been the main source of information relating to the communication challenges facing emergency management.... For instance, following hurricane Katrina and its devastating impacts, it became apparent that the loss was not only huge but also extreme due to the challenges faced by emergency agencies....
1 Pages (250 words) Assignment

Solution Outline

All these players need to constantly keep in touch just to ensure that their consolidated Unfortunately, Emergency mangers have always grappled with communication challenges occasioned by jammed telecommunication lines or/and destroyed infrastructure.... The two major sources are the “The handbook of crisis communication” by Coombs & Holladay (2012) and information from GAO website (Major Management challenges and Program Risks) retrieved from: http://www....
5 Pages (1250 words) Assignment

Strategic Managemen for UWS Library

The author states that developing a critical understanding of the UWS Library, it becomes apparent that the entity has been strengthening its competitive domain in an efficient manner to accomplish its vision.... The academic library has to develop several web links to share information.... nbsp; … To maintain sustainable development in the long run, organizations thus need to conduct its strategic planning in an efficient and all-inclusive manner....
16 Pages (4000 words) Assignment

Budgetary Control Tool

"Budgetary Control Tool" paper examines this tool that provides a real-time-monitoring tool for both the managers and the junior employees in the organization.... The use of budgetary controls creates a conducive working environment for the employees who feel more appreciated at the organization....
7 Pages (1750 words) Coursework

Communication Challenge in Emergency Management

Unfortunately, this is hardly the case as EM operations have always grappled with communication challenges occasioned by jammed telecommunication lines or/and destroyed infrastructure.... econdary data has been the main source of information relating to the communication challenges facing emergency management.... The two major sources are the “The Handbook of crisis communication” by Coombs & Holladay (2012) and information from GAO website (Major Management challenges and Program Risks) retrieved from http://www....
9 Pages (2250 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us