Managing Financial Resources and Decisions Essay - 3

Managing Financial Resources and Decisions - Essay Example These sources can be broadly classified into short term and long term sources of finance. Long term sources of finance, as the name indicates, are required over longer periods of time (any duration that is above 1 year) whereas short term source of finance that are required within a period of one year. There are three main long term sources of finance for JS and co, namely, share capital, debentures and long term loans. An equity share represents a share of the company’s assets and a share of earnings after the claims are met. Equity shareholders are the owners of the business and have a right in the company for the percentage of shares owned by them (Samuels et al, 2000). Also, the risk is borne by the shareholders who invest in the company. JS and co can issue new shares in order to raise some surplus finance. Debentures are bonds issued to the investors in exchange for finance lent to the company. JS and co can borrow money in the form of debentures from the public, by agreeing to repay the sum by some future date. Also, Js and co has to pay an interest to the creditors (debenture bond holders) before paying out dividends to the shareholders. Hence, in this case, debentures have a little risk attached to them compared to the shareholders, from the company’s perspective (Samuels et al, 2000). Long term loans from banks and other sources are the easiest ways to raise a large amount of capital. Obtaining higher amounts of long term loans will be easier for JS and co, as the business is well established and is making profits. However, the interest payable might be high (as it is spread over a long period of time). Hence a high interest cover should be available for the company, in order to ensure interest payments in times of a financial crisis. Increasing the long term liabilities will increase the gearing ratio (Burke and Wilks, 2007). This coupled with sustaining a high interest cover

Leadership and Business Improvement Research Paper

Leadership and Business Improvement - Research Paper Example Leaders form an environment where people feel free to voice dissent. Leaders do this through actions. A leader does not fire people as they goofed, and in fact support dissent. Leaders have to reward people for differing, to reward modernism, and to ensure failure. Leaders link all these with forming a trusting atmosphere but most of the trust comes not from a fastidious technique, but from the character of the leader. To create trust, Leader needs to have following things.First, the leader has to have the capability. The employees have to trust his or her ability to do the job. Secondly, people are anxious with congruity that a leader is a person of reliability. If you are an effective leader, what you say is compatible with what you do, and that is similar to what you feel, and that sequentially is similar to your vision. Third, people desire a feeling that the leader is on their side that he or she will be stable. They want to distinguish that in the heat of battle; their leader w ill support them, protect them and endure with what they require to win. Lastly, leaders, they trust need to care about the lives of the people with whom they are working, need to understand with them. Leaders also show care concerning the illusions of his or her actions and the consequences of decisions. Capability, congruity, and loyalty, and being thoughtful is the quality a leader that must symbolize in order for trust to be formed in a group. It gets a long time to generate and maintain. It takes recurring interactions. Leaders are primarily the results leaning individuals in the world, and results get consideration. Their visions or objectives are persuasive and drag people toward them. Intensity coupled with obligation is alluring. These strong personalities do not have to force people to focus on; they are so intent on what they are doing that, like a child totally fascinated with creating a sand castle in a sandbox, they depict others in. All leaders can form a persuasive vision, one that takes people to a new place, and then interprets that vision into truth. Peter Drucker said that the first mission of a leader is to describe the vision. Max DePree , CEO of Herman Miller, wrote in Leadership Is an Art, "The first responsibility of a leader is to describe reality. The last is to say thank you. In between, the leader is a servant." (Warren G. Bennis, Joan Goldsmith, 1997) Primarily Vision grabs the leader, and the capability to communicate it eventually eases