What is the financial management goal of the bakery:
While focusing on the role of the Baker (Financial Manager), we can understand that their focus is to create great pies, at an affordable price that can be enjoyed by many. The owner of the company would expect the baker to decide on the right pie for the market. The right choice will lead to more pie sales, the wrong choice would mean a decrease in sales.
We can sum this up as the goal of financial management is to maximize the current/market value per share of the existing shares or owner’s equity
This can be easily understood by the fact that the shareholders/owners are (residual owners) only entitled to what is left after all those who have a legitimate claim ( lenders, suppliers, employees, …show more content…
For any businesses today, good corporate governance and social responsibility is almost embedded within the cultures they operate. In some ways this was enabled by the King committee that was formed in 1992, which led to the following outputs:
King1(1994) – Sums that companies ae not disengaged from society and for this reason consider the interests of various stakeholders as they relate to the fundamental principles of good financial, social, ethical and environmental practice
King2 (2002)– Focused on corporate citizenship related to companies actions towards profit, people and the planet
King3 (2009)– The report focuses on creating and sustaining an ethical corporate culture and therefore recommends the integration of sustainability reporting. There is no obligation to do so, however JSE listed companies have to produce such reporting.
Therefore to be regarded as a responsible business, it is important to regard the wide range of stakeholders who will have an interest in the business and its
While focusing on the role of the Baker (Financial Manager), we can understand that their focus is to create great pies, at an affordable price that can be enjoyed by many. The owner of the company would expect the baker to decide on the right pie for the market. The right choice will lead to more pie sales, the wrong choice would mean a decrease in sales.
We can sum this up as the goal of financial management is to maximize the current/market value per share of the existing shares or owner’s equity
This can be easily understood by the fact that the shareholders/owners are (residual owners) only entitled to what is left after all those who have a legitimate claim ( lenders, suppliers, employees, …show more content…
For any businesses today, good corporate governance and social responsibility is almost embedded within the cultures they operate. In some ways this was enabled by the King committee that was formed in 1992, which led to the following outputs:
King1(1994) – Sums that companies ae not disengaged from society and for this reason consider the interests of various stakeholders as they relate to the fundamental principles of good financial, social, ethical and environmental practice
King2 (2002)– Focused on corporate citizenship related to companies actions towards profit, people and the planet
King3 (2009)– The report focuses on creating and sustaining an ethical corporate culture and therefore recommends the integration of sustainability reporting. There is no obligation to do so, however JSE listed companies have to produce such reporting.
Therefore to be regarded as a responsible business, it is important to regard the wide range of stakeholders who will have an interest in the business and its