Short term finance sources Essay Example | Topics and Well Written Essays - 1500 words

Short term finance sources - Essay Example It is evident from the study that in today’s modern era, every business maintains a bank account of its own where it deposits the money it receives from the sales generated by the business. As the businesses expand, the ratio of their cash sales ratio decreases to the credit sales ratio, because of which the businesses can face difficulties in paying their short term and immediate expenses such as paying salaries of their work and the heating bill. This is when the businesses ask ‘their’ bank for an overdraft so that they can pay for their expenses. Bank overdraft is a form of loan given by the bank to its customers and businesses, where the customers and businesses are charged interest on the money spent by them. Another option that a business can exercise to pay for its expenditures and administrative costs is by arranging a short term loan from the bank. Any loan taken from the bank that has to be repaid within a year can be defined as ‘short term loanâ⠂¬â„¢. Trade credit is the number of days in which a business has to pay for the good it has received from the supplier. The number of days in which the payment has to be made for the business entirely depends on the working relationship between the supplier and the buyer. If the buyer has been maintaining a good reputation and has always being paying on time, the supplier may also go a little easy on the buyer by giving him enough time to arrange for the funds. Sale of unused assets: Most businesses only exercise this source of finance when all their sources of finance are have been used up. In this source of finance, funds are generated by selling unused fixed assets of a business or assets that the business is not making full use of, which may include extra machinery, buildings and vehicles. By selling the unused fixed assets, the business is able to generate enough funds to meet its requirements. In 2010, Lokul Oil used four sources of finance to meet their requirements which we re, Trade Credit, Sale of investments, Sale of property and Sale of its subsidiary companies. To generate funds to meet its short term obligations, Lokul Oil had to sell its short term investments, which included bonds and other cash equivalents. In addition to that, Lokul Oil also sold some of its subsidiary companies to generate enough cash for the company so that they don’t have to arrange for a bank overdraft or short term loans to pay for the expenses. The company also sold some of its property that it had bought long time back for expanding purposes, in order to generate cash to meet the short term obligations of the company. On the other hand, the primary sources of finance that were used by Premier oil to finance its expenses were Trade Credit, Sale of unused assets and Sale of investments. Premier oil asked their suppliers to extend the payment time given to them so that they meet their other short term expenses first, and then, when they have enough funds, the suppl iers will be paid. This helped in solving the problem of meeting short term obligations for Premier oil. Another source through which Premier Oil arranged for funds to meet its short term obligations was sale of its unused fixed assets, the assets that the company had in surplus. This included sale of property, offices, buildings, sites which were not profitable or were not generating enough revenue to meet the company’s demand. This source of finance helped in putting the idle money into use. Like Lukul Oil, Premier Oil also used sale of

The Centralized Manager Research Paper Example | Topics and Well Written Essays - 1750 words

The Centralized Manager - Research Paper Example Management is an important aspect of Public Administration and it is important that whoever holds such an important position should abide by the principles of workmanship. Good public administration practices ensure that performance of employees as well as effective management practices. Managers should differentiate between management and leadership because they are supposed to be applied at different times and when situations call for either. In the case study, Suha’s situation in the Information Technology department during her placement at ADNOC will be analyzed. The manager of the IT Division Dr. Ahmed rendered his junior colleagues useless as he built a tough relationship with other employees considering that he was applying unprofessional practices toward them. His behavior was toxic, and as such, he led to certain trustable and dedicated employees leave ADNOC. The situation that escalated because of Ahmed led to the loss of important members who had great vision for th e company. This means that poor management do have considerable effects on the performance of staff as well as their relationship with work. In this case study, the paper will analyze the reasons behind Suha, Abdulrahman, and Dania leaving the organization though they were still young and energetic. What was the problem? Was it them or management? That is something the paper will help use find out. The Organization Abu Dhabi National Oil Company (ADNOC) is one that was established in the United Arab Emirates as the maiden government-owned company. It is specialized in distribution and marketing of petroleum products with the UAE. As among the largest companies in the Gulf region dealing in petroleum, it operates within a large network of service area and convenient stores. The company’s service stations have the most advanced technology such as vacuuming and automated car wash, repair of tyre and lube services. The company also has auto car services which are found in Al Ain, Northern Emirates, Abu Dhabi, and Western Region. The company has different departments and divisions with each having clear roles and responsibilities. With respect to the case study, the main focus will be on the IT department headed by Dr. Ahmed. The IT Division at ADNOC has a distinct structure consisting of four different departments. IT Division Manager Office Administrator Application System Department Data Center and Network Technical Support IT Quality and Control The Organizational Structure and Staff The first important person in the organization is Dr. Ahmed, an Algerian who is 45 years old and has been a manager in the IT department in ADNOC Distribution for about 17 years. Having done his BSc in Engineering from Salford in Manchester, an MSc in Computer Based Design, and PhD in Computer Control and Simulation from University of Leeds, Ahmed had a wealth of experience from reputable institutions and a real professional in that regard. The experience means that he has e verything needed to move the company forward when surrounded by young, energetic, and ambitious IT specialists. Ahmed had a large window that faces the corridor, he never closed that curtains Ahmed sat in a position where he could observe every movement made by every employee and ordered them to come to his office. This does not give freedom at work whatsoever; he was manhandling his juniors from time to time. He was that kind of a nosey manager who would want to know every move and make assumptions on every movement. In a working environment as busy as ADNOC Distribution, employees need not waste any time with certain questions even personal ones. Time is money and management is about saving the available time in pushing toward the goals of an organization. Being a chief gossiper in the office, he