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Managing Financial Resource Assignment

   

Added on  2020-06-04

15 Pages4551 Words38 Views
Managing FinancialResources

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INTRODUCTIONFor managing a successful business, there is a strong need to adopt a business operationin an effective manner. now, this can simply be said that the manager of the Milner Chemical Plcis planning to expand their operations and for that, there is a strong need to have finance. Thecited organisation is planning to list their shares in the London stock exchange and for that thereis a need so that the business operations in an effective manner (Ahnquist, Wamala andLindstrom, 2012). cost of capital are used by the organisation so that the business can make anefficient strategy about the financial planning. Now, this is observed that management of thecited organisation is required to adopt their business objectives in an effective manner. Variousfinancial tools would help to make an efficient strategy. Various financial tools are used by theorganisation in order to render an efficient strategy in an effective manner.TASK 1 1. Advantages and disadvantages of attaining a listing in a stock exchange:There are so many benefits and drawbacks which occurred at the time of listing in thestock exchange. Now, it can be rightly said that the management of the cited organisation musthave to adopt regulatory norms while exercising listings of the securities. Some of the them arementioned hereunder:Advantages:For listing shares of the Milner chemical plc in London stock exchange. There is a strongneed to adopt listing norms for making the business organisation in an effective manner. Byexercising listing of the securities, cited organisation is needed to adopt their business objectivesin an effective manner. here are some of the advantages mentioned hereunder:Form a market valuation for the organisation and assist opportunities to enhance capitalfor expansion and possibilities of realising few of the investment.Provided access to the acquisition currency and transparency throughout value of theorganisation. Listed organisation mostly implements their shares, as opposed to cash, toform acquisitions. This could be mostly implemented at the time of using a buy and buildstrategy at the time of cash which could be highly used in the other areas. If there is anobjective valuation for shares, target organisation is going to assess what they are gettingif offer them share in the business. 2

Enhances employee commitment by offering them with something of the clear value.When share prices do go up and down and few vendors would not consider payment inthe shares, however, they might often make part of the buying consideration (Almalki,FitzGerald and Clark, 2011).This could be differences for employees along with options to assess value which havebeen rendered. While on the other way, employees of the listed organisations whichprovided shares or options could be overviewed accurately.Form a public profile and enhanced ability to fascinate more calibre board members. Inorder to come to that level of calibre, organisation is required to adopt this in an effectivemanner. In order to get more people of that calibre into the organisation, being listedgenuinely helps, as they are required to form listed status which render a mostly liquidincentive plan.Enhance supplier, Investor and consumer confidence and enhance standing in themarketplace. This could assist the organisation to make the business globally. Listedorganisations must have to go via due diligence process before they could list in theLondon Stock Exchange market. Checks and balances are formed out which could lead toenhanced confidence, emerging in the more supplier credit terms, better connection alongwith consumers and more valuations from investors (Boulware and et. al., 2016).Cons:Reliability and Scrutiny: Public organisation are just like the public property. Because,they are forecasted to comply along with the rules of markets they populate.Organisations on London Stock Exchange are required to implement advisor whichwould comply all the compliance officer in an effective manner.Cost: Amount of the cited management time and important costs are linked with thefloatation and continued listing must be under estimated. From process of floatationitself, that could form diverse months, to the time-consuming administration of regularand regularly statements. There are so many activities to handle. 2. Methods of obtaining listing in London Stock Exchange:In case of any new venture which is establishing for the very first time in the market isneeded to be listed into specific stock exchanges. There are various processes a company neededto be taken into consideration during the time of listing business on London stock Exchange in3

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