Financial Decision Making

FINANCIAL DECISION MAKING

Executive summary
It will oversee the development of the firm's extremely promising future strategy. It is also criti-
cal that businesses ensure this mechanism is continuously applied in order to meet long-term
competitive goals, such as higher profits. The focus of this article is on the analysis by Skanska
Plc, a building company based mainly in the UK

Contents
Executive summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Critical Evaluation of the importance of accounting and finance functions, duties and roles
within the entity...........................................................................................................................4
TASK 2............................................................................................................................................7
Calculation of different ratios of Skanska Plc.............................................................................7
Comment on the results of a business with a shareholder of 1 million.......................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Financial decision-making can indeed be defined as a mechanism that formulates different
potential judgments and makes it very important for all individual investors to make suitable
chooses (Gamble, Yu, and Bennett, 2015). When planning to increase their performance, it is
very important to ensure that businesses review every aspect of their financial activities. The
business was founded in 1984 and has since been running continuously. This position covers
many business-based topics. The company's responsibility, obligations and functions are
significant. In addition, the ratios are assessed in order to calculate the profit of the company, and
this report also discusses outcomes for investor advice.
TASK 1
Critical Evaluation of the importance of accounting and finance functions, duties and roles
within the entity
The management of a company plays a major role, helping you to track profit and loss, ensure
enforcement of legislation and providing consumers with quantitative financing reports,
management and strategy that could be used in crucial business choices. Accountancy plays a
key role in the success of every business. Companies are operating on revenue, and if they do not
manage it they are not controlling the market. It regulates cash flow and thus directs the direction
of an organisation by proper business sales and expenses preparation (Petersen, Kushwaha and
Kumar, 2015). The belief that accounting and finance are similar is a popular meaningless term.
Yet accounting and finance are essentially two different business processes. There are two
distinct industry elements that implementation of integrated to keep the enterprise running. In
symbiotic partnership, they are indeed related, if not the same. Accounting is a way of
documenting, categorising and summing up significantly and as regards money, payments and
incidents at least partly monetary in nature and of reporting the data thereof as described by the
American Institute of Certified Public Accounting (AICPA). The fundamental principle of
accounting is that it is capital that reflects on the state of the corporation in the financial term.
The accounting process starts to classify the activities and expenditures that impact the financial
status of the enterprise.