Government Assistance to Businesses

This assignment delves into the various ways the UK government supports businesses. It highlights programs that offer workforce training and development, regulations protecting businesses from unethical practices, financial assistance such as loans and grants, and incentives for innovation through research and development schemes. The importance of government-backed free policies in fostering a competitive and thriving business environment is also emphasized.

FINANCIAL MANAGEMENT
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Table of Contents
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INTRODUCTION
Financial management is very important aspect for the organisation by which firm can
maintain the records of income and expenses incurred in the business activities and function. It is
process of analysing, interpreting, examining the financial information about business and use in
order to maintain the record of finance (Mitchell, Hammond and Utkus, 2017). It assists to
business in various activities like maintain daily operation of finance, allocation of resources,
organise activities, take any other decision related to investment in the future, maximisation of
profit, wealth maximisation of shareholders etc. Hence it can be said that financial management
is an aspect through which organisation can smoothly carried out its function by analysing
financial information. The following project report provides a deep knowledge and
understanding about the major objective of financial management and its implication in the
decision related to shareholder perspectives. In addition to this role of government in providing
assistance for business has been also discussed in this report.
MAIN BODY
1 Evaluation of the purpose of financial management and the implication of three decisions from
the shareholder perspectives
Financial management refers to the planning, organising, directing and controlling the all
activities of finance within the business. It assists to company in recording of all financial data
like income, expenses, revenue etc which incurred in the business activities and functions. The
major purpose of the financial management is as follows- Maximisation of ordinary shareholders wealth- It is the prime objective of financial
management through which provide adequate return to the shareholder. Maximising profit and revenue- The major objective of financial statement is to
maximise the profit when marginal cost being equal to the marginal revenue in the
business. Appropriate allocation of fund-Another major objective of financial management is to
ensure the regular and appropriate supply of funds in the business activities and direct
them in an effective manner. By proper allocation of fund daily operation of business can
conduct in a smooth manner.
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 Optimum fund utilisation- Another objective of financial management is to ensure
optimum funds utilisation and it should be utilised in minimum cost.
Implication of major decisions in the perspective of shareholder
 Dividend policy- This is major decision related to dividend policy under which
shareholder expectation considered by the business venture. The retired shareholders
expects regular and stable amount of dividend and young shareholders prefers capital
by reinvestment the income of the organisation., If company have poor and middle
class investors then they prefer regular and stable amount of dividend and wealthy
and rich class prefers capital gains (Haslem, Hutton and Smith, 2017). Thus it is
major decision for company that it they have large number of retired and middle class
shareholders the it have to give more dividends and it can keep aside less retained
earnings. On the other hand if company have large number of youth shareholders then
company can announce low rate of dividend and keep aside more retained earnings.
This is the major decision which can take by the corporation with context shareholder
under which company have to consider while they develop the dividend policy in the
organisation. According to the financial condition of the stakeholder, corporation take
to take the dividend policy for shareholder.
 Fund security related decision- The borrowed fund security prefers by those
shareholders who wants retain the complete control of business. On the other hand
owner funds security prefers by the shareholders if they do not mind to lose the
control over business (Tzabbar, Tzafrir and Baruch, 2017).This is another major
decision which can take by the organisation in the context of the shareholder under
which firm consider fund security. Under this decision, company have to understand
the concept of fund security and if shareholder desires to retain the complete control
of business then they prefer borrowed fund security and on the other hand if
shareholder do not mind the lose the control then company will adopt the owner fund
security for shareholder.
 Investment related decision- Company have take another major decision by
considering the preference and capability of shareholder that is investment related
decision. The fund of capital of investment in the business is collected from the
investor thus it is very important to check the financial capability of investor. In this
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context company have to take the decision related to investment decision under which
firm consider the financial capability of the investors.
2 Discussion about the government support for company and its relations with business planning
and decision making
Government plays a very crucial role in surviving the business enterprise on the
competitive market. By developing various rules, regulation, code of conduct, legislation,
government assists to business firm in large manner so as it can bale to keep secure and safe
from the unethical and illegal activities in the business market. Following are some major
assistance of government for the business- To help on training the workforce- In order to provide the training and development
program for the employees in the business, UK government has developed various
schemes and apprenticeship services which provides advice to employer that how to
organise the training programs for the employees. This assistance of the government can
help to business in taking effective decision and planning for business because by this
assistance entrepreneur can able to organise the training programs for its employees so as
they can learn new skill, knowledge and ability about the working in the corporation.
This will promote the company growth and success in the future. Government renders
fund for human resource development in both public and private sector so as corporation
can organise training events for personnel’s. Provide protection and security- UK government has developed various kinds of rules,
regulation, code of conduct, legislation for business operation which any business
enterprise have to follow. This regulation and code of conduct assists to business in
operate fair transaction in the market and also keep secure to business from illegal, unfair
and unethical practices and activities from the competitor (Gruis, and Nieboer, 2017).
It promote for fair competition in the market. For instance while any entrepreneur starts a
business in the market then they have to take the legal permission and regulate their
business by the government. This assists in protecting the business activities from the
illegal activities. Financial support- This is the major assistance of the government to business because
with help of government, business entrepreneur can gain the support through capital
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investment (Nogueira and Jorge, 2017). For instance, if any entrepreneur starts the
business then government can make large help to them by support of money. With help
of government, start up business can get the loan from the bank.
 Innovation- There is a wide grant of schemes of the government that encourage research
and development activities. In this manner grant schemes may be available for new
building or for refurbish active building which purpose is to enhance the energy use.
Government provides also help by capital allowances to enterprises through which it can
install energy saving equipment, innovation schemes, tools and techniques in the
organisation.
 Governmental free policy- UK government has developed the free policy related to
business under which they promote and help to business enterprise in develop uisnes
planning and smoothly carry out their business function and activities in the competitive
market. In addition to this governmental regulation assist to business enterprise in carry
out business function in an effective manner and they can safe their business from
unethical and illegal competition. This thing aids in the developing effective business
planing of business.
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REFERENCES
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