Managing and Business Finance

MANAGING AND BUSINESS FINANCE
Mohit Negi
102802

MANAGING AND BUSINESS FINANCES1
Table of Contents
Part A – Business Background..........................................................................2
Part B – Stakeholders, principles and agents of the business..........................2
Part C – Capital budgeting and project feasibility.............................................3
Part D – Key performance indicators through ratios.........................................3
Part E – Financial risk analysis..........................................................................7
Part F – Impact of working in global context....................................................8
Part G – Engagements with the stakeholders in achieving financial goals.......8
Part H – Analysis and managing compliance with external and internal
requirements for business entity....................................................................11
Part I – Analysis of financial information.........................................................13
Part J – usage of ethical and socially appropriate behaviour..........................14
Reference.......................................................................................................15

MANAGING AND BUSINESS FINANCES2
Part A – Business Background
SkyCity Entertainment Group is one of the most iconic brands of New
Zealand that offers casino and gaming services. It further offers different
casinos associated with different hotels, bars, convention centers and
restaurant. The entity offers its services all over Australia and New Zealand.
It is listed under both Australian as well as New Zealand stock exchange and
is the largest leisure, entertainment and tourism organization with the iconic
status. Refreshed medium term strategy of the entity is clearly focused on
creation of enhanced sustainability and social status as well as sustainable
shareholders returns that is crucial for its long run success and viability
(Sbc.org.nz, 2019).
Part B – Stakeholders, principles and agents of the business
Stakeholders of the business include its creditors, employees, directors,
suppliers, shareholders, unions and the community under which it operates
its business. Generally the shareholders of the business are considered as
the principle and the board of directors are considered as the agents of the
business. The reason behind the same is that the boards of directors are
responsible for carrying out their activities in context of the benefits of the
shareholders and their main objective is to maximise shareholder’s wealth
(Bosse & Phillips, 2016).
Under agency theory for relationship of principal-agent, agent acts on
behalf of principal and there shall not be interest conflict while carrying out
the same. Relationship among agent and principal is known as agency and
such relationship is established through guidelines provided by law of
agency.

MANAGING AND BUSINESS FINANCES3
Part C – Capital budgeting and project feasibility
Net present value (NPV) – it is the difference between present value of the
cash inflow and cash outflow over the entire useful life of the project.
Generally, the project is accepted if NPV is positive as it signifies that the
company will be able to generate earnings from the project and not accepted
if the NPV is negative. Looking into the above table it can be determined that
the NPV of the project is positive that is $ 20,879.56 though and hence, the
project is acceptable (Bora, 2015).
Internal rate of return (IRR) –it is the rate of interest at which the present
value of entire cash flows including negative and positive is zero. Project is
accepted if the IRR is more than cost of capital. Looking into the above table
it can be determined that the IRR of the project is 14% that is more than cost
of capital that is 10% and hence, the project is acceptable (Arjunan, 2017).
Part D – Key performance indicators through ratios
Ratio analysis