Financial and Economic Interpretation: Coursework Report

This report offers a comprehensive analysis of financial and economic interpretation, addressing critical questions on financial intelligence, corporate failure, sustainability reporting, business ethics, economic growth, free trade agreements, and macroeconomic policy. The report explores the importance of financial intelligence compared to other forms of intelligence, strategies to avoid corporate failures, biases in financial performance measures, and the necessity of sustainability reporting. It also examines the relativity of business ethics across different organizations and countries, the sustainability of perpetual economic growth, the benefits and drawbacks of free trade agreements, and the potential for businesses to succeed regardless of macroeconomic policies. The analysis incorporates relevant references to support the arguments and provide a well-rounded understanding of each topic.

RUNNING HEAD: FINANCIAL & ECONOMIC INTERPRETATION
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FINANACIAL & ECONOMIC INTERPRETATION AND COMMUNICATION

FINANCIAL & ECONOMIC INTERPRETATION 1
Answer-1
Financial intelligence is considered gathering of information about the financial affairs of entities
of interest, to understand their character, abilities and predict their intentions. Therefore, the term
financial intelligence is applicable in the perspective of law enforcement and other associated
activities. The financial intelligence is considered more important than traditional intelligence or
emotional intelligence because it helps in making the decisions regarding finances (Berman et
al., 2015). It also provides accurate understanding about the financial position as well as every
transaction in which the individual is involved. Financial intelligence also investigates the
investment as well as opportunities in proper manner. It also helps in enhancing the confidence
of individual, better management of the expenditure by solving the financial problem at greater
extent (Fcca, 2019).
Answer-2
The organization failure can be avoided by making the efficient strategic plan to reach to the
vision. It is because the organization makes vision and to achieve that vision, some organizations
make ineffective strategic plan. This effective strategic plan helps the organization to accomplish
objective efficiently and maintains discipline in the organization. To avoid organization failure,
the company can hire competent and talented employee in the organization, which helps in
developing effective decision (Asrar et al., 2018). The company can also sustain in competitive
environment by trusting their team members as well as also by following the policies of open
communication and decentralization. This will help in increasing the motivation level among the
employees, which results in efficient work according to the standards (De Waal, 2018).
However, leaders can also maintain efficiency from the team members by adopting the effective
leadership style such as situational leadership style, transformational leadership style, so that
goal will be achieved.
Answer-3
There is bias for measuring the financial performance of the organization because it is the
subjective in nature it does not provide the complete information about the usage of assets in the
organization. However, it is the general measurement not the accurate measurement about the
financial health of the organization (Fcca, 2019). Financial performance measure also leads in

FINANCIAL & ECONOMIC INTERPRETATION 2
decreasing the creativity because in this employees focuses on earning rewards by adopting same
procedures and structures, which results in reduction in the innovation. Sometimes, it may also
lead unethical behavior because employees have to meet his monthly target; through this
employees become inefficient and work in unethical manner (Kilduff et al., 2016).
Answer-4
The sustainability reporting is mandatory for the organization because it helps in managing the
risk in effective manner by realizing the business resilience as well as by providing the
opportunity to improve transparency as well as partnership (De Waal, 2018). It also helps in
improving the operational efficiency of the organization by generating values and by enhancing
returns on the capital. The sustainability reporting discloses the regulations of companies and
provides complete information about the organization such as contribution towards the society,
initiatives take to protect environment which results in increasing the value among the society
and employees (Grey & Tarascon, 2017). It also helps in increasing innovation in the
organization because of loyalty with the communities, investors, distributors, customers and
employees.
Answer-5
Business ethics is relative because there is no one moral standard which applies in all the
organization. Ethics is considered the beliefs, standards as well as ideas which are diverse for the
different regions. This relative business ethics describes that there is no stability for the moral
principles, values in the organization worldwide because every organization is different has
different business ethics which is followed by all the employees while conducting their duties
(Kilduff et al., 2016). Therefore, there can be ethical behavior in one company which is
considered unethical for the other companies or the country. For example in Australia it is
considered ethical when employees work 38 hours from Monday to Friday whereas it is
considered unethical in China to work 38 hours weekly, because the Chinese companies follow
the rule of China’s labor law, which demonstrate that employees should work up to 44 hours
from Monday to Saturday because it leads in increasing their productivity as well as they remain
more focused in the organization (Smith & Chan, 2015).

FINANCIAL & ECONOMIC INTERPRETATION 3
Answer-6
No, perceptual economic growth is not sustainable because it leads in growth rate by creating
various others major economic issues which is mainly for the future generations. It is done by
adopting inefficient policies as well as by being annoyed. (Grey & Tarascon, 2017) There are
alternatives to make it sustainable by changing the attitude of regular growth and development. It
can be done by reducing the high spending as well as manufacturing. It can also be sustained
when the individual should focus and concentrate on making the future investment which will be
in any form such as enhancement in the technology, productivity rather than concentrating more
on the resent needs and requirements (Larcher & Tarascon, 2015).
Answer-7
Free trade agreement is considered the multinational agreement according to the international
law which focusing on forming the free-trade division with the cooperating states. Free-trade
agreement has more benefits because it helps in increasing the economic growth and leads in
more dynamic climate of business by motivating in becoming real international competitors.
Free-trade agreements helps in reducing the government expenditure by eliminating the
subsidies, funds can be used in optimized manner (Asrar et al., 2018). It also helps in increasing
the opportunities for the business by multinationals firm does the partnership with the local firms
to increase the funds and resources by providing the training for the best as well as efficient
practices (Dhar, 2015).
Answer-8
The business can be successful irrespective of the macroeconomic policy by focusing on the
behavior or actions of the individuals and through optimize the scare resources in the decision
making (Larcher & Tarascon, 2015). The company can also decide the hours of the labors to
demand the particular salary, organization can also set the productivity of the business at the high
stage of economic effectiveness, where the manufacturing for the product as well as services will
not be better off without dropping the manufacturing of other goods and services. The company
can offer their products according the requirements of the consumer at appropriate price (Smith
& Chan, 2015).

FINANCIAL & ECONOMIC INTERPRETATION 4
References
Asrar, Z., Azhar, T. & Hussain, M., 2018. Effect of Talent Management On The Success Of
Organization Development. Archives of Business Research , 6(3), pp.17-30.
Berman, K., Knight, J., Moss, D.A. & Hope, J., 2015. Financial Planning, Budgeting, and
Forecasting: Financial Intelligence Collection (7 Books). Brighton: Harvard Business Review.
De Waal, A., 2018. Success factors of high performance organization transformations.
Measuring Business Excellence , 22(4), pp.375-90.
Dhar, R.L., 2015. "Service quality and the training of employees: The mediating role of
organizational commitment. Tourism Management , 46(5), pp.419-30.
Fcca, K.T., 2019. Financial Intelligence: The Dna of Business and Investments. Singapore:
Partridge Publishing.
Grey, C.P. & Tarascon, J.M., 2017. Sustainability and in situ monitoring in battery development.
Nature materials , 16(1), pp.45-60.
Kilduff, G.J., Galinsky, A.D., Gallo, E. & Reade, J.J., 2016. Whatever it takes to win: Rivalry
increases unethical behavior. Academy of Management Journal , 59(5), pp.1508-34.
Larcher, D. & Tarascon, J.-M., 2015. Towards greener and more sustainable batteries for
electrical energy storage. Nature chemistry, 7(1), pp.19-30.
Smith, C. & Chan, J., 2015. Working for two bosses: Student interns as constrained labour in
China. human relations, 68(2), pp.305-26.