Shengbo ZHANG
Business 1050 Paper #2
May 24th.
Draft 3
The Money Functions
We are living in a mixed economy society. Any companies want to have success in this market, not only need a good design of product,
but also need a good performance in the marketing, accounting, and finance activities. As we have learned from the class, marketing,
accounting, and finance are all money functions that have major impacts to our business development. However, which money function
has the most important influence to our company's financial success? My answers is finance. Finance is the core to both economy world
development and a company's success.
Finance is become the core to the world economy, as same as the importance of the Wall Street to our economic society. We have learned
from the class handout "Foundations of Finance Thought" address that money eventually became a resource to our business and manage
the cash flows within the company became one of the most important issue to the managers(Class handout, May 22nd)
As I understand of the finance, it just like the blood of a human. Cash flows is like the blood of a company. There is no company could live
without the money supply. At the same time, the blood could help a injured people return to life. As same as the effect of the financing or
stock trading to a company in the recent economy society.
Financing market could help company earn more profit than just selling products. As we all know that most companies in the market now aim
to have rights to trade their stocks in public, which could help them collected more money as a supply to their recent development. Financing
will help the company have chance to trade their future expectance from the public. It just like a legal provocative to a runner in the competition,
which could help the company run faster in the market competition.
Finance is the money available to spend on business needs. Business needs cash to daily production and finance expansions. As the
article "Why Businesses Need Finance" states that, 7 reasons for a business where needs finance are: 1. Start a business; 2. Finance
expansions to productions capacity; 3. To develop and market new products; 4. To enter new markets; 5. Take-over or acquisition;
6. Moving to new premises; 7. To pay for the day to day running of business.(Tutor2u.net) We could easily recognise that almost every important steps in the business needs finance to support the development.
Finance is important not only for public trading companies, but also for small businesses. The Forbes newspaper has states that "Nine out of
ten businesses in the United States are defined as small businesses, which represent 50 percent of non-farm GDP and 79 percent of net new
job growth." The article discussed how important does finance has to impact a small business. The author describes that in the current
economic society, small businesses need more access to capital and greater certainty from government interference with their cash
flow (PPAHCA and Federal Income Tax Rates). (Forbes.com)
Last but not least, as we all know from the 2008 financial crisis, most companies who failed to defend the financial crisis are working very
well before the 2008. These companies have good products, good marketing strategies, good accounting notes, they failed only because
they can not handle the financial changes. Money supply and the financing market have too much impacts to these companies. After this
crises, we all should have a more distinct understand to the important of finance control to a business.
In conclusion, same as the design of the product for company, marketing, accounting, and finance are all very important for a company.
They are all the money functions which have major impacts to a company's development. I believe that all these money functions is like
a part which compose our company. However, in my opinion, finance is the only part that we can not give up. Marketing is like the skin or
face to human, we could use a better looking face to attract more attentions. Accounting is like the body to human, it helps us to run faster
and keeps our balance do not fall down. Last but not least, finance which I believe is the most important part for a company. It seems like
the blood of a human. If we loose our beautiful face, we may live but lost some attractions. If we loose a part of the body, we are injured but
may still alive and create something. However, no one could live without the blood supply. Its same for a company. Even if the company runs
very well in all aspects, if we stop the money supply to the company, the company will suddenly died.
Bibliography:
1. Business 1050 Class video.(n.d.) "The history of the finance". May 22nd, 2012
2. Business 1050 Class handout.(n.d.) Foundations of Finance Thought "Putting It All Together, Bit by Bit". May 22nd, 2012.
3. Thomas Aquinas. (1274) Of the Sin of Usury form The Summa Theologica. In C.M. Boardman & A.N. Sandomir (Eds.).
Foundations of Business Thought (2007, pp. 369-378). Boston: Pearson Custom Publishing.
4. J.l. Nichols. (1893) Vignette: How Money Grows at Interest from Safe Methods in Business. In C.M. Boardman & A.N. Sandomir (Eds.).
Foundations of Business Thought (2007, pp. 391-392). Boston: Pearson Custom Publishing.
5. Jogn Stuart Mill. (1873) Of Profits from The Principle of Political Economy. In C.M. Boardman & A.N. Sandomir (Eds.).
Foundations of Business Thought (2007, pp. 380-390). Boston: Pearson Custom Publishing.
6. Forbes.net.(March 08, 2012) "What Small Businesses Need Right Now" website: http://www.forbes.com/sites/thesba/2012/03/08/what-small-businesses-need-right-now/ 2012 Forbes.com LLC™
7. Tutor2u.net. (May 20, 2012) GCSE Revision Notes "Finance-Why Businesses Need Finance" Website: http://tutor2u.net/business/gcse/finance_why_needed.htm
Business 1050 Paper #2
May 24th.
Draft 3
The Money Functions
We are living in a mixed economy society. Any companies want to have success in this market, not only need a good design of product,
but also need a good performance in the marketing, accounting, and finance activities. As we have learned from the class, marketing,
accounting, and finance are all money functions that have major impacts to our business development. However, which money function
has the most important influence to our company's financial success? My answers is finance. Finance is the core to both economy world
development and a company's success.
Finance is become the core to the world economy, as same as the importance of the Wall Street to our economic society. We have learned
from the class handout "Foundations of Finance Thought" address that money eventually became a resource to our business and manage
the cash flows within the company became one of the most important issue to the managers(Class handout, May 22nd)
As I understand of the finance, it just like the blood of a human. Cash flows is like the blood of a company. There is no company could live
without the money supply. At the same time, the blood could help a injured people return to life. As same as the effect of the financing or
stock trading to a company in the recent economy society.
Financing market could help company earn more profit than just selling products. As we all know that most companies in the market now aim
to have rights to trade their stocks in public, which could help them collected more money as a supply to their recent development. Financing
will help the company have chance to trade their future expectance from the public. It just like a legal provocative to a runner in the competition,
which could help the company run faster in the market competition.
Finance is the money available to spend on business needs. Business needs cash to daily production and finance expansions. As the
article "Why Businesses Need Finance" states that, 7 reasons for a business where needs finance are: 1. Start a business; 2. Finance
expansions to productions capacity; 3. To develop and market new products; 4. To enter new markets; 5. Take-over or acquisition;
6. Moving to new premises; 7. To pay for the day to day running of business.(Tutor2u.net) We could easily recognise that almost every important steps in the business needs finance to support the development.
Finance is important not only for public trading companies, but also for small businesses. The Forbes newspaper has states that "Nine out of
ten businesses in the United States are defined as small businesses, which represent 50 percent of non-farm GDP and 79 percent of net new
job growth." The article discussed how important does finance has to impact a small business. The author describes that in the current
economic society, small businesses need more access to capital and greater certainty from government interference with their cash
flow (PPAHCA and Federal Income Tax Rates). (Forbes.com)
Last but not least, as we all know from the 2008 financial crisis, most companies who failed to defend the financial crisis are working very
well before the 2008. These companies have good products, good marketing strategies, good accounting notes, they failed only because
they can not handle the financial changes. Money supply and the financing market have too much impacts to these companies. After this
crises, we all should have a more distinct understand to the important of finance control to a business.
In conclusion, same as the design of the product for company, marketing, accounting, and finance are all very important for a company.
They are all the money functions which have major impacts to a company's development. I believe that all these money functions is like
a part which compose our company. However, in my opinion, finance is the only part that we can not give up. Marketing is like the skin or
face to human, we could use a better looking face to attract more attentions. Accounting is like the body to human, it helps us to run faster
and keeps our balance do not fall down. Last but not least, finance which I believe is the most important part for a company. It seems like
the blood of a human. If we loose our beautiful face, we may live but lost some attractions. If we loose a part of the body, we are injured but
may still alive and create something. However, no one could live without the blood supply. Its same for a company. Even if the company runs
very well in all aspects, if we stop the money supply to the company, the company will suddenly died.
Bibliography:
1. Business 1050 Class video.(n.d.) "The history of the finance". May 22nd, 2012
2. Business 1050 Class handout.(n.d.) Foundations of Finance Thought "Putting It All Together, Bit by Bit". May 22nd, 2012.
3. Thomas Aquinas. (1274) Of the Sin of Usury form The Summa Theologica. In C.M. Boardman & A.N. Sandomir (Eds.).
Foundations of Business Thought (2007, pp. 369-378). Boston: Pearson Custom Publishing.
4. J.l. Nichols. (1893) Vignette: How Money Grows at Interest from Safe Methods in Business. In C.M. Boardman & A.N. Sandomir (Eds.).
Foundations of Business Thought (2007, pp. 391-392). Boston: Pearson Custom Publishing.
5. Jogn Stuart Mill. (1873) Of Profits from The Principle of Political Economy. In C.M. Boardman & A.N. Sandomir (Eds.).
Foundations of Business Thought (2007, pp. 380-390). Boston: Pearson Custom Publishing.
6. Forbes.net.(March 08, 2012) "What Small Businesses Need Right Now" website: http://www.forbes.com/sites/thesba/2012/03/08/what-small-businesses-need-right-now/ 2012 Forbes.com LLC™
7. Tutor2u.net. (May 20, 2012) GCSE Revision Notes "Finance-Why Businesses Need Finance" Website: http://tutor2u.net/business/gcse/finance_why_needed.htm