The Benefit of Money in the Company and the Economy

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Money was created to promote exchange and trade in the economy. According to the traditional economy money is defined as a generally acceptable means of exchange. Money is available in several forms, some are coins, plates or paper. But contained extraordinary value and meaning. In addition to the many benefits of money also have a negative side, everyone is competing to find and collect as much money without seeing what it is kosher or unlawful way.

Another role of money is to store value, we can save money by saving money, and can be used when we need it in the future. Money is a storage place that is very easy because whenever needed we can take. If you want to know from other usability of money you can visit http://promoneyinfo.com/interesting/how-to-make-money-in-a-small-town.html.

The role of money in the economy can be likened to the blood flowing in the human body. If the lack of blood, humans seem to die. Similarly, when we are short of money, like a lack of blood, will result in decreased human passion and weakened. For that people are competing to earn money from morning to morning so they can meet the needs of his life. However, not a few people who justify any means for the accumulation of coffers of dollars.

Money as a unit of calculation is the money one can calculate the usefulness, quality and benefits of a goods and services, because the more expensive goods and services the quality and quality of goods and services that the better.

Finance is a form of asset that has a high value and lequidation rate. The finance company itself is very influential for the owner. Companies around the world are very cautious in managing finances within the company itself.

The company’s financial goals

The purpose of corporate finance is not only for shareholders or owners, but also to be beneficial to others. These objectives include:

For shareholders or owners, to improve the welfare of shareholders by maximizing the value of the company’s shares. So as to improve the survival of the company itself.

For companies through financial managers are required to:

Able to guarantee a regular and sufficient supply of funds

Able to utilize limited resources and operate at optimum level of productivity.

Ensuring optimal fund utilization

Ensuring sufficient return to shareholders

Ensuring investment security

Providing the best benefits to society in the company environment.

Corporate finance function

The main function of corporate finance as corporate funding. This means to organize the search for sources of funds needed for the company and then manage the proper use of the funds obtained.

There are several things to consider in the funding base of the company:

  1. Determine the strategy the company will use to make long-term investments.
  2. Determine how funds can be raised according to investment needs.
  3. Determine how much of the short-term cash flows are used to pay the bills.

The financial function within the company / organization becomes the responsibility of the financial manager directly, which includes the function:

1 Treasure

This means being responsible for the acquisition of funds and security, maintaining the relationships of commercial and investment companies, creating reports on daily cash flows and working capital positions.

2 Controller (bookkeeping / accounting administration)

This means recording and reporting on company financial information, depreciation of financial statements, taxes and others.

3 The role of finance in the company

Finance in the company acts as a capital structure (comparative debt and own capital). This means that corporate finance is useful for a company in the field of capital market trading.

The size of a company’s capital structure depends on how well the company has made a decision that will affect the investment that will be generated and can determine the value of its assets.

The financial manager in this case has the duty or the role of choosing / determining the appropriate amount of assets from investing in various assets, and choosing sources of funds to finance the asset.