Principles of Business Assignment Example | Topics and Well Written Essays - 500 words

Principles of Business - Assignment Example The result might have been conflicts of interest that had negative effects on the financial health of the company. According to the company’s federal tax returns, financial dealings with companies that were owned by board members cost UPMC $10 million. $5 million worth of transactions between businesses connected to the board members were reported in the tax records (Roche Jr., 2010). In reviewing the financial activity, the concept of corporate governance becomes relevant. It is defined as the standards which are deemed as appropriate in the running of the company. Because the management of UPMC engaged in cozy business deals with insiders, costing the company $10 million, it clearly was not recommended by the corporate governance system. The concept of fair market value is also relevant. Because the transactions were affected by the board members’ relationships as reported by the press, the financial activity might not have been conducted at fair market value. A finan cial transaction is conducted at fair market value when the transaction happens at the rate that is set by the market mechanism. Because UPMC awarded contracts to the board members’ companies at favored rates, it cost the company $10 million, resulting in $489 million losses in 2009.

Manage Accountability --budget Assignment Example | Topics and Well Written Essays - 1250 words

Manage Accountability --budget - Assignment Example A budget is a forecast or an estimation of the expected income or revenue and a projection of the intended expenses and how these expenses will be funded. Budgeting is a process that not only lies with the financial department but with the whole management since it requires making decisions regarding the projects to be funded, the expenses to be cut down to reduce the cost and other decisions regarding capital investments, marketing and so forth. This purpose of this paper is to categorically prove why the decision to revert the budget from improvement of a local county highway to expand an interstate freeway, was a viable decision in line with management accountability and cost benefit application. The best procedure I will implement in an effort to analyze the utilization of those funds is the zero-based budgeting procedure. This system of budgeting requires that all departments in a firm to justify all allocations and expenses for each new period and not relying on past expenditure trend (Bhattacharrya, 2011). This system assumes that there is neither carrying forward of balances nor existence of current obligations. The requirement is that all activities in the period will be implemented on the basis of cost-benefit analysis, which advocates for a systematic resource allocation criteria. It is with no doubts that this system will suit this project. This is because this process comes as an alternate to the others and is fully funded. This means there would be no need at all to revisit the past expenditure plan. The system helps to identify areas that result to wasting resources and elimination. This is the common goal of every organization as a means of benefiting from cutting costs of unessential areas (Bhattacharrya, 2011). In a survey carried in 2009 of government Budget Transparency, found out that the misuse