one of the best Finance decision Making updated 2023

Learning Goal: I’m working on a business discussion question and need guidance to help me learn.

Assignment Brief:

Prepare a report for the managing director evaluating the content and layout of the

annual reports and other financial/management documents produced by the company.

Critically evaluate the financial reporting framework based on which the company has

published its annual reports.

As a part of your report, comment on the present capital structure of the company and

availability of short and long sources of finance if the company decides to expand their

existing operations. You can refer to the financial information included in assessment

1 to build up your discussion. The report needs to include references to academic

sources, with an appropriate bibliography in Harvard Format.

The recommended structure/content is as follows:

Introduction

MBA7060 Finance and Decision Making

Assessment Number: Report (70%)

Assessment Title: Coursework

Assessment Length: Report 3,000 words

Submission Deadline:

The user group/s for whom these reports are intended. The purpose of annual

reports.

The contents of the report, and the type of information provided.
Whether

disclosure of the information is voluntary or statutory?

Applicable financial

reporting framework and requirements?

The capital structure of the company.
Factors to consider in deciding whether

to take long term or short-term financing?

Logical conclusion

Secondary Research Level HE7 – It is expected that the Reference List will contain

between fifteen to twenty sources. As a MINIMUM the Reference List should include

four refereed academic journals and five academic books

What Are The Important Basic Financial Decisions?

1. Building an Emergency Fund

If you have read any piece of personal finance content, then it’s been hammered home the importance of building an emergency fund.

The sooner you have one ready, the more you can focus your income on other wealth building investments.

Ideally, an emergency fund is to cover unexpected expenses or repairs. I also like to look at a lifeguard if something were to happen to your main source of income, like getting laid off. Then you know you can cover your monthly expenses for the time-being.

Most experts and financial writers recommend 3-6 months of expenses saved. But me being a bit extreme and always remember when I was jobless for eight months, I’ve saved close to a year worth.

2. Investing for Retirement

The sooner you start investing for retirement, the better your golden years will be. While you cannot predict how long you will live, you need to start financially preparing yourself.

Many people figure they can worry about retirement saving for later. But the reality is, later sneaks up fast and it is much harder to make up the time missed on compound interest.

While more money invested will be better for you later, not everyone can afford to sock away thousands of dollars. But just get started and consistently invest!

As you go along, you can start contributing more or slowly increase your contributions. But one of the best financial decisions you can start is saving for retirement.

3. Create A Debt Payoff Strategy

If you have high interest credit card debt or student loan debt, you want to immediately start figuring a payoff strategy.

The last thing you want to do is be stuck in a vicious cycle of debt because of interest rates, plus you just are throwing more money away.

For your debt, you can look at the debt snowball or debt avalanche methods. Both strategies have advantages and disadvantages, but can help you tackle your debt much faster.

4. Improving Your Credit History

Your credit score and history follow you throughout your life. Whether you like that or not, it’s an inevitable part of our lives.

And one of the best financial decisions you can make is actively monitoring it and improving your score if it is low.

I won’t get too deep into the weeds here, but your credit score affects if you’ll be approved for loans, the kind of rates you get, if you’ll be approved for credit cards, and more.

And lower scores can cost you thousands in extra interest!

But beyond maintaining a good credit score, you should be monitoring for fraud or identity theft.

I’ve personally dealt with this myself (thank you Equifax hack!), but I was prepared and stopped it. If I was not previously proactive, that could have wrecked my credit and caused some serious financial disaster.