Sources Of Business Information Essay Sample
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Sources Of Business Information Essay Sample
A market is social body made by economists or willing economists to enable exchange of either good’s service’s rights or all ownership with this pricing in required as a measure of the good’s or services’ value. Market usually requires someone who has the ownership and someone who requires the ownership so that they can exchange. This exchange is usually done voluntarily.
A market and for my case is a complex economic system where goods and services are exchanged and it serves as the agent to adjust prices which can be interns of currency goods to accommodate changes on demand and supply. Business information can either be internal, which involves the companies own activities in attaining the information or externally which involves the companies output, statistical measures and its performance when assessed in terms of input and output and its impact in input and output. Teweless&Bradley, 1998).
A business is a legal organization wholes role is to provide goods and services to consumers. Business information involves business systems and the financial market. Business information gives both internal and external information about a business which enhances relationship between the business and other internal or external departments.
These departments can either be related to the business internally like when an administrator passes information involving the business when still in the business locality and especially about how the business operators can increase the production yield, or externally where a business communicates with its suppliers, consumers or outsource outside the business locality, thus the information liking both the business and the other externally or internally involved parties. This king of information passage enhances effective management procedures as well as good and convenient marketing program.
Private businesses are sole partnerships and are liable for their assets. When a private business develops financially it grows into a company though with limited liabilities. With increase of money, it then moves to incorporation then cooperation or company. The constitution and activities of a company is stated in the memorandum and articles of association which sets out the company’s name location of its office, what the company is involved with, a letter showing its members liabilities, details on capital shares.
The article containing roles to govern internal regulation and its management, the article is involved with director’s power, rights of the members, dividends paying procedures, winding up among others. On the other hand the market is regulated by London Stock Exchange and the Financial Service Agency Le (LSE) and (FSA) respectively. (Sokoloff, 1970). Company internal information is more used compared to external information. This is because when good information source is maintained within a company. Lot of work is done effectively thus producing exclusively many products and services.
The use of good line in information enhances quality production and the sources of information can be either automated for example the databases produced by computers, when one has to access the computer to get the information or it can be reproduced from the computer using printers and circulated as circulars, notices or memos within a company. This facilitates good connectivity and understanding among the company workers. The internal information enhances production, payroll sales and invoicing processes to be effective.
External information achieved when a company gets data or information from other companies, publications, online information market research and from consultancy services. The challenge posed by external sources of information is that not all external information is received for the betterment of a company. Some external messages received by the company are not straight forward thus requiring both filtering so as to get the best of the information for the sake of the company and a thorough interpretation incases the information received has a hidden means. (Marshall, 2004).
This poses more requirements compared to internally got information, since with the internal information everything is absorbed unlike the externally acquired information which needs skilled personnel to interpret and filter. It’s only after this when the externally acquired information can be applied in the company’s procedures. This links the product, operations and condition in any company. (Daniels, 1976). There should always be a link between the external and internal sources of information for a company and the like can be keeping ahead of the competition and handling the information intelligently.
Information about company’s processing and production can help other companies. When getting the information it’s important to note the patent and trade marks because Trade marks gives the relationship between a product and its manufacturer, and it gives a chance for consumers or other willing people to know the number of other products competing or at the same level. This is because some products raises excitement and their sales despite being similar in labels. A patent enables a company to recognized places where products similar to the one’s you produce are similarly used worldwide.
This also gives an idea on the inventory in the field worldwide. With this in mind, a company can be able to produce better than before it received the information, with increased yields, minimized mistakes and with a considerable pricing thus attaining the ability to achieve more compared to before the information was received. A market is bigger and more complex than a business. In a market many smaller parties are incorporated. These parties are under the name market, and share the market privileges. These parties include financial institutions which links borrowers and lenders in market places.
The government on the other hand gives and ensures regulations are followed within the market place by all people using the market place, by regulating rate of unemployment, raw materials cost among others. The government not regulates economy’s state but also controls the lending and borrowing ensuring that they are at equilibrium. Companies gets loan from financial institutions, with which they buy goods or expands their companies. The investors deal with their customers by buying assets and then leading to the assets users. (Schabacker, 1975).
This means and also showing all the participants involved in the market require either internal information, external information or both, for effective operation in their fields within the market. Individual companies are linked to the market, a process that is enhanced by National Stock Exchanges. A stock exchange is a cooperation that provides stock brokers and traders with necessary facilities to securities and to trade the companies stocks. A stock exchange also enhances issuing and redeeming securities and other capital events such as dividends income payments, and other financial applications.
Shares issued by companies, bonds and unit trades are some of the securities traded on the stock exchange and only members have access to this trade. The value of stock exchange markets goods and services increase and decreases in response to account, news and other confidence related factors. The value of a specific or rather an individual company determines its place in the stock in the stock market. Their value is determined by their accounts which show the companies expenditure and income, their loan and assets at any specific time.
The difference between expenditure and income gives the profit or the loss of the company. Generally the account is analyzed by checking what is in expenditure, and this includes loans and other general expenses while the income is associated with everything that the company owns as an asset. (Ted, 2000). The profit in this case does not restrict itself to economical profit which is total costs equals total revenue, but is broadly involves even accounting profit which is achieved when revenue exceeds the accounting costs.
This is the net profit, but generally a company considers all profits whether Net Profit after tax, operating profit, gross profit or just mere profit. (Nickel&McHugh, 1993). Companies are obliged to registration and this is initiated by giving a company a name which can be used although when assessing the company’s progress, as well as when referring to its accounts. A business can also be given a trademark for more recognition. Company names are names given to registered company for example public companies or limited company.
There exists a company House which has office of registering the company. After the requirements needed for a company to be registers which includes the name, memorandum and Articles of Association, Declaration of Compliance and directors statement, a solicitor or a company secretary or a company director signs thus indication the beginning of the operation of the company. (Chesbrough,2006). All the public companies, large private companies and other company involved in banking, shipping or insurance, should submit their full returns annually to Company’s Registration Office (CRO).
The submitted documents includes a balance sheet, profit and loss account, and incase of may of changes of directors, company secretary or memorandum and Articles should be indicated. A director’s report should accompany the documents. This annual returns does not only account for all share but also lists the shareholders. Incases of small company only balance sheet is submitted, but with medium company, both balance sheet and their profit and loss accounts are submitted. (Howard, 1977).
The financial service regulations (FSR) investigates and punishes wider field incases of irregularities unlike the market that regulates itself. Business information disclosure is influenced by the business size, relationship to shareholders, and legal status among others. Very large companies are required to think internationally since financial service Agency requirements and regulations are wide in range and one can go a stride thus getting into trouble (Wasserman, 1970).
The internally and externally acquired information is useful in helping the company to place itself in the market. For example, a business in Farming sector, both internal and external sources of information are linked. This is demonstrated like where a farm crop for example vegetables fails to grow well, the cost of the affected vegetables rises externally, and on the other hand it be comes an internal cost for the company, affecting it’s vegetables’ price.