Money, cash or other form of it is essential for someone to cover all the expenses and daily needs. It is hard to earn but easy to spend especially if you don't have the budget plan on how to spend it to cover all your expenditures. What if you have a huge amount of money? What will you do? Will you spend it all at once? If not, then,where do you plan to keep it? Upon reflecting to those questions, knowledge about banking and investments are helpful to manage all your money. Banking is an industry that handles cash, credit, and other financial transactions and banks handle those things. Why we need to practice it? It's because of the protection it guarantees. Instead of keeping it in our house or other not secured places, banks are the best option to ensure the security of it. Instead of risking your money by keeping it in your house,keeping it in a bank will help you to safeguard your cash, mangage it,monitor your usage, facilitating your transactions and the best part is that you earn interest without doing anything. Aside from those, a cashless transactions is also possible because of debit and credit card services and it is helpful to avoid physical contact especially in the time where physical contact must be minimized.
Another efficient way of keeping your money is by investing it. Instead of keeping it to a bank, you will convert it to another form of assets that will help you to generate income. Examples of it are land, establishments and accesories that don't depreciate but rather increase in value as time goes by. Another great example of investment is investing to a business but conducting it also have a potential of losing money that you invested so you need to analyze and do some research before proceeding to a contract to a business. You may hear to-good-to-be-true investments that will give you a huge amount of profit in a short period of time but the risk of scam is also huge so you better think about it first before the agreement.
Business Hierarchy
1. Investors are only source of funds that agreed to a contract that the money they gave will be used in the business and it will earn certain amount as an income. They will not do any work in business as they are only functioning as a source of fund for the business to operate and handle the expenditures.
2. Shareholders wealth can be maximized by growing the performance of the business in the market. Ensuring that the business is growing upward will help to grow it.Upon doing it, profit that will be gained in conducting the business will increase and will lead to increase in dividends that will be given to shareholders. Because of it, shares /stocks will be more valuable and lead to more wealth to shareholders.
3. SHAREHOLDERS are the individuals that holds shares in the company. They are at the top of the hierarchy of corporate organisation structure and receive dividends.
BOAR OF DIRECTORS serves as the policy making body that manage the corporation. They were elected by the shareholders and they were the people that will represent the shareholders. They are the highest policy making body in corporation. They are also responsible for protecting shareholders' interests, establishing policies for management, oversight of the corporation.
PRESIDENT /CEO is responsible for the overall success of a business entity or other organization and for making top-level managerial decisions. They are lower than the BOD and can be fired or replaced by them. The CEO serves as the one who will give the final verdict in the decision making.
VP for Marketing is the senior manager who leads the marketing team. He/She like the head of Creative department that will help for creating, promotion and implementation of marketing strategies. While both develop marketing strategies, it's the VP who is more likely to get down in the weeds with creatives, researchers, sales staff, and marketing directors to oversee the implementation of those strategies. Correspondingly, the VP of marketing is typically held responsible for the success or failure of those strategies. When a strategy works, they can take credit.
VP for Finance is in charge of overseeing company financial records and projecting future financial investments and plans. From the word itself, it manages the finance-related activities. In a larger business, the vice president of finance serves under the CFO, and both are responsible for the accounting department or team.
VP for Production is the in charge in the manufacturing of products. From managing the raw products that is needed to distribution of the products.A vice president of production plans, directs and coordinates the development and manufacture of all products made by that company.The VP of production will correspond with both internal and external parties, and will usually manage two or three senior or executive producers.
VP for Administration is in charge in achieving administrative objectives, policies, programs, and practices, which insure the company of a continuously sound financial structure.