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Essay / How Businesses Sustain themselves
Table of ContentsStakeholders and ShareholdersThe Role of Debt in Business FinancingConclusionReferences:Every corporation or business needs revenue to support itself. In company portfolios, readers typically see that the company makes money in one of two ways. One of the main goals of business owners is to find ways to sustain their finances during times of financial hardship. One solution is to find more stakeholders for future investments. The other solution is to borrow from consumers and generate interest-based income. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay The portfolio acts as an important figure in the ongoing history of a business and in the maintenance of infrastructure. Company portfolios contain all the necessary information about a company. (Schmitz) Revenues, losses, gross profit and forecasted revenues and losses. This shows that many companies have no secrets. Therefore, many companies encourage consumers to review their information before investing in their product or company on their own. All commercial activity is public in a legal entity. Which brings up the subject of the role of a shareholder in a large organization. Stakeholders and shareholders The main thing in anonymous organizations is the stakeholders. Most large companies have shareholders. They possess a high amount of income every year. These shareholders buy a small portion of the company, which is typically around 0.5%. (Schmitz) This percentage is normally worth millions of dollars. This is how many businesses maintain their annual income. Usually the board of directors is made up of hundreds of people. It’s almost a bit like a bank loan, except that the shareholder is the “loan shark”. The Role of Debt in Corporate Finance A major source of revenue for many organizations is debt. They offer their money to banks, in which the money is distributed in the form of loans. Then the customer pays interest to the bank, providing additional capital to the business. (Smith) In other words, they become indirect and legal lenders. It’s actually one of the primary ways some businesses generate their revenue. This brings us to the part of the thesis that illustrates one of the ways organizations maintain their finances, even during difficult stages or phases. Therefore, these measures are necessary for the financial growth of an organization during a small recession within the office. Keep in mind: this is just a sample. Get a personalized document now from our expert writers. Get a Custom Essay Conclusion In conclusion, all companies are looking for permanent employment. strategies for financing. Many companies release their contact details to the public, making them a public company. Stakeholders are the main focus of this objective. Apart from this, many large companies become indirect “loan sharks” via banks and building societies. Even when a business is in a financial emergency, it will still receive income. However, these entities are still required to conduct business activities during this period. This means that not all businesses can get away with it so easily. References: Schmitz, JoAnne, “Business Maintenance.” University of Warsaw, January 2, 2019.