Today, many companies face budgetary challenges on a continual basis. Two critic
ID: 2612336 • Letter: T
Question
Today, many companies face budgetary challenges on a continual basis. Two critical aspects that businesses lack are effective control practices and monitoring. You have been asked by your manager of the Money Cares Investment Corporation, to outline problematic or risk areas in the company’s financial procedures. Upon reviewing the budget, you notice that there is overspending in marketing supplies, transportation, and workshop items that include hospitality items such as food and drink for the customers. Each investment specialist is given a company credit card for the above expenses but there are no policies established for monitoring. Money Cares is a small business of 8 employees: CEO, Financier, a manager, 3 investment specialists, and 2 clerical assistants.
For this assignment you must identify possible risks for the Money Cares Investment Corporation. In establishing an investment company, you must answer the following
What could go wrong?
Identify at least 3 possible risks.
What must happen in order for the company to succeed?
What are the company’s most vulnerable areas?
Identify the company’s assets
Where is the most money spent?
How should the budget activities be regulated?
Explanation / Answer
Answer :-
The 1st Possible Risk is that there can be misappropriation of funds when purchasing marketing supplies. There can be over-billing. The 2nd Possible Risk is that transportation charges might be over-billed. Excessive amounts may be charged to transportation. The 3rd Possible Risk is that there may be unbridled spending on workshop items. The hospitality bills may be inflated.
For the company to succeed, the company must make Profits.