StudentShare solutions
Triangle menu

How government policy decision influenced Financial Management - Essay Example

Nobody downloaded yet

Extract of sample
How government policy decision influenced Financial Management

Policy Decisions and Influence on Financial Management There are many policy decisions factors that influence financial management. These include taxes, wars and financial influences, political changes and the stock markets, investments and accumulation goals. Taxes Taxes are the most popular and strongest influence given that it deals with use of money. Taxes are a way of generating revenue for the government (Hu, Li, Liu, Baolei, & Gaoling, 2012). Where the government or an organization overtaxes it’s people then enough money is available but citizens living below the poverty line in such a country may be highly impoverished due to heavy taxation .So for a government to manage its finance properly, then it must follow the laid down rules and regulations so that there can be a balanced change in the budget when taxes are increased (Choi, Kim, Sami, & McKenzie, 2012). Wars Political changes in a government structure may trigger wars such as post-election violence as witnessed in some countries. This will definitely affect the stock market of such a country and the spending behavior of its citizens and this affects businesses some of which come to stand still. This wave of political change affects financial management .If a country, company or an organization is involved in a trade with another such wars may affect financial management (Sara, 2011). Political Changes and the Stock Market Political parties in a country contribute immensely towards the economy of a country based on different concepts and perceptions of each .Some political parties can improve stock markets while they are in power while some may create a collapse to the economy. This affects businesses and financial management because shares are sold on the stock market and organizations and businesses use this money to improve their business. When there is less money there is less improvement and financial deficit is likely to be experienced. Concerning stock market, if a country is in recession purchase of goods and services becomes less. Where less goods and services are purchased, then there will be less money in the business. With less money the financial manager will have to device new ways to produce their own goods, process them and market their own goods and services to generate income. Imposition of Bans At times a government may place bans on sales of goods which promote the economy of a country .Placement of such bans may result to decreased income which may cause instability in economy and consequently affect financial management. Positive Effect of the Policy The intended or positive effects of a government policy vary widely based on the type of an organization or company and the context in which they are made up. Due to this, policies should be carefully enacted to ensure their effectiveness. One of the positive benefits of these policies on government financial management include corporate purchasing policies which projects that all purchases above a certain value should be standardized by way of purchasing process (Brigham & Houston, 2011). This way, a country’s government can employ a standard purchasing through policy which enables a government or an organization to limit wastage and normalize purchasing. Other positive benefits include ...Show more
Cite this document
  • APA
  • MLA
(“How government policy decision influenced Financial Management Essay”, n.d.)
Retrieved from
(How Government Policy Decision Influenced Financial Management Essay)
“How Government Policy Decision Influenced Financial Management Essay”, n.d.
  • Cited: 0 times


How Government Policy Decision Influence Financial Management (Name of Institution) Introduction A government policy is a rule, principal or a guide to decision making. A government policy seeks to help in planning, directing and influencing decision making with an aim to achieve a rational outcome .A policy is implementable and procedural and as such, policies assist in both objective and subjective making of decisions…
How government policy decision influenced Financial Management
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"How government policy decision influenced Financial Management"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Government economic policy
Governments all over the world have targeted goals they want to achieve. I order to achieve their objectives they carry out economic policy. That policies of governments can be referred to as macroeconomic policy while the policies of smaller entities are called microeconomic policies. Both these sets of policies affect each other significantly.
8 pages (2000 words) Essay
Healthcare Financial Management Decision
Hospitals play a very important role in the proper functioning of every society and neighborhood, as they provide support for the health of the people as well as prevent disease or ailments from assuming alarming proportions. Hospitals may operate on a non-profit or profit basis.
3 pages (750 words) Essay
Ethics and decision making in financial institution
Seminal research works of Milton Friedman (1970) has forced the researcher in this essay to look deep on role of ethics and ethical decision making in financial institution or more specifically for banking industry. In the first part of this essay, the researcher will try to define the concept of free competition and business ethics in the light of research works of previous research scholars.
12 pages (3000 words) Essay
Government policy decision on medicare/medicaid
The policy or law may have an impact on patients, nurses, practitioners or the whole medical field (Maioni, 1998). The Supreme Court is the highest court that has power on matters concerning the national law in America. Currently, the court is in the process of amending the Patient Protection and Affordable Care Act (PPACA).
3 pages (750 words) Essay
Financial Management and Policy
However no other dramatic or controversial activity can happen in the corporate history than the acquisition of one firm by another or the merger of two firms. There are different opinions and schools of thoughts concerning these important happening in the corporate world, with respect to the definitive advantages and disadvantages that may accrue both to the acquiring firm as well as the firm that is being acquired.
12 pages (3000 words) Essay
There are three aspects of inventory and they are: Stock of Raw Materials, Stock of Work-in-Progress and finally stock of Finished goods. There are certain aspects characteristic, to Cameron Balloons
10 pages (2500 words) Essay
Critically examine how a controversial planning decision of your choice has been dealt with through the planning system. In your essay, you should consider the factors that influenced the decision and the role of law, policy and evidence
The stakeholders and policymakers can either be locally, nationally or internationally based. Hajer and Kesselring (1999, p. 18) explicates this shift from
8 pages (2000 words) Essay
Advanced Financial Management
Capital Structure is one of the most important criteria to establish the source of uninterrupted cash flow in the long run from a
10 pages (2500 words) Essay
Financial management
In addition, the financials and policies of Caterpillar Inc are compared with the financial performance and practices of its competitor i.e. Johnson
20 pages (5000 words) Essay
Demonstrate how management structures are influenced by the size of a company and the technology it employs, and how control procedures are an important corollary of management delegation. Use amazon as a possible case study
Dana (2008) noted that business organisations are trying to design a flexible approach for managing the influence of the internal and external factors that are related to the business environment. The primary feature of the 21st century business operations
9 pages (2250 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic How government policy decision influenced Financial Management for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us