Chapter 5 - Effective organisational relationships Flashcards
Name the features of an organisational system (SOAP SPAM)
Segregation of duties Organisation Authorisation Personnel Supervisory Physical Arithmetic Management
What is the time allowed for a private company to deliver accounts to Companies House by?
9 months from the accouting reference date (ARD)
What is the time allowed for a public company to deliver accounts to Companies House by?
6 months from the accounting reference date (ARD)
What is an internal check defined as?
Check on day-to-day transactions
What is an internal financial control defined as?
Any action taken by management to enhance the likelihood that established objectives and goals will be achieved
What does the financial function contribute to?
The formulation and tracking of organisational objectives
3 different types of transaction cost
Search and information costs
Bargaining costs
Policing and enforcement costs
5 things that determine transaction costs
Uncertainty Frequency Limited rationality (lack of perfect info) Specificity Opportunistic behaviour (impulse buying)
6 types of asset specificity
Site Physical asset Human asset Dedicated asset Brand name capital Temporal
What is investor relations?
A strategic management responsibility
capable of integrating finance, communication, marketing and securities law compliance
to enable the most effective two-way communication between a company, the financial community, and other constituencies,
which ultimately contributes to a company’s securities achieving fair valuation.
Define team
Comprises of people linked in a common purpose.
All teams are groups but not all groups are teams
Environmental uncertainty
Changing of economic relationships over time
Bounded rationality
Acceptance of the fact that it is not possible to have perfect knowledge in advance of what these changes will be
