Influence of government- Australian Securities and Investments Commission, company taxation The government influences the financial management of businesses through the implementation of economic policies (fiscal-budgets and monetary- interest rates), and through the implementation of current and changing legislation. Australian Securities and Investments Commission The Australian Securities and Investments Commission (ASIC) aims to reduce fraud and unfair practices in financial markets and financial products. Company taxation Companies and corporations in Australia pay company tax on profits. Company tax is paid before profits are distributed to shareholders as dividends. Global market influences- economic outlook, availability of funds, interest rates Financial associated with global markets are greater than those encountered domestically, but such risk taking is necessary for a business strategy to be implemented. Globalisation has created more interdependence between economies and businesses. Economic outlook The projected changes to the of economic growth throughout the world. It may increase the demand for products/services and the interest rates on funds borrowed internationally. Availability of funds Refers to the ease with a business can access funds (for borrowing) on the international financial markets. The availability of funds depends on the risk, demand and supply and the domestic economic conditions. Interest rates Interest rates are the cost of borrowing money. The higher the level of risk involve in lending to a business, the higher the interest rates.
Influence of government- Australian Securities and Investments Commission, company taxation The government influences the financial management of businesses through the implementation of economic policies (fiscal-budgets and monetary- interest rates), and through the implementation of current and changing legislation. Australian Securities and Investments Commission The Australian Securities and Investments Commission (ASIC) aims to reduce fraud and unfair practices in financial markets and financial products. Company taxation Companies and corporations in Australia pay company tax on profits. Company tax is paid before profits are distributed to shareholders as dividends. Global market influences- economic outlook, availability of funds, interest rates Financial associated with global markets are greater than those encountered domestically, but such risk taking is necessary for a business strategy to be implemented. Globalisation has created more interdependence between economies and businesses. Economic outlook The projected changes to the of economic growth throughout the world. It may increase the demand for products/services and the interest rates on funds borrowed internationally. Availability of funds Refers to the ease with a business can access funds (for borrowing) on the international financial markets. The availability of funds depends on the risk, demand and supply and the domestic economic conditions. Interest rates Interest rates are the cost of borrowing money. The higher the level of risk involve in lending to a business, the higher the interest rates.