Chapter 16 Financial Organization

In this chapter everything comes together in what we refer to as ‘a healthy financial organization’. Flexible, cost-effective, solvent and liquid. Furthermore, the question: continue to independently exist or merge with another company, and if merger, how?

Learning Content Chapter 16:

Undercapitalization, overcapitalization and capital dilution. Merger and acquisition.

There is a sufficient reserve in a healthy situation. Not too big, and not too small. Depending on the risks in the branch, and especially in this company. You must be sufficiently liquid. But also not over-liquid. A healthy organization is very much alive. A strong organism. In a changing world. Needed is a decent reserve. To overcome the blows. But again not too big.

Every co-operation, including every joint-venture, every acquisition and also every merger, only makes sense when 1 + 1 = 3, which is the essence of the creation of any organization. The (new) organization can indeed perform what one individual company, on it’s own, cannot do, or in any case cannot do it very easily. If not, it appears it may be operating better separately, so a merger will fall apart over time. The opposite of merger is retreating from everything that does not belong to the core activities. This is known as divestment or di-vesture. For example, parts of the company are split off via a management buy-out.

This book harshly criticizes out-of-date Business Economics textbooks.

The Profit Formula® i.e. The Way to Easy Profit Measurement (EXACTLY, QUICKLY and EASILY) is 1 of 8 ‘Scientific Perfections’ completely explained in ‘Business Economics VI Groundbreaking’. Schools / Universities ignoring this book, they train students totally wrong in Business Economics.

A self-study book, hardly needing a teacher. Necessary also for many managers in companies to improve their own performance.

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En Nederlandstalig https://www.boekengilde.nl/boekenshop/bedrijfseconomie-vi-grensverleggend/?attribute_pa_boek-type=hardcover

And e-book: Students can thus criticize their own teacher!

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This rule applies to e-books on this website, available at amazon websites. Go to your nearest amazon website, for example www.amazon.nl

All

In this general search screen, enter your desired e-book, for example

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And then you will immediately see this e-book Bedrijfseconomie VI Grensverleggend