Corporate Finance

 

External Financing
We examined two important topics in finance during this unit: external financing requirements and agency conflicts.

Include an introduction that summarizes the main points with an example.
Critically reflect on the importance of external financing requirements. What key factors must be considered when determining external financing requirements?
Briefly describe the types of agency conflict, and provide an example of at least one of the types of agency conflict to support your response.

Sample Solution

Corporate Finance

There are a number of ways to finance a business and a range of lenders and investors to choose from when a business owner is making financing decisions. As such, external sources of finance could help to speed up your growth, acquire new equipment, purchase property, support uneven cash flow, release equity, fund marketing campaigns, provide emergency relief and much more. Financing can come in the form of debt or investment, and the terms of the financing can vary significantly between the two. Important factors to consider when choosing methods of financing a business include the repayment terms, the total cost of capital and the requirements of the lender or investor.

The 2005 study “The Effects of Music Listening on Work Performance”, looked at the effect of music on the following three items: state positive affect, work quality, and time on task of computer information system developers. The data was collected over a period of 5 weeks. It was discovered that with no music, state positive affect and quality of work were at its lowest while time on task was longest. When interviewed, the developers stated that listening to music increased their positive mood and enhanced their perception of design while working. There are many studies that examine what is known as the Mozart effect. In a study, listening to “Mozart heightens or optimizes emotional levels, which results in higher performance on intelligence tests” (Jones & Estelle, 2007). Thus, these studies indicate that there is a positive relationship with the use of music listening in the workplace.

Music listening has been claimed to help with intellectual abilities. There is an abundance of evidence that indicates music performance enhances cognition. It does have the ability to create short-term and long-term effects. According to, Music and Cognitive abilities “music promotes intellectual development because of its inherently abstract nature” (Schellenberg, 2005). The benefits of listening to music extend beyond other stimuli used in different studies (ex. Cup of coffee). “Music that is pleasant and enjoyed by a particular listener is the most likely to have positive impacts on the listeners’ emotional state, and positive influences on emotional state can improve cognitive performance” (Schellenberg & Hallum, 2005). There is an interdependence between emotional and cognitive processes. Music can be considered a natural antidepressant (Leubner, 2017). If a student is emotionally relaxed, they are able to perform better on cognitive test.

Music in relation to academic performance and GPA goes hand in hand when putting together. When students study for a test or actively taking participating in a test or pop quiz music can aid in their help to stay focused and concentrating on their work. The dependent variable of academic achievement is the grade point average (GPA). It accurately reflects a student’s academic performance. Observing different studies, listening to music while studying reflects a higher GPA. A study conducted in 2012 on high school students standardized test scores shows the positive relationship between involvement with music will increase the test scores of students. “When listen to before performing certain cognitive task, ‘primes’ the brain as opposed to silence or calming musing” (Mallory, 2012). Both learning and music is pro

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.