CORPORATE FINANCE

Superior University Lahore

Ch. Abdul Khaliq
Submitted by:

Hafiz Muhammad Rauf (8420)

What is Corporate Social Responsibility (CSR), when it introduces and what is its
impact and importance?

The term "corporate social responsibility" came in to common use in the early 1970s, after
many multinational corporations formed. It generally refers to transparent business practices
that are based on ethical values, compliance with legal requirements, and respect for people,
communities, and the environment. Thus, beyond making profits, companies are responsible
for the totality of their impact on people and the planet. “People” constitute the company’s
stakeholders: its employees, customers, business partners, investors, suppliers and vendors,
the government, and the community. Increasingly, stakeholders expect that companies should
be more environmentally and socially responsible in conducting their business.

"Corporate Social Responsibility is the continuing commitment by business to behave

ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large"
(B.Mallen)

"A concept whereby companies decide voluntarily to contribute to a better society and a
cleaner environment. A concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their stakeholders on a
voluntary basis". (B.Mallen)

Importance of CSR:

1. Social responsibility becomes an integral part of the wealth creation process - which if
managed properly should enhance the competitiveness of business and maximise the
value of wealth creation to society.

2. When times get hard, there is the incentive to practice CSR more and better - if it is a
philanthropic exercise which is marginal to the main business, it will always be the
first thing to go when push comes to shove.

How you can get success?

What Is Success?

Success is having all that you wanted to have. It's finding that you have
achieved your goals or fulfilled your plans and it's waking up in the
morning feeling victorious rather than feeling beaten up. Success is walking
proudly in the streets with your head up high while being happy and
satisfied.
 The secrets to being successful

 Number of tries

Babies learn how to hold objects correctly by first holding them in all incorrect
ways. Each time the baby holds the object it falls off his hands and so it learns
something new about the correct way to hold it. After sufficient number of tries the
baby learns how to hold the object correctly. The same goes for any learning
process and for success. If you want to be successful then you must understand that
you have to keep failing until you discover what works.

 Be flexible

When you fail be flexible and change your method, try something new or a
different approach. Try to find out why you failed so that you fix it when trying the
next time. Each time you fail you will discover one new thing that was preventing
you from succeeding and after enough number of failures you will find nothing
standing in your way.

 Be 100% sure that you are going to reach your goals

Whenever someone told me you failed say him or her, I didn't fail that mean all the
time be confident about your ideas.

What difference between paid up capital and authorized capital?

 Paid-up capital
The amount of money that has been received by shareholders who have completely
paid for their purchased shares. This would not include any shares that have been bid
on, but not yet purchased.
 Authorized capital
Maximum value of securities that a firm can legally issue. This number is specified
in the memorandum of association when a firm is incorporated, but can be changed
later with shareholders.

Why financial institution gives long term, medium term and short term finance?

Purpose of finance

 To Finance fixed assets

 To finance the permanent part of working capital
 Expansion of Companies
 Increasing Facilities
 Construction Projects on a big Scale
 Provide Capital for funding the Operations. This helps in adjusting the cash flow.
 Factors determining long-term financial requirements

 Nature of Business
 Nature of goods produced
 Technology use

Long Term Finance

Long term finance is that part of capital which is required by a business enterprise to finance
its blocked or fixed assets such as land buildings, machinery and other appliances of
permanent nature. A financial institution gives these loans because they can get more profits
from it for a long time of period.

Short Term and medium Finance

A common problem of every business is financing day –to –day operations. Normally
business finances these items out of the receipts from sales, but sometimes the firms
financing is needed. It is required for pour hasting raw materials, additional inventory etc.
Normally this loan gives on emergency bases so they can get high rate of interest.

Financial Institutions:

Commercial Bank

An institution which accepts deposits, makes business loans, and offers related
services. Commercial banks also allow for a variety of deposit accounts, such as
checking, savings, and time deposit. These institutions are run to make a profit and
owned by a group of individuals, yet some may be members of the Federal Reserve
System. While commercial banks offer services to individuals, they are primarily
concerned with receiving deposits and lending to businesses.
Non Banking Institutions

 Investment Corporations
These are the companies which provide finance to small business.
 Venture capitalist
A venture capitalist is a person who invests in a business venture, providing capital
for start-up or expansion. Venture capitalists are looking for a higher rate of return
than would be given by more traditional investments
 Angel investors

An angel investor or angel (also known as a business angel or informal investor) is an

affluent individual who provides capital for a business start-up, usually in exchange
for convertible debt or ownership equity.
  Stock Brokers

A stock broker or stockbroker is a regulated professional broker who buys and sells
shares and other securities through market makers or Agency Only Firms on behalf
of investors. A broker may be employed by a brokerage firm.

What are everyday financial activities?

These are the activities which companies needed to run their daily petty cash
expenses like stationary, raw material and traveling expenses Etc. For this
companies define the past of capital as named as working capital.

How many ways bank can provide short term loans?

Short-term loans are loans that are issued for only a short period of time. Unlike mortgages
or auto loans, which are usually paid off over a period of several years, short-term loans are
intended to be paid off in only a matter of weeks or days. According to MSN and Loan.com,
there are a number of different ways to get one.

 Call Your Bank

 Post-Date a Check
 Use Property as Collateral
 Surrender Your Car's Title

 sheezay@live.com