The document discusses strategies for controlling delinquency and building capital in cooperatives. It outlines common reasons for borrowing and delinquency, such as sickness, job loss, or natural disasters. To minimize delinquency, cooperatives should provide continuous education to members on cooperative principles and financial responsibilities. They should also properly evaluate loan applications. Some strategies for capital build up include cooperative education, raffle draws tied to share purchases, annual dues, and voluntary savings programs like door-to-door collections or salary deductions. Maintaining sufficient capital is important for cooperatives to provide services to members and remain self-financed enterprises.
Part one of the two sessions on Successful Savings Mobilization which explains research insights and cases of successful savings mobilization strategies to attract and retain microfinance clients. Part one is presented by Ferdinand Sia of RBAP-MABS
The reason for saving, challenges of saving money. Funds mobilization is one of the challenges in a co-operative society. Security of savings in a co-operative society is paramount.
Need help please writting this essay.The number one reason for a.pdfarihantelehyb
Need help please writting this essay.
\"The number one reason for a corporation to exist is to maximize shareholder value\"
In a minimum 600-word essay, explain this concept. Explain what determines value for a
shareholder. Identify short-term versus long-term result and balancing the interest of the
shareholders versus society as a whole. Conflicts between managers and shareholders can exist.
Debt holders have a different perspective from shareholders on what is important. Discuss what
is at stake for all three groups (management, shareholders, debt holders).
Solution
First we have to understand the meaning of shareholder,shareholder is an individual or institution
that legally owns one or more shares of stock in a public or private corporation. Shareholders
may be referred to as members of a corporation.Shareholders of a corporation are legally
separate from the corporation itself. They are generally not liable for the debts of the
corporation.Shareholders are granted special privileges depending on the class of stock. The
board of directors of a corporation generally governs a corporation for the benefit of
shareholders.In fact corporations are legal entities, with shareholders having a contract with the
corporation as owning share of the stock.
After understanding the meaning of Shareholder, Now let us discuss on what determines value
for a shareholder: Increasing shareholder value increases the total amount in the stockholders\'
equity section of the balance sheet. The balance sheet formula is assets less liabilities equals
stockholders\' equity, and stockholders\' equity includes retained earnings, or the sum of a
company\'s net income less cash dividends since inception.Companies raise capital to buy assets
and use those assets to generate sales. A well-managed company maximizes the use of its assets
so the firm can operate the business with a smaller investment in assets so that value for
shareholder can be maximized. Companies typically create most of their value through day-to-
day operations, but a major acquisition can create or destroy value faster than any other corporate
activity.
Short-term maximization is disastrous to shareholders. It’s true that maximizing shareholder
value in the short term leads to catastrophic results, since the firm starts to do things that hurt its
long term prosperity.Thus short termism harms shareholders!
Interest of shareholders as well as of the society are both important to the company. It is essential
to make money, the company has a higher purpose, and this purpose goes beyond profit. The
purpose could be creating value for society, and the company’s stakeholders. The corporation
must fulfill its higher value creating purpose. And for this they need a Conscious Culture that
fosters love and care and builds trust between a company’s team members and its other
stakeholders.when you ask whom does the company work for, one of the answers will be for
society (as tax payer), for customers who provides.
Business Ethics and Social Responsibility_Lesson 1.pptxMaamMickaDimaano
This power point presentation gives you an idea on the basic concepts and terminologies that you might encounter in business ethics and social responsibility. It will further gives you a concrete rationalization on why it is important to study this subject. Lastly this will be helpful for students and instructors in the senior high school level.
Effective customer retention techniques in group lendingFaakor Agyekum
The document discusses techniques financial institutions can adopt to retain their customers, particularly microfinance institutions using the group lending methodology. It explores reasons why customers leave the financial institution or the groups they belong to, examines challenges relating to the group methodology and proposes strategies to retain group members.
Answer A The financial executive in a small business is a key dec.pdfanoopkhandelwal30
Answer A :
The financial executive in a small business is a key decision maker, often the second most
important decision maker in the organization besides the owner. He makes daily decisions that
affect the company’s cash position and its overall financial health -- including the company’s
ability to grow and expand
Dealing With Cash Shortages:
A financial Executive at times may be faced with difficult choices because the company does not
have sufficient cash available to pay important expenses. He may have to choose, for example,
between making a tax payment on time and making a loan payment on time. Missing the tax
payment can result in the company being charged penalties and interest. Missing the loan
payment could jeopardize the company’s relationship with a lender that the business owner
hoped to obtain additional financing from in the future.
Short-Run Vision
A financial Executive’s natural conservatism -- wanting to make sure the company always has
sufficient cash -- can cause him to recommend against expenditures that would allow the
company to take advantage of opportunities for growth. He may urge the business owner to not
proceed with an acquisition opportunity that has been presented to the company because he
believes from a financial standpoint that the company cannot afford the cost of the acquisition.
Investment Decisions:
The financial executive to support Financial Manager’s is in charge of investing the company’s
accumulated cash -- its net profit after expenses have been paid. As with personal investing, he
must choose between safe investments with little upside potential and those that could appreciate
in value but carry the risk of loss of principal in a stock market downturn. Erring on the side of
caution can result in the company earning less on its investments than the owner of the company
would expect.
Overreaction to Business Downturns
When the company experiences a sales downturn, the Financial Executive may convince the
business owner that drastic steps to conserve cash are required, such as laying off personnel or
cutting the marketing manager’s budget. The latter decision can result in accelerating a sales
decline. Layoffs can drain valuable talent from the organization and cause a general decline in
morale.
Receivables and Payables Policies
A standard financial management principle is to collect receivables due to the company as
quickly as possible and to pay invoices owed to vendors as slowly as is feasible. If the Financial
Executive is over zealous in his collection efforts with customers who are paying slowly, he can
damage customer relationships that have been carefully nurtured by the business owner and the
marketing department. Similarly, his decision to delay payables as long as possible can cause
vendors to demand stricter terms on future orders -- including prepayment.
Capital Structure
Many companies require outside capital -- debt or equity -- to fund the growth of the business.
The Financial Executi.
The results suggest that there is a real opportunity to improve the investment process so nonprofits can better protect the capital they’ve worked so hard to raise. I hope you find the results as interesting as I did. Please feel free to reach out to me directly if you have questions.
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
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Delinquency control & capital build up for cooperatives
1. DELINQUENCY CONTROL
and
CAPITAL BUILD UP FOR
COOPERATIVES
Prepared by:
Efferson P. Ramirez
2. WHY DO PEOPLE BORROW?
- sickness or death of a family member
- loss of jobs
- lack of capital to start a small business
- to buy farm inputs
- to buy in cash instead of an installment
basis
- birthday parties, to satisfy vices and others
3. DELINQUENCY: when the payment of a loan is delayed or the
loan remains unpaid after its due date.
CAUSES OF DELINQUENCY:
1. Lack of cooperative Education:
- failure of member to make an adequate budget of his income;
- failure of member to appreciate the value of cooperativism;
- failure of member to know his duties and responsibilities
- failure of member to understand the terms and conditions of
payment of loan;
2. Unwise use of money/vested interest by some officers
- diversion of project plans
- misrepresented purpose of loans
3. Improper or Erroneous Evaluation of Borrowers:
- improper evaluation of loan applications
4. 4. No schedule of policies:
- lack of harmonious relationship between management staff
and members
- wrong attitude of Crecom towards members
5. Unexpected Natural Calamities:
- typhoons, floods, death
- irregularity of incomes
The problem on deliquency is a very common problem
being encountered by most cooperatives for it could
happen even before the loan is granted to a member,
however, the following are some measures to minimize
the problem on delinquency:
5. DELINQUENCY CONTROL MEASURES:
1. Continous Cooperative education:
Loan deliquency can be greatly minimized if the members
could be made to understand and appreciate the purposes of
organizing a cooperative;
a. to develop among members the habit of thrift and regular
savings;
b. to teach the members the importance of borrowing wisely
for productive and providential purposes;
c. to teach the members the wise use of money through
intelligent buying and budgetting
6. 2. Proper and Intelligent Loan Appraisal by Credit Committee:
Criteria for Loan Evaluation;
a.Character – spending habits, credit consciousness, credit
standing in the community, participation in cooperative
activities;
b.Capacity to pay – financial condition of borrower, his income
versus his expenses, loan from other sources.
c.Capital – his total capital contributions to the Coop,
availability of cooperative funds
d.Co- makers – solvency of co – makers, attitudes
e. Collateral – fixed assets free from any encumbrances
f. Purpose of loan – based on actual needs of borrower
7. 3. Loan deliquency goes high – if those who have current loans
find out that the operation of the cooperative is going down,
many of them would hesitate to pay their loans. They believe
that if the cooperative goes bankrupt, they may not need to
pay their loans.
4. The income goes down - if more loans are being extended,
there would be no more income. The fixed cost must have to
be taken from the capital.
5. Employees are discouraged – the future is black for the
employees of a cooperative in this situation. They would look
at their jobs as a temporary employment while they scout for
greener and more secured pastures.
6. The cooperative flops – it takes only a few months from the
time the services slow down until the time to close down.
8. PRIMARY STRATEGIES FOR CAPITAL BUILD UP
1. Continous Cooperative Education – this is one of
the principles of cooperativism, but its importance
is belittled. The reason why educational funds are
allocated every year from the surplus is to provide
a budget for membership education and staff
development. Members will always be supportive
to whatever programs of the cooperative only when
they understood and appreciated what the
undertaking is all about.
9. 2. Raffle Draw – the raffle draw cooperative style does not sell
tickets, it does not solicit funds from the public. It merely
encourages the members to add to their own savings and
share capital. Those who increase their share capital are given
raffle tickets. The prizes may be charged to educational funds
or the operating funds. After all, the objective of the draw is
to increase the capital and income of the cooperative.
3. Annual Dues – the cooperative may collect annual dues by
deducting the amount from the loans of the members when
they borrow or from their interest on capital at the end of the
year. In this way the members would not have shelled out
from their pockets.
10. 4. One – peso per visit – this scheme requires every member to
deposit P1.00 in his share capital everytime he visits the
cooperative for every reason. After all everybody has one
peso in loose coins. That is less than the cost of a pack of
cigarettes or a bottle of beer. Besides, the one peso is not a
payment, it is saved by the member and is added to his share
capital.
5. Authorized Retention from Loans – this is another scheme
that compaigns from those who are served by the cooperative.
By the authority of a Board Resolution, the staff shall deduct
a percentage from every loan granted and adds the deducted
amount to the borrowers share capital.
11. 6. Share Certificates – this scheme calls for the
distribution of the interest on capital and patronage
refund not in cash, but in the form of share
certificates.
7. Paluwagan – this scheme is particularly succesfull
among market vendors and other groups with a
regular source of income. The members are being
grouped by tens. All the ten will deposit P1.00
each in the number one’s share capital and so on
until all the ten group members have had their turn.
12. 8. Salary Deduction – saving to some people is easy. To others it
is hard. They spend all the money they lay their hands on.
Sometimes , they even spend money that they have not gotten
yet. For this kind of people, force savings is necessary.
Cooperatives can arranged savings by salary deduction if the
members concerned would sign the payroll deduction form.
This goes in line with the members’ pledge to save regularly.
9. Revolving Fund – if the total amount for interest on capital and
patronage refund is P100,000.00, the Board is authorized to set
aside P50,000.00 as a Revolving Fund for five (5) years. After
five years, this amount shall be distributed to the members as
they should have been five years ago.
13. 10. Doorstep Savings Program – this scheme is more applicable
to people who are busy that they don’t have time to visit the
cooperative (businessmen). They may have the money and
maybe willing to save but they don’t have the time to visit the
cooperative. For them, every second is GOLD. A
management staff may be go from door to door to this type of
people to collect their deposits.
11. Special Depositors
a. Special Members (minors) – the children of members are
encouraged to open up savings account with the cooperative.
They would not be allowed to borrow because they are not
old enough to enter into contracts and they usually don’t have
a regular source of income to pay back the loan. The parents
should not be allowed to withdraw from the savings of their
children without the latters consent.
14. b.Organizations– there are many community
organizations which do not have the juridical
personality to become members of the cooperative.
These group’s should be encouraged to open an
account with the cooperative, however, they are
not allowed to borrow.
c. Non-members – for people who want to support
the cooperative by saving their money in it, the
staff should not close doors. Anybody should be
encouraged to save in the cooperative, but, since
they are not members, they will not have the
priveledge of borrowing.
15. CAPITAL BUILD UP STRATEGIES FOR
COOPERATIVES
It is easy to organize a cooperative. It is difficult to
succeed. One failure affects the others, including
those that are to be organized.
Most cooperatives died a natural death, and the
foremost reason is lack of capital due to lack of
knowledge on some capital build up programs. Most
cooperatives considered today as successful, based
on their history, states that they have stood by their
own money, and besides have engaged in many
programs/ strategies on how to increase the needed
capital to extend maximum services to its members.
17. WHY DO WE SAVE? WHY DO WE ENGAGE
IN CAPITAL BUILDING?
Primarily, a cooperative must save and
engage in capital building to be able to
extend maximum service to members,
secondarily is that cooperative members
must finance their own business enterprise as
one of the practices of cooperativism.
18. EFFECTS OF LOW WORKING CAPITAL:
Insufficiency or low working capital can cripple a
cooperative permanently if it is not attended to
immediately. The following are the effects of lack
of capital:
1. Services slow down – the members applying for
loans can not be served at the right time. They have
to wait for days, weeks and sometimes months for
their loans. A delayed loan due to lack of capital
may not be very useful anymore.