Artificial intelligence was used in this reflection to carefully check my grammatical errors and

detect any kinds of plagiarism.

A business of five years planned to develop its business through selling computers and computer
equipment. In order to successfully get a business loan, the owner must present valid information
to the loan officer. It is firstly vital to make them understand your business or market operation,
especially, the astounding credits of your business can boost the higher chance of approval.
Clearly explain to them your purpose for this loan and be upfront about your financial condition
and knowledge. As stated by the Community Economic Development Fund (2020), remember to
raise enough capital, either debt or equity, to inaugurate your business and meet your capital
needs, but not so much that you won’t be able to afford the payments (para 6). Speaking of
payments, you may also present them your clear plan of repayment. In line with this, you must
also provide a collateral like business equipment, that the lender can seize in case of failure to
make proper payments. On top of that, do not forget to impose a well-mannered character in
presenting your business loan proposal.

On the other hand, the assistant manager’s faulty instruction may result in the service's
inaccurate sales records and low revenue. This behavior of recording sales can result in complex
or mismatched records of cash and sales, hence, detection of discrepancies between the staff may
ensue. This situation has violated the Matching Principle concept which states that the recording
of expenses and revenue should align during the accounting period, otherwise, business’ income
statements will lead to adverse inconsistency. Furthermore, internal control over cash and
separation of duties were dishonored as well. According to Risk Optics (2023) it is best to
establish segregation of duties and doing background checks for employees, additionally, it is a
must to secure your petty cash at a locked compartment to strengthen safeguarded assets. This
situation is crucial as it involves money, which is the lifeblood of every business. For me, it is
not ethical to give out instructions without the approval of the manager. So, if I am to respond in
this situation, I would immediately call for her attention. We would have a serious talk on why
we should avoid this kind of action and what we could do to improve in the future. If it was
found to cause a certain damage, I would impose such consequences. Moreover, to improve the
team's professionalism, business talks and seminars will be conducted.
While assistant manager and cashier are essential internal stakeholders, it is deeply important for
the manager, as the head and supervisor of business, to have a basic knowledge of financial
statements. In every business, there are written records that convey the business activities and
financial performance (Murphy, 2023). Basically, it shows you where the money came and where
it is currently. Under financial statements, we have a Balance Sheet, Income Statement, Cash
Flow Statement, and Statement of Retained Earnings. Fernando (2023) described balance sheet
as a financial statement that reports assets, liabilities, and owner’s equity of a company at a
specific point in time. It is also used to conduct fundamental analysis of business operations.
Next, Income Statement focuses on the company’s revenue, expenses, gains, and losses reported
at a distinct period (Chen et al., 2023). Then, we have the Cash Flow Statement that offers
accumulated data regarding the cash inflow from operations and external investments (Hayes,
2023). Last, the Statement of Retained Earnings or Statement of Owner’s Equity outlines the
alteration in retained income for a company over a specified period (Tuovila, 2020). All of these
are essential tools that assess a company's liquidity and profitability. They collectively influence
a successful and ethical market operations wherein as business managers, they all must be
knowledgeable of it, as financial statements are the backbone for an effective financial
transactions and future investments. For example, managers may find making investment
decisions and sales agreements difficult since they are unable to make an effective budget and
resources allocation strategies, which you can only succeed by the help of your financial
statements. Second, it would also be a hard time for the manager to drive its team motivation if
they are not aware of the company’s financial statements as it is also considered to be a
motivational material and productivity influence as stated by Cote (2020). Overall, a business
does not solely revolve around marketing and operations strategies, it always incorporates a
clever and heavy financial literacy. To thrive even further, every business shall have stakeholders
with fortified skills (critical and creativity), exceptional financial awareness, and ability to
fabricate effective operational strategies.
 REFERENCES

Chen, J. (2023). Income Statement: How to Read and Use It. Investopedia.
https://www.investopedia.com/terms/i/incomestatement.asp
Cote, C. (2020). How & Why Managers Use Financial Statements | HBS Online. Business
Insights Blog. https://online.hbs.edu/blog/post/how-managers-use-financial-statements
Fernando, J. (2023). Balance Sheet: Explanation, Components, and Examples. Investopedia.
https://www.investopedia.com/terms/b/balancesheet.asp
Hayes, A. (2023). Cash Flow Statement: How to Read and Understand It. Investopedia.
https://www.investopedia.com/terms/c/cashflowstatement.asp
Murphy, C. (2023). Cash Flow Statement: What It Is and Examples. Investopedia.
https://www.investopedia.com/investing/what-is-a-cash-flow-statement/
Santa Clara University. (2020). 12 Smart Tips for Getting a Small Business Loan.
@SantaClaraUniv.
https://www.scu.edu/mobi/resources--tools/blog-posts/12-smart-tips-for-getting-a-small-b
usiness-loan/12-smart-tips-for-getting-a-small-business-loan.html
Tuovila, A. (2023). What Is a Statement of Retained Earnings? What It Includes. Investopedia.
https://www.investopedia.com/terms/s/statement-of-retained-earnings.asp
What are Internal Controls for Cash? (2023, November). RiskOptics.
https://reciprocity.com/resources/what-are-internal-controls-for-cash/