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Financial Management

Butler just came back from a meeting with the training coordinator. They now want to include some additional items in the upcoming training session. Your assignment is to prepare another section for the training document that explains how the concepts of value and utility differ in application in the public sector as compared to the private sector.

1000-1800 words

Include references

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The response addresses the queries posted in 1263 words with references.

//While writing this paper, we will go through different articles related to Life Cycle Cost Analysis, which entails value and utility of the firm and also economic aspects of the firm.

Further, we will discuss about the additional information that Butler wants to add in its upcoming training session.//

The cost analysis of the organization can be carried out through the study of life cycle stages of the firm. The life cycle stages of a firm consist of two stages, which are growth and maturity. Firms which are in growth stage have greater requirement of finance from external sources and have smaller debts in comparison to large firms, whereas it is not the same in case of mature firms. There are different theories to ascertain the stage of a firm and one of these is the Pecking order theory. Under this, a firm prioritizes its source of financing depending on the ease and convenience with which it is available (Life Cycle Cost Analysis Handbook, 1999).

In general, the public sector projects are different from private sector projects in many ways. The firm and the terms and conditions for operations of both these sectors are totally different. In public sector, all the assets of an organization are owned by the government, whereas in case of private sector, the ownership is in the hands of the private owners. In many ways, there is contrast between these two entities because the public sector projects are procured in different ways. In these projects the money of the public fund is involved and its main purpose is to maximize the value for money of the investors. The public sector generally comprises of central government, local authorities, utilities and other ranges of entities.

There are many parameters, in which the values of public and private sectors can be compared. Private sector workers lay more emphasis on wages whereas the workers of public sector emphasize more on interesting work in the organization. The employees of public sector give more importance to job security, ...

Solution Summary

The response addresses the queries posted in 1263 words with references.

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