5116593493_Networking and Finance.docx

With good networking in any corporation it is

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With good networking in any corporation, it is paramount that the business will perform well especially in the networking sector. According to Diebold, & Yılmaz, (2014), the departments in a corporation must be well linked with each other to improve the overall process of the businesses. The accounting and financial matters of the firm are accounted by all the individuals and departments involved in the business such that if anything goes wrong, all the departments are affected. As a result, developing a proper connection as well as improving the
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NETWORKING AND FINANCE 8 overall networking involved among the departments of one business with the other business helps to ensure the performance of the business is high. Increased business opportunities are evident through proper networks developed through corporate finance. It is apparent that an organization will engage in proper businesses that are not only beneficial but also profitable if they interact with other firms. According to Busch, Bauer, & Orlitzky, (2016), these networks help to develop proper opportunities to collaborate and enhance the overall ways through which a firm will obtain proper jobs. Figure 2 below shows the overall corporate finance methods and benefits involved when proper networks are developed. These concepts are important and ensure that a firm is able to prosper in its endeavors for better outcomes. Figure 2: Corporate Finance and Networking from Tantalo, & Priem, (2016) Reducing Financial Risks Corporate financing mostly involves many organizations who pull ideas and funds together as an approach towards ensuring enough cash is provided for a company to develop.
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NETWORKING AND FINANCE 9 The different groups may not entirely be trustworthy and cannot be involved in high-level decision making or investments since it is not apparent if they are able to provide proper support in the long-term. In addition, investments that are made usually have various risks that may even lead to loss of large amounts of money which is a challenge that many of the organizations face. As a result, many risks are involved in corporate finance especially in investments. This calls for proper networking to ensure that involved companies in any operation are able to meet their obligations and thus reducing the risks involved in corporate finance. Networking among organizations helps to share information about potential investors and their profile. Not every investment made in corporate finance is aimed at promoting the interest of the business. Some of the investors may have ulterior motives such as promoting their own business or as an approach to engage in illegal businesses. According to Block, Colombo, Cumming, & Vismara, (2018), understanding the different investors help to reduce the risk involved in the financial investment as they can cause adverse outcomes for the company. When these ulterior motives are not permitted through the refusal of various investments, it is apparent that the risks that are associated with these issues will be eliminated. Therefore, networking is an
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Christopher Reinemann
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