Financial Activities are Complex in Nature †MyAssignmenthelp.com

Question: Discuss about the Financial Activities are Complex in Nature. Answer: Introduction: The article clearly projects the manner in which Uber functions and the way in which it manages the wealth. The ethical considerations are neglected and this was due to the fact that taking the ethical route will not help the company to cement its dominance in the company.The main article suggests that due to key issues like the way Uber manages its operations and wealth, it will not be feasible to make necessary ethical changes that are required to make the company more ethical. The reason behind this can be attributed to the fact that this can disrupt the companys plans to establish dominance in the industry. Wealth management was the focal point of attraction of the company. Uber being a start-up has accumulated a huge chunk of wealth and will transfer to the shareholder once it will reap huge profits (Levin, 2017). The growth of the company is strongly linked to the activities of a financial manager. Financial activities are complex in nature hence, to take care of all such activ ities the financial manager needs to function in full swing. The funds that Uber raised amounting to $11.5 billion was utilized in an effective manner by dint of the activities of the financial manager. The overall goal of Uber was to have an expansion on an aggressive basis and to compete with rivals such as Grab or Lyft (Myers, 2017). The method of wealth management is selected and followed by the financial manager. However, as per the details, it can be witnessed that the company is incurring a loss. Going by the overall fund's exposure and the management, the company is a high-risk investment and that the financial manager needs to ensure that the company will generate strong returns (Berk DeMarzo, 2013).The business model of the company is selected by the financial manager because he is entitled with the responsibility of utilizing the funds in a strong manner. The model of the business of Uber is that of expansion initially and then profits. As per the business model, it is e vident that Uber needs a lot of infrastructures and hence, cash needs to be available. The financial manager is delegated with the task and in the case of Uber, the financial manager has undertaken the task (Goulden, 2017).This implies that the allocation of funds has been done in a manner so that it can be utilized in an optimal manner. The funds are utilized considering the size of the industry and the status of the asset. The mode of raising funds is an important consideration and the same needs to be done with proper diligence. In short, the mode of funds through which the funds are raised is an important activity that is solely dependent on the financial manager.Moreover, the article even indicates that the policies of the company did not adhere to the business function because there were many activities of the company that was unethical in nature that led the company to suffer. Scandals and other misappropriation led to the degradation of goodwill. References Berk, J DeMarzo, P 2013, Corporate Finance, Pearson.Goulden, M 2017, Uber cant be ethical its business model wont allow it. viewed 17 November 2017 https://theconversation.com/uber-cant-be-ethical-its-business-model-wont-allow-it-85015Levin, S 2017, Uber's scandals, blunders and PR disasters: the full list, viewed 17 November 2017 https://www.theguardian.com/technology/2017/jun/18/uber-travis-kalanick-scandal-pr-disaster-timelineMyers, S 2017, Uber: The good, the bad, and the really, really ugly, viewed 17 November 2017 https://thenextweb.com/opinion/2017/04/22/uber-in-a-nutshell/