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The use of financial models in business
146 here, or whether it tackles .endering problems, which may be even more complex. But these are only some of the aspects of uncertainty in engineering. In my opinion the book should
be seen as marking a phase in the deveIopm?nt of engineering in uncertainty.
The Use of’ Financial Models in Business,
The various subject headings: Characteris:ics of Financial Models, Who Uses the Models, Problems and Pitfalls, Getting Started, Outside Assistance, etc. are all aimed directly at the tirm that does not model but thinks it might be time to start. Any company with an annual profit of more than $ Im. which is not already modclling would therefore be well advised to read this report, because it appears that a number of companies of this size are already benefitting from modelling. Any company already modelling would also find its $ 6.50 well spent - they will then be able to read of the modelling experiences of 80 other companies. There need to be only two warnings: firstly, the survey is based on only American companies, and outside America development might be somewhat different, and secondly, unless the reader is directly involved in a policy decision for his company, the report, like all reports, makes rather dry reading.
Financial Executives Research Foundation, 633 Third Avenue, New York, 1975, 162 pages, $6.50 This book is a detailed report of the results of a 1973 survey to 160 American companies on the extent to which financial computer models are used by them. With the working team from Arthur D. Little Inc. and the advisory committee from six large American companies, the result is a very complete, professional and impartial report. The survey was on “Financial Models”; this included forecasting models (sales, budget, economics), and discounted cash flow investment analysis models, in addition to the usual corporate model. The report has been written primarily for companies that at present do r.ot model and, by giving reasons why other companies do, 01 do not, or did but no longer do model, it enables them to properly re-assess their situation to decide whether their present policy is still justified.
An Introduction to Business Finance, by G.S.
Hemingway. William Heinemann Ltd., London, 1976,239 pages, L 2.90 (paper back). This book is essentially concerned with the basic financial operations of businesses. Various types of businesses are described, r’ aing from partnerships to public limited and hc.rling companies. A major part of the book deals in detail with sources of funds. For example, succinct arguments are presented both for and against the use of retained earnings. There
S.A. Gregory
‘
L.M. Rose
is an excellent chapter on depreciation. Other topics dealt with include leasing, liquidity, working capital, overtrading and methods of profitability estimation. The book is meant to meet the requirements of those taking Business Finance on HNC/HND courses. However, it is a well written book and deserves to have a wider audiencr . The headings are excellent and it could serve as a useful reference book for anyone responsibly involved in business or industry. Perhaps the engineer may find it less numerate and more descriptive than his normal taste but he
be seen as marking a phase in the deveIopm?nt of engineering in uncertainty.
The Use of’ Financial Models in Business,
The various subject headings: Characteris:ics of Financial Models, Who Uses the Models, Problems and Pitfalls, Getting Started, Outside Assistance, etc. are all aimed directly at the tirm that does not model but thinks it might be time to start. Any company with an annual profit of more than $ Im. which is not already modclling would therefore be well advised to read this report, because it appears that a number of companies of this size are already benefitting from modelling. Any company already modelling would also find its $ 6.50 well spent - they will then be able to read of the modelling experiences of 80 other companies. There need to be only two warnings: firstly, the survey is based on only American companies, and outside America development might be somewhat different, and secondly, unless the reader is directly involved in a policy decision for his company, the report, like all reports, makes rather dry reading.
Financial Executives Research Foundation, 633 Third Avenue, New York, 1975, 162 pages, $6.50 This book is a detailed report of the results of a 1973 survey to 160 American companies on the extent to which financial computer models are used by them. With the working team from Arthur D. Little Inc. and the advisory committee from six large American companies, the result is a very complete, professional and impartial report. The survey was on “Financial Models”; this included forecasting models (sales, budget, economics), and discounted cash flow investment analysis models, in addition to the usual corporate model. The report has been written primarily for companies that at present do r.ot model and, by giving reasons why other companies do, 01 do not, or did but no longer do model, it enables them to properly re-assess their situation to decide whether their present policy is still justified.
An Introduction to Business Finance, by G.S.
Hemingway. William Heinemann Ltd., London, 1976,239 pages, L 2.90 (paper back). This book is essentially concerned with the basic financial operations of businesses. Various types of businesses are described, r’ aing from partnerships to public limited and hc.rling companies. A major part of the book deals in detail with sources of funds. For example, succinct arguments are presented both for and against the use of retained earnings. There
S.A. Gregory
‘
L.M. Rose
is an excellent chapter on depreciation. Other topics dealt with include leasing, liquidity, working capital, overtrading and methods of profitability estimation. The book is meant to meet the requirements of those taking Business Finance on HNC/HND courses. However, it is a well written book and deserves to have a wider audiencr . The headings are excellent and it could serve as a useful reference book for anyone responsibly involved in business or industry. Perhaps the engineer may find it less numerate and more descriptive than his normal taste but he