AN APPRAISAL OF FINANCIAL MANAGEMENT IN GOVERNMENT – OWNED COMPANY (A CASE STUDY OF ONITSHA SOUTH MASS TRANSIT COMPANY)
AN APPRAISAL OF FINANCIAL MANAGEMENT IN GOVERNMENT – OWNED COMPANY
(A CASE STUDY OF ONITSHA SOUTH MASS TRANSIT COMPANY)
ABSTRACT
This project is aim at appraising the financial management of government owned company with regards to Onitsha South Mass Transit.
It is clear that budgeting and budgetary control is not carried on to any appreciable level in this company.
The financial control involves making some monthly returns from their subsidiary companies not only form the parent company.
However, this research has brought to light the problems of government – owned companies. Such problems of government – owned companies include interference in the management of the company, poor funding, short tenure of Chief executives, etc.
In all, government ownership of companies was preferred because this provided many non-financial benefits such as controlling the prices of essential products and services, making essential products and services affordable and available to all etc.
The aim of this project work is to look at appraising the financial management of government owned company with a particular reference on Onitsha Mass Transit, so it is clear that budgeting and budgetary control is not curried on to any appreciable level in this economy. The financial control involves making some monthly returns from their subsidiaries companies not only form the parents.
In spite of numerous knowledge and incentives initiated by the government to encourage the financial management of the enterprises and to improve the welfare of the consumer or people yet failing them for these reasons, the searcher want to set out to investigate the cause of the problems and also finding ways of over coming them in the recommendation given at the end of this work.
This dissertation is divided into three sections consisting of five chapters. The first section deals with introduction. The back found history, statement of the problems, purpose of the study, research question, statement of hypothesis, scope and limitation of the study, significance of study, definition of terms and references, and review of related literature (chapter 1 and 2). The second section deals with the methodology use (chapter 3) while the third section deals with data presentation and analysis, and findings, conclusion and recommendations (chapter 4 and 5).
CHAPTER ONE
Introduction 1
CHAPTER TWO
Review of related literature 11
Government – owned companies 20
Companies 23
Government-owned companies 27
Transit company 30
January to august 1994 33
References 35
CHAPTER THREE
3.1 sources of data 38
CHAPTER FOUR
Data presentation and analysis 46
CHAPTER FIVE
Findings, conclusion and recommendations 68
CHAPTER ONE
Most of these government owned companies have been recommended for privatization and commercialization due to the poor performance of these companies. The mass transit companies are, however, coming at a time when most of their companies according to William T. Coventry(1993) any government has the task of keeping the economy in balance, internally and externally of making the most effective use of the management, of protecting any given enterprise and consumer, of providing special services for industries and enterprises, even intervening where essential for common good.
The reason for calling for privatization and commercialization could be seen simply as the lack of sound financial management in ‘’state enterprises’’. According to VANHOME, J.C (1990). However, the emergence of mass transit companies raise the question, ‘should government continue to set up and run state enterprises to provide certain priority services or produce certain essential product for the society? It is against this background that a research of this nature is called for to probe into the actual problems of government owned companies, which is financial management. It is the view of the researcher that a proper appraisal of financial management in these state enterprises will expose the root cause of the financial management being experienced in government –owned companies, according to JAMES CVAN HORNE AND JOHN. WACHOWICZ JN (1993)
In spite of numerical knowledge and incentives initiated by the government to encourage the financial management of the enterprise and to improve the welfare of the consume or people still failing them for these reasons, set out to investigate the cause of problem- which are.
The need for increase in financial management of the government- owned companies and in particular onitsha south mass transit company has been sounded and as such this study purposes to achieve the following objectives.
1 To know the type financial management being carried on in government- owned companies
government –owned companies
H1 - Government should continue to own companies
3 H0 - There are cause of poor financial returns received
form government- owned companies
H1 - There are cause of poor financial returns received
form government- owned companies
The problem of government- owned companies cannot be researched in detail in a profit of this level. As a result, the researcher is restricting this work to the financial management of a state- owned mass transit company –ONITSHA SOUTH MASS TRANSIT COMPANY. The researcher will use the way the company prepared or does not prepare its annual budget and how the budget is monitored to achieve the state objective of this project.
The Researcher experienced so many limitations during the course of the research work. These included the literacy of respondents who gave intuitive replies to the questions raised in questionnaire –Also the ONITSHA SOUTH MASS TRANSIT could not provide many documents with regard to their operation. Move over, the fact that the company had witnessed two assets sharing with old Anambar state mass transport company
This project will help the various government to make sound decisions with regards to which companies to private or commercialize. Formation of new companies by government to render service or produce good will be base on better informed decisions if the finding of this research are utilized. The political class, electorates and advisers to the various government will find this project very useful.
Companies will have a guide which will make the monitoring of the state enterprises to be more effective. Also, the managers of government owned enterprises will themselves derive a lot of benefits from this research work. Scholars and other researchers will make use of this work.
Finally, it is hoped that this research will help us, Nigerians, to set out prentices right.
1.8 DEFINITIONS OF TERMS
the risk- taker and profit- maker the person who assemble the factor of production and supervises their combination
are made up.
entity.
liabilities are usually distinguished from current liabilities as are secured debt from unseeded debts.
company to the amount of capital each has invested the loss of individual shareholder in such an eventuality is therefore limited to the values of his or her holding.
REFERENCES
1 HOWARD L.G (1991) “ Managerial Accounting and
finance” (8th Edition ) English LANGUAGE Book social Macdonald and Evans LTD.
made simple” 3. VAN
policy ” (8th Edition) prentice – Hall of India private limited
”Fundamental of financial management” (8th edition) prentice –Hall of India private limited
Enugu, metes on publishers, pp37-40
Banking and finance” (5th Edition) Macmillan publication limited 1.310
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COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
(A CASE STUDY OF ONITSHA SOUTH MASS TRANSIT COMPANY)
ABSTRACT
This project is aim at appraising the financial management of government owned company with regards to Onitsha South Mass Transit.
It is clear that budgeting and budgetary control is not carried on to any appreciable level in this company.
The financial control involves making some monthly returns from their subsidiary companies not only form the parent company.
However, this research has brought to light the problems of government – owned companies. Such problems of government – owned companies include interference in the management of the company, poor funding, short tenure of Chief executives, etc.
In all, government ownership of companies was preferred because this provided many non-financial benefits such as controlling the prices of essential products and services, making essential products and services affordable and available to all etc.
PROPOSAL
The aim of this project work is to look at appraising the financial management of government owned company with a particular reference on Onitsha Mass Transit, so it is clear that budgeting and budgetary control is not curried on to any appreciable level in this economy. The financial control involves making some monthly returns from their subsidiaries companies not only form the parents.
In spite of numerous knowledge and incentives initiated by the government to encourage the financial management of the enterprises and to improve the welfare of the consumer or people yet failing them for these reasons, the searcher want to set out to investigate the cause of the problems and also finding ways of over coming them in the recommendation given at the end of this work.
This dissertation is divided into three sections consisting of five chapters. The first section deals with introduction. The back found history, statement of the problems, purpose of the study, research question, statement of hypothesis, scope and limitation of the study, significance of study, definition of terms and references, and review of related literature (chapter 1 and 2). The second section deals with the methodology use (chapter 3) while the third section deals with data presentation and analysis, and findings, conclusion and recommendations (chapter 4 and 5).
CHAPTER ONE
Introduction 1
- Back ground history 1
- Statement of problem 2
- Purpose of study 3
- Research questions 4
- Statement hypothesis 5
- Scope and limitations of the study 5
- Significance of study 6
- Definitions of terms 7
References 10
CHAPTER TWO
Review of related literature 11
- The meaning of financial management 11
- Techniques of financial management 14
- Budgets and budgetary control 16
- Government – owned companies 18
- Poor financial management of
Government – owned companies 20
- Problems of government – owned
Companies 23
- Non –financial benefits from
Government-owned companies 27
- History of Onitsha south mass
Transit company 30
- Onitsha south operational data for
January to august 1994 33
- Onitsha south operational data for
January to September 1998
References 35
CHAPTER THREE
- Research design and methodology 38
3.1 sources of data 38
- Primary data 39
- Population of the study 40
- Sample size 40
- Sample technique 40
- Method of presentation of data 41
- Techniques of data analysis 42
- Rank order correlation coefficient 44
- Reference 45
CHAPTER FOUR
Data presentation and analysis 46
- Test of hypothesis 61
- Determination of freedom 62
- Statement of hypothesis 63
- Reference 67
CHAPTER FIVE
Findings, conclusion and recommendations 68
- Summary of finding 68
- Conclusion 70
- Recommendation 72
- Bibliography 74
- Journals 76
- Newspapers 78
- Questionnaire 79
CHAPTER ONE
INTRODUCTION
- BACKGROUND HISTORY
Most of these government owned companies have been recommended for privatization and commercialization due to the poor performance of these companies. The mass transit companies are, however, coming at a time when most of their companies according to William T. Coventry(1993) any government has the task of keeping the economy in balance, internally and externally of making the most effective use of the management, of protecting any given enterprise and consumer, of providing special services for industries and enterprises, even intervening where essential for common good.
The reason for calling for privatization and commercialization could be seen simply as the lack of sound financial management in ‘’state enterprises’’. According to VANHOME, J.C (1990). However, the emergence of mass transit companies raise the question, ‘should government continue to set up and run state enterprises to provide certain priority services or produce certain essential product for the society? It is against this background that a research of this nature is called for to probe into the actual problems of government owned companies, which is financial management. It is the view of the researcher that a proper appraisal of financial management in these state enterprises will expose the root cause of the financial management being experienced in government –owned companies, according to JAMES CVAN HORNE AND JOHN. WACHOWICZ JN (1993)
- STATEMENT OF THE PROBLEMS
In spite of numerical knowledge and incentives initiated by the government to encourage the financial management of the enterprise and to improve the welfare of the consume or people still failing them for these reasons, set out to investigate the cause of problem- which are.
- Government- owns a lot of enterprises in Nigeria. This may be seen as government expanding its responsibilities beyond the level of maintenance of low and order there by enable for them to BANK ECONOMIC REVIEW, VOL 6 No 12 of SEPTEMBER, 1996.
- Lack of protection of the nation form internal disturbance and external aggression and ensuring that a free market exists for the private entrepreneurs to conduct their business.
- Inadequate information awareness performing by the managers of the company. MALAM DAHIRU MOHAMMED, (1996)
- The existence of production bottlenecks in carrying out the services and activities of the company.
- in a third world country like Nigeria, government ownership of companies is not the problem but the problem is that there is poor financial management of these companies. According to MR TUNDE ADEYEML, (1995)
- Lock of innovative idea and inefficiency in the leads to ineffective financial benefit government ownership of Onitsha south mass transit.
- PURPOSE OF THE STUDY
The need for increase in financial management of the government- owned companies and in particular onitsha south mass transit company has been sounded and as such this study purposes to achieve the following objectives.
1 To know the type financial management being carried on in government- owned companies
- To know the reason and causes of poor financial management being experienced with government owned companies.
- To highlight ways of improving the poor financial management of the enterprise.
- To analysis the importance of government- owed mass transit service to the people
- To know if there are other benefits to the society being derived from state enterprises that out weigh the poor financial performance of these companies
- RESSARCH QUESTIONS
- What are the possible solution to the problem of government- owned companies?
- Should government continue own companies?
- What are the causes of the poor financial returns received from government- owned companies?
- STATEMENT OF HYPOTHESIS
- Ho - there is no possible solution to the problem of
government –owned companies
H1 - there is possible solution to the problem of
government –owned companies
- H0 - Government should not continue to own companies
H1 - Government should continue to own companies
3 H0 - There are cause of poor financial returns received
form government- owned companies
H1 - There are cause of poor financial returns received
form government- owned companies
- SCOPE AND LIMITATION OF THE STUDY
The problem of government- owned companies cannot be researched in detail in a profit of this level. As a result, the researcher is restricting this work to the financial management of a state- owned mass transit company –ONITSHA SOUTH MASS TRANSIT COMPANY. The researcher will use the way the company prepared or does not prepare its annual budget and how the budget is monitored to achieve the state objective of this project.
The Researcher experienced so many limitations during the course of the research work. These included the literacy of respondents who gave intuitive replies to the questions raised in questionnaire –Also the ONITSHA SOUTH MASS TRANSIT could not provide many documents with regard to their operation. Move over, the fact that the company had witnessed two assets sharing with old Anambar state mass transport company
- SIGNIFICANCE OF THE STUDY
This project will help the various government to make sound decisions with regards to which companies to private or commercialize. Formation of new companies by government to render service or produce good will be base on better informed decisions if the finding of this research are utilized. The political class, electorates and advisers to the various government will find this project very useful.
Companies will have a guide which will make the monitoring of the state enterprises to be more effective. Also, the managers of government owned enterprises will themselves derive a lot of benefits from this research work. Scholars and other researchers will make use of this work.
Finally, it is hoped that this research will help us, Nigerians, to set out prentices right.
1.8 DEFINITIONS OF TERMS
- Company: Group of people that has been legally incorporate to produce certain or service and controlled, or transact any other type of business
- ENTERISE: Any undertaking, but particularly a bold or removable one, or the quality of boldness and imagination in an undertaking.
- ENTERPRENEUR: Person controls a commercial enterprises-
the risk- taker and profit- maker the person who assemble the factor of production and supervises their combination
- FINANCIAL: This means the annual period for which accounts
are made up.
- INCORATED: The process of setting a business as a legal
entity.
- LIABILITY: A company’s debt- long- term (or deferred)
liabilities are usually distinguished from current liabilities as are secured debt from unseeded debts.
- LIMITED: Something of restricted
- LIMITED LIBILTIES: Restriction of owners loss in a liquidated
company to the amount of capital each has invested the loss of individual shareholder in such an eventuality is therefore limited to the values of his or her holding.
- MANAGEMENT: Control and supervision of a firm asset or operation, the group of people who control and administer a firm, as distinct from the work force
- MONOPOLY: Strictly an industry with only one supplier, also applied more widely to an industry controlled by one company.
- PRIVATIZATION: Practice of offering shares in previously national industries, for sale to the general public.
- PROMOTION: Promoting or being promoted, encouragement by publicity
- TRANSIT: The process of going or being taken or transported form one place to another.
REFERENCES
1 HOWARD L.G (1991) “ Managerial Accounting and
finance” (8th Edition ) English LANGUAGE Book social Macdonald and Evans LTD.
- WILLIAN F. CONVENTRY (1993)”Management
made simple” 3. VAN
- HORNE J. C. (1990 )” financial Management and
policy ” (8th Edition) prentice – Hall of India private limited
- JAMES C. AND JOHN M. WACHONICZ (1993)
”Fundamental of financial management” (8th edition) prentice –Hall of India private limited
- ORJIH, J. (1996) “Business Research Methodology”
Enugu, metes on publishers, pp37-40
- DERRICK, HANDSON G. (1979) “ Dictionary of
Banking and finance” (5th Edition) Macmillan publication limited 1.310
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
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Foreign Transaction For Dollars Payment :
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Branch Location: Enugu State,Nigeria.
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Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
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