Political Environment and Debt Administration
Political Environment and Debt Administration.
Political environment involve government actions that affects the operations of business or an organization. Every company pays close attention to government actions to see and gauge how those actions will affect their operations. Items such as grants and bonds are greatly affected by the political environment within a given region. Debt administration is closely associated with political environment as it is process intended to help restructure the debt obligations of a consumer who is unable to pay his debts. It is an order that is made in acourt of law. To avoid getting to the debt administration stage the company should ensure there is proper cash management, it can enhance its credit, and it can also ensure it has a good financial rating.
Grants are non-repayable funds, money or any other product given out or gifted by one party to another (Galaskiewicz, 2016). The giver may be the government, an NGO, a corporation, a foundation, a trust or any other individual. The grant is usually given to a non-profit making entity such as education institution, individuals, or any other party to fund a particular activity or project. Therefore, the purpose of a grant is to fund a specific project such as research projects, construction projects, medical projects, poverty eradication projects among others. For an individual or an organization to qualify for a grant, a certain level of compliance and reporting is required. Failure to that, the grant is not offered.
Types of grants and their advantages and disadvantages
There are a different types of grants that individuals can choose from. The first type of grant is referredto as mandatory grants, this type of grant is awarded on the basis of prescribed formulas by the state or any other form of regulation instead of individual project reviews. In other terms the individual does not need to compete with other individuals to qualify for the grant, he or she