Q1

A major problem faced by managers lies in the confrontation of employee performance. Dealing with performance has been and I think will always be a major problem that causes managers to have sleepless nights (Deslandes 2014). Losing a high potential employee to organizations that offer higher compensations is also a major challenge. When managers fail to keep in mind that star employees should be promoted and given better opportunities, they lose them.

Q2

Profit organizations must pay tax from their incomes but for nonprofit organizations it is not necessary. Most profit organizations must design their balance sheets at least every quarter of the year. Nonprofit organizations do not have to use balance sheets because they have no owners. Instead they come up with a ‘statement of financial position’ that looks at liabilities and assets. Adding to balance sheet, profit organizations also have to design their income statements every quarter of the year. On the other hand, non-profit organizations do not need to compile any income statements but rather prepare a statement for activities.

Q3

Profit organizations have a larger purpose in life compared to nonprofit organizations (Deslandes 2014). Non profit organizations fund their operations majorly from gifts and donations while profit organizations go an extra mile in acquiring equity capital and loan financing options for their businesses. Profit organizations may run for contracts while nonprofit organizations may be out to find granting options. The role of financing is basically for meeting the goals and objectives of the business.

Q4

Strong leadership creates a stronger sense of connection and trust between the leader and his followers and thus every financial accounting performed by the leaders is trusted eventually. Followers on the other hand are expected to have skills in performing their jobs adequately and being a steward. This ensures that self-management becomes part of the success process at the workplace even in the budget process.