Definition of Control
Financial and Operational Control
In the wild plains of the financial ecosystem, “control” represents the mighty lion that commands the activities of various economic herds. Formally, it’s the ability to steer the financial and operating policies of an enterprise with the golden spear of intent, primarily to reel in the lucrative fish called economic benefits. For practitioners in the corporate savannah, if one company—the financial lion—dominates another, it must then muster its hunting prowess to produce consolidated financial statements. This is much like calling all your cubs together to ensure no morsel of financial benefit slips through.
Control Over Assets
Translating to the jungle of assets, having control means clutching the tree branch that lets you pluck the fruits of economic benefits at will. This aspect of control is as coveted as the last slice of pizza at a finance meeting—it means you can directly benefit from the juicy returns an asset provides without asking for permission.
Related Terms
- Consolidated Financial Statements: This is like the family album of finance, showing all entities under control as one big happy (or sometimes dysfunctional) family.
- Controlling Interest: Securing the lion’s share in a company, often more than 50% of the voting rights, so you get to decide what’s for dinner, financially speaking.
- Asset Management: The art of ensuring your assets are working harder than a caffeinated accountant at year-end.
- Corporate Governance: Setting the rules of the game in a company, ensuring that everything is as orderly as a librarian’s bookshelf.
Further Reading
To dig deeper into the financial underbrush, consider prowling through the following books:
- “Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports” by Howard Schilit: Learn the tricks of the financial trade so you can control without being controlled.
- “Corporate Governance Matters” by David Larcker and Brian Tayan: A guide to understanding the intricate dance of governance and control in business.
Control, in its essence, is about having the reins of influence and benefit in the palm of your hand, be it over a bustling company or a lucrative asset. So, grip those reins tightly, because in the jungle of business finance, it’s ride or be ridden!
