How Does a Pos System Work?
Technical capabilities have appeared for solving large-scale problems in the field of science, technology, and commerce on geographically distributed resources belonging to different owners. Research on this topic led to the emergence of the concept of grid computing, and then to the new concept of cloud computing. To unleash all the potential opportunities for using distributed computing resources, it is fundamentally important to have effective and efficient scheduling algorithms used by resource managers.
Financial Activity as an Integral Part of Pos System
The centralized form is recognized as more effective and complies with international standards, according to which internal control services should be subordinate to the head of the organization within which they are created, and be, as far as possible, functionally and organizationally independent within the corresponding organizational structure.
In a broad sense, the financial activity of an organization refers to all aspects of managing the financial resources of an individual company; this management emerged at the beginning of the 20th century into a special area of knowledge called “financial management”.
In a narrow sense, the financial activity of an organization should be understood as the management of cash flows, which are associated with the selection and maintenance of external sources of its financing. These cash flows directly affect the formation of the company’s total profit; therefore, the following wording can be given: “the financial activity of an organization is understood as a purposeful system of measures to ensure the attraction of the required amount of capital from external sources.
Taking into account the above, it is believed that the most effective is a two-tier and/or three-tier centralized structure of internal control (audit), namely:
- internal control carried out at the federal and regional levels of government: in the central office (federal level), in a department (administration) or a subordinate institution at the level of the subject;
- vertical internal (departmental) control – control from the levels of the central office, territorial regional, and municipal departments (departments) over the activities of subordinate institutions.
The Main Principle of Pos System Work
The growth of companies to grow in the scale of their activities is due to the fact that in order to survive in the conditions of tough market competition, they must pay and increase the efficiency of using products and financial resources. To do this, companies use different strategies of development: from organic growth of an enterprise, that is, growth from internal resources, to mergers and acquisitions.
The use of the strategy of Pos system has the following positive features:
- small risk when expanding the business;
- the strategy is based on the knowledge, experience, and resources already accumulated by the company;
- lower costs for the implementation of the strategy for comparison with the strategy of mergers and acquisitions of companies.
The negative sides of this system are the following:
- it takes more time to get results implementation of the strategy;
- fewer opportunities to diversify the business into new the first are promising areas of activity since the internal and the company lacks the necessary knowledge and experience;
- when diversifying activities, it takes a long period of time to reach the break-even point and make a profit on the invested funds.
In the modern sense, this market also includes the spin-off or sale of assets, when a company separates part of its business units into independent corporations; all sorts of reorganizations, when a company rebuilds its capital structure in order to change the motivation of managers; buyouts of public companies by groups of private investors.