Monthly Archives: March 2011

The Unicist Ontology of Corporate Finances

The ontological approach to finances is necessary to take advantage of the possibilities of the market and maximize the leverage of a business.

The ontological structure of a business varies depending on who the “beneficiary” of the activity is. When the financial statements are observed by the shareholder there is no doubt that the central value, its purpose, is given by the equity.

From the shareholders’ point of view you will have an ontological structure of the financials of a company where the purpose is its equity, which is put into action to generate benefits by the assets that are limited by the liability a company is able to manage.

The apparent paradox is that, on the one hand, equity and liabilities are complementary but, on the other hand, this complementation generates a positive or negative leverage depending on the particular conditions of a market.

Stakeholders are focused on the assets of companies because they need them to develop their activities and shareholders’ capital is just a complementary element.

This can be seen in some large enterprises where the cost of “shareholders investment” is explicitly considered as a cost to be covered by the company.

This generates contradictory concepts that need to be negotiated in order to build consensus. This negotiation implies accepting that all companies are pulled and pushed in different direction by their customers and their shareholders, while the stakeholders need to find equilibrium.

What allows finding a solution to this conflict of interest is growth. Profitable growth covers both the interests of shareholders and stakeholders.

Dealing with the ontology of financial statements allows defining the necessary solutions to build profitable growth.

Managing companies understanding the ontology that is implicit in their financial statements allows widening the possibilities of business growth.

The Unicist Scorecard is an ontological measurement system to integrate the different approaches to foster growth.

Learn more about the trend of ontology based solutions for businesses:

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Peter Belohlavek

NOTE: The Unicist Research Institute is the major research organization in the world in its specialty based on more than 3,500 researches in complexity science, developed since 1976 until September 2010,  applied to individual, institutional and social evolution. The applicative researches are based on the discovery of the Ontogenetic Intelligence of Nature and the consequent Unicist Theory of Evolution.