Given the great effects that the level of business equity can have on the survival and credit rating of a company, it is a good idea to understand who has responsibility. It is clearly a financial concept and the natural place for resting responsibility would be with the different accountancy teams within the organization.

However there are dangers in this approach. If responsibility for business equity is shelved onto accountancy teams, other sections will not have an understanding of how their activities can lead to the diminishing or increase in business equity. Ideally everyone should understand their role in developing and maintaining business equity.

The role of individual employees
Individual employees will add value to the company by way of producing goods and service s for sale after mobilizing the inputs. Each person needs to take responsibility to ensure that they do their work to the best of their ability and to the specification that was given to them at the start of their contract. After all if the organization is to collapse, they will be the ones losing their jobs whilst trying to negotiate with unsympathetic venture capitalists. Where there is a need to appraise the company, local members of staff need to cooperate by providing accurate and timely management information in order to facilitate the quick award of funding to the firm.

The Role of the Corporate Finance Team
The corporate finance team is responsible for coordinating all efforts to obtain funding for business projects. Among these sources of funding will be business equity. They will need to assess that the company’s business equity levels are measured, quantified and documented. Furthermore they will be at the forefront of ensuring that in any business deal, the company business equity is not sold way below the market price.

They also need to raise management information for senior managers, prepare reports for potential investors and will be at the forefront of all negotiations. There is also an important role to sensitize the general workforce and senior managers about some aspects of accounting for business equity which may be relevant to their line of work.

The Role of Senior Management Executives
Senior executives will control the overall strategy of the company. If they are not versed with the basic concepts of business equity, they might make management decisions that are inappropriate in terms of trying to build a good business equity portfolio.

Management should also ensure that all parts of the business are aware of the existence of business equity and that all business functions are carried out bearing this in mind the need to maximize business equity. Finally they will be making the final decisions as to whether to agree to any investment proposal so it is imperative that they are quite well versed with the concepts of business equity.

Conclusion
As we can see from the above discussion, everyone working in an organization needs to ensure that they understand that business equity represents the value of their organization and that as they carry out each of their roles, they need to ensure that they consider the ramifications on this metric.