Found 1015 Articles for Finance Management

Decision making helps to utilise the available resources for achieving the objectives of the organisation, unless minimum financial performance levels are achieved. Financial management provides both conceptual and analytical framework for financial decision making. The key aspects of financial decision making relate to financing, investment, dividends and working capital management.The top three financial decisions along with the factors affecting the respective decisions are mentioned below −Investment decisionsInvestment decisions tells about total amount of assets to be held in the firm. Since, funds involve cost are available in limited quantity proper utilisation is required for achieving the goal of wealth maximisation.Investment ... Read More

Let us first understand the nature of financial management and then study about its scope.Nature of financial managementThe nature of financial management includes the following −Estimates capital requirementsFinancial management helps in anticipation of funds by estimating working capital and fixed capital requirements for carrying business activities.Decides capital structureProper balance between debt and equity should be attained, which minimizes the cost of capital.Financial management decides proper portion of different securities (common equity, preferred equity and debt).Select source of funSource of fund is one crucial decision in every organisation. Every organisation should properly analyse various source of funds (shares, bonds, debentures etc.) ... Read More

Financial management provides pathways to attain goals and objectives in an organisation. The main duty of a financial manager is to measure organisational efficiency through proper allocation, acquisition and management.The importance of financial management is explained below −It provides guidance in financial planning.It assists in acquiring funds from different sources.It helps in investing an appropriate amount of funds.It increases organisational efficiency.It reduces delay production.It cut down financial costs.It reduces cost of fund.It ensures proper use of fund.It helps business firm to take financial decisions.It prepares guideline for earning maximum profits with minimum cost.It increases shareholders’ wealth.It can control the financial ... Read More

Financial management is the set of activities concerned with planning, organising, directing and controlling the financial activities. Financial management accepts the general management principles for financial performances. Financial management acts like a guidance, where more investment opportunities are available.Scope of financial managementThe scope of financial management is given below −Estimating the requirement of funds.Determining the capital structure.Investment fund.Maximise profits.Maintain core value of organisation.Dividend for shareholders.Retain profits.Objectives of financial managementThe objectives of financial management include −Profit maximisation.Wealth maximisation.Optimum funds utilisation.Ensure safety on investment.Sound capital structure.Functions of financial managementThe functions of financial management are as follows −Estimation of capital requirements.Determination of capital ... Read More

Finance represents the money management and the process of acquiring the funds. Finance is a board term that describes the activities related to banking, leverage or debt, credit, capital markets, money and investments.Business finance tells about the funds and credit employed in the business. It also helps to manage the funds/money to make your business more profitable by considering financial statements (profit and loss accounts, balance sheets and cash flow statements).Types of Business financesThe types of business finances are explained below −Short term financeFinancing the business for a short period of time (less than 1 year) is short term finance. ... Read More