Financial Management Explained: Scope, Objectives & Importance

financial management

In business, financial management is the practice of handling a company’s finances in a way that allows it to be successful and compliant with regulations. That takes both a high-level plan and boots-on-the-ground execution.

What Is Financial Management?

At its core, financial management is the practice of making a business plan and then ensuring all departments stay on track. Solid financial management enables the CFO or VP of finance to provide data that supports creation of a long-range vision, informs decisions on where to invest, and yields insights on how to fund those investments, liquidity, profitability, cash runway and more.

ERP software can help finance teams achieve these goals: A financial management system combines several financial functions, such as accounting, fixed-asset management, revenue recognition and payment processing. By integrating these key components, a financial management system ensures real-time visibility into the financial state of a company while facilitating day-to-day operations, like period-end close processes.

Video: What Is Financial Management?

Objectives of Financial Management

Building on those pillars, financial managers help their companies in a variety of ways, including but not limited to:

  • Maximizing profits: Provide insights on, for example, rising costs of raw materials that might trigger an increase in the cost of goods sold.
  • Tracking liquidity and cash flow: Ensure the company has enough money on hand to meet its obligations.
  • Ensuring compliance: Keep up with state, federal and industry-specific regulations.
  • Developing financial scenarios: These are based on the business’ current state and forecasts that assume a wide range of outcomes based on possible market conditions.
  • Manage relationships: Dealing effectively with investors and the boards of directors .

Ultimately, it’s about applying effective management principles to the company’s financial structure.

Scope of Financial Management

Financial management encompasses four major areas:

The financial manager projects how much money the company will need in order to maintain positive cash flow, allocate funds to grow or add new products or services and cope with unexpected events, and shares that information with business colleagues.

Planning may be broken down into categories including capital expenses, T&E and workforce and indirect and operational expenses.

The financial manager allocates the company’s available funds to meet costs, such as mortgages or rents, salaries, raw materials, employee T&E and other obligations. Ideally there will be some left to put aside for emergencies and to fund new business opportunities.

Companies generally have a master budget and may have separate sub documents covering, for example, cash flow and operations; budgets may be static or flexible .

Static vs. Flexible Budgeting

Managing and assessing risk.

Line-of-business executives look to their financial managers to assess and provide compensating controls for a variety of risks, including:

Affects the business’ investments as well as, for public companies, reporting and stock performance. May also reflect financial risk particular to the industry, such as a pandemic affecting restaurants or the shift of retail to a direct-to-consumer model .

The effects of, for example, customers not paying their invoices on time and thus the business not having funds to meet obligations, which may adversely affect creditworthiness and valuation, which dictates ability to borrow at favorable rates .

Finance teams must track current cash flow, estimate future cash needs and be prepared to free up working capital as needed.

This is a catch-all category, and one new to some finance teams. It may include, for example, the risk of a cyber-attack and whether to purchase cybersecurity insurance , what disaster recovery and business continuity plans are in place and what crisis management practices are triggered if a senior executive is accused of fraud or misconduct.

The financial manager sets procedures regarding how the finance team will process and distribute financial data, like invoices, payments and reports, with security and accuracy. These written procedures also outline who is responsible for making financial decisions at the company — and who signs off on those decisions.

Companies don’t need to start from scratch; there are policy and procedure templates available for a variety of organization types, such as this one for nonprofits.

Functions of Financial Management

More practically, a financial manager’s activities in the above areas revolve around planning and forecasting and controlling expenditures.

The FP&A function includes issuing P&L statements, analyzing which product lines or services have the highest profit margin or contribute the most to net profitability, maintaining the budget and forecasting the company’s future financial performance and scenario planning.

Managing cash flow is also key. The financial manager must make sure there’s enough cash on hand for day-to-day operations, like paying workers and purchasing raw materials for production. This involves overseeing cash as it flows both in and out of the business, a practice called cash management.

Along with cash management, financial management includes revenue recognition, or reporting the company’s revenue according to standard accounting principles. Balancing accounts receivable turnover ratios is a key part of strategic cash conservation and management. This may sound simple, but it isn’t always: At some companies, customers might pay months after receiving your service. At what point do you consider that money “yours” — and report the good news to investors?

Finally, managing financial controls involves analyzing how the company is performing financially compared with its plans and budgets. Methods for doing this include financial ratio analysis, in which the financial manager compares line items on the company’s financial statements.

Strategic vs. Tactical Financial Management

On a tactical level, financial management procedures govern how you process daily transactions, perform the monthly financial close, compare actual spending to what’s budgeted and ensure you meet auditor and tax requirements.

On a more strategic level, financial management feeds into vital FP&A (financial planning and analysis) and visioning activities, where finance leaders use data to help line-of-business colleagues plan future investments, spot opportunities and build resilient companies.

Importance of Financial Management

Solid financial management provides the foundation for three pillars of sound fiscal governance:

Strategizing

Identifying what needs to happen financially for the company to achieve its short- and long-term goals. Leaders need insights into current performance for scenario planning , for example.

Decision-making

Helping business leaders decide the best way to execute on plans by providing up-to-date financial reports and data on relevant KPIs.

Controlling

Ensuring each department is contributing to the vision and operating within budget and in alignment with strategy.

With effective financial management, all employees know where the company is headed, and they have visibility into progress.

What Are the Three Types of Financial Management?

The functions above can be grouped into three broader types of financial management:

Capital budgeting

Relates to identifying what needs to happen financially for the company to achieve its short- and long-term goals. Where should capital funds be expended to support growth ?

Capital structure

Determine how to pay for operations and/or growth. If interest rates are low, taking on debt might be the best answer. A company might also seek funding from a private equity firm , consider selling assets like real estate or, where applicable, selling equity.

Working capital management

As discussed above, is making sure there’s enough cash on hand for day-to-day operations, like paying workers and purchasing raw materials for production.

#1 Cloud ERP Software

What Is an Example of Financial Management?

We’ve covered some examples of financial management in the “functions” section above. Now, let’s cover how they all work together:

Say the CEO of a toothpaste company wants to introduce a new product: toothbrushes. She’ll call on her team to estimate the cost of producing the toothbrushes and the financial manager to determine where those funds should come from — for example, a bank loan.

The financial manager will acquire those funds and ensure they’re allocated to manufacture toothbrushes in the most cost-effective way possible. Assuming the toothbrushes sell well, the financial manager will gather data to help the management team decide whether to put the profits toward producing more toothbrushes, start a line of mouthwashes, pay a dividend to shareholders or take some other action.

Throughout the process, the financial manager will ensure the company has enough cash on hand to pay the new workers producing the toothbrushes. She’ll also analyze whether the company is spending and generating as much money as she estimated when she budgeted for the project.

NetSuite: Financial Management for Startups and Beyond

At the outset, financial management responsibilities within a startup include making and sticking to a budget that aligns with the business plan, evaluating what to do with profits and making sure your bills get paid and that customers pay you.

Financial management gets more complicated as the company grows and adds finance and accounting contractors or staffers. You must ensure your employees get paid with accurate deductions, properly file taxes and financial statements, and watch for errors and fraud.

This all circles back to our opening discussion of balancing strategic and tactical. By building a plan, you can answer the big questions: Are our goods and services profitable? Can we afford to launch a new product or make that hire? What might the coming 12 to 18 months bring for the business? Solid financial management provides the systems and processes to answer those questions.

Financial management challenges can be daunting for both startups and growing businesses. This is where NetSuite's financial management software comes into play. With its comprehensive, cloud-based solutions, NetSuite ensures that your financial data is accurate, up-to-date, and accessible anytime, anywhere.

From automating complex financial processes to offering real-time visibility into performance, NetSuite is the go-to solution for businesses aiming for seamless integration and efficient financial operations. As your company expands, NetSuite scales with you, ensuring you have the right tools to make informed strategic decisions at every stage. Make the smart choice for your business's financial future with NetSuite.

Financial Management

financial contingency planning

What is Financial Contingency Plan? A Step-by-Step Guide to Creating One

Creating a financial contingency plan is a wise move for any business. Crises and setbacks can strike suddenly, from natural disasters to economic downturns, technical failures, partner bankruptcies and customer…

More On This

financial forecasting vs. financial modeling

Trending Articles

valuation multiples

Learn How NetSuite Can Streamline Your Business

NetSuite has packaged the experience gained from tens of thousands of worldwide deployments over two decades into a set of leading practices that pave a clear path to success and are proven to deliver rapid business value. With NetSuite, you go live in a predictable timeframe — smart, stepped implementations begin with sales and span the entire customer lifecycle, so there’s continuity from sales to services to support.

Before you go...

Discover the products that 37,000+ customers depend on to fuel their growth.

Before you go. Talk with our team or check out these resources.

Want to set up a chat later? Let us do the lifting.

NetSuite ERP

Explore what NetSuite ERP can do for you.

Business Guide

Complete Guide to Cloud ERP Implementation

  • Corporate Finance Assignment Help
  • Stock Valuation Assignment Help
  • Insurance Assignment Help
  • Financial Planning Assignment Help
  • Managerial Finance Assignment Help
  • Econometrics Assignment Help
  • Financial Engineering Assignment Help
  • Quantitative Finance Assignment Help
  • Financial Market Analysis Assignment Help
  • Auditing and Assurance Assignment Help
  • Capital Markets Assignment Help
  • Bond Valuation Assignment Help
  • Mergers and Acquisitions Assignment Help
  • Financial Forecasting Assignment Help
  • Financial Markets Assignment Help
  • Investment Banking Assignment Help
  • Portfolio Management Assignment Help
  • Financial Modeling Assignment Help
  • Financial Reporting Assignment Help
  • Banking Assignment Help
  • Financial Mathematics Assignment Help
  • Public Finance Assignment Help
  • Valuation Methods Assignment Help
  • Applied Finance Assignment Help
  • Corporate Taxation Assignment Help
  • Capital Asset Pricing Model (CAPM) Assignment Help
  • Financial Counselling Assignment Help
  • Financial Technology Assignment Help
  • Personal Investment Planning Assignment Help
  • Financial Services Assignment Help
  • Business Finance Assignment Help

Crafting an Assignment on Financial Management Strategies: A Step-by-Step Guide

John Anderson Helper

Writing a paper on financial management strategies can be difficult, but with the right approach and understanding of the material, it can be a fulfilling experience. This blog aims to guide you step-by-step through the process of creating a thorough and help with financial management assignment . Following these recommendations will enable you to produce a top-notch piece of work that not only showcases your analytical abilities but also your proficiency in the field of finance. Financial management strategies include a broad range of procedures and methods that people and organizations use to effectively manage their financial resources. complete financial planning, capital structure, risk management, and investment choices.

Understanding Financial Management Strategies

For people and organizations looking to effectively manage their financial resources, understanding financial management strategies is crucial. These strategies cover a wide range of procedures and methods that aid in effective financial judgment. Understanding financial management strategies enables people to make well-informed decisions about capital structure, investments, risk management, and budgeting. For businesses to achieve financial stability, growth, and long-term sustainability, a thorough understanding of these strategies is essential. The various facets of financial management strategies will be covered in-depth in this section, along with a thorough overview of their significance and applicability. Individuals and organizations can achieve improved financial performance, enhanced risk management, and optimized resource allocation by learning about the advantages of effective financial management strategies. However, it's equally crucial to recognize and deal with the typical problems that might come up when putting these strategies into practice. Readers will gain a deeper understanding of the significance of financial management strategies and be better prepared to apply them in practical situations by thoroughly examining both the benefits and drawbacks associated with them.

Financial Management Strategies Assignment

Importance of Financial Management Strategies

Financial management techniques are extremely important for both individuals and businesses. These tactics act as a guide for efficiently managing financial resources, reaching financial objectives, and making thoughtful decisions. Understanding the significance of these techniques is essential because it allows you to emphasize their applicability in your assignment. You can emphasize how important financial management techniques are for achieving financial success and laying the groundwork for long-term expansion by highlighting their value.

Benefits of Effective Financial Management Strategies

A financial management strategy assignment should emphasize the numerous advantages that result from their efficient application. Learn how these strategies, such as increased profitability, optimal resource allocation, and improved cash flow management, help to improve financial performance. Discuss how they facilitate strategic investment and effective risk management techniques to promote sustainable growth. In today's dynamic business environment, emphasize how effective financial management strategies give people and organizations a competitive edge.

Common Challenges in Implementing Financial Management Strategies

Despite the many advantages, financial management strategies are not without difficulties. Address some of the typical challenges that people and organizations run into when putting these strategies into practice. These difficulties might include scarce financial resources, a lack of knowledge, resistance to change, and elements of the outside market. By recognizing and outlining these difficulties, you exhibit critical thinking skills and offer practical insights into the difficulties involved in putting financial management strategies into practice. To demonstrate your problem-solving abilities in the context of real-world scenarios, you might also think about proposing potential solutions or mitigation strategies to deal with these difficulties.

Preparing to Write the Assignment

It is essential to properly prepare for the assignment on financial management strategies before starting the writing process. You will be led through the crucial procedures in this section to lay the groundwork for an effective and well-executed assignment. Researching the subject in-depth is one of the first steps. To gather accurate and current information, look into reliable sources like reputable websites, financial publications, and academic journals. This will guarantee that the data on which your assignment is based is accurate and trustworthy. Additionally, it's important to organize your ideas and thoughts. Create a roadmap for your assignment that will help you organize your content and make sure that your ideas flow logically. Equally crucial is comprehending the instructions provided by your teacher for the assignment. Pay close attention to the word count, formatting, and any additional instructions that may be specified in the requirements. Following these rules will show that you are meticulous and professional. Finally, create a compelling thesis statement that expresses the main contention or point of your assignment. This directive will direct your writing and maintain the coherence and focus of your work. You will be prepared to start the writing process with confidence and clarity if you follow these prewriting steps.

Conducting In-Depth Research

In-depth research is necessary to write an assignment on financial management strategies that is comprehensive. Obtain current and pertinent information from reliable sources, such as reputable websites, financial publications, and academic journals. Access useful and trustworthy resources by using the online databases and library resources at your institution. You can make sure that your assignment is based on the most recent industry insights, empirical data, and expert opinions by looking into a variety of sources, which will give your work more depth and credibility.

Organizing Your Thoughts and Ideas

The first step in structuring your ideas and thoughts for your assignment on financial management strategies is to draught an outline. You can structure your content, choose how the information will be presented, and make sure you have covered all the pertinent angles of the subject by using an outline. It acts as a road map for your assignment, directing you through its various sections and subtopics. You can present a well-structured, coherent piece of work that communicates your arguments and analysis by methodically organizing your thoughts and ideas.

Understanding the Assignment Guidelines

It is crucial that you carefully read and comprehend the instructions for the assignment that your teacher has provided. Pay close attention to specifics like word count, formatting specifications, citation styles, and any other instructions that may be provided. For the best results and to show that you can follow directions, you must abide by these rules. Understanding the assignment requirements will help you to customize your writing and make sure that your work satisfies your instructor's requirements, resulting in a well-received and excellent assignment.

Developing a Strong Thesis Statement

A crucial part of your assignment on financial management strategies is developing a compelling thesis statement. The thesis statement establishes the focus and main contention of your essay and establishes the tone for the whole thing. It should convey the main idea of your assignment in a clear, succinct, and specific manner. A compelling thesis statement directs your writing and aids in keeping your narrative organized and cogent throughout your work. You can give your readers a road map for understanding the main goal and direction of your assignment by creating a well-written thesis statement.

Structuring Your Financial Management Assignment

It is crucial to pay close attention to the structure of a financial management assignment to ensure that it is organized and coherent. You'll find tips in this section on how to organize your work to have the biggest impact. Start your essay with a captivating introduction that introduces the subject of financial management strategies and gives your readers some background information to help them understand it. Include a thesis statement that highlights the main idea and argument of your assignment clearly and succinctly. Continue with an overview of financial management strategies and discuss their significance and potential impact on financial decision-making before moving on to the body of your assignment. To bolster your claims and offer concrete examples of the strategies in action, think about using case studies or real-world examples. Analyse and assess various financial management techniques as you go along, contrasting and contrasting their advantages, disadvantages, and efficacy. To back up your analysis and present a well-rounded perspective, use analytical frameworks and tools. Put an end to your assignment by restating the significance of financial management strategies in achieving financial goals and summarising the major points raised. You will successfully share with your readers your knowledge and insights on financial management strategies if you organize your assignment clearly and logically.

Introduction

Your assignment's introduction to financial management techniques should provide a succinct introduction to the subject. Give some background information to acquaint readers with the topic and emphasize its significance. To make it clear what the main contention or focus of your assignment is, also include your thesis statement in the introduction. This will help readers understand the aim and scope of your work right away, laying the groundwork for what comes next.

Overview of Financial Management Strategies

Give a thorough overview of the various financial management strategies in this section. Examine the various strategies and methods used by people and organizations to effectively manage their financial resources. Talk about the importance of each strategy and how it might affect how you make financial decisions. You give readers a solid foundation of knowledge and understanding about the wide variety of financial management strategies available by providing a thorough overview.

Case Studies or Real-Life Examples

Include pertinent case studies or real-world examples in your assignment on financial management strategies to increase their plausibility and usefulness. These cases can demonstrate how various entities, such as businesses or people, have successfully applied financial management techniques to their objectives or difficulties. You give verifiable proof of the utility and applicability of these tactics by looking at actual world examples. Readers are better able to understand the practical implications of these strategies by understanding the outcomes and potential risks associated with implementing particular financial management strategies through case studies and examples.

Analyzing Financial Management Strategies

A crucial part of your assignment involves analyzing financial management strategies, which calls for a methodical and thoughtful approach. This section will allow you to demonstrate your analytical abilities as you delve deeper into the evaluation and assessment of various strategies. Start by comparing different financial management strategies and highlighting their distinct qualities, benefits, and drawbacks. Investigate how these tactics fit with particular monetary targets and goals. Assess the success of each strategy using analytical frameworks and tools, taking into account elements like profitability, liquidity, risk control, and long-term viability. To give a thorough understanding of the implications and results of implementing these strategies, back up your analysis with pertinent data, case studies, and real-world examples. Consider discussing potential issues or restrictions related to each tactic as well as offering suggestions for resolving them. By critically analyzing and evaluating financial management strategies, you can show that you can determine whether or not they are appropriate in various situations and offer insightful information that is helpful for decision-making and financial planning.

Comparative Analysis of Strategies

Compare and contrast various financial management strategies in this section. Compare and contrast each group's traits, advantages, disadvantages, and suitability for different situations. Highlight the distinctive qualities and benefits of each strategy while taking into account elements like risk management, cost containment, and financial growth. For a solid and unbiased evaluation, back up your analysis with the use of pertinent analytical tools and frameworks. You can show that you can evaluate various scenarios or goals critically and determine which financial management strategies are best by performing a comparative analysis.

Evaluation of Strategy Effectiveness

By analyzing how particular financial management techniques affect important financial metrics and objectives, you can gauge their effectiveness. Evaluation of their impact on profitability, liquidity, solvency, and other pertinent metrics. What metrics—such as return on investment, cash flow optimization, and risk reduction—were used to determine their success? Determine possible areas where the application of the strategy can be improved or adjusted. You demonstrate your analytical abilities and capacity to judge the practical effects of these strategies by assessing the efficacy of financial management strategies. This analysis offers insights into the benefits and drawbacks of each strategy, facilitating strategic planning and well-informed decision-making.

In conclusion, thorough research, organization, and analysis are necessary when writing an assignment on financial management strategies. You can write a thorough and effective assignment by following the instructions provided in this blog, which include conducting in-depth research, organizing your ideas, comprehending the assignment guidelines, coming up with a solid thesis statement, and analyzing and evaluating various strategies. Remember to stress the significance and advantages of sound financial management techniques while also recognizing the typical implementation difficulties that might occur. You can show off your knowledge, critical thinking abilities, and capacity to use financial management principles in real-world situations by demonstrating your comprehension of these strategies and the implications they have in the real world. You can confidently approach your assignment on financial management strategies and produce an engaging piece of work if you have these insights and resources at your disposal.

Post a comment...

Essay on Financial Management

financial management assignment conclusion

After reading this essay you will learn about:- 1. Introduction to Financial Management 2. Definition of Financial Management 3. Scope 4. Role in a Business 5. Financial Goals and Objectives 6. Functions.

Essay Contents:

  • Essay on the Functions of Financial Management

Essay # 1. Introduction to Financial Management:

A business organisation seek to achieve their objectives by obtaining funds from various sources and then investing them in different types of assets, such as plant, buildings, machin­ery, vehicles etc. Financial management is managing the finances through scientific decision­-making.

For making right decisions, financial management needs to understand financial envi­ronment within which these decisions operate. Financial management will then be able to analyse these financial information’s to predict likely future results and to plan more carefully their proposed course of action.

ADVERTISEMENTS:

Financial management is concerned with the acquisition (investment), financing (arranging funds), and management of assets with some overall goal in mind. Invest­ment decisions begin with a determination of the total amount of assets required by the firm and to determine the money value of the same. Assets that cannot be economically justified, may be reduced, eliminated or replaced.

Financing decisions include decisions regarding mix of financing, type of financing em­ployed, dividend policy and method of acquiring funds i.e., getting a short term loan, or a long term lease arrangement, sale of bonds or stock.

Asset management decisions means managing the assets efficiently after their acquisition.

Success of a firm depends on the ability to raise funds, invest in assets and manage wisely.

Essay # 2. Definition of Financial Management:

Financial management is an internal part of overall management and not a staff function of the organization. It is not only restricted to fund raising process but also covers utilization of funds and monitoring its uses. The finance function is concerned with the process of acquiring an efficient utilization of funds of a business system, in order to maximize the value of the enterprise.

Financial management involves the application of principles of general management to the finance function. These functions influence the operations of other crucial functional areas of the enterprise or firm such as marketing production and personnel. Thus the overall survival of the firm is effected by it financial operations.

“The financial management deals with how the corporation obtains the funds and how it uses them.” —Hoagland

“The financial management refers to the application of skills in the manipulation, use and control of funds.” —Mock, Schultz and Schuckectat

Financial management can also be defined as that part of management, which is related mainly with raising or acquiring the funds for the enterprise or firm in the most economical way, utilizing those funds as profitably as possible, for a given risk level, planning the future investment of those funds and controlling the current performance plus future development by adopting budgeting, cost accounting and financial accounting.

Essay # 3. Scope and Functions of Financial Management :

The main objectives of financial management are to arrange the sufficient funds for meeting short term long term requirements of the enterprise. These finances are procured at minimum cost in order to maximize the profitability.

In view of these factors the financial management scope concentrates on the following areas of finance function.

(i) Estimating the Financial Requirements :

The first job of the finance manager of an enterprise is to estimate short term and long term financial requirements of his business. He will prepare a financial plan for present as well as future for this purpose.

The finance required for procuring fixed assets as well as the working capital needs will have to be ascertained. The estimations should be based on sound financial principles so that funds available with the firm are neither inadequate nor excess.

(ii) Determining the Capital Structure :

After estimating the financial requirements, the finance executives have to decide about the composition of capital. The capital structure refers to the type and proportion of different securities for raising funds. After deciding the quantum of funds needed it should be decided which type of securities should be raised.

The finance executives have to determine the relative proportions of owner’s risk capital and borrowed capital along with short term and long term debt equity ratio.

A decision regarding various sources of funds should be linked with the cost of raising funds. A decision about the kind of securities to be employed and the proportion in which these should be utilized is an important decision which affects the short term and long term financial planning of an enterprise.

(iii) Choice of Sources of Finance :

After preparing a capital structure an appropriate source of finance is chosen. Various sources from which finance may be raised include: shareholders’ debenture holders, banks and other financial institutions and public deposits etc. Finance executive has to evaluate each source or method of finance and select the best source keeping in view the various factors.

The need, purpose, objective, cost involved may be the factors affecting the selection of a suitable source of financing, for instance, if the finances are required for short periods then banks, public deposits and financial institutions may be appropriate, and for long term financial requirements, the share capital and debentures may be useful.

(iv) Investment Decisions :

When the funds have been poured then a decision regarding pattern of investment has to be taken. The funds raised are to be intelligently invested in various assets so as to optimize the returns on investment. The funds will have to be used first for the purchase of fixed assets and then an appropriate part will be retained as working capital.

The utilisation of long term funds requires a proper assessment of different alternatives through capital budgeting and opportunity cost analysis. While spending on various assets, management should be guided by three important principles of safety, liquidity and profitability. A balance should be struck even in these principles for the purpose of optimum returns on investment.

(v) Management of Profits :

The utilisation of surpluses or earnings is also an important factor in financial management. A judicious utilisation of earnings is essential for expansion and diversification plans of the enterprise.

A certain amount out of the total profit may be kept as reserve voluntarily, a portion of surplus may be distributed among the ordinary and preference shareholders, yet another portion may be reinvested. The finance executive must take into consideration the merits and demerits of the alternative scheme of utilizing the funds generated from the enterprise’s own earnings.

(vi) Management of Cash Flow :

Cash flow management is also an important task of finance executive. He has to assess the various cash requirements at different times and then make arrangements for cash needed. Cash may be required to (i) make payments to creditors (ii) for purchase of materials (iii) to meet wage bill (iv) to meet everyday expenses.

The cash management should be such that neither there is shortage of it and nor it is idle. Any shortage of cash will damage the credit worthiness of the firm. The idle cash with the enterprise will mean that it is not properly utilized. In order to know the cash requirements during different periods, the management should arrange for the preparation of cash flow statement in advance.

(vii) Implementation of Financial Controls :

An efficient system of financial management needs the use of various control of devices. Financial control devices generally adopted are (i) Return on Investment (ii) Budgetrary Control (iii) Cost control (iv) Break Even analysis (v) Ratio analysis. The use of various control techniques by the Finance Manager will help him in evaluating the performance in different areas and take corrective action whenever needed.

Essay # 4. Role of Financial Management in a Business:

An effective financial management plays a dynamic role in a modern company’s develop­ment.

In earlier days, financial managers were primarily engaged in:

(a) Raising funds, and

(b) Managing the firms cash flow.

But now-a-days with the developments and increasing complexi­ties in the business, responsibility of the financial managers have increased and they are now concerned with the decision-making process involving finance, i.e., capital investment.

Today external factors, like competition, technological change, economic uncertainty, infla­tion problem etc., create financial managers problem more complicated. He must have flexibil­ity to adopt to the changing external environment for the survival of his firm.

Role of Financial Management in a Business

Thus in addition to the job of acquisition, financing and managing the assets, the financial manager is supposed to contribute to the fortunes of the firm and to the optimal growth of the economy as a whole.

He is required to take decisions on:

(i) Investing funds in assets, and

(ii) Obtaining best mix of financing and dividends.

In order to understand the environment in which a finance manager is required to take decision, a sketch indicating business system is given hereunder:

The Financial Management’s main role is therefore to create profit on the capital invested (fixed as well as working capital). Each and every decision related to finance/economy must be optimal. Every business enterprise is set up to earn profit, and no one is interested in taking risk unless he is assured of fair return on the investment. However government organisations have no profit motive but are created to serve the public.

The profit earned by a firm is used for:

(a) Future expansion.

(b) Distributing profit as rewards to owners/shareholders.

Profit earned also serves as an indicator of efficiency and performance of the firm. So as to enable to perform the role of financial management, financial managers must be given proper authority, autonomy, freedom of actions, supporting staff, system for providing necessary information. He should be accountable also for his role.

Essay # 5. Financial Goals and Objectives :

There may be various objectives of a firm, but the goal of a firm is to maximise the wealth of the firm’s owners. Thus we can say that, “the improvement of shareholders value is the one mission that continually guides all corporate decisions and actions” or “the goal of a firm is maximizing the shareholders’ value”. This maximisation of value should be achieved from long term point of view.

The financial goal can be expressed as:

(a) Required profit levels,

(b) Earnings per shares, and

(c) Required rate of return on investment.

For a large firm, where shareholders do not have direct say and the firm is managed by the management, an ordinary shareholder can judge the performance by the market price of the firm’s share. Market price serves as a gauge for business performance, it indicates how well management is doing on behalf of its shareholders.

Management is the agents of the owners or shareholders, and financial management acts for achieving the goal of profit maximization in the shareholders’ best interests.

Social Goals :

While profit maximisation is the primary goal for any business organisation, social respon­sibility is also important for them. In case of Government organisations and public sector organisations, social responsibility is the primary goal and profit is secondary.

Social responsi­bility includes service to the people, protecting the consumer, paying fare wages to the employ­ees, upliftment of the weaker sections, welfare facilities like medical education, environment improvement programmes etc.

Financial Objectives :

In making financial decisions, it is important to set out clear objectives.

Following are the basic financial objectives:

(a) Profit maximisation.

(b) Maximisation of shareholders’ owners’ wealth.

(c) Reduction in cost.

(d) Minimising risks.

(e) Sustained increase in the value of firm

(f) Wealth maximisation.

Essay # 6. Functions of Financial Management :

Financial manager is concerned with the following aspects:

1. Identifying the present strengths and weaknesses of the organisation, and the scope for improvement, by conducting the financial analysis.

2. Planning the financial strategies. This involves the consideration of methods and levels of funds raising, profitability and the financing of expansion plan of the organisation.

3. Arranging the funds when required, in the form needed in the most economical way.

4. Conducting financial appraisal of the possible courses of action. The appraisals are needed in respect of possible take overs and mergers, analysis of capital projects, or alternative methods of funding.

5. Advising about capital structure.

6. Consideration of an appropriate level for drawings by dividends to the owners/ share­holders.

7. Ensuring that assets are controlled and used in an efficient manner.

8. Cash management. Preparation of detailed cash budgets and/or forecast funds flow statement so that future problems can be foreseen and remedial measures taken in advance. These take care of both shortage and excess of cash. Finance managers must find ways of raising more funds needed, or investing excess funds for an appropriate length of time.

9. Finance managers are likely to draw attention on other disciplines also, like account­ing and budgeting.

In order to enable financial managers to perform above functions satisfactorily, he must have good knowledge of accounting, economics, mathematics, statistics, law especially taxa­tion, financial market etc.

The functions of finance thus involve three major decisions the firm must make:

(a) The investment decisions,

(b) The financing decisions, and

(c) The dividend decisions.

Each of these decisions are taken in relation to the objective of the firm, an optimal combi­nation of these three will maximise the value of the firm to its shareholders. Since the decisions are interrelated, their joint impact on the market price of the firm’s stock must be considered.

(a) Investment Decisions:

This is the most important decision. Capital investment, i.e., allocation of capital to investment proposals is the most important aspect, whose benefits are to be realised in future. As future benefits are not known with certainty, the investment proposals involve risk.

These should, therefore, be evaluated in relation to expected return and risk. Considerable attention is paid to determine the appropriate required rate of return on the investment.

In addition to taking capital investment decisions, finance managers are concerned with the management of current assets efficiently in order to maximise profitability relative to the amount of funds tied up in asset. Investment decisions also include the decisions about mergers and acquisition of another company.

(b) Financing Decisions:

Finance manager is required to determine the best financing mix or capital structure. An optimal financing mix is one in which market price per share could be maximised. Financing decision are taken in relation to the overall valuation of the firm.

Various methods of obtaining short, intermediate, and long term financing are also explored, examined, analysed and a decision is taken. While taking financing decisions, the influence of inflammation on financial markets and on the cost of funds to the firm is also considered.

(c) Dividend Decision:

The dividend decision includes the percentage of earnings paid to stockholders in cash dividends, stock dividends and splits, and the repurchase of stock.

To Meet Funds Requirement of a Firm :

Funds requirement is assessed for different purposes, namely for feasibility study of a project, detailed planning of a project, and for operation and expansion of the business.

For feasibility study, only broad estimates are sufficient and are generally obtained from the past experience of the similar works by interpolating the present trends and the condition of the proposed project in comparison to the one whose figures are being adopted. While during detailed plan­ning, estimated requirement is comparatively more realistic, and prepared after going into details more thoroughly.

Here we are discussing the funds requirement for a running business including its long term planning for expansion.

The main function of financial management is to ensure that the firm must have sufficient funds to meet financial obligations when they are needed and to take advantage of investment opportunities. To achieve this objective, a thorough study is conducted about ‘flow of funds’ i.e., statement of funds requirement indicating the amount of fund needed and at what time.

This ‘statement of funds’ is a summary of a firm’s changes in financial position from one period to another. This indicates that how the funds will be used and how it will be financed over specific period of time. This includes the cash as well as non-cash transactions.

Forecast, financial statements are prepared for selected future dates, generally for middle term and long term plans of the firm. Budgets are used for one year, and are prepared only to fulfill the firms’ objectives envisaged in the forecast for that particular year.

These forecast financial statements are based on the sales forecast and future strategies for expanding the business, and includes, forecast income statements, forecast assets, liabilities, shareholders, equity etc.

Related Articles:

  • Essay on Financial Management: Objectives, Scope and Functions
  • Essay on Financial Management: Top 5 Essays | Branches | Management
  • Top 3 Types of Financial Decisions
  • Shareholder Value Analysis (SVA) | Firm | Financial Management

We use cookies

Privacy overview.

Sample details

  • Views: 2,546

Related Topics

  • Data Analysis
  • Economic System
  • Supply and Demand
  • Imperialism
  • Economic Growth
  • Balance sheet
  • Free Market
  • Data collection
  • Protectionism
  • Microeconomics
  • Economic Inequality
  • Mercantilism
  • Market economy

Conclusion to financial statement Analysis

Conclusion to financial statement Analysis

Conclusion This Project has provided me with valuable skills in generating cash flow statements and conducting ratio analysis. The knowledge I have gained about financial statements is applicable to daily business and commerce activities. Completing the tasks for this project has not only improved my understanding of the methods, usefulness, and importance of financial statements for evaluating a company’s performance but also equipped me to prepare them in future situations. Based on my experience with this project, I have reached the following conclusion.

There are various purposes for Financial Analysis.

ready to help you now

Without paying upfront

Judging the Earning Capacity and Managerial Efficiency: The financial analysis allows for the calculation of the business concern’s earning capacity. Furthermore, it enables the forecast of the concern’s future earning capacity. This is of particular interest to external users of accounts, specifically investors and potential investors. Assessing the managerial efficiency is also a crucial aspect.

The financial statement analysis is essential for identifying areas of managerial efficiency and inefficiency. It involves using financial ratios to analyze the relative proportion of production, administrative, and marketing expenses. This allows for the identification of favorable or unfavorable variations and determining the reasons behind them, thereby pinpointing managerial efficiency and deficiency.

In addition, financial analysis assesses both the long-term and short-term solvency of the enterprise. Short-term solvency, also known as liquidity, refers to the company’s ability to meet its short-term liabilities. Creditors and suppliers are particularly interested in this aspect.

Furthermore, debenture holders and lenders use financial analysis to evaluate the company’s ability to repay both the principal amount and interest.

Inter-Firm Comparison Inter-firm comparison is facilitated with the aid of financial analysis, which assists in evaluating both one’s own performance and that of others, particularly in the context of potential merges and acquisitions. Additionally, financial analysis is useful in making forecasts and preparing budgets.

Past financial statement analysis is helpful for evaluating future developments, specifically those expected in the next year. For instance, by examining historical earning capacity, it becomes possible to anticipate the profit for the upcoming year in relation to a particular investment. Consequently, this analysis aids in budget preparation.

Financial analysis assists financial statement users in comprehending complex information in a simplified manner. Utilizing charts and diagrams, it is possible to make various data more visually appealing and easily understood. Financial statements serve the following purposes:

Security Analysis is the process in which an investor determines if a firm is meeting their expectations in terms of dividend payments, capital appreciation, and the safety of their investment. This analysis is conducted by a security analyst who assesses the firm’s cash-generating ability, dividend payout policy, and the behavior of share prices. Credit Analysis.

Debt analysis is valuable when a company is deciding whether to offer credit to a new customer or dealer, as well as when a bank is considering granting loans to the public. The manager of the firm or the bank can use this analysis to determine whether or not to extend credit.

The firm conducts this analysis to determine the borrowing capacity of a potential borrower. It also assists in making decisions about the dividend rate. Management must decide how much of the earnings to distribute and how much to retain, which reflects the firm’s profitability and can impact the behavior of share prices. This analysis also contributes to general business analysis.

Financial analysis is an important tool for assessing a company’s profit drivers, business risks, and profit potential. It also helps in predicting future growth scenarios. Nevertheless, it is crucial to acknowledge the constraints of financial statements.

Historical Analysis

Financial statement analysis is a retrospective analysis, assessing past events rather than forecasting the future. Shareholders, investors, and others are primarily concerned with understanding the anticipated future position.

Ignore any changes in the price level.

Price level changes and purchasing power of money have an inverse relationship. The analysis of financial statements from different accounting years becomes invalid due to a change in the price level because accounting records do not consider the change in the value of money.

Qualitative Aspects Ignored

Financial statements focus exclusively on monetary matters and do not consider qualitative aspects such as management quality, labor force quality, and public relations when analyzing them.

Not devoid of prejudice

When faced with various options, such as deciding on inventory valuation or depreciation methods, accountants often have to make choices. As personal judgment is subjective, the resulting financial statements may consequently contain bias.

Variations in Account Practices

It is important for inter-firm comparison that accounting practices do not differ significantly among the firms. If there are variations in accounting practices among different firms, it is not possible to make a meaningful comparison of their financial statements.

Cite this page

https://graduateway.com/conclusion-to-financial-statement/

You can get a custom paper by one of our expert writers

  • Exchange rate
  • Comparative advantage
  • Entrepreneur
  • Economic problems
  • Macroeconomics

Check more samples on your topics

The statement of principles functional statement.

The primary purpose of developing a consensus conceptual framework is to serve as: a structure for establishing accounting standards, a foundation for resolving accounting conflicts, and basic principles that do not need to be reiterated in accounting standards. Nonetheless, a major limitation of a conceptual framework is its potential to be overly broad and having

A Thousand Splendid Suns: Conclusion Analysis

A Thousand Splendid Suns

The theme in the novel “A Thousand Splendid Suns” by Khaled Hosseini is the inner strength of a women even in the darkest of times, which he has shown through symbolism, metaphors / similes, and irony. Both Mariam and Laila endure so much heartache in their lives because they are women, yet they continue the

Is Othello’s tragic conclusion solely the result of Iago’s machinations? Analysis

Iago plays a major part in the downfall of Othello and the tragic conclusion of the play by twisting the truth and lying to Othello to convince him of Desdemona's infidelity. He works with the actions of the other characters to bring about Othello's demise whilst letting Othello jump to conclusions himself, thus making it

Allegory of the cave conclusion Analysis

Allegory Of The Cave

Plat’s allegory however is actually represents an extended metaphor that is to contrast the way in which we perceive and believe in what is reality. “The allegory of the Cave” plays multiple roles, all depending how we interpret it, either being used as a metaphor for the process of intellectual understandings On the quest for

Invisible Man Conclusion Critical Analysis

Invisible Man

Ellison paints the picture of hope for the future of Negroes in America during the narrators last scene in the epilogue. In the narrators dormancy, he often thought about his grandfathers dying words. His grandfather told him that when he dies, that the narrator has to give a good fight in his life. During the

Nathaniel Abraham Analysis and conclusion

Criminal Law

Nathaniel Abraham, who was eleven years old at the time, committed a murder, becoming the first juvenile to be tried as an adult under a 1997 Michigan law that allows children of any age to face adult charges for serious crimes. He was accused of first degree murder in the case involving Ronnie Lee

The Role of Financial Statement in Decision Making Analysis

Decision Making

INTRODUCTION The primary responsibility of the management is to make decision by using adequate accounting data obtained from proper financial reports. The globalization of business and the capital markets is pushing the world from behind, demanding better accounting systems and frameworks so as to come up with financial reports which are timely, relevant, accurate, comparable and

Financial Statement Fraud: Lessons from the Zzzz Best Case Analysis

IntroductionBest case of fraud, it tells how and why fraud was perpetrated by Barry Minkow and why it was undetected for so long. According to the video, ZZZZ Best was founded by Barry Minkow in 1982; when he was sixteen years old, it started as a carpet cleaning company. But, due to high competition in

Financial Statement Analysis – A.G. Barr

Introduction A.G. Barr p.l.c. is based in United Kingdom it maufacture, distribute, and sell soft drinks. A.G. Barr. operates in carbonates and H2O. Company has a broad scope of brand’s which includes IRN-BRU, Rubicon, Barr Brands, KA, Strathmore, Simply, Tizer, D’N’B, St. Clement’s, Findlays and Abbott’s. Company besides has some partnership trade names which includes Orangina,

financial management assignment conclusion

Hi, my name is Amy 👋

In case you can't find a relevant example, our professional writers are ready to help you write a unique paper. Just talk to our smart assistant Amy and she'll connect you with the best match.

  • Financial Management

Finance is the lifeline of any business. However, finances, like most other resources, are always limited. On the other hand, wants are always unlimited. Therefore, it is important for a business to manage its finances efficiently. As an introduction to financial management, in this article, we will look at the nature, scope, and significance of financial management, along with financial decisions and planning .

Suggested Videos

financial management assignment conclusion

Introduction to Financial Management

Let’s define financial management as the first part of the introduction to financial management. For any business, it is important that the finance it procures is invested in a manner that the returns from the investment are higher than the cost of finance. In a nutshell, financial management –

  • Endeavors to reduce the cost of finance
  • Ensures sufficient availability of funds
  • Deals with the planning, organizing , and controlling of financial activities like the procurement and utilization of funds

introduction to financial management

                                                                                                                                                       Source: Pixabay

Some Definitions

“Financial management is the activity concerned with planning, raising, controlling and administering of funds used in the business.” –  Guthman and Dougal

“Financial management is that area of business management devoted to a judicious use of capital and a careful selection of the source of capital in order to enable a spending unit to move in the direction of reaching the goals.” –  J.F. Brandley

“Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations.”-  Massie

Browse more Topics under Business Functions

  • Supply Chain
  • Marketing Management
  • Human Resource
  • Other Services

Nature, Significance, and Scope of Financial Management

Financial management is an organic function of any business. Any organization needs finances to obtain physical resources, carry out the production activities and other business operations, pay compensation to the suppliers, etc. There are many theories around financial management:

  • Some experts believe that financial management is all about providing funds needed by a business on terms that are most favorable, keeping its objectives in mind. Therefore, this approach concerns primarily with the procurement of funds which may include instruments, institutions, and practices to raise funds. It also takes care of the legal and accounting relationship between an enterprise and its source of funds.
  • Another set of experts believe that finance is all about cash. Since all business transactions involve cash, directly or indirectly, finance is concerned with everything done by the business.
  • The third and more widely accepted point of view is that financial management includes the procurement of funds and their effective utilization. For example, in the case of a manufacturing company , financial management must ensure that funds are available for installing the production plant and machinery. Further, it must also ensure that the profits adequately compensate the costs and risks borne by the business.

In a developed market, most businesses can raise capital easily. However, the real problem is the efficient utilization of the capital through effective financial planning and control.

financial management assignment conclusion

Further, the business must ensure that it deals with tasks like ensuring the availability of funds, allocating them, managing them, investing them, controlling costs, forecasting financial requirements, planning profits and estimating returns on investment, assessing working capital, etc.

The scope of Financial Mangement

The introduction to financial management also requires you to understand the scope of financial management. It is important that financial decisions take care of the shareholders ‘ interests.

Further, they are upheld by the maximization of the wealth of the shareholders , which depends on the increase in net worth, capital invested in the business, and plowed-back profits for the growth and prosperity of the organization.

The scope of financial management is explained in the diagram below:

introduction to financial management

You can understand the nature of financial management by studying the nature of investment, financing, and dividend decisions.

Learn more about Supply Chain here in detail.

Core Financial Management Decisions

In organizations, managers in an effort to minimize the costs of procuring finance and using it in the most profitable manner, take the following decisions:

Investment Decisions:  Managers need to decide on the amount of investment available out of the existing finance, on a long-term and short-term basis. They are of two types:

  • Long-term investment decisions or Capital Budgeting mean committing funds for a long period of time like fixed assets. These decisions are irreversible and usually include the ones pertaining to investing in a building and/or land, acquiring new plants/machinery or replacing the old ones, etc. These decisions determine the financial pursuits and performance of a business.
  • Short-term investment decisions or Working Capital Management means committing funds for a short period of time like current assets. These involve decisions pertaining to the investment of funds in the inventory , cash, bank deposits , and other short-term investments. They directly affect the liquidity and performance of the business.

Financing Decisions:  Managers also make decisions pertaining to raising finance from long-term sources (called Capital Structure) and short-term sources (called Working Capital). They are of two types:

  • Financial Planning decisions which relate to estimating the sources and application of funds. It means pre-estimating financial needs of an organization to ensure the availability of adequate finance. The primary objective of financial planning is to plan and ensure that the funds are available as and when required.
  • Capital Structure decisions which involve identifying sources of funds. They also involve decisions with respect to choosing external sources like issuing shares, bonds, borrowing from banks or internal sources like retained earnings for raising funds.

Dividend Decisions:  These involve decisions related to the portion of profits that will be distributed as dividend. Shareholders always demand a higher dividend, while the management would want to retain profits for business needs. Hence, this is a complex managerial decision.

Solved Question for You

Q1. What are the primary objectives of financial management?

The primary objectives of financial management are:

  • Attempting to reduce the cost of finance
  • Ensuring sufficient availability of funds
  • Also, dealing with the planning, organizing, and controlling of financial activities like the procurement and utilization of funds.

Customize your course in 30 seconds

Which class are you in.

tutor

Business Functions

7 responses to “financial management”.

the decisions of financial management it is well illaborated

Amazing! This is the type of content that I was actually searching on the internet. Simple and logical. Keep the good work up!

well explained and rich in examples

that is well about financal managment proveid fullly understanding

Love this! Thank you for sharing!

Very impressed with your overview on this topic! Thanks for your advice!

the concept of financial management is.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Download the App

Google Play

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

  • We're Hiring!
  • Help Center

paper cover thumbnail

ASSIGNMENT 1 ADVANCED FINANCIAL MANAGEMENT

Profile image of Darshit Agrawal

1. Cipla 2. Glenmark 3. Ajanta Pharma THEOROTICAL BACKGROUND:-1. LIQUIDITY RATIOS:-They are a class of financial metrices used to determine a company's ability to pay off its short term debt obligations. Common liquidity ratios are current ratio and quick ratio.

Related Papers

Bulan Oktrima

financial management assignment conclusion

International Journal of Research in Commerce and Management

Yogesh Kumawat

Bengal, Past & Present

Urmila Nikam

A company's financial performance measurement has been the important part for decision makers as shareholders, managers, stakeholders. It includes the analysis of financial statements with interpretation which results in understanding the financial soundness of pharmaceutical companies. This study is totally based on the financial performance of Pharmaceutical Companies in Maharashtra only. Actually for this the financial analyst mostly using calculative part of company's profitability, liquidity, leverages, debt-equity ratios and asset utilization along with growth interpretation. In this analysis company measures SWOT analysis also using the financial statements like Balance sheet, Trading, Profit & Loss Account. In this paper researcher analyses the profitability position of two leading pharmaceutical companies of Maharashtra especially in Export earnings using mean, standard deviation, coefficient of variation, correlation analysis. The results match with the earlier studies and the established theory of finance that the financial performance can improve in future if that was not perfect in past using different solutions. The study is conducted by taking into account of the data for ten years from 2010-2011 to 2019-2020. The Pharmaceutical companies selected for study are Lupin and Glenmark. The financial performance of those companies are evaluated and located that the liquidity of the chosen pharmaceutical companies in Maharashtra for selected period was up to the mark.

IAEME PUBLICATION

IAEME Publication

The motive of this paper is to compare the financial performance of the selected pharmaceutical organizations. The financial performance is analysed using Ratio analysis as well as statistical techniques to interpret the data. These data are extracted and calculated using the financial statement of the selected companies for the period of 5 years from 2015 to 2019. Findings reveal that Pharmaceuticals companies are highly liquid and solvent but showed an inconsistency in generating profits and efficiency. The study used recent literature to explore the gap in the existing literature. This study will be useful for regulators, financial analysts and managers concerned about the financial performance of the selected Indian pharmaceutical companies. It is considered a battery for further research in this area. JEL Classification Code: M410 Cite this Article: Monalisa Mohanty, A Comparative Study on the Financial

MRS. OKWO IFEOMA MARY

International Journal of Scientific and Research Publications (IJSRP)

Shohidul Islam

International Journal of Science and Research (IJSR)

International Journal of Business and Management

International Research Journal Commerce arts science

The Indian Pharma market is one of the largest pharma market in terms of Volume, currently it stands 3 rd largest in terms of volume and 13 th in terms of value. It contributes almost of 20 percent of global production .India is known to be largest supplier or provider of Generic drugs globally Indian Generics accounting for 20 percent of global exports in terms of volume.in this regard it becomes necessary to make study on Indianpharmaceuticalcompanies, so this paper mainly focus on analysis of profitability of selected pharmaceutical companies in India during the period 2013-2017. The tools used for analysis are mean, standard deviation, coefficient of variation and compound annual growth rate, and the study found that Lupin the profitability position as shown satisfactory when compares to other companies. The compound annual growth rate as shown satisfactory in case of Dr.Reddy's while compare to other companies.

RELATED PAPERS

Ahmad ishak

SSRN Electronic Journal

Steven Stillman

Bruce Bayly

Dilek Aygin

Eric Olivier

Applied Geochemistry

Rolf David Vogt

Biomolecules

Pádraig D'Arcy

Journal of Alloys and Compounds

Joao Guilherme

INTERNATIONAL JOURNAL OF COMPUTERS & TECHNOLOGY

Tareq Alhmiedat

Fertility and Sterility

siti nurjanah

Journal of Cell Science

Elisabetta Meacci

Turkiye Klinikleri Journal of Gynecology and Obstetrics

Aysen Sınav Soysaldı

Women & health

International Journal of Technology Intelligence and Planning

antti ainamo

Tonal Aspects of Languages 2016

Marc Brunelle

Environmental Health Perspectives

Rik van de Weerdt

Sylvain Reboul

Revue de Physique Appliquée

EntreDiversidades: Revista de Ciencias Sociales y Humanidades

Sandra Odeth

Oral Presentations

Mauro Serapioni

Andrew Johnson

Progress of Theoretical Physics

A. Souto-Iglesias

Jacques Amar

Environmental science and pollution research international

FABRICIA PAULA DE FARIA

  •   We're Hiring!
  •   Help Center
  • Find new research papers in:
  • Health Sciences
  • Earth Sciences
  • Cognitive Science
  • Mathematics
  • Computer Science
  • Academia ©2024

Locus Assignments

Financial Management Assignment

Financial Management Assignment

Introduction

This assignment discusses and gives in depth knowledge of financial management of business concern. It also explains Working capital management policies and treasury management policies which help in taking decisions regarding capital investment, corporation tax and effects of inflation. This also puts light on risk and uncertainty and its analysis, which an organisation may face due to regular changes in economic environment and what are the risk management techniques to cure the risk. It guides us in framing a sound capital structure so that we can able to take gearing and leasing decisions with reference to our business. The UK based company “A & W restaurants” having a chain of fast food restaurants has been analysed for the financial management objectives.

Critically discuss the Financial Corporate objectives of the firm and be able to analyse the key financial decisions in finance and capital markets and discuss the impact of the economic environment on the financial management.

The common financial objectives of company A& W restaurants are concerned with arrange funds for the business, amount of money received from investors make arrangements of loan at a reasonable rate, implementation of working capital management policies, dividend decisions etc. There are many routes of arranging funds for business entity which includes internal sources and external sources. Internal source includes: - retained earnings, reserves and surpluses. External sources includes:- Business loan, small business grants, invoice finance and factoring, angel investors which is the key financial decision of business with regards to finance and capital markets. Retained earnings and reserves & surpluses are not enough to complete our business requirement. So, the company should have to go with long term and short term funding plans (Brott, 2012).

For a fast food restaurant business concern require large number of working capital. It can be managed by overdraft, short term bank loans and trade credits. For management of working capital managers can take a view of these three policies:-Conservative, Aggressive, Moderate.

Critically explain and apply the control and management of working capital policies and treasury management and to undertake capital investment decisions in practice from a strategic perspective, includes the effect of inflation and corporation tax.

There are three types of working capital policies available:-

  • Aggressive - In this a company operates with lower level of cash, inventory and trade receivables for a given level of sales.
  • Conservative - In this company having huge balance of cash and holding higher level of inventory.
  • Moderate - This policy is a middle way between aggressive and conservative approaches.

While adopting these policies it should be kept in mind that there should be lower financial risk or inventory problems and negative effect on profitability are avoided. The firm should take into account the anticipated inflation and corporate taxes applicable on it. Through the market analysis company can get idea about prevailing inflation growth rate on the basis of which it can measure its investment returns. Corporation tax rate also affects the investment returns. UK tax system has two main features:

  • Taxation on income received from holding stocks and bonds
  • Progressivity

These features of the tax system prevalent in UK focus on the effective treasury management and working capital management practices followed by the businesses in the country. Thus the tax policies, inflation rates and other macro and micro economic factors contribute to the working capital management of the business and lay the emphasis on the treasury management through long term profitability and sustainability.

Get assignment help from full time dedicated experts of Locus assignments.

BTEC HND Assignment Experts

Critically discuss and assess the impact of risk and uncertainty on the financial decision- making process and be able to appropriately advice others on the basis of analysis.

Risk and uncertainty relate with the future of business. It includes unknown event which have probability of negative outcomes. Rising in the price of food, major competitors or falling disposable income are some of the example of risk which may be faced by fast food restaurants. There are many types of risks which are likely to be faced by business concerns such as political risk, economic risk and industrial or market risk. It includes threats of substitute products or services, rivalry among the competitors, entrance of new concerns in the market, bargaining power of supplier, bargaining power of consumers etc. Political incidents may influence financial decisions (Madura & Fox, 2014).

These risk impact on the growth and economic development of business concern. So, while taking financial decisions managers have to assess economic environment, gather more information, analyse and expose more outcomes, exercising control over situations, draw advises from technical experts and sharing responsibility for taking decisions.

Analyse the financing decisions of firms including capital structure and gearing and leasing decisions and be able to appropriately advise others.

The financing decision of firm includes selecting the sources of capital investment which include equity investment, banks, financial institutions, venture capital and angel investors. Equity and preference share issuance is the common and most adoptable source of capital funding. Company may also go for debt capital issuance. Issuing debentures than share capital is more beneficial for a company. Apart from this loan from bank and financial institutions is an option available. Leasing is also an important decision for the financing of the assets of company. The firm is indulged in food and restaurant business therefore; it shall procure the assets on leasing rather than purchasing. Also the gearing shall be kept minimum and the capital structure shall include more of equity capital as compared to debt capital (Lumby, 2015).

Critically analyse the principles of business and asset valuation and their applications and critically appreciate the risk management techniques in business.

Asset valuation - It is based on cash flows, comparable valuation metrics or transaction value. Asset can be valued at book value of asset and market value of asset. Generally assets are valued by comparing it to similar assets and identifying its cash flow potential. Liquid assets can easily trade in the market so they have market value.

Business valuation - It helps to locate real or perceived value. Valuation method depends on kinds of business whether it is running or liquidating. Valuation methods are based on significant tangible assets, price / earnings ratio, entry cost, discounted cash flow, established standard formula or trend for a particular sector.

The risk management techniques that are used in the business include those methods or tools which can be used to control, prevent or minimise the risks of the business. These are loss, prevention, loss reduction, separation of functions of business, double check on transactions or duplication to avoid the errors, diversification of the operations of business etc. These techniques can be applied in the operations of business at the initial stage so that the probable loss from the business risks can be mitigated. The firm A&W Restaurants shall apply the risk management techniques such as loss prevention and loss reduction in its inventory and assets so as to avoid the enlargement of threats arising out of such risks.

 It can be concluded that for effective financial management outlines should be drawn before valuation of assets which includes need for valuation, factors affecting business value, methods which may use for valuation and calculate profit for the purpose of valuation. It reveals that what financial objectives should a business concern frame as per its nature of business environment considering the facts related with capital market and also observing the prevalent economic environment,  so that a firm can opt a safer route. Besides all these things it explains the principals of business and asset valuation and their applications.  

Abdullah, M., Shukor, Z.A., Mohamed, Z.M. & Ahmad, A. 2015, "Risk management disclosure: A study on the effect of voluntary risk management disclosure toward firm value[1]", Journal of Applied Accounting Research, vol. 16, no. 3, pp. 400. Brott, P.E. 2012, "A career story approach to management, business, and financial occupations", Journal of Employment Counseling, vol. 49, no. 4, pp. 172-184. Journal of Risk Finance a vailable from: http://www.emeraldgrouppublishing.com/pr oducts/journals/journals.htm?id=JRF Kaplan Publishing UK. (2015). ACCA F9- Financial Management , Berkshire, UK: Author. Lumby, S. (2015). Corporate finance Theor y and Practice, Retrieved from http://lib.myilibrary.com/ProductDetail.aspx?id=328516 Madura, R. & Fox, J. (2014). International Financial Management . Retrieved fromhttp://lib.myilibrary.com/ProductDetail.aspx?id=328480

Delivery in day(s): 3

  • Number of views: 666
  • Unit: Unit 2 Managing Financial Resources and Decisions

Share this Solution

facebook

Other Assignments

Computing Skills Assignment Help

Computing Skills Assignment Help

Delivery in day(s): 5

Organisational Behaviour Assignment Help

Organisational Behaviour Assignment Help

Business Law Assignment

Business Law Assignment

Delivery in day(s): 4

International Management Assignment Help

International Management Assignment Help

Business Law Assignment Help

Business Law Assignment Help

Related solutions.

Unit 2 Managing Finance Resource Assignment Help

Unit 2 Managing Finance Resource Assignment Help

MFRD Assignment – Care Tech Holding PLC

Unit 2 MFRD Assignment – Care Tech Holding PLC

MFRD Assignment Help

MFRD Assignment Help Locus

Unit 2 MFRD Managing Finance Assignment

Unit 2 MFRD Managing Finance Assignment

Managing Financial Resources Decisions Assignment - Green Supplies

Managing Financial Resources Decisions Assignment - Green Supplies

Assignment Managing Financial Resources Decisions

Assignment on Managing Financial Resources and Decisions

  • Unit 1 Business and Business Environment
  • Unit 1 Business Skills for e-Commerce
  • Unit 1 Communicating in HSC Organisations
  • Unit 1 The Contemporary Hospitality Industry
  • Unit 1 The Travel and Tourism Sector

Other Solutions

Unit 6 Business Decision Making Assignment Help

Unit 6 Business Decision Making Assignment Help

Business Strategy Assignment Solutions

Business Strategy Assignment Solutions

Managing Business Activities to Achieve Results Assignment Help

Managing Business Activities to Achieve Results Assignment Help

External Business Environment Assignment Help

External Business Environment Assignment Help

Contemporary Issues in Travel and Tourism Assignment Help

Contemporary Issues in Travel and Tourism Assignment Help

Business Environment Assignment - British Airways

Business Environment Assignment - British Airways

  • Undergraduate
  • High School
  • Architecture
  • American History
  • Asian History
  • Antique Literature
  • American Literature
  • Asian Literature
  • Classic English Literature
  • World Literature
  • Creative Writing
  • Linguistics
  • Criminal Justice
  • Legal Issues
  • Anthropology
  • Archaeology
  • Political Science
  • World Affairs
  • African-American Studies
  • East European Studies
  • Latin-American Studies
  • Native-American Studies
  • West European Studies
  • Family and Consumer Science
  • Social Issues
  • Women and Gender Studies
  • Social Work
  • Natural Sciences
  • Pharmacology
  • Earth science
  • Agriculture
  • Agricultural Studies
  • Computer Science
  • IT Management
  • Mathematics
  • Investments
  • Engineering and Technology
  • Engineering
  • Aeronautics
  • Medicine and Health
  • Alternative Medicine
  • Communications and Media
  • Advertising
  • Communication Strategies
  • Public Relations
  • Educational Theories
  • Teacher's Career
  • Chicago/Turabian
  • Company Analysis
  • Education Theories
  • Shakespeare
  • Canadian Studies
  • Food Safety
  • Relation of Global Warming and Extreme Weather Condition
  • Movie Review
  • Admission Essay
  • Annotated Bibliography
  • Application Essay
  • Article Critique
  • Article Review
  • Article Writing
  • Book Review
  • Business Plan
  • Business Proposal
  • Capstone Project
  • Cover Letter
  • Creative Essay
  • Dissertation
  • Dissertation - Abstract
  • Dissertation - Conclusion
  • Dissertation - Discussion
  • Dissertation - Hypothesis
  • Dissertation - Introduction
  • Dissertation - Literature
  • Dissertation - Methodology
  • Dissertation - Results
  • GCSE Coursework
  • Grant Proposal
  • Marketing Plan
  • Multiple Choice Quiz
  • Personal Statement
  • Power Point Presentation
  • Power Point Presentation With Speaker Notes
  • Questionnaire
  • Reaction Paper

Research Paper

  • Research Proposal
  • SWOT analysis
  • Thesis Paper
  • Online Quiz
  • Literature Review
  • Movie Analysis
  • Statistics problem
  • Math Problem
  • All papers examples
  • How It Works
  • Money Back Policy
  • Terms of Use
  • Privacy Policy
  • We Are Hiring

Financial Management Assignment, Essay Example

Pages: 3

Words: 907

Hire a Writer for Custom Essay

Use 10% Off Discount: "custom10" in 1 Click 👇

You are free to use it as an inspiration or a source for your own work.

NYSE merged with Paris based Euronext on April 2007 to form NYSE Euronext in a $20 billion deal. As of September 2007, the total market value of all NYSE Euronext listed companies was over $30 trillion and its daily trading value was $127 billion, making it the world’s largest and most liquid securities place (Mason, 2007). NASDAQ stands for the National Association of Securities Dealers Automated Quotation System. Unlike the NYSE where trades take place on an exchange, NASDAQ is an electronic stock market that uses a computerized system to provide brokers and dealers with price quotes (SEC).

NYSE requires the presence of traders on an exchange floor for trading where as NASDAQ is a telecommunications network with no physical exchange. Thus, trading on NASDAQ takes place directly between the investors and their buyers and sellers who are also market makers. In addition, NASDAQ is a dealer’s market where as NYSE is an auction market. In case of NYSE, the highest bid is matched with the lowest asking price where as in NASDAQ market maker acts as a dealer (Staff).

NASDAQ is known to attract internet and technology stocks that are often high growth and more volatile. In comparison, NYSE is known to host more well established and mature companies. The companies listed on NYSE are considered relatively less volatile and established including many of the blue chip companies. NYSE hosts consumer goods and industrial giants such as Coca Cola, Wal-Mart, Citicorp, and General Electric where as NASDAQ hosts technology titans such as Microsoft, Cisco, Intel, and Oracle. Both NYSE and NASDAQ are publicly traded companies themselves which means they strive to earn profits for their shareholders just like any other publicly listed company (Staff).

NYSE members are required to hold seats on the exchange which are like memberships. The seats are required to be able to trade on the exchange. There are 1,366 seats which can be bought and sold. NASDAQ licenses its brokers but has not membership seat system like NYSE. NYSE lists over 2,700 securities where as NASDAQ lists over 3,200 securities. NASDAQ is the largest stock exchange in the world in terms of daily traded volume (Pomoni).

As far as listing requirements are concerned, NYSE market value of public shares to be at least $40 million for IPOs, spin-offs, affiliates, and carve-outs and $100 million for everyone else. In addition, the issuer must have a $4 stock price at the time of listing. The listed company must have an aggregate pre-tax income of at least $10 million for the last 3 years, depending upon the financial criteria it chooses to satisfy. Alternatively, the listed company may have a global market capitalization of $150 million to $750 million, again depending upon the valuation criteria it chooses to meet (NYSE).

NASDAQ listing requirement is aggregate pre-tax income in the last three years to be at least $11 million to $27 million, depending upon the listing criteria the company opts for. Alternatively, the company may opt for valuation requirements that require $160 million to over $850 million market cap, depending upon the chosen valuation criteria (NASDAQ, 2010).

As of 2008, NYSE share of the global industry was largest. The market cap of the companies listed on NYSE accounted for 12.5% of the global industry value. In comparison, the market cap of the companies listed on NASDAQ accounted for 5.4% of the global industry value. NYSE also operates another exchange called NYSE Arca which operates two all electronic equity securities trading systems, one for trading NYSE, American Stock Exchange, and other exchanged listed securities and another for trading NASDAQ listed securities (DataMonitor Plc, 2009).

The Public Company Accounting and Investor Protection Act of 2002 which is also known as Sarbanes-Oxley Act was passed in the wake of Enron and WorldCom scandals to repair the investment community’s confidence in the U.S. security laws and increase companies’ accountability for the accuracy of their financial statements. It only applies to companies with publicly listing stocks. It requires CEOs to personally verify the accuracy of the financial statements and requires independent auditors to address the conflict of interest that existed between the companies and their auditors.

The act also requires companies to strengthen their internal control mechanisms to improve operating transparency. The act requires the companies to inform the public of any material changes in their economic reality on an urgent basis. The act also imposes punishment in the form of fine and/or imprisonment for altering, falsifying, or concealing evidence with the intention of influencing a legal investigation. The act also provides protection to the whistleblowers for exposing fraud and illegal activities within the companies.

The act has been criticized for imposing huge compliance costs and has been especially burdensome on smaller companies for whom the compliance cost has been disproportionately high. In addition, the critics have complained about the huge diversion of time and financial resources that could otherwise be spent on profitable economic activities. The act may have motivated certain companies to go private to avoid the compliance requirements.

DataMonitor Plc. (2009). Capital Markets Industry Profile: Global.

Mason, A. (2007, September). Equities. Equities , pp. 27-29.

NASDAQ. (2010, July). Listing Standards & Fees . Retrieved February 4, 2011, from http://www.nasdaq.com/about/nasdaq_listing_req_fees.pdf

NYSE. (n.d.). NYSE Listing Standards . Retrieved February 4, 2011, from NYSE Regulation: http://www.nyse.com/regulation/nyse/1147474807344.html

Pomoni, C. (n.d.). Personal Finance: Investing . Retrieved February 4, 2011, from Helium: http://www.helium.com/items/1148565-the-differences-between-the-new-york-stock-exchange-and-nasdaq

SEC. (n.d.). Nasdaq . Retrieved February 4, 2011, from U.S. Securities and Exchange Commission: http://www.sec.gov/answers/nasdaq.htm

Staff. (n.d.). The NYSE And Nasdaq: How They Work . Retrieved February 4, 2011, from Investopedia: http://www.investopedia.com/articles/basics/03/103103.asp

Stuck with your Essay?

Get in touch with one of our experts for instant help!

PepsiCo Supply Chain, Research Paper Example

Ethical Dilemma Assignment, Essay Example

Time is precious

don’t waste it!

Plagiarism-free guarantee

Privacy guarantee

Secure checkout

Money back guarantee

E-book

Related Essay Samples & Examples

Voting as a civic responsibility, essay example.

Pages: 1

Words: 287

Utilitarianism and Its Applications, Essay Example

Words: 356

The Age-Related Changes of the Older Person, Essay Example

Pages: 2

Words: 448

The Problems ESOL Teachers Face, Essay Example

Pages: 8

Words: 2293

Should English Be the Primary Language? Essay Example

Pages: 4

Words: 999

The Term “Social Construction of Reality”, Essay Example

Words: 371

404 Not found

IMAGES

  1. Financial Management Assignment, Version-2

    financial management assignment conclusion

  2. Financial management

    financial management assignment conclusion

  3. Financial Management Assignment Helpand How It Is Helpful

    financial management assignment conclusion

  4. Assignment On Financial and Management Accounting

    financial management assignment conclusion

  5. Financial management assignment (f) summarized 4

    financial management assignment conclusion

  6. Financial Management assignment v3 (1)

    financial management assignment conclusion

VIDEO

  1. Scope and Objectives of Financial Management

  2. Financial Management Internal Assessment Answers Bcom Prog 3rd Semester SOL Financial Management

  3. (2) Chapter 5- Limitations of the Statement of Financial Position

  4. GROUP 16 , FINANCIAL MANAGEMENT (GROUP ASSIGNMENT)

  5. Financial Management Regular Question Paper Solution l Semester 3 l Jan 24 Exams l B Com l

  6. Financial Management

COMMENTS

  1. 18 conclusion and recommendation financial management

    1.8 Conclusion and Recommendation Financial management is an essential discipline as it guides the financial managers to make informed financial decisions in their companies. Financial management is guided by several principles that the managers should adhere to in ensuring that the finances of a company are appropriately invested.

  2. Crafting a Powerful Financial Management Assignment

    Conclusion. In conclusion, writing a financial management assignment necessitates having a firm understanding of the subject and strong research abilities. You can write an engaging essay by studying the foundations of financial management, doing extensive research, and logically arranging your assignment.

  3. Financial Management Explained: Scope, Objectives & Importance

    September 4, 2023 In business, financial management is the practice of handling a company's finances in a way that allows it to be successful and compliant with regulations. That takes both a high-level plan and boots-on-the-ground execution. What Is Financial Management?

  4. Financial Management Assignment 01

    Financial Management. Assignment 01. Course Instructor: Kassu. Article review title: Determinants of Capital structure Decision Determinants of Dividend Decision ARTICLE REVIEW GUIDELINES Article review activity is designed to enable you to enhance your analytical skill by critically reviewing journal articles, working papers and other similar scientific works.

  5. Financial management (Sample assignment)

    Financial management (Sample assignment) A financial manager must know financial necessities of the company. He should find out financial needs of the company. Financial manager must focus on available funds which are needed to meet promotional expenses, fixed and working capital needs. The necessity of noncurrent assets is related to types of ...

  6. How to Write an Assignment on Financial Management Strategies

    It is crucial to pay close attention to the structure of a financial management assignment to ensure that it is organized and coherent. You'll find tips in this section on how to organize your work to have the biggest impact. ... In conclusion, thorough research, organization, and analysis are necessary when writing an assignment on financial ...

  7. The role of financial management in the company

    ... Financial management plays a key role in any organization, including during digital village implementation [44,45, [51] [52] [53]. This concept has a close relation with management in...

  8. Essay on Financial Management

    Essay # 2. Definition of Financial Management: Financial management is an internal part of overall management and not a staff function of the organization. It is not only restricted to fund raising process but also covers utilization of funds and monitoring its uses.

  9. Conclusions

    Abstract: Summarizes the findings and conclusions of the study. The findings indicate that developing robust FMIS solutions as the source of reliable open budget data (OBD) and measuring the effects of financial management information system (FMIS) on budget transparency continue to be major challenges in many countries.

  10. An Assignment on "Ratio Analysis"

    An Assignment on "Ratio Analysis". A sustainable business and mission requires effective planning and financial management. Ratio analysis is a useful management tool that will improve your understanding of financial results and trends over time, and provide key indicators of organizational performance. Managers will use ratio analysis to ...

  11. Conclusion

    Group Assignments conclusion and recommendation looking at the performance of the company from 2017 to 2019, would recommend investors to invest more in the ... My Library. Conclusion - Group Assignments. Group Assignments. University The University of the South Pacific. Course. Financial management (Af208) 239 Documents. Students shared 239 ...

  12. Conclusion to financial statement Analysis

    Conclusion This Project has provided me with valuable skills in generating cash flow statements and conducting ratio analysis. The knowledge I have gained about financial statements is applicable to daily business and commerce activities.

  13. BWFF 2033 : FINANCIAL MANAGEMENT 1

    CONCLUSION As a conclusion, Pizza Hut is a great company in managing their productivity. ... Financial Management ASSIGNMENT.pdf. BWFF2033 FINANCIAL MANAGEMENT SEMESTER II 2018/2019 (A182) GROUP ASSIGNMENT TOPIC: ASSESSING FIRM'S FINANCIAL PERFORMANCE Table of Content No Content Page 1 1.0 Introduction 1 2 2.0 Methodology 2-5 3 3.0 Background ...

  14. Financial Management Report: Scope, Objectives and Advantages

    Introduction: Financial Management is a vital accounting activity in any organization. It involves the process of planning, organizing, controlling and monitoring financial resources of an organization with a view of meeting the goals and objectives of the business.

  15. Conclusion to Financial Statement Example

    Conclusion to Financial Statement Example Category:, Last Updated: Pages: Download Table of contents This Project has been very useful to me because I learned how to prepare cash flow statements and ratio analysis. This has improved my knowledge on financial statements which is very useful in business and commerce ever day.

  16. Financial Management

    Studying Financial Management at Universiti Tunku Abdul Rahman? On Studocu you will find 14 lecture notes, 14 tutorial work, 13 mandatory assignments and much more ... Financial management assignment ecorp 345; FM assignment Part A - Formulate the most commonly used methods of investment evaluation to differentiate ... Essays. Date Rating. year ...

  17. Financial Management: Introduction, Definitions, Scope, Significance

    In a nutshell, financial management -. Endeavors to reduce the cost of finance. Ensures sufficient availability of funds. organizing controlling. Source: Pixabay. Some Definitions. "Financial management is the activity concerned with planning, raising, controlling and administering of funds used in the business.". - Guthman and Dougal.

  18. ASSIGNMENT 1 ADVANCED FINANCIAL MANAGEMENT

    ASSIGNMENT 1 ADVANCED FINANCIAL MANAGEMENT Darshit Agrawal 1. Cipla 2. Glenmark 3. Ajanta Pharma THEOROTICAL BACKGROUND:-1. LIQUIDITY RATIOS:-They are a class of financial metrices used to determine a company's ability to pay off its short term debt obligations. Common liquidity ratios are current ratio and quick ratio. See Full PDF Download PDF

  19. Financial Management Assignment

    Call us: +44 - 7497 786 317 Email: [email protected] Critically discuss and assess the impact of risk and uncertainty on the financial decision- making process and be able to appropriately advice others on the basis of analysis. Risk and uncertainty relate with the future of business.

  20. Financial Management Report: Scope, Objectives and Advantages

    Financial Management is a necessary payroll activity in any organization. It involves the process of planning, organizing, controlling and monitored financial resources of an organization with a view of meeting the goals and objectives

  21. conclusion on Financial Management

    Conclusion on Financial Management Expert-Verified Answer question 2 people found it helpful parulsehgal06 report flag outlined Answer: Conclusion of Financial Management Defination- "Financial management is the activity concerned with planning, raising, controlling and administering of funds used in the business." - Guthman and Dougal

  22. Financial Management Assignment, Essay Example

    The listed company must have an aggregate pre-tax income of at least $10 million for the last 3 years, depending upon the financial criteria it chooses to satisfy. Alternatively, the listed company may have a global market capitalization of $150 million to $750 million, again depending upon the valuation criteria it chooses to meet (NYSE).

  23. Financial Management Report: Scope, Goals press Advantages

    Introduction: Financial Management is ampere vital accounting activity in any order. Items involves aforementioned method of planning, organizing, leading and monitoring financial tools is an organization with a view of meeting the goals and objectives of the trade.