Uploaded by Jennifer Richards

Financial Management and Its Functions

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Financial Management and Its Functions:
Introduction
The financial management can be managed
with the acquisition, issuance, and authority
over the financial resources. It is considered for
the continuation and equitable supply of the
goods. The returns of the company entirely
depend upon the expectations of the
shareholders. And utilization of the funds for
maximizing the profit. Safety equipment is also
considered so that the expected rate of return
can be received. It is also beneficial in balancing
the debt and equity of the capital.
1. Estimation
All the expenses are calculated
and the final result is formed to
find the capital requirements of
the company. Specific policies,
costs, future costs, and various
other things are measured for
estimating the capital need of
the company.
2.
Determining the Distribution of Capital
All the expenses are calculated
and the final result is formed to
find the capital requirements of
the company. Specific policies,
costs, future costs, and various
other things are measured for
estimating the capital need of
the company.
3. Sources of Funds
Debentures and shares can be
contemplated along with the
approval of loans from the financial
institutions and banks. Besides, one
can also consider public deposits for
performing other financial activities.
Both the merits and demerits of all
sources are considered. The time
allocated for this is also examined.
4. Distribution of the Surplus, Scrap or Obsolete
Cash is distributed in the form of
payment of wages, salaries and
meeting the expenses of other
liabilities for maintaining the cost of
the other stocks and purchase of the
raw material. Both electronic and
physical form of money is taken into
consideration for covering all
expenses.
5. Management of Cash
The net profits are examined by the
finance manager in two ways. First,
the dividend declaration and the
other is retained profits, the former
one comprises of recognizing the
rate of dividends and other profits
such as bonus. And the latter on rely
on innovative ways to divide the
plans effectively.
6. Meeting financial Uncertainties
Business not only meant to receive
profits but also face several risks in
continuing the purpose of business.
Insurance policies can help one to
manage the threats associated with
the project.
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