Essays on financial management
Financial Management has been defined differently by different scholars. Weston and Brigam. Financial Management is the application of the planning and control functions to the finance function. From the above definitions, it is clear that financial management is that specialised activity which is responsible for obtaining and affectively utilizing the funds for the efficient functioning of the business and, therefor, it includes financial planning, financial administration and financial control.
They should be so laid down that they contribute directly towards the achievement of overall business objectives. Objectives provide a normative framework within which a firm is to take decisions. Financing is the functional area of objective of the business and contribute directly towards it.
The main objectives of a business are survival and growth. In order to survive ups and downs in the business, the business must earn sufficient profits and it should also maintain proper relations with shareholders, customers, suppliers and other social groups. Scope of Functions of Financial Management The finance department of an enterprise performs several functions in order to achieve the above objectives. The scope of finance function is very wide. It consists of the following activities: 1.
Estimating the Requirement of Funds :- The finance department must estimate the capital requirements of the firm accurately for long term and short term needs.
In estimating the capital requirements of the business, the finance department must take help of the budgets of various activities of the business e. In the initial stage, the estimate is done by promoters but in a growing concern, it is done by the finance department. Unless the financial forecast is correct, business is likely to run into difficulties due to excess or shortage of funds. Correct estimates ensure the availability of funds as and when they are needed.
In estimating the requirement of funds, nature and size of the business, modernization and expansion plan should be given due consideration. Determining the Capital Structure :- By capital structure we mean the kind and proportion of different securities for raising the required funds. Once the total requirement of funds is etermined, a decision regarding the type of securities to be issued and the relative proportion between them is to be taken.
The finance department must determine the proper mix of debt and equity. It should also decide the ratio between long term and short term debts.
Financial Management Essay examples
In determining these ratios, cost of raising finance from different sources, period for which funds are required and several other factors should be considered. A proper balance between risk and returns should be maintained. Choice of Sources of Finance:- A company can raise funds from different sources e.
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Before raising the funds, it has to decide the source from which the funds are to be raised. The choice of the source of finance should be made very carefully by taking a number of factors into account such as cost of raising funds, conditions attached, charge on assets, burden of fixed charges, dilution of ownership and control etc. The advantages include the following features: simple to calculate and understand; uses project cash flows rather than accounting profits and hence is more objectively based; favours quick return projects which may produce faster growth for the company and enhace liquidity.
On the other hand it is possible to point out some disadvantages of the Payback method used in Table. The first, Payback described in the Table does not measure overall project worth because it does not consider cash flows after the payback period. Payback provides only a crude measure of the timing of project cash flows.
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Look no further than ProfEssays. You simply place an order with the writing instructions you have been given, and before you know it, your essay or term paper, completely finished and unique, will be completed and sent back to you. It is first important to first define financial planning and financial management The three most important financial statements are the balance sheet, the income statement and the statement cash flows.
To decrease the amount of error or fraud companies go through an audit. An audit is normally conducted by a third party an accountant employed by an outside company Tianhong Asset Management which is affiliated with Alibaba has become the largest fund company in China within one year while Ezubao, an A2P platform for financing, leasing and equity transfer, was accused of illegal fund-raising. Better Essays words 2. Accountants keep a record of all incoming and outgoing financial transactions that happen within a business and are considered to be valuable advisors to business owners and company management where financial matters are concerned.
These companies expand due to reasons that would include the need to enter and explore new markets, acquiring cheaper resources and labor for production purposes, for reducing operational costs and all of these would significantly have an effect on the financial management of the organization Consumer demands, regulatory concerns, shareholder interests, and employee relationships all require attention from the business perspective.
However, one of the highest priorities for any business is financial management. It is difficult, if not impossible, to meet the needs of a business without an adequate cash flow. In the short-term, financial deficits can be only a bump in the road, however long term cash flow difficulties indicate further intervention is needed Money is needed in order to plan, build, open, operate and maintain such facilities Fried, Financial management at sporting venue involves ensuring that the venue is profitable and operates effectively within the resources it is allocated Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient Financial Management, Her team explains that the computers are the problem and that the software programs are too difficult to use and that many hours of manual manipulation of data are required to complete monthly reports Colorado State University-Global Campus, , p.
The management dilemma can be described as: Delays in financial reporting. Appendix, Worksheet box 1. Upon further examination, the specific management question to be addressed is: Can financial data management be made more efficient Strong Essays words 2. The general meaning of bankruptcy is the point at which somebody has credit debt that they are making payments on and can no more make those installment because of occupation misfortune, market investment losses or any kind of income loss that prevents them to make their installments schedule.
At the point when a person can no more make these payment they seek for a financial company that specializes in bankruptcy In relation to shareholders value as it relates to corporate finance, the main idea is to maximize shareholders value. This is derived by implementing measures to get competitive advantages in industries of which companies operate. These measures and procedures include the raising of funds, investing, handling perceived risk and anticipating required return. Before swearing off restaurants or cutting up your credit cards, read the following 8 solutions, which will help get you back on top of your finances.
Know where you spend your money. Failing to track your spending is a sure way to get caught off guard With the invention of the internet, telephones, airplanes and the like, we are more connected to other countries than ever before. With a click of a button we can purchase an iPad from Apple and have it delivered to our house within a week. Seems like an easy feat, but if you consider that iPad is coming directly from a factory in China rather that the home office in Cupertino, California, it is easier to understand the meaning of a global economy The ability to manage personal finances has become very important in our world today.
The History Of Financial Management And Control Finance Essay
Hira states that financial education is much demand in a wide range of entities including banking companies, government agencies and community interest groups, universities, schools and other organization. It measures the capacity of the individual on how to cope a problem related to personal finance. This study was designed to evaluate the financial management skills regarding on handling their personal finances Strong Essays words 3 pages Preview.
Many large corporations and businesses such as Ford, Chrysler, and G. Financial managers are the owls of a companies finances and everything in between them and their agencies.
Extract of sample "Strategic Financial Management"
With a variety of other fields present, I personally feel financial management is the perfect fitting for me because I am a scholar in math, who loves dealing with money, and works well with others Strong Essays words 3. The internal control of these resources is their effective and efficient management through their allocation to ensure acceptable incomes by the people and stability of the local and public economies in a given city like Verdemont Matthew, The local government of such city should ensure its internal control is effectively enhanced to ensure the cities activities have effective administration and design approaches especially on finance projects in the Good Essays words 2.
Their function can come in two approaches; one being an executive finance function which involved mainly decisions, the second is the routine finance function. These could be such things as supervision of cash receipts, safeguarding of cash balances, and custody of valuable documents, mechanical details of financing, record, reporting to top management and supervising fixed and current assets.
For a financial manager, it is important to approve or reject the lines of credit, and commercial, real estate, and personal loans It believes that though the capital structure is not optimal and should have lower portion of debt, looking at the current state of things, the capital structure cannot be changed.
Free Essays words 3. Erhun, Goncalves and Hopman defines demand risks as those that reflect the market for the new product and supply risks as internal processes for supplying the product. The primary potential risks to the company associated with the introduction of Multi-Plate are the upfront costs of plant and equipment modifications supply risk , properly training the sales and manufacturing teams supply risk , raw material forecasting and upfront cost supply and demand risk , managing customer expectat Better Essays words 5.ipdwew0030atl2.public.registeredsite.com/191141-the-best-cell.php
Financial Management Essay: Preparing for Strategic Planning
Interpublic Group IPG is a multi-global company specializing in consumer advertising, digital marketing, communications planning and media buying, public relations and specialty marketing Here at Hera Wealth Management, we want to make sure you are comfortable with all the recommendations and changes in the plan. We are willing to make any necessary changes if you are unhappy with anything. In this section, we will show you your overall financial situation using financial planning ratios that demonstrations a better understanding of your finances in relation to each area covered in the plan For instance, risk appraisals are regularly taking into account chronicled information, for example, changes in house costs after some time.
Yet, fast financial advancement, including securitized subprime contracts, has made such information untrustworthy. This is because Richard decided to focus on investing in new products that can make the farm to better their performance. One of the capital budgeting objectives is increase resources through proper allocation of resources. Richard decided to introduce a new product and sell it during a festive season. He later invested heavily in it when he realized its potential. He bought and leased farming machinery to ease farming More specifically, financial management is the subset of management that focuses on creating financial information that can be used to enhance decision making Calabrese et al.
With this definition, healthcare managers should be responsible to organisational tasks to maximize the best possible way to reach organisational goals and the proper resources with financial and human resources, considering the reason of organisation for exi In Chapter 31 one of the "pulse points" is "manage by walking around If so, how often and if not, why do you think the facility managers do not walk around.
I see this being done on numerous occasions. It allows the managers to stay connected with the employees, it allows them to also check in with them, and also to see some of the employees in action It is also concerned with evaluating the financial resource of a business. Strategic financial management is about setting the goals throughout the business and deciding what resources will be needed to achieve these goals. Powerful Essays words 5. A developing country always be related to financial development. From now, business activity is expanding and getting excited for people.
People are likely to have their own business, so there are lots of the businesses opening all around the world. Business activity is not about selling a product and taking money from that; it is a combination process by lots of different business laws and how to manage a business The collapse of several companies due to financial statement fraud over the years has shown companies that no one is immune or protected from having deficient or irrelevant risk management procedures or falling victim to financial statement fraud Brown, et al.
Companies in any type of industry need to protect themselves from financial statement fraud and should have the ability to create a policy with the full recognition of risk and the creation of a relevant set of operating processes so management is able to answer to developing situations as they occur Given that the offices to be established are virtual, advanced technological tools will be required to ensure successful running of the offices while maintaining smooth communication. For every project to be successful there must be strong leadership, appropriate planning using management tools and processes as well as techniques for projects implementation Pritchard, Strong Essays words 4 pages Preview.
Cash and cash equivalents are one of the most essential working capital components to be managed by all company. It consists of currency notes, marketable securities and treasury bills, etc. The motives for holding cash are transaction motive, precautionary motive and speculative motive It has not gone unnoticed that the economy is not in its best possible shape.