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Financial Management is important for the development, management and controlling of the entire organization. Let’s learn how Financial Management functions within a organization. Read more at: https://managementpaper.com/sample-paper.php
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Introduction: Planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise are called Financial Management.
Estimation of capital requirements: A finance manager is behind the estimation with regards to capital requirements of the company.
2. Deciding of capital composition: After the estimation has been ready, the capital structure must be determined.
3. Choice of sources of funds: • A company has many choices like- • Shares and debentures issues • Loans are taken from banks and financial institutions • Public deposits are drawn in form of bonds.
4. Investment of funds: Allocation of funds into profitable ventures is decided by the finance manager. Therefore safety is maintained on investment and standard return is made feasible.
5. Disposal of surplus: • A finance manager makes the net profits decision. This is done in two ways: • Bonus declaration • Preserved profits
Conclusion: Financial management is responsible for coordinating diverse activities in the business. Thus, financial management plays the pivotal part in the success of any firm or organization.
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