Finance is a vast area of facts, principles and theories dealing with various ways of raising and using it by individuals and others. It deals with how individuals and companies divide their business income between consumption and how to choose from among the available investment opportunities and how they raise money for increased consumption or investment.
It also encompasses the study of financial Markets, institutions and activities of Government, with stress on those aspects relating to financial decisions of individuals and companies. In fact finance is so indispensable, that it is rightly said that Finance is the Life Blood of an Enterprise.
Finance acts, as a mainspring in a watch, where without the mainspring the watch is of no use, that is mainspring is a must for the perfect functioning of the watch. Finance
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1.1 Objectives of Finance: -
The main objective of finance is to arrange as much as funds for the business enterprise as required from time to time. The other objectives of finance are as follows:
1. Acquiring sufficient funds:
This objective of finance is to fulfill the financial needs of an enterprise and to find out suitable sources to raise the funds. The funds could be raised from Long-term sources like Share Capital, Debentures, Term Loans and Owner funds and from short term sources like shot term investment, loans and advances etc.
2. Increasing Profitability:
Is one of the important objective of finance. This objective aims at increasing profitability of the concern. To increase profitability sufficient funds will have to be invested. The finance function should be so planned that the concern neither suffers from inadequacy of funds nor surplus of funds then required. The cost of acquiring funds should be such that it results in maximum
This step involves short and long term debt equity analysis. The proportion of equity capital depends on the possessing and additional funds will be raised. The choice of the source of funds the company has are the issue of shares and debentures, loans to be taken from banks and financial institutions and public deposits to be drawn in form of bonds. The choice will depend on relative merits and demerits of each source and period of financing. The management of the investment funds is key in allocating that the funds are going in the correct place. The profits that are made can be down in two ways dividend declaration which includes identifying the rate of dividends and retained profits in which the volume has to be decided which will depend upon expansion and diversification of the company. The management of cash is another important function. Cash is needed for all different aspects of the company such as payment of salaries, overhead and bills. All of these are important in a company and how successful the financial aspect is going to be.The financial management practices include capital structure decision, investment appraisal techniques, dividend policy, working capital management and financial performance assessment. A company needs to have well financial in order to be successful. “A company that sells well but has poor financial management can fail.” (Johnston)
Financial Management: “The process for and the analysis of making financial decisions in the business context.” (Cornett, Adair, & Nofsinger, 2016, p. 5).
The finance function and its relation to other decision-making areas in the firm; the study of theory and techniques in acquisition and allocation of financial resources from an internal management perspective.
Second, financial managers use economic principles to guide them in making financial decisions that are in the best interest of the firm. In other words, finance is an applied area of economics that relies on accounting for input.
A: That would definitely be Corporate Finance. It provides the knowledge of finance that relates to use the capital investment effectively to run the business
The purpose of a finance department is to assist the business in achieving profit levels. This can be achieved by;
* Finance is the study of how people and businesses evaluate investments and raise capital to fund them. Our interpretation of an investment is quite broad.
I believed financial sector is one of the fastest growing and most influential elements in our modern society and economy. Financial professionals help companies and organizations stay on top of their own finances, which is a top priority in the wake of the recession. The growing of financial services in the world has brought massive opportunities to utilize newer principles, methodologies, tools and practices in the field of finance. It is this challenging field in which I would like to gain expertise.
Finance is the study of applying specific value to things we own, services we use and decisions we make. Financial management is the process for and the analysis of making financial decisions in the business context. The major subareas of finance are investments, financial management, financial institutions, market, and international finance. Risk is a potential future negative impact to value and or cash flow. It is often discussed in terms of probability of loss and the expected magnitude of the loss.
Financial Management is a critical aspect of any business in order to achieve a sustainable and efficient cash flow. It is essential in maintaining the link between a business’s future financial goals (profit maximization) and the resources that it has in order to achieve its objectives. Businesses demand certain common goals that increase a bussiness's all around achievement, Some of which involve; growth amongst assests, An increase in efficiency in all areas of the business whether it be management or not. And the ability to meet short term and long term debts. Finacial management undertakes the responsibility to implement and acheive these goals for the business using a range of strategies shaped to meet the needs of the business and
There are various reasons why finance may be required. Some of the reasons for obtaining finance include to start up a new business, to expand an existing business, to be able to deal with unexpected problems in an existing business, and to be able
Financial Management Introduction = == == == ==
To address finances and its application in life many things have to be considered. We can either
In the business world companies are always trying to maximize their earning potential by strategically investing in short-term financing. In terms of finance short-term may mean months or even a couple of years. The type of finance method that is used is contingent on the specific needs of the corporation. These methods include trade credit, bank credit, financing through commercial paper, foreign borrowing, and the use of collateral, accounts receivable financing, inventory financing and hedging to reduce borrowing risk.
Finance is probably one of the most significant part of our life, it is involved in all kind of activities. No matter where you are and what you are doing, we all face difficulties in making decisions in how and when to use money. Talking about finance, most of people would link it with monetary terms, material possessions and investment to increase personal assets. For me through finance is more about budgeting. However, I consider it not only as a money management tool to balance my expenses and follow my business’s financial performances but also as an instrument that gives me an opportunity to expand my comfort zone. There are a few vital aspects of finances in my life that I am going to explore in this essay, including personal