Business finance and financial management, Finance Basics

Business Finance and Financial Management

Business finance is the process through which a financial manager or accountant gives finance for business use as and whenever it is required.  This provision has to be undertaken on the basis of the requirements of a company. On the other hand, Financial Management is a branch of economies concerned along with the generation and allocation of scarce resources to the most efficient consumer within the economy or as the firm.  The allocation of these resources is done with a market pricing system.  The firm needs resources in form of funds raised from investors.  The funds must be assigned within the organization to projects such will yield the highest return.

1. Requirements Consequent on the Operations of a Company as Basic Requirements

These have to be financed in so far as they arise out of the company's operations as salaries.

2. Shortages of Cash Brought About through Unforeseeable Circumstances E.G Non Payment via Debtors

These requirements have to be financed with short term finances e.g. overdrafts, however this may be against financial prudence rather such desires should be financed along with revolving finances in the circular flow. Although, the financial manager must manage his finances via such tools as:

  1. Cash budget - statement of expected receipts and payments over a projected duration of time - a forecast.
  2. Funds flow statement - (Actual).

Variance among actual funds flow along with cash budget. The variance must be arranged to remain the company liquid.

 

Posted Date: 1/29/2013 12:44:14 AM | Location : United States







Related Discussions:- Business finance and financial management, Assignment Help, Ask Question on Business finance and financial management, Get Answer, Expert's Help, Business finance and financial management Discussions

Write discussion on Business finance and financial management
Your posts are moderated
Related Questions
Dividend yield or Gordon's Model This model is used to determine the cost of various capital components in particular: Cost of equity - K e Cost of preferenc

Relationships and interactions among money, bond, stock and mortgage markets

Determine the Component of Return Rate of return from an investment consists of the two: (i) Yield: Interest or dividend received is called yield. (ii) Capital Appreci



Constant payout ratio 1. This is whereas the firm will pay a fixed dividend rate as like 40 percent of earnings. The DPS would consequently fluctuate as the earnings per share

explain the main sources of finance ?

ksklklsdfmklsnakakngjkalkgblakbgklabgklagkbaskgbljas a kalks las lgaskgbak a lv aslglaksglas la sla

Do your experts provide Future Value of Single or Multiple Cash Flows assignment help? I need urgent help in my college assignment.

Development of Plastic Money in Middle Asia Motive behind the Fast Development of This Finance (Plastic Money) In Middle Asia a) High incidences of fraud via dishonest empl