Financial evaluation and decision making, Financial Management

Financial Evaluation and Decision Making:

The final major element of financial management is the evaluation of the information provided through the accounting and budget process.

Financial evaluation assesses the overall performance of the business, and the performance of the business in certain areas.

The main area on which evaluation focuses is with financial ratios.

Similarly, financial evaluation may include benchmarking, where an established set of financial figures gained through the assessment of a number of similar organisations is used as a comparison with the particular organisation in question.  Where discrepancies exist between a benchmark figure, and that achieved by the organisation, the organisation can make decisions based on improving the businesses performance in that particular area. Again, without the benefit of accurate accounting and budgeting, the value of benchmarking exercises would be limited.

Posted Date: 10/1/2012 3:59:11 AM | Location : United States







Related Discussions:- Financial evaluation and decision making, Assignment Help, Ask Question on Financial evaluation and decision making, Get Answer, Expert's Help, Financial evaluation and decision making Discussions

Write discussion on Financial evaluation and decision making
Your posts are moderated
Related Questions
What are the IFRS 8 operating segments IASB issued IFRS 8 operating segments in November 2006 (which replaced IAS 14). This continues IASB's work in its joint short-term conver

Which ratios would a potential long-term bond investor be most interested in? Explain. Potential and Current lenders of long-term funds, such as bondholders and banks, are con

Issuing Procedure of treasury bills As discussed above, the RBI on behalf of central government, announces the auctioning of T-bills by tender notification through the press. T

Identification the management risk: The first and most essential aspect of risk management is recognising what events may occur within a business.  It is only when all the poss

FORMS OF DIVIDEND Cash Dividend Many Companies pay dividend in cash. Often cash dividend may be supplemented by a bonus issue (stock dividend).  When the company chooses


Assume that you work with a large financial consulting firm. You are one of the junior financial consultants there specializing in IPO issue. A team of foreign investors has recent

Weak form level of efficiency This level states that share prices fully reflect information in historic share price movement and patterns (past information/historic information

Ask question #Minimum 100 words accepted

How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit.