Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Limitations of Traditional Approach in financial management?
Limitations of Traditional Approach: - The traditional approach continued till mid 1950's. It has at the present been discarded as it suffers from the following limitations:
(i) More Emphasis on Raising of Funds: - This approach places more importance on procurement of funds from external sources and neglects the issues relating to the efficient utilization of funds. Since it is concerned with the increasing of funds it attaches more importance to the viewpoint of external parties who provide funds to the business as well as completely ignores the internal persons who make financial decisions.
(ii) Disregard the Financial Problems of Non-Corporate Enterprises: - It places more importance on the problems faced by corporate enterprises in procuring the funds. The non-corporate enterprise like solitary proprietorship and partnership firms are considered outside its scope.
(iii) Disregard Routine Problems: - This approach focus on the financial problems on the occurrence of special events such as incorporation, merger etc and fails to consider the day-to-day financial problems of a normal firm.
(iv) Disregard Working Capital Financing: - This approach gives more importance on the problems relating to long term financing as well as the problems relating to working capital financing are considered outside the purview of this approach.
Define the importance of mutual funds in the investment intermediaries. Mutual funds: Mutual funds pool resources by several companies and individuals and invest these re
The collaterals used in the repo market are high quality securities; but they are also not free from credit risk. In our earlier example, we see the dealer borrow
Wealth Maximisation Decision Criterion This is also called as value maximisation or net present worth maximisation. Presently academic literature value maximisation is almost u
investors in capital market
Q ualification criteria We discussed how to prepare the bid documents. Let us now see what criteria should be considered to qualify a bidder. You will have to open bidding
sk company had the following balance sheets and income statements over the last 3 years
Examples of ICQ's and ICEQ's ICQ: "Does an authorised senior person review purchase invoices before payment is made?" ICEQ: "Can payments be made on purchase invoices th
Compare diversifiable and nondiversifiable risk. Which do you believe is more significant to financial managers in business firms? Actually Diversifiable risk can be dealt with b
Jack needs to borrow $1,000 for the next year. Bank South will give him the loan at 9 percent. Suncoast bank will give him the loan at 7 percent with a $50 loan origination fee. Fi
Q. What do you meant by Yield? Investment should be in such securities which yield the highest return. However, safety should not be sacrificed at the expense of yield. How
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd