Scope of finance function, Financial Management

SCOPE OF FINANCE FUNCTION

In several businesses, based on the complexity and size of financial decision-making, the scope of finance function may be categorized into incidental finance function and executive finance function. The coverage of functions by both is in this way

Executive Finance function

This function generally is a main function and deals with decision-making and policy making tasks and incorporate with the following:

  • Determining the allocation of entire profits
  • Establishing asset management policies
  • Deciding upon sources & needs of external financing
  • Controlling and Estimating cash flows & requirements
  • Checking upon financial performance.

Incidental Finance function

This function is much more than an implementation and maintenance type and covers the following functions:

  • Supervision of disbursements & cash receipts
  • Safeguarding of cash balances
  • Custody & safeguarding of securities, and other valuable papers
  • Taking care of the mechanical factors of financing
  • Record keeping, reporting .
Posted Date: 10/15/2012 8:48:40 AM | Location : United States







Related Discussions:- Scope of finance function, Assignment Help, Ask Question on Scope of finance function, Get Answer, Expert's Help, Scope of finance function Discussions

Write discussion on Scope of finance function
Your posts are moderated
Related Questions
discuss the steps in the controlling process

Determine the Working Capital Decision Investment in current assets is a major activitythat a finance manager is engaged in a daily basis. How much inventory tokeep, how much

Illustrate the comparison between equity and debt Equity and Debt: A Comparison 1. Equity shares don't carry any fixed charges on them. If company doesn't generate positiv

What is the effect of stock (not cash) dividends and stock splits on the market price of common stock?  Why do corporations declare stock splits and stock dividends? Stock splits

a) A niche market refers to a lucrative and small market segment. Marketing strategy is targeted and concentrated at this specific market segment. Pink Ladies are specifically targ

Q. Consequence of the cash operating cycle? The cash operating cycle is the length of time among paying trade payables and receiving cash from receivables. It is able to be cal

Why is the coefficient of variation often a better risk measure when comparing different projects than the standard deviation? Whenever we wish to compare the risk of investmen

Budgeting and Budgetary Control: The next element of financial management is budgeting and budgetary control.  Budgeting is an integral part of the management accounting proces

The syringe management program tries to educate society by increasing the capacity and quantity of the syringe disposable centers , providing timely responses to all syringe compla