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
state the importance of gearing in accounting Gearing is one of the most extensively used terms in accounting. Gearing is the relationship between debt and equitywhich means th

Determine about the synergistic effect When two or more companies join together there must be a synergistic effect. Synergy is when 2 + 2 = 5. Net present value of the two comp

Beta Beta is a measure of the market risk, or methodical risk, of a particular privacy or portfolio. Systematic risk defines any risk that influences the value of a huge numbe

A factoring company has offered a one-year agreement with Glub Ltd to both manage its debtors and advanced 80 per cent of the value of all its invoices immediately a sale is invoi

Significance of Secondary Markets: High liquidity and constant demand in the market need a diversified investor base with different preferences of demand, maturity and risk. Ap

Cash flow duration, like effective duration, considers the change in the cash flow due to prepayment with the change in the interest rate. In effective duration,

Calculate the present value and determine the npv, Financial Management. Assume today is 3 December 2009. Helen is 30 years old and has a Bachelor of Business. She is currently em

A Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds in May 1995 while the exchange rate was 80 yen per dollar. The insurance company liquidated the investment

Letter of Credit (LOC) A popular bank instrument begins that a bank has granted the holder an amount of credit equal to the face amount of the L/C. A bank guarantees payment of

The capital structure of Wild West Inc. is as follows: Debts: $5,000,000 (face value) bonds with coupon rate at 8.00% and current price at par Preferred shares: $2,000,000