Q. Scope of the content of the finance function?

1) Estimating of the finance requirement: the first task of a finance manager is to estimate and short terms and long terms finance of his business. For this purpose he will prepare a finance plan for present as well as future the amount requirement for the purchasing fixed assets as well needs of the funds for the working capital will have to maintain.

2) Deciding the capital structure: the capital structure refers to the kind and different securities for raising the funds. After deciding the quantum of the funds requirement it should be decided which type of the securities should be raised .it may be wiser to the finance fixed assets through the long terms debts. Even here if period is longer than the share capital may be most suitable a decision about the kind of the securities to be employed and the in which these should be used in an important decision which influence the long term and the short finance planning of the enterprises.