Traditional approach of financial management, Financial Management

Assignment Help:

Q. Traditional Approach of Financial Management?

Traditional Approach: - Under this schema the role of financial management was limited to the procurement of funds on suitable terms. The utilization of money was considered out of the scope of financial management. Under this schema a study of the following three things was made for the procurement of money:

(1) Arrangement of money from Financial Institutions.

(2) Arrangement of money through financial Instruments like share and bonds etc.

(3) Legal as well as accounting relationship between a business and its source of funds.

The prominent feature of the traditional approach was the assumption that the duty of the finance manager was only to increase funds from external parties and that he wasn't concerned with taking the internal financial decisions. He wasn't responsible for the efficient utilization of funds.


Related Discussions:- Traditional approach of financial management

Commercial paper, Commercial Paper (CP) is a short-term unsecured pro...

Commercial Paper (CP) is a short-term unsecured promissory note issued in the open market. It also represents the obligation of the issuer. Normally, it is issued

Explain the benefits of delegation from point of view of yt, YT is the Fina...

YT is the Finance Manager of SBM Magazine Publishing Company. He has recently had his appraisal and was expecting that he would get a excellent review, as he felt that he had met a

Statement of total comprehensive income, At 31 July 2010 this instrument me...

At 31 July 2010 this instrument meets the definition of a derivative: Small or no initial investment. Its value is dependent on an underlying economic item; exchange ra

Cost of Capital, The Nu-Nu Brothers Inc. (NNBI) has the following capital s...

The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''s expected net income t

Profit and loss statement, Profit and Loss statement:   The Profit and L...

Profit and Loss statement:   The Profit and Loss statement is the primary measure of business performance.  As the name suggests, this particular report measure whether the b

Funds management, who are the participants in the hedge funds industries

who are the participants in the hedge funds industries

Accrued interest, When an investor buys a bond in between coupon paym...

When an investor buys a bond in between coupon payments, he is supposed to compensate the seller with the coupon interest earned on the bond from the last coupon

Yield to put, Yield to put is the rate at which the present val...

Yield to put is the rate at which the present value of cash flow to the first put date is equal to the price plus interest rate. It is used for

Evaluation of money-market hedge, Evaluation of money-market hedge Expe...

Evaluation of money-market hedge Expected receipt after 3 months = $300000 Dollar interest rate over three months = 5.4/ 4 = 1.35% Dollars to borrow now to have $300000 l

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd