Financial Goal – Profit vs Wealth

Financial Goal – Profit vs Wealth

  Financial Goal – Profit vs Wealth Every business has a specific purpose or objective in mind. As a result, the most important purpose of a financial manager is to improve the financial well-being of the owner. In this context, economic welfare could refer to profit maximization or shareholder wealth maximization. As a result, when … Read more

Capitalization in Finance

Capitalization in Finance

Capitalization in Finance The book value, or the amount of a company’s debt and equity, is referred to as capitalization in finance. The current market price multiplied by the total number of outstanding shares yields market capitalization, which is the monetary value of a company’s outstanding shares. What is Capitalization   Share capital, debentures, loans, … Read more

Capital Structure – Meaning and Factors Determining Capital Structure

Capital Structure – Meaning and Factors Determining Capital Structure

Capital Structure – Meaning and Factors Determining Capital Structure   The ratio of different types of securities raised by a company as long-term funding is referred to as capital structure. The capital structure is determined by two factors:       a. The type of securities to be issued, such as equity shares, preference shares, and … Read more

Role of a Financial Manager

Role of a Financial Manager

 Role of a Financial Manager   One of a company’s most significant and difficult operations is its financial activities. As a result, a financial manager executes all of the necessary financial duties to take care of these activities.   A financial manager is someone who is in charge of an organization’s major financial activities. To … Read more

The Role of the Finance Function in Organizational Processes

The Role of the Finance Function in Organizational Processes

  The Role of the Finance Function in Organizational Processes   The Finance Function and the Project Office If modern businesses are to survive the current economic downturn, they must exercise cost reduction. Given that many top-tier organizations are presently experiencing poor growth and decreased activity, they must keep expenses as low as feasible. This … Read more

Finance Functions

Finance Functions

Finance Functions  The following explanation will help in understanding each finance function in detail are below: Investment Decision Financial Decision Dividend Decision Liquidity Decision  1. Investment Decision       One of the most critical financial duties is efficient capital allocation to long-term assets. This is often referred to as capital budgeting. It is critical … Read more

Financial Planning – Definition, Objectives and Importance

Financial Planning – Definition, Objectives and Importance

  Financial Planning – Definition, Objectives, and Importance Definition of Financial Planning Financial planning is the process of predicting the amount of money needed and choosing who will compete for it. It is the process of developing financial policies for an enterprise’s purchase, investment, and management of finances.     Objectives of Financial Planning Financial … Read more

Financial Management – Meaning, Objectives, and Functions

Financial Management – Meaning, Objectives, and Functions

  Financial Management – Meaning, Objectives, and Functions Meaning of Financial Management   Financial Management means planning, directing, controlling, and organizing the financial activities such as utilization and procurement of funds of the enterprise. It means applying the general management principles to the financial resources of the enterprise.   Scope/Elements Investment decisions include the purchase of fixed assets (called capital budgeting). Investment … Read more