Question

In: Finance

make a summary of "the scope of financial management"

make a summary of "the scope of financial management"

Solutions

Expert Solution

Financial Management is the process of planning, raising, controlling and administering all the funds used in the business. Financilal Management is an important function in all the organisations now a days because finance is the most important resource for any organisation.

Scope of Financial Management is as follows:

1) Evaluating Investment Decisions: : Managers in all the organisations need to evaluate the investment decisions before they are actually implemented because these are the responsible for the overall growth of the organisation. Investment decisions which are accurate increases the profits of the organisation and the finance manager has to evaluate the decisions carefully.

2) Taking Financial Decisions: The Finance manager has to take decisions regarding the sources from which the finance has to be raised in the company. These sources can be either short term or long term. Raising finance through debt required payment of interest on the debt value. The finance manager has to ensure that adequate funds are available in the organisation as and when required.

3) Dividend Decisions: The finance manager has to ensure that the owners of the organisations are always satisfied and in order to achieve this he has to make sure that a part of the profits of the organisation has to go to the shareholders as dividend. The finance manager has to apportion the profits of the company in such a way that both the shareholders and the company are at a better position.

In this way the financial management in an organisation is required to ensure that the funds are used in an efficient and effective way.

Hope I am able to solve your concern. If you are satisfied hit a thumbs up !!


Related Solutions

Define financial management. Discuss in detail the scope of financial management.
Define financial management. Discuss in detail the scope of financial management.
explain the scope of financial management by your own words!
explain the scope of financial management by your own words!
The Scope and Environment of Financial Management Financial Statements and Financial Statement Analysis Directions: Look for...
The Scope and Environment of Financial Management Financial Statements and Financial Statement Analysis Directions: Look for a company that is publicly listed in Bahrain Bourse. Secure a copy of their Financial Report (Latest). Please do not forget to attach the copy of the financial statements (Income Statement, Balance Sheet). Using the Financial Report, provide the following ; Requirements; Compute and provide the general interpretation for the following Financial Ratio; Current Ratio Quick Ratio Average Collection Period Debt Ratio Net Profit...
1. Briefly describe ‘scope’, ‘deliverable’, and ‘project scope management’.
1. Briefly describe ‘scope’, ‘deliverable’, and ‘project scope management’.
How to make outline and summary for written report in subject business policy and strategies management?...
How to make outline and summary for written report in subject business policy and strategies management? Title: Aligning Strategy and Organizational Structure Outline => ????????????????????????? Objectives Analyze a methodology developed and applied to align organizational structure with strategy through business processes analysis. Introduction Aligning organization structure to strategy is crucial for strategy execution success. The organization structure needs to support the strategy and its execution. When possible, management must ensure that the organization structure is clear, decentralized and formalized. When...
What is NOT included in the project scope management processes:
What is NOT included in the project scope management processes: plan scope management collect requirements define scope create WBS legal judgement
The goal of financial management in a for-profit business is to make decisions that increase the...
The goal of financial management in a for-profit business is to make decisions that increase the value of the stock or, more generally, increase the market value of the equity (‘shareholder value’). We also learn that book values on an accounting balance sheet can be very different from market values, and that a goal of financial management is to maximize the market value of the firm’s stock, not its book value, and that corporate finance has three main areas of...
Develop a financial management dashboard for a division within Eskom including the following: 1. A summary...
Develop a financial management dashboard for a division within Eskom including the following: 1. A summary of the organization's strategic goals 2. A strategy map linking key performance indicators to the selected strategic goals 3. A list of four selected financial measures for your area of authority with a short justification for your selection to show how these measures will support achievement of the strategic goal. 4. A dashboard showing month-to-month performance for the last two measures you have selected...
The context and purpose of financial reporting 1 The scope and purpose of, financial statements for...
The context and purpose of financial reporting 1 The scope and purpose of, financial statements for external reporting (a) Define financial reporting – recording, analysing and summarising financial data. (b) Identify and define types of business entity – sole trader, partnership, limited liability company. (c) Recognise the legal differences between a sole trader, partnership and a limited liability company. (d) Identify the advantages and disadvantages of operating as a limited liability company, sole trader or partnership. (e) Understand the nature,...
Make at least 5 connections between financial literacy and wealth management.
Make at least 5 connections between financial literacy and wealth management.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT