![]() ![]() Once the funds are procured, they should be utilized in maximum possible way at least cost. To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.To ensure regular and adequate supply of funds to the concern.The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise.Dividend for shareholders- Dividend and the rate of it has to be decided.Net profits are generally divided into two: Dividend decision- The finance manager has to take decision with regards to the net profit distribution.Financial decisions- They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby.Investment in current assets are also a part of investment decisions called as working capital decisions. Investment decisions includes investment in fixed assets (called as capital budgeting).It means applying general management principles to financial resources of the enterprise. ![]() Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. ![]()
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