Explain about modern approach of financial management, Financial Management

Assignment Help:

Q. Explain about Modern Approach of financial management?

The modern approach considers the term financial management in a broad sense. According to this approach the finance function covers both acquisitions of funds as well as their efficient utilization. According to this approach the financial management is concerned with the solution of three major problems relating finance:

(1) What is the total amount of funds an enterprise should commit?

(2) How must the funds required be raised?

(3) In what precise assets the enterprise should invest its funds? Therefore in the modern approach the financial management is responsible for taking three decisions.


Related Discussions:- Explain about modern approach of financial management

Walter''s dividend model, explain the assumptions underlying Walter''s divi...

explain the assumptions underlying Walter''s dividend model?

Extendible reset bonds, Extendible reset bonds are floaters in which ...

Extendible reset bonds are floaters in which the issuer is required to reset the coupon rate so that the issue will trade at a predetermined price (usually above

Minimax decision, How to compare minimax and maximin with figures and comme...

How to compare minimax and maximin with figures and commentary ?

Which ratios would a banker be most interested, Which ratios would a banker...

Which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan? Explain. Bankers and another lenders use li

Explain pro forma financial statements and a cash budget, What is the diffe...

What is the difference between pro forma financial statements and a cash budget?  Explain why pro forma financial statements are not used to forecast cash needs. Pro forma

Absolute performance standard, Absolute Performance Standard is a method of...

Absolute Performance Standard is a method of measuring an organization's development and how effective and efficient it is at operating its business. The absolute performance stand

Modified duration versus effective duration, Modified duration is use...

Modified duration is used to determine the percentage change in the bond's prices for a 100 basis point (1%) change in the yield. The underlying assumption is tha

Graphic presentation of organisation of finance function, Q. Graphic Presen...

Q. Graphic Presentation of Organisation of Finance Function? Graphic Presentation of Organisation of Finance Function: - The following chart describes the organization of the f

Define decision to not permit price to ration goods, What reasons do govern...

What reasons do governments frequently give to justify the decision to not permit price to ration goods? (a) Price gouging is bad. (b) Income is unfairly distributed. (c) Some

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